The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retirement

URL:  http://boards.fool.com/i-know-that-an-ira-will-tax-me-now-rather-than-11768779.aspx

Subject:  Re: the best retirement investment-fund is? Date:  1/7/2000  2:32 PM
Author:  alfonsop Number:  3 of 294

I know that an IRA will tax me now rather than later, but does that make it worth it?

Only a Roth IRA will tax you on the money before you put it in, and allow to be tax free during withdraws. Traditional IRAs give you a tax break up front and charge you income tax on your withdraws later.

Also, an IRA of either type will only allow you to put in $2000 per year, unless it is a roll-over from another retirement account.

Or is any type of fund not such a good idea?

If you want to just "set it, and forget it", then an index fund (or their stock-like cousins SPY for S&P 500, QQQ for NASDAQ) are the easiest way to make sure you "keep up" with the market.



Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us