Someone redpill me on this meme

haveahappyday
haveahappyday

someone redpill me on this meme

5mileys
5mileys

fuck off to /pol/

cum2soon
cum2soon

did I say no-no words?

Bidwell
Bidwell

le redpills xDDD

massdebater
massdebater

Not really needed. He's not shilling anything particular, and he's not trying to bait anybody with that little meme. You're actually the problem here, the troublemaker.

You should go read about it for realsies. An extremely practical investment for retirement.

TreeEater
TreeEater

In America, if you're going to hold securities, there's absolutely no better place to do that than a tax advantaged account.

Fuzzy_Logic
Fuzzy_Logic

if you believe your tax bracket will be higher at money takeout, then use Roth IRA to get taxed now.

viagrandad
viagrandad

It's probably the most important account to max out each year because of the flexibility it offers in avoiding taxes when you're old.

Bidwell
Bidwell

I use a Roth IRA because I like the fact that my capital is accessible at any time, even if my gains are not. My employer does not have a 401K and I am already in a low tax bracket (18%), so I don't really *need* to lower my tax rate right now.

I use Charles Schwab and invest in commission-free, low cost dividend index ETFs. My dividends are reinvested and I pay $0 in fees for holding the account.

One of the beauties of the Roth is the estate planning options. Your children can inherit the account and take tax-free disbursements, hopefully growing the account so that their children (and so on) can continue to get tax-free money for life. I have a daughter on the way so it made sense for me.

Inmate
Inmate

Aren't Roth IRAs worse? I read pic related. I don't know why so many people recommend them.

Gigastrength
Gigastrength

Put bonds, reits, and other tax inefficient investment vehicles in there to avoid getting taxed on profits.

Normies fill it with SP500 index when that's a fairly tax efficient investment vehicle because they can't be asked to invest more than 5.5K a year (annual limit).

TreeEater
TreeEater

roth ira's are great if your young and low income, with an expectation to earn more money in the future

SniperGod
SniperGod

Without knowing the future tax rates, as well as an individual's plans for retirement lifestyle, it's difficult to know if it's better or worse.

I split my 401k contributions into half normal 401k, have Roth 401k.

FastChef
FastChef

This chart seems to be comparing a growth strategy to a dividend strategy. Comparing a pre-tax account like a 401k to the post-tax account like the Roth is a more fair comparison. You'll still get somewhat of the same effect but pre-tax contributions are typically limited and getting your money out before the account matures can be very costly.

Ignoramus
Ignoramus

That is dumb, your Roth IRA isn't taxed every year. This might be comparing an IRA to a traditional brokerage account, but even then no gains are taxed until they are realized. This basically makes no sense at all unless it is referencing dividends received or realized gains from closing positions.

Inmate
Inmate

these IRS shills get worse every day

SniperGod
SniperGod

Roth IRA are the best thing if you think you will be paying more taxes when you are older.

Likely scenarios:

1. Insane, dedicated investing by yourself leads to higher income levels due to dividends in the future making a Roth IRA a good idea.

2. Most people get raises or better jobs as their experience increases, hence, a lot of people end up paying more taxes later in their lives as their income jumps past the tax brackets.

3. You are a some sort of neet who will always make the same kind of income level or less as the years go by due to debt mismanagement.
In this case you don't want a Roth IRA. But to be honest if you are already in the lowest tax bracket then your bracket doesn't change, meaning nothing happens.

PurpleCharger
PurpleCharger

As a former poor kid, the last thing I want to do is prop up a future generation. I'd cash something like that out so I don't have to suffer being fucking broke all the time

Soft_member
Soft_member

do you think taxes will be higher later than they are now? If so, then this is an awesome place to own non-dividend, high-appreciation equity. The downside is that you are locking yourself out of your money. shouldn't be the only place you have investments, but it makes a lot of sense in a portfolio with balanced tax exposure.

kizzmybutt
kizzmybutt

this

StrangeWizard
StrangeWizard

Apparently you can't use Pepe anymore either, because Nazis.

Booteefool
Booteefool

Roth IRAs are amazing
Open one you stupid fucks
NO TAX ON GAINS
O

T
A
X

PackManBrainlure
PackManBrainlure

Roth also technically has a higher contribution limit due to using post tax money to fund it.

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