Couple meets with fort worth financial advisor to discuss Roth IRA vs IRA

Roth IRA vs IRA

A secure financial future begins with early Fort Worth retirement planning and with the right type of investments for your needs. That said, many working adults don’t set money aside for retirement early enough, don’t understand the market well enough to choose the right investments for their retirement goals, or both. Thankfully, our Fort Worth financial advisors can not only help you find the best ways to make up for late retirement, but can also help you understand the investment options available for your retirement goals. Two of the options available through our Fort Worth retirement financial advisor are a Roth IRA and a traditional IRA. While similar, they each possess distinct differences, which we’ll explain here so you can make informed decisions for your wealth and your future. 

A Traditional IRA with Our Fort Worth Retirement Financial Advisor 

A traditional IRA is a personal retirement account that builds wealth over time. You pay no taxes on the money you invest at the time of investment, but pay taxes upon withdrawal at whatever the tax rate is at that time. This type of Fort Worth retirement planning account is ideal for those who expect to be in a similar or lower tax bracket upon retirement, when you plan to withdraw your funds. Our Fort Worth retirement financial advisors may also recommend a traditional IRA if the tax rate is low at the time you plan to open the account. There are penalties, however, if you withdraw funds early, as you have yet to pay taxes on these funds. 

How Is A Roth IRA with our Fort Worth Financial Advisor Different?

A Roth IRA is another type of personal retirement account that accrues wealth over time. The main difference from a traditional IRA, according to our Fort Worth financial advisor, is that these funds can be withdrawn tax-free upon retirement. If you open a Roth IRA with our Fort Worth retirement financial advisor, the funds deposited will be taxed at the tax rate in place at the time of investment. Since you have already paid taxes on this money at the time the Roth IRA was established, however, there are no penalties upon withdrawal. Our Fort Worth retirement financial advisors recommend a Roth IRA account to Fort Worth retirement planning clients who are just starting their careers and will likely move into a higher tax bracket over time. If you’re able to initially invest a substantial amount of money into this account, a Roth IRA is a smart choice for your Fort Worth retirement planning portfolio, as it provides a tax-free source of income upon retirement.

Fort Worth Retirement Planning with Retire Guides

Those who know the importance of Fort Worth retirement planning also recognize the benefits of having a trusted Fort Worth retirement financial advisor in their corner who can offer the most lucrative financial planning options on a personalized level. Our expert team knows the complicated investment market and can guide you to make the most for your wealth and your future. Call us today to see how our Fort Worth financial advisors can help you make the right choices that will grow your money over time and ensure financial comfort upon retirement.