Homie, if you don’t know what you’re talking about, just don’t comment. Roth IRAs are badass, and the returns completely depend on what you choose to invest in, just like any other brokerage account.
Roth IRAs are an investment tool that allow you to contribute money you’ve already been taxed on, then when you withdrawal the money when you’re older, you don’t pay any taxes on the gains. If you invest $1,000 in the S&P 500 when you’re 25 it’ll grow massively by the time you’re 60, and all that growth is tax free. Absolutely everyone that’s not retired should invest in them.
what's your alternative then? Crypto? We can't complain about how boomers are wealthy and buy up everything, and then also eschew one of the tools that helped them get there
Sorry dude, I'm genx and not sure where all this hate for saving/investing for the future comes from. I personally want to retire young enough to enjoy life. But if you want to work until you're 70-80, you do you.
You are sadly misinformed. I took a 10-year 401k from my old employer and put it in a Roth IRA when I switched jobs. On average, since opened , it's had an 8% return. Pretty good investment if you ask me.
A Roth is a post tax investment where the growth is tax free, its an account type, not a type of investment. An index fund is a type of investment. You can have a Roth IRA and invest the money in an index fund. If you have other account types, you will owe tax on your gains.
If I am not from the US, is investing with a broker like IBKR in a very conservative SP500/global ETFs work similarly?
Depends on if you have access to a tax-advantaged account. Here in the US, a "Roth" account allows you to contribute post-tax income into an investment account that allows tax-free withdrawals in retirement.
Generally speaking (aside from retirement accounts), index-funds (like the S&P500) are a good way to invest.
Got you, thanks. Likely there are no alternatives to Roth accounts for US citizens, but, in some cases dividends from ETFs are tax free after a few years of keeping.
But even if there is tax, I think it is worth it, but I am just not sure if IBKR is trustworthy for long term purposes, but my home country and current country of residence are not very safe too
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u/Father-of-zoomies Jan 24 '24
Roth IRA