Today is a special day in the financial planning blogosphere. Today we financial planning bloggers and writers are part of a special Roth IRA MOVEMENT for a better financial future. We are ORGANIZED AND GALVANIZED to educate you about this valuable financial tool that everyone should consider in their financial tool kit. This tool can literally improve your financial situation by thousands of dollars in retirement. It can give you flexibility, power, and choices in a changing tax rate environment.It can put you in a position to take advantage of sophisticated planning strategies that help you maintain your highest possible quality of life in retirement.
But too many people either don’t know about the Roth IRA, or don’t recognize its potential value to them. And it’s incumbent upon us to educate them. We are committed to your financial success! Can you even imagine a world where everyone is financially empowered and saving adequately for retirement?!? Or how about if you could have a hand in making sure that at least your friends and loved ones are taken care of?
And of course, knowledge is power. And young people today simply MUST take responsibility for their financial futures. And how many people do you know with the lament, “I wish I had started saving for retirement earlier!”
Some of you might not know what the Roth IRA is, but some of you might be very familiar with it. If you’re a savvy and educated investor who has worked with The FWCG Planning team to maximize your Roth IRA options, GREAT! A pat on the back to you! But, PLEASE, there are so many Gen X and Gen Y’ers who don’t know about this tool, and we’re asking you to help just a little bit with our Roth IRA Movement today!
You can help get the word out by forwarding this post to FIVE people you know who are serious about their financial future.
Also, if you are a client of our firm, I’m offering a personal phone appointment with ANYONE YOU REFER where, after an adequate Discovery Interview and if the tool is appropriate for them, I can help them walk through opening a Roth IRA account at Vanguard. I won’t make a single dollar from this offer. I offer it simply because we want to help. Please have your friends, colleagues or loved ones email me at hilary at fwcg dot net to set it up.
Here are some highlights of the features and benefits of the Roth IRA:
- In contrast to the 401k, where you get a tax deduction for contributing to the account this year, the Roth offers no tax deduction this year, but TAX FREE GROWTH. That means if you put $50,000 in a Roth, and it grows to $100,000, you get to take that $100,000 out of the account (after you reach age 59½) and not give Uncle Sam a penny of it. If you save $100,000 in your 401k, you owe ordinary income tax rates (about 35%) on every distribution. So $100,000 in a 401k is worth about $65,000 to you in retirement. $100,000 in a Roth is worth $100,000. There you go! THAT WAS A $35,000 PIECE OF INFORMATION!
- Roth IRA’s are not subject to Required Minimum Distributions during the owner’s lifetime, but 401k and IRA’s are, so you can keep your money intact!
- There are income maximums over which you don’t qualify to contribute to a Roth IRA.
- The max contribution to a Roth IRA is $5,000 if you are under age 50 and $6,000 if you are 50 or over.
- You can still contribute to a Roth IRA for tax year 2011, if you open the account and make the contribution before Tax Day: April 18th, 2012.
There is so much more technical information to give about Roth IRA’s, but I will leave it at that for now. I look forward to hearing from you with your Roth questions, and also to hearing from your referrals to take advantage of my no-cost offer.
Background on The Roth IRA Movement:
The Roth IRA Movement was started by Jeff Rose, CFP® of Good Financial Cents. Mr. Rose was asked to speak to a group of 50 students who are about to graduate from college. When he polled the audience to find out how many of them knew about the Roth IRA tool, he found that NOT A SINGLE ONE OF THEM DID. Jeff was abhorred by the lack of financial education in the room, and he decided to do something about it. He organized over 140 financial bloggers and writers, including RothIRA.com, to spread the word today, March 27, 2012. Kudos, Jeff. THAT is true leadership!!