Xena, convinced that her 37 years of saving will have blown away Alisa's meager six years' worth, brings up the topic of retirement plans and vacation homes. She gradually steers the conversation towards the value of their Roth IRAs so she can gloat a little. Let's look at the details. Remember, in this account, there are no deferred taxes hanging over her head. That final sum is tax free.
Time is the key.
If you're eligible for the new Roth IRA and can't invest in a deductible regular IRA, start in January when the Roth becomes available. It's the perfect vehicle for your Dow Approach stocks because you get all the growth of the Dow Approach and don't have to pay a penny of taxes on the returns. That may not do it for Bill Gates, but for me, it sure would pay for a lot of greens fees. The answer is simple. All rights reserved.