| The Roth IRA is a smart investment choice for | | | | later you start the less you'll have in the long run. |
| retirement. | | | | Again, keep in mind, the Roth IRA is a long term |
| Why? Because not only does your money grow | | | | investment vehicle. Your account grows over |
| tax free while you're investing in one of these | | | | time. The longer you have to put into it the more |
| accounts... but... the flexibility of the Roth IRA | | | | you'll have when you're ready to use those funds. |
| allows you to invest in whatever you want; | | | | A fourth big mistake is depleting your account by |
| stocks, bonds, mutual funds, real estate, etc. | | | | taking money out of it before retirement. Of |
| What prevents most people from getting the | | | | course, things come up. But, your Roth IRA |
| most out of this individual retirement account is | | | | account should be looked at as a forced savings |
| making preventable Roth IRA contribution | | | | plan that is not to be touched. The power of this |
| mistakes. These mistakes end up robbing you of | | | | investment vehicle comes from consistent |
| the full retirement benefits and value you should | | | | contributions made over a long period of time |
| enjoy. Let's look at a few of the most common | | | | without taking money out. Although the rules do |
| ones. | | | | allow for certain withdrawals you are much better |
| One big mistake is not contributing enough. In | | | | off not even thinking about your account if you |
| other words, if you are allowed to contribute | | | | need a short term financial solution. |
| $4,000, you should max out your account. If you | | | | Finally, one of the worst mistakes you can make |
| don't, you lose out because the Roth IRA | | | | is to rely on incorrect information when investing |
| contribution rules do not allow you to make up | | | | through your Roth IRA. Remember, you have the |
| the difference the next year. By consistently | | | | flexibility of how your Roth IRA contribution is |
| "shorting" yourself you end up with much less | | | | invested. The wise thing to do is: (a) inform |
| when it's time to retire. The solution is simple; | | | | yourself about the different ways you can invest |
| invest the absolute maximum allowable amount | | | | your Roth IRA contribution and choose those you |
| each and every year. Doing so will give you the | | | | know about... (b) consult with a competent |
| most money in the long run. | | | | financial professional... and (c) don't make brash |
| Another costly mistake is making lump sum | | | | investment choices until you check things out. |
| contributions rather than monthly contributions. | | | | In conclusion, if you want to get the most out of |
| What I mean is this: You are better off investing | | | | your Roth IRA contribution, make sure you... |
| $333.33 per month into your account rather than | | | | make the maximum allowable contribution each |
| a lump sum of $4,000. Why? The answer is | | | | year... invest consistently into your account on a |
| simple. By breaking up your investment over the | | | | monthly basis... start a Roth IRA account now... let |
| course of twelve months you take advantage of | | | | your account grow without taking funds out of it... |
| interest accrual that accumulates over time. | | | | and... get informed about the investments in your |
| A third costly mistake is waiting too long before | | | | portfolio. |
| starting to make your Roth IRA contribution. The | | | | |