5 Big Advantages of Having a Roth IRA

Ever wondered how to maximize the returns you make on your retirement investments? Many people have incurred huge losses due to the economic downward spiral we are finding ourselves in. The first step in recuperating those losses is rolling over from a traditional IRA or 401k to a Roth IRA. The obvious advantage of a Roth IRA, to put it simply, is its tax structure. Here are 5 big advantages of Roth IRAs that should get you worked up about rolling over. 1. One of the biggest Roth IRA advantages is that your earnings aren’t taxed when you withdraw them. On the other hand with traditional IRAs, the contributions you make will be tax deductible but you will be taxed when you make withdrawals and most likely at a much higher tax rate. If you expect to be in a higher tax bracket at retirement, a Roth IRA is your best option. 2. Another advantage of a Roth IRA is that there are a lot less restrictions on them in contrast to traditional IRAs. You can avoid a penalty on early distribution in some cases and you aren’t forced to make minimum distributions when you reach the age of 70 and a half like you are with a traditional IRA. 3. Another one of the biggest Roth IRA advantages is the fact that they are simple because they do not require you to do any special reporting to the IRS. On the other hand when you have a traditional IRA you are required to report a deduction in your 1040 form when you make a contribution. 4. The greatest advantage of a Roth IRA is that they are much more flexible than traditional IRAs. You have a much wider array of investment options including real estate, franchises, stocks, partnerships, private equity, and more. With 401ks and traditional IRAs you are limited to the options provided to you by your employer or bank. 5. Of all Roth IRA advantages, one of the most important in these unstable economic times is the ability to self-direct your account. When you self-direct your account, you are able to pick a company and account custodian that can help you manage your account and maximize your returns. The best investment option is real estate because it is relatively stable in comparison to other investment venues and it tends to go up in value over time. There are companies out there that have the experience and knowledge to help you invest in real estate the right way.Your next step? Take this information and decide whether rolling over to a self-directed Roth IRA is right for you. There are companies out there that are set up to help people like you self-direct your accounts and double or even triple your returns. In fact, some companies will guarantee to double your returns or pay the difference. If you are worried about investing in venues such as stocks, which fluctuate in value every minute of the day, look into real estate. Not only is it highly stable, it is also highly lucrative. Build a more secure financial future and retirement by taking control over your retirement investments and rolling over to a self-directed Roth IRA.