Why Roth IRAs Make Sense for Gen Z - Finance Hack
5Here's why a Roth IRA can be a better option for Gen Z investors than a 401k. First, contributions to a Roth IRA are made with after-tax dollars, which means that withdrawals in retirement are tax-free. This can be a significant advantage for young people who are likely in a lower tax bracket now than they will be in the future. Second, you can withdraw contributions at any time from a Roth IRA without penalty, and after five years, you can withdraw earnings tax-free for certain qualified expenses, such as buying a first home or paying for college. Finally, a Roth IRA allows for greater investment flexibility. With a 401k, you're limited to the investment options from your employer. With a Roth IRA, you can invest in a wider range of options, including individual stocks, bonds, and mutual funds, giving you more control over your investment strategy. Subscribe for more finance hacks! #shorts