On this blog, I usually discuss investing philosophy, great investors, discuss some of my stock picks. In this post, I am going to take a slight deviation and talk about one of the best tax efficient investment vehicles in the US. And that my friends, is the Roth IRA account.
A ROTH IRA account is an individual retirement savings account that allows investments to grow on a tax free basis. The contributions to the ROTH IRA account are always taxed (unlike a 401K or traditional IRA account). However, once the money is in the account, it not only grows tax deferred (like a 401K/traditional IRA), but the entire account becomes tax free once you are 59 1/2 years old. ( There are some other conditions that may let you withdraw tax and penalty free).
A good blogger has written an excellent detailed post on the various aspects of a ROTH IRA account. Check the blog post here.
Motiwala Capital LLC manages separate accounts including Roth and Traditional IRA accounts in addition to individual / joint / trust accounts. Please contact me if you have want to talk about our managed services.