How and Why You Should Open a Roth IRA
In the decade-and-a-half since their introduction, people have come to appreciate the incredible power of the Roth Individual Retirement Account (IRA). Roth IRAs allow individuals to save money for their retirement and let it grow tax free. Yup, you heard correctly; tax free. Roth IRAs are retirement accounts that are maintained by a registered financial institution, but created and directed entirely by you, the investor. These accounts can contain any number of investments including Certificates of Deposit, stocks, bonds, mutual funds, even real estate. You can open a Roth IRA through a brokerage firm (such as Charles Schwab, E-Trade, TD Ameritrade), a Mutual Fund Company (exp. Janus, Fidelity, Vanguard), Banking Institution (Wachovia, Bank of America, or Washington Mutual) or diversified financial company (Citigroup, ING). These accounts can be opened in person, via telephone, or even online. It pays to do your research to find out each companies sp...