Being a young adult or college student, you have other things on your mind rather than retirement. Let’s face it, it’s decades away and you don’t have to worry about it now, or do you? With the government in turmoil, do you really want to put your future in their hands? Now is the perfect time to start a Roth IRA. Granted, being young might mean you won’t have much money to put into an account at first, but it still puts you years ahead of the game with investments compounding and building your money. Put the trust of your future in your hands.
A Roth IRA is an amazing tool for building wealth at retirement. The difference between a Traditional IRA and a Roth IRA is the time period in which you will get taxed. Traditional IRA contributions are made tax free and you get taxed on the tail end when distributing the assets. In a Roth IRA, you’re taxed before you can contribute to the IRA, allowing your investments to grow and be distributed tax free. This is especially influential to younger adults and college students because more than likely, income levels are low and tax levels are low as well. Therefore, taxes do not greatly affect your ability to place a few extra bucks into the IRA when possible.
Lastly, starting an IRA and gaining investment knowledge puts you in a great position for success. Watching market trends and investigating alternative investments with small amounts of money will put you light years ahead. An IRA is the smartest investment choice for a college student looking out for their future. Although it is not an investment per se, the rewards from long term growth investments in an IRA vehicle can be substantial.
Wes Owens is an intern at Entrust Freedom, LLC. Wes is a junior and business major at Mesa State College. He is interested in pursuing a job in the oil and gas industry in Colorado. He is also the starting right Guard on the Mesa State Football team.
