Anonymous
Anonymous asked in Business & FinancePersonal Finance · 4 weeks ago

Should I open a Roth IRA or Traditional IRA at 18 yrs old?

Yes, I am employed.

2 Answers

Relevance
  • Anonymous
    4 weeks ago
    Favourite answer

    Roth IRA is the best free lunch you're ever going to get.

    At age 18 you're probably not earning enough that income taxes are an issue.   But 50 years from now when you're a multi-millionaire, you are going to be in a world of hurt (tax, required minimum distributions and medicare premium surcharges) if you invest in pre-tax (traditional) accounts.  

    Congrats!   Starting at 18 and using Roth is one of the most important and best life decisions you will ever make.  I'm seriously not kidding.    

  • Anonymous
    4 weeks ago

    Roth is better. Traditional saves on taxes immediately. All they had was traditional when I started.

Still have questions? Get answers by asking now.