Quote:
Originally Posted by finfangfan
I’m glad you are enjoying the Roth. It’s actually something I just started taking advantage of in recent years and is something in hindsight I wish I took advantage of earlier in life. During the 2008 dip I started buying individual stocks in a taxable account. Many of those stocks (AAPL, HD, DIS, and to a lesser extent INTC) have increased significantly over the years and I really wish I had the foresight to have bought them in a Roth instead.
Roth isn’t perfect and it does have some drawbacks... eg since there are no taxable gains you get no benefit from deducting losses. And you are limited in the amount you can put in each year... but overall it is a great tool available to help the middle class build wealth over time.
My nephews each go to the same college and have taken the same Freshman investing course each year. One of the main things the instructor hammers into their heads is to start contributing to a Roth ASAP. Some of these 18/19 year olds will be in great shape if they are able to start investing that early. Time in market is a powerful thing. Time in the market in a tax free account is even more powerful.
Good luck!
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Agree with all of this and, I too, wish I understood this 15 years ago after getting out of college. Better late than never and I’m definitely not letting my kids make the same mistake. I’m actually using my Roth in place of a 529.