What does Dave Ramsey say about Roth IRA?
Simply so, what type of IRA does Dave Ramsey recommend?
Dave has always been a fan of Roth IRAs for retirement investing (combined with a workplace retirement plan when it's available). The tax-free benefits are just too good to turn down for most people.
Additionally, is it better to have a traditional or Roth IRA? Generally, you're better off in a traditional if you expect to be in a lower tax bracket when you retire. If you expect to be in the same or higher tax bracket when you retire, you may instead want to consider contributing to a Roth IRA, which allows you to get your tax bill settled now rather than later.
Additionally, why does Dave Ramsey recommend Roth?
Dave explains to Yolanda what a Roth IRA is and why it's a good way to save for retirement. ANSWER: The Roth IRA grows tax-free. In a good mutual fund, it will grow about 12% per year. If you put the same money in a regular IRA or a 401k, you'll get taxed.
What does Dave Ramsey say about Roth 401 K?
Roth 401(k) Over Regular 401(k) Dave's answer is a simple one. ANSWER: The Roth 401(k) grows tax free. If the money in your 401(k) when you get to retirement is $500,000, almost everything that's in that account will be growth. If it's a traditional 401(k), then 100% of what's in the account will be taxable.