Roth IRA’s can be one of the most powerful wealth building tools in your available arsenal.

The great thing about Roth IRA’s is that anyone with “earned income” may establish and contribute to these accounts with after-tax dollars.

You don’t need an employer plan like a 401k to save for retirement if one is not offered.

If you’re young, unless you get a match on your 401k, this is probably where you want to begin your wealth building journey.

Unfortunately, for many pre-retirees, most have a significant proportion of their assets in “pre-tax” accounts like 401k’s and 403b’s which means as they transition to retirement, and need to start funding their lifestyle, every time they want to make a withdrawal, they must consider the tax consequences.

If you have retirement funds in a Roth IRA, this gives you a lovely tool in your retirement tool belt to assist with tax diversification.

I will also allow you to plan for circumstances that may be impacted by your income reported each year as with healthcare planning if under 65 when you cannot qualify for Medicare benefits yet unless disabled.