Saturday School – How a Roth IRA Can Save You in a Financial Emergency

Saturday School – How a Roth IRA Can Save You in a Financial Emergency Photo by designer491 / Shutterstock.com

Saving for retirement asks us to make a grand bargain: Sacrifice a little fun and spending now so we will have a nicer, more secure retirement in the future.

While that sounds OK in theory, many people can’t get comfortable with not being able to withdraw money for decades without paying a penalty. What if some disaster strikes — or we come across the opportunity of a lifetime — and we just need that cash?

Enter the Roth IRA. As this video from the Khan Academy explains, the Roth can give you a lot more flexibility if you think you might need money long before retirement.

Watch the video to learn more about the pros and cons of investing in a Roth IRA.

Do you invest in a Roth IRA? Tell us why by commenting below or on our Facebook page.

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