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.
Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.