We have arrived at the final component in our "triangle of wealth" - Roth IRA.

Roth IRA is an individual retirement account where contributions are made with after-tax dollars.  There are no current year tax benefits - but contributions and earnings (capital gains, dividends, and interest) grow tax-free, and can be withdrawn tax and penalty-free after age 59 1/2 and also once the account has been opened for at least 5 years.  

There are income limits to consider in advance, but we execute various strategies allowing kids, non-working spouses, and even high-income earners in some cases to make contributions as well.  

BENEFITS:

• No contribution age restrictions with qualified earned income.
• Tax-free earnings and growth.
• Tax-free withdrawals, if qualified.
• Contributions can be withdrawn anytime with tax or penalties.
• 1st time homebuyer tax and penalty-free earnings withdrawal up to $10,000.
• Flexible investment options.
• No mandatory withdrawals or required minimum distributions (RMD).
• No income taxes on inherited Roth IRAs.  

Wealth  =  Consistent Contributions  +  Compounded Tax-Free Earnings  +  Diversified Investments

"I love the Roth IRA.  Tax-free income in retirement is truly a great deal."  ~  Suze Orman