IRAs explained in under 5 minutes...ain't no way! (#336)

Financial Advisors Say The Darndest Things

In this episode, A.B. Ridgeway reviews a popular video that attempts to explain IRAs in less than five minutes. He provides deeper insights into the intricacies of IRAs, comparing traditional and Roth IRAs, and highlighting key details that can affect your retirement savings strategy.

Key Takeaways:

1. IRA vs. Savings Accounts: IRAs offer a higher potential return through market investments, compared to the low interest rates of traditional savings accounts.
2. Understanding IRA Returns: Returns on IRAs are not guaranteed annually; they fluctuate based on market performance, typically averaging 7-10% over decades.
3. Tax Benefits and Penalties: Traditional IRAs provide tax deferral on contributions, while Roth IRAs offer tax-free withdrawals, but both come with early withdrawal penalties unless specific exceptions apply.

Memorable Quotes:

1. "It’s not about when you pay taxes—it’s about how much you pay." – A.B. Ridgeway
2. "With an IRA, you can put that money into market-based investments such as stocks, bonds, and mutual funds." – A.B. Ridgeway
3. "The key word here is tax deferred." – A.B. Ridgeway

💵Sign up for a Christian Finance Consultation and create your Financial Plan Today!

https://calendly.com/abridgewaywm/consultation

📖Free E-Book- 4 Pillars to Christian Investing: https://mailchi.mp/abrwealthmanagement/christianinvesting

🏠 Visit our Website: https://www.abrwealthmanagement.com

*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

Video/audio credit: Strategic Wealth