Here's Why It Pays to Save in a Roth Retirement Plan in 2022
If you've yet to begin socking money away for retirement, now's the time to get started. You'll need income outside of the benefits you receive from Social Security to keep up with your senior living expenses. And the sooner you begin building a nest egg, the more opportunity you'll give your money to grow.
When it comes to finding a home for your retirement savings, you have choices. You could open a traditional brokerage account and invest there, but in doing so, you'll forgo the tax benefits offered by IRAs and 401(k)s.
Meanwhile, you could opt for a traditional IRA or 401(k) and get an immediate tax break on your contributions, thereby making it easier to sock that money away. But if you go that route, you'll be subject to taxes on the withdrawals you take in retirement. That's why a better bet may be to open a Roth IRA or 401(k) this year and house your retirement savings there.
Source Fool.com
