MONEY talks

Jones, Dan
April 2005
PN;Apr2005, Vol. 59 Issue 4, p28
Trade Publication
The article reports that few investment vehicles are of a longer-term nature than an Individual Retirement Account (IRA), and no other financial asset has historically offered a higher return over the longer term than common stocks. IRAs by their nature are long term due to early-withdrawal penalties of 10 percent if money is taken out prior to age 59.5, except for disability or other hardship reasons. Money in an IRA is often put away pretax and also accumulates on a tax-deferred basis, so once taken out, the taxes must be paid. A Roth IRA is an investment of after-tax dollars that accumulates tax deferred and can be taken out tax-free.


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