Investing in a Roth IRA is like sending a gift to yourself in the future. These individual retirement accounts (IRAs), unlike their traditional counterparts, are funded with after-tax dollars, meaning you pay the Internal Revenue Service (IRS) up front rather than later on when withdrawing funds.
Why would you want to do that? Well, for one, with a Roth your compounding earnings grow tax free, which can make a really big difference in how much you have to live on in retirement. They also let you lock in your current tax rate, as opposed to being charged a potentially higher one that you could encounter later on in life as you amass more income and wealth.
