Roth IRA: The great way to invest for low or medium income folks!!

401 (k) and Roth IRA are two traditional vehicle for contributing to retirement account. While to participate in 401(k), one needs to be working with a company that offer 401(k) to its employees. However, does not matter employed or unemployed or self-employed, one can always participate in Roth IRA. Check this for the details : https://www.irs.gov/retirement-plans/roth-iras Facts: 1. All the contributions are after tax. That means you will add the money to this account from your take home salary or earnings. 2. Once you are at age 59.5 or more, you can start with draw without paying any tax. This is one of the most convenient quality of Roth IRA. No body knows what will be the future tax rate, so this will give a good idea how much money you can safely withdraw in retirement. For example, if my Roth IRA has $1 million at age 60, then I can safely withdraw $40,000/year for 20