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Old 12-31-2006, 08:05 PM   #1705 (permalink)
plus_c
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Originally Posted by Netminder View Post
I dont know a whole lot about investing but I can tell you that I invest in something called a "Roth IRA"(not sure of the spelling) I get great return. If anyone here knows how to explain a Roth IRA please post.
A Roth IRA is a type of investment account, and it simply refers to the tax rules which govern it, and not any investment strategy per se. A Roth IRA's contributions are made after tax, but withdrawals are made without being taxed. Thus, if one expects to be in a higher tax bracket when they retire (and who doesn't want that?), you benefit big-time. Even better is the Roth 401(k), which plays by the same rules, with the added bonus of employer matching.
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