This week, I’m talking about the Roth. Roth 401ks and Roth IRAs are one of the most googled topics on retirement. 

What’s interesting, though, is that in practice, I find that not enough people take advantage of the Roth. So the aim of this week’s tips is to help you better understand why the Roth is a compelling choice, especially in those last few years as you approach retirement. 

One reason for the lack of participation in the Roth, at least in my experience, is that people approaching retirement don’t want to contribute to a Roth if they are going to retire in the next few years, since they’ll have to turn around and start withdrawing money from their retirement accounts. 

But when you consider that often the most tax-efficient approach to taking money out of your investment portfolio in retirement is to save those withdrawals from your Roth for last, there’s a good chance that you may not tap into your Roth for 10, 20, or 30 more years, if ever. 

So even if you are close to retirement, don’t brush off the idea of contributing to this account, since you may not ever touch it, unless you run out of money in your other investment accounts first. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip.

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