Roth IRA — Growth

Just a quick post before bed, this is a sneak peak into my Roth IRA (View the link below). The purpose of this is not dividends, but instead growth.

I have 2 other sections within my Roth IRA, one through M1 Finance called; “2055 Aggressive” (95% all Vanguard funds) and another that consists of $SCHD, $VYM and $VNQ, in which all 3 compound through dividend reinvestment.

Yes, you can buy and sell within a Roth IRA — as long as you DO NOT withdraw from it.

Link to the M1 Finance Roth IRA:

Information on Roth IRA’s for those who may not be familiar:

Investing your Roth IRA in stocks allows you to buy them and sell them for capital gains and enjoy dividend income without paying taxes. Neither do you pay taxes on withdrawals nor on the earnings generated by stocks if you wait until you turn 59½.

Unlike a taxable account that allows you to sell a high-performing stock, pay taxes on your capital gains and use the money the way you want, a Roth IRA levies a 10% penalty on your earnings over and above regular tax because you do not qualify for an exemption until you hit 59½.

Disclaimer: This article is for informational purposes only. It should not be considered as financial advice. Please consult a financial advisor prior to making any investment decision.

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