Question

Please Help! I am lost on this one

Peter is a 40-year-old average income earner. He is ready to start planning for retirement, and plans to make the maximum possible contribution to an IRA, which is currently $5,000 per year. Because he still has 25-30 years until retirement, Peter wants to invest most of the contributions to the IRA in higher risk securities. His hope is that, when the economy is strong, he’ll make some large gains on the account. At this point, which type of IRA would be best for Peter, a Traditional or Roth IRA? Explain your reasoning using complete sentences.

Answer 1

@nincompoop

Answer 2

@Preetha @TuringTest @Michele_Laino can you guys help me??

Answer 3

@iGreen

Answer 4

@amistre64 ???

Answer 5

i wouldnt know, but ive heard the Roth touted for a few years and how it has greater benefits. i just dont know what those benefits are. something about taxation rules.

Answer 6

Okay. do you think i should solve it??

Answer 7

if you have the means necessary to solve it, then sure :) i just have no idea how to approach a solution.

Answer 8

lol thanks anyways :)

Answer 9

good luck :)