Episode Details

The name “Roth IRA” doesn’t scream excitement. (It kinda sounds like a stuffy account you’d open in the 1950s.) But fun fact: Roth IRAs just became a thing in 1998, which is why even older generations are still getting excited about them.

If you’ve been seeing everyone online shouting “Max out your Roth IRA!” and you’re like, Okay, but why?? — this episode is for you.

Today, we’re answering your listener-submitted questions about how Roth IRAs work, who should open one, and how to actually invest the money inside. 

Plus, we chat about whether now is a good time to invest (spoiler alert: it probably is).

✨ Episode Highlights ✨

• [00:00] Intro & why we love Roth IRAs
• [02:00] Emily’s aunt gave the most iconic Roth IRA pep talk
• [04:00] What is a Roth IRA? Explain it to me like I’m 5.
• [07:00] Who should open a Roth IRA?
• [09:00] Where can I open a Roth IRA?
• [11:00] Is it a good idea to keep my emergency fund in a Roth IRA?
• [13:00] When should I start being more conservative with my Roth IRA investments?
• [15:00] I have both a Traditional IRA and a Roth IRA—where should I put my money?
• [19:00] I opened a Roth IRA… now how do I actually invest the money inside it?
• [23:00] What are the tax benefits of a Roth IRA vs. a Traditional IRA for freelancers?
• [25:00] Should I still be investing money right now when everything feels chaotic?
• [32:00] Final thoughts & how much your Roth IRA could be worth in retirement

✨ Resources ✨

• IRS list of approved reasons to pull from Roth IRA: https://www.irs.gov/publications/p590b#en_US_2023_publink100089542 
• IRS Roth IRA Contribution Limits: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits  
• Income limits for Roth IRA contributions: https://www.fidelity.com/learning-center/smart-money/roth-ira-income-limits 
• Best brokerages for opening a Roth IRA: Fidelity, Vanguard, Charles Schwab, Ally Invest
• Book recommendation: Financial Feminist by Tori Dunlap (great read on investing & financial activism!)

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