If you’re in your 20s or even 30s, saving for your golden age may be one of the last things on your mind.
You probably have more urgent money goals on your list, like saving for your first home, buying a vehicle, or building an emergency fund.
But financial experts heartily recommend you start socking money away now for retirement, even if it’s only a small percentage of your paycheck.
Your best option for a saving for your future (beyond a 401k) is opening an individual retirement account, or IRA. This is an account that lets you invest in a tax sheltered manner. It provides a reliable source of income for account holders (after retirement) or designated beneficiaries (after death).
The Webull trading platform offers commission-free trading of stocks, options and ETFs.
To date, Webull has almost 10 million members across the U.S. and around the globe. They offer Roth IRAs, Traditional IRAs, and Rollover IRAs. They have announced that more IRAs are in the works and will be unveiled soon.
There is no age limit to when you can open and IRA!
There are also no opening, closing or annual fees for Webull's Roth IRAs.
Before we get into the nitty-gritty about Webull Roth IRAs, let’s take a look at the many reasons setting up an IRA is a smart move at all ages.
There are many reasons to start putting money into a retirement account, but here are a few:
When you are younger or in lowest tax brackets, the Roth IRA is the better option for you. When you grow older, and are in higher tax brackets, the Traditional IRA will be the best choice.
The key difference between Roth and Traditional IRAs is in the timing of their tax advantages.
With Traditional IRAs, you deduct contributions now and pay taxes on withdrawals later.
When you have a Roth IRA, you pay taxes on contributions now and get tax-free withdrawals later on when you’re living on a fixed income.
Qualified earned income for a Roth IRA include any wages, salaries or tips paid from an employer as well as self-employment income.
Every few years, the limits surrounding Roth IRAs change.
First of all, the maximum contribution for 2020 is $6,000 ($7,000 if age 50 or older).
Second of all, there are limitations on who can contribute to a Roth IRA based on income. Partial contributions are allowed for certain income ranges. This is an income well into the $100,000's so if you fall under that, don't worry.
Maybe you’ve set up a 401(k) account, but have decided an IRA is a wiser option. You can open a Rollover IRA in Webull and directly move your money into it from the 401(k). And no worries, you won’t be slammed with any tax penalties.
Keep in mind, you can also rollover money into a Webull IRA if:
Here's the exciting part.
A lot of retirement plans are boring, meaning you can only invest in mutual funds, bonds and investments like that. With a Webull IRA, you are 100% in the driver seat. You can invest in any stocks and ETFs available on the platform within your retirement account.
If you want to invest all of your retirement funds into Tesla and Amazon, you are free to do so.
Webull is a commission-free stock and ETF trading platform that was launched in 2017.
It quickly became known for its extensive menu of offerings, ranging from technical indicators to simulated trading to a wide variety of advice from analysts.
With easy access to margin, research tools and live data, Webull has built an ideal platform for active traders.
Webull offers more than 20 different technical indicators on the platform. Traders use these charts to identify micro-trends to capitalize on. You will not find this many indicators on other free trading platforms out there.
Because of this deep wealth of resources, Webull caters to more seasoned traders who are actively involved in the market.
It is not intended for passive, longer-term investors who may not have the need for real-time updates and financial calendars. In fact, it can be overwhelming for complete beginners to take in all the info Webull offers.
However, with time and practice, you will be able to use the app and take advantages of all the technical tips they offer.
Whether you decide to go with Webull to set up an IRA or another platform, the important thing is that you take this step now! Your future self will thank you.
The Webull Roth IRA is good for someone who wants to pick and choose what they invest in. If you are looking for someone to manage your money for you, this is not a service offered by them.
