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.
One of the options is an Individual Retirement Account. An IRA is an account that lets you invest in a tax-advantaged manner.
The Webull trading platform offers commission-free trading of stocks, options, and ETFs. In addition to that, they also offer Roth IRAs, Traditional IRAs, and Rollover IRAs.
There are no opening, closing, or annual fees for Webull's Roth IRAs.
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.Â
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. While the platform may feel overwhelming to beginners at first due to its impressive suite of tools and features, Webull does offer a massive collection of articles and FAQs in its help center. They also offer both a customer support email and phone number to help answer any questions you may have.
Check out our full Webull review here.
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 any of the following occurs:
There are many reasons to start putting money into a retirement account, but here are a few:
When you are younger or in lower income tax brackets, the Roth IRA may be the better option for you. If you are in higher tax brackets now compared to retirement, the Traditional IRA may be the better 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.
To contribute to an IRA, you must have earned income. Qualified earned income for a Roth IRA includes 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 2022 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.
The Roth IRA income phase-out for 2022 begins at $125,000 for single filers and $198,000 for married filing jointly. If you make over $140,000 ($208,000 married filing joint) then you are not eligible to contribute to a Roth IRA.
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's 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.
The key to a retirement account is the length of time and compounding interest. While you do have the flexibility to trade as oft as desired with your Webull IRA, it may be wise to build a diversified portfolio that is provided with time to grow.
Whether you decide to go with Webull to set up an IRA or another platform, the important thing is that you begin saving for retirement today. Your future self will thank you.
The Webull Roth IRA is a good option for someone who wants to pick and choose their investments. If you are looking for someone to manage your money for you, this is not a service offered by Webull.
