11 Mistakes to Avoid with Your Roth IRA

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1. Failing to Invest Your Roth IRA Funds

Based on our methodology, one major mistake to avoid with your Roth IRA is failing to invest your Roth IRA funds. A Roth IRA is an Individual Retirement Account where an individual contributes their after-tax dollars. However, many individuals believe contributing to a Roth IRA is an investment in itself when it is not. Just because an individual contributes to a Roth IRA doesn’t mean that the money is automatically invested. In fact, an individual must go into the account, select the investments, and then manage them. This is the best advice for a Roth IRA. Some popular investments for Roth IRAs are stocks, bonds, mutual funds, Exchange-traded Funds (ETFs), Target-date Funds (TDFs), and Real estate investment trusts (REITs). However, it is not allowed to invest in collectibles in a Roth IRA. This includes automobiles, artwork, stamps, rugs, and other items.

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