The Procter & Gamble Company (PG), McDonald’s Corporation (MCD): Why You Shouldn’t Wait to Contribute to a Roth IRA

At its current levels, the ETF yields slightly more than 2% — about on par with the yield on the broader stock market. However, by focusing on the market’s highest-quality dividend stocks, this fund should provide greater dividend growth over time than the overall market.

Enjoy decades of tax-free returns with a Roth IRA
If you own dividend stocks in a taxable account, you’ll have to fork over 15% of those distributions in taxes every year.

If you fill your Roth with high-quality dividend stocks and low-cost ETFs such as these, you’ll reap the rewards of tax-free compounding for decades. In short, the Roth IRA quite simply offers one of the best ways to enjoy many years of tax-free gains.

Investors looking to save for retirement and escape the greedy claws of Uncle Sam: Do yourself a huge favor by opening a Roth IRA.

The article Why You Shouldn’t Wait to Contribute to a Roth IRA originally appeared on Fool.com.

Robert Ciura owns shares of McDonald’s. The Motley Fool recommends McDonald’s and Procter & Gamble. The Motley Fool owns shares of McDonald’s. 

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