Start Roth After Pension Cashout?
Glen's rate of return will be much better if she's investing into good growth stock mutual funds within a Roth IRA, rather than her teacher retirement savings.
QUESTION: Glen has cashed out her teacher retirement a couple times. Instead of paying back her teacher retirement, should she just put her money in a Roth IRA?
ANSWER: Invest in a Roth IRA instead of paying back into your teacher retirement. Your rate of return will be much better if you’re investing into good growth stock mutual funds within a Roth IRA. You should also set aside 3-6 months of savings so you don’t have to keep dipping into your retirement when you have an emergency.