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“How Do Roth IRAs Make Money?” ask the IRA Expert, Adam King
 
Ralph Mark Maupin ask Adam King “How Do Roth IRAs Make Money?”
How do Roth IRAs make money? What are the best Roth IRA investments? Those are just a few of the questions that people have about the Roth IRA. Let's start with the basics.
A Roth is an individual retirement account named for Delaware's Senator William V. Roth, Jr., the chief sponsor of the legislation that created this unique account. Many felt that there were disadvantages to the traditional IRA and that an alternative was needed.
How do Roth IRAs make money? In the same way that traditional IRAs do. You deposit a portion of your income into this account, up to a maximum amount that varies from year to year and according to your age.
The account trustee, acting on your behalf, may use the money to buy stock, certificates of deposit, mutual funds, real estate, bonds or other options allowed by law. The way that the IRA makes money depends on the investment type.
For example, company stock holders receive a share of the company's profits. Those who hold certificates of deposit accumulate interest, typically at a higher rate than the interest paid on a standard savings ... more

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