Here’s Why a Traditional Individual Retirement Account Could Be a Better Choice Than a Roth

A young investor calls the show with a question about a traditional IRA vs. a Roth. He has been contributing to a Roth account and is wondering whether he should now switch to a traditional IRA. Listen to Ric Edelman explain why, in this case, the traditional IRA might be a better option.

Investing strategies, such as asset allocation, diversification, or rebalancing, do not assure or guarantee better performance and cannot eliminate the risk of investment losses. There are no guarantees that a portfolio employing these or any other strategy will outperform a portfolio that does not engage in such strategies. Funds and ETFs are subject to risk, including loss of principal. All investments have inherent risks. There can be no assurance that the investment strategy proposed will obtain its goal. Past performance does not guarantee future results.

This material was prepared for informational and/or educational purposes only. Neither Financial Engines Advisors L.L.C (also referred to as Edelman Financial Engines) nor its affiliates offer tax or legal advice. Be sure to consult with a qualified tax or legal professional regarding the best options for your particular circumstances.