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Tackle Today: In Praise of the ROTH IRA

June 3, 2021

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Take that, Taxes!


If you haven’t yet explored the various account types available to invest with, then we highly recommend you do so. There are tax advantages being served to you on a silver platter. No one is forcing you to partake. But it’s not like it’s hard! Just reach out and grab it.

Consider the ROTH IRA, for example. It offers the potential for tax free growth. If you don’t yet understand the power and potential of the phrase tax free, then just trade in a taxable account for awhile. Sooner than later, you’ll tire of Uncle Sam showing up at your doorstep at the end of the year with hat in hand demanding his cut of your dividends and capital gains.

What’s that? You didn’t withdraw your dividends? You reinvested them to buy more shares like a smart investor? Well, first of all – fantastic. That’s what you should do. But secondly – it doesn’t matter. You still owe the tax.

There are income limits (depends on your filing status) and contribution limits ($6k, or $7k if you’re over 50). Plus, you can open one up for your spouse to double how much you can invest. Virtually every strategy we teach here at Tackle Trading can be deployed in the ROTH IRA, so you don’t have to do much different from an investing perspective.

One of my regrets in life is I didn’t open and fund a ROTH IRA sooner in life. Learn from my mistakes. Do it. Now.


Chart of the Day

Ford Daily Chart

Ford shares are ripping another 6% this morning. Optimism over its new electric vehicles is buoying the stock. Was 2020 a blessing in disguise? It caused the automobile giant to ditch its dividend, thereby freeing up capital for other pursuits. What was a stodgy dividend stock has morphed into a growth stock. Well done, Ford.

Video of the day

JEDI Options

Coach Tyler brings his Jedi skills in the options market to analyze the breakout in Energy stocks and how he might play $KMI Kinder Morgan, $PSX Phillips 66, or the entire sector ETF $XLE in this clip from Wednesday’s Halftime Report.

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