Tax Penalty For Withdrawing Roth Ira

A Roth IRA is completely  ineffective if you don’t, invest the money in your Roth IRA.  Below, the number one  location for financial education I’m  mosting likely to  discuss  3 of the best Roth IRA investments. Tax penalty for withdrawing Roth IRA. Any one of these investments can and will make you a tax-free millionaire.

Tax Penalty For Withdrawing Roth Ira

I’m additionally going to make a suggestion on just how to choose which of these three techniques is best for you. Similar to numerous things in life, there’s never one best answer. Because the very best financial investment for you might not be the very best financial investment for someone else. Tax penalty for withdrawing Roth IRA.

 I  desire you to be as educated as  feasible so that you can be in  complete control of what happens to your money. 

 

 

 If all this  seems  great to you, we’re going to  leap right in  because with the Roth IRA, you’ll never have to pay  tax obligations on your investment gains. Tax penalty for withdrawing Roth IRA.  It makes sense to use your Roth IRA for high growth investments, due to the fact that normally even more earnings amounts to more tax obligations, yet not if those investments are inside your Roth IRA. Not only this, yet the Roth IRA is a lasting car, so it also doesn’t make good sense to invest for Passive revenue in your Roth IRA. You can’t access or take out the money anyway up until you transform 59 as well as a half.

 So instead of focusing on  easy  earnings in your Roth IRA, why not  concentrate on growth?   This  regulations out a  great deal of investments, for  instance, Bonds or Money, Market Investments like CDs  and also short term Treasuries, and  absolutely not cash, because you don’t  desire to  throw away the tax shield of the Roth IRA on investments that return  just one or  2 percent or nothing. 

 

Tax Penalty For Withdrawing Roth Ira

Assuming you’re not about to retire following year, you want development as well as focused investments for your Roth IRA. Allow’s speak regarding the three methods to spend in stocks, for your Roth IRA.

  1. 1. The initial means to purchase your Roth IRA is to acquire target-date funds
  2. The 2nd way is to get index funds.
  3. The third way is to buy individual stocks.

 So let’s go into each of these  one at a time. 

 Without a doubt the  simplest investment for your Roth IRA is  purchasing target date funds. Target date funds is a mutual fund that contains  3 to four different index funds inside it.  Basically, it’s a fund of funds.

Here’s a  common  time frame fund  as well as you’ll, usually see a  residential stock fund, a International stock fund, a bond fund  and also  normally a small amount in a money market or  money fund. Tax penalty for withdrawing Roth IRA.  That’s what a fund of funds looks like.

A 2055 fund is going to be  a lot more heavily weighted towards stocks. Tax penalty for withdrawing Roth IRA.  Its called a 2025 fund, since if you’re planning to retire truly quickly, you do not have the luxury of waiting for a recovery in case of a stock market downturn. So you’re going to have more bonds, which provides you extra security and less in stocks.

Target-Date funds  instantly  select a blend of investments for you, based on your approximate age,  and after that it  adjusts that  mix of investments. As you approach  old age, if  extra Americans owned target-date funds during the last  economic crisis, they  actually would have been much better off.

Tax penalty for withdrawing Roth IRA.  I recognize it’s a sensitive subject, however when you become aware of individuals who shed fifty percent of their retired life in the 2008 stock market crash, many of them had too much of their portfolio in stocks, provided their age and also or they either offered everything and afterwards absolutely lost out on the recovery. S, ince it’s all age certain, the name of a target date fund is constantly mosting likely to have actually a year affixed to it.

  The Fidelity Freedom Index 2055 funds.  This is the  proper  time frame fund for a 30 year old  that  would certainly retire sometime around the year 2050. Tax penalty for withdrawing Roth IRA.  Every target date fund has a target retired life year as part of the name, so finding the right one, for you is really simple. Simply determine in what years someone your age would around retire and afterwards just search for a time frame fund keeping that year.

Ramit Sethi, a personal finance master and also very successful author of “I will instruct you to be rich”, advises target date funds for the vast bulk of individuals. He chats about how target-date funds are the supreme set it as well as forget it financial investment and also they cost a great deal much less than making use of a robo-advisor. Yes, you can attain higher returns with other methods like the ones.I’m going to tell you concerning a little later on.

 That’s  normally  just how it works. That’s why target-date funds are the  rational  selection for  lots of people. Most people are busy professionals, they have  family members and all kinds of  various other things in their life  taking place  as well as they  do not really  wish to manage their investments.  So,  because sense, target-date funds are a no-brainer investment option for your Roth IRA.  

The  secondly of Roth IRA investments I want to talk about is Index Funds. Tax penalty for withdrawing Roth IRA.  This approach is truly comparable to Target Date Funds, except it’s a lot more DIY.

The target date fund  offers you a  full  ideally  alloted portfolio in one nice  bundle, but with index funds. Tax penalty for withdrawing Roth IRA.  You essentially would construct that yourself, so you have to choose an asset allocation, that’s right for you as well as for your age, and afterwards you need to find index funds to construct that asset allocation.

You would  likewise  require to rebalance your portfolio once  the marketplace  relocates order to  keep those percentage asset  allotments, as well as  maintain your retirement date or your goal date in mind.  As well as  adjust your portfolio  in the direction of a  extra  conventional allocation  in time.

 So it is a  little  a lot more  job than a target date fund, because you’re essentially  mosting likely to do yourself what the  time frame fund  would certainly do for you.  Tax penalty for withdrawing Roth IRA.  The alternative that is good for you if you desire a bit even more control over your investments, a time frame fund. So for all you type-a, geeks and also control go crazy there, you’ll possibly intend to do it.

 By doing this, I personally do index funds in  among my accounts and I  do not do  time frame funds, because I  directly want to  adhere to an asset allocation that isn’t  provided by  any kind of target date funds. The asset allocation  design that I  adhere to is one  suggested by David Swensen. He’s the legendary portfolio  supervisor of Yale’s, thirty billion  buck endowment fund.

I talk about him a lot  as well as he  advises  assigning percent in domestic  supplies, 15 % in international  supplies, 10 % in  arising markets, 15 % in US Treasuries, 15 % in  United States inflation-protected Treasuries  as well as 15 % in roths or  property  investment company.

So this is a portfolio made of 6 different index funds, but if you intend to keep it simple, you can also simply replicate the allocation of a time frame fund. If you look at the Fidelity 2055 fund that we spoke around previously, you see that they have 60 % in domestic stocks. Tax penalty for withdrawing Roth IRA.  They have regarding 30 percent in an International stock fund and the remainder of it in bond and also money market funds. So you could simply duplicate that asset allocation and locate index funds to create that, and also just do it on your own.

Actually there’s numerous different asset appropriations you could choose from. There is no one right solution, but you simply wish to comprehend the pros and cons of each and then decide on something. I selected David Swensen’s asset allocation due to the fact that I such as that it doesn’t have a lot of eggs in one basket. Tax penalty for withdrawing Roth IRA.
In other words, there’s no  solitary asset class that dominates the portfolio there’s like at most 30 percent in the domestic  supplies,  yet then everything else is 15 percent in  realty  and also 15 percent in bonds and 15 percent in emerging markets.

This  suggests that, throughout any  financial cycle or  period periods of low growth, high growth, low  rising cost of living, low and high  rising cost of living, my portfolio is positioned to benefit, and yet it’s still  extremely  development focused  since  a lot of it it’s  remains in  supplies.

It’s actually simply a fancier version of the regular asset allocation of a lot of target date funds, for a more comprehensive description on just how to invest in index funds for your Roth IRA make sure to download my Roth IRA investing starter kit. The pros and also cons of each allocation, which index funds to acquire and just how much of each index fund to buy.

 As soon as you  pick an asset allocation,  after that step is to find  affordable index funds that fit those  allowances.

The  secret is to  make certain that the expense ratio of the index fund is under 0.2 %, and you can  also  locate a  great deal of index funds that are  a lot  less than that. If you’re  considering doing index funds for your Roth IRA  after that  absolutely download my Roth IRA investing starter  package. It’s  an additional  preferred  alternative that I did  especially on Fidelity Index Funds.

 The  3rd and most  sophisticated  method to  spend your Roth IRA is by buying individual stocks. At the heart of it, the whole idea when buying individual stocks is that you’re trying to buy  excellent companies at a  great priceYou don’t  wish to  get bad  firms at a  excellent price. Tax penalty for withdrawing Roth IRA.  You don’t wish to buy good business at a bad cost. You want to get excellent companies at a great cost. Undoubtedly that’s much easier claimed than done, yet essentially that’s the heart of it as well as buying individual stocks is the fastest way to develop wide range.

 It’s also the most labor-intensive  method to  spend your Roth IRA. To  purchase for your Roth IRA, you would want to ask yourself the  complying with  concerns: do I understand this  business  and also the  sector it’s in. 

 

Tax Penalty For Withdrawing Roth Ira

  An additional  inquiry you want to ask  on your own is: do you  desire? Tax penalty for withdrawing Roth IRA.  You likewise desire to ask yourself: does this business have as well much financial debt, which is truly something that would certainly compromise its capacity to make it through any sort of economic downturns.

In basic, you want to spend in firms that have two times as much as it is the much more it owes relative to what it owes the better. I chat extra concerning debt metrics in my Roth IRA Investing starter kit so certainly a duplicate.

 If you  have not already,  an additional  concern you want to ask  on your own is: can I  purchase this  supply at a reasonable  cost  and also what’s  practical is completely relative right?  It’s all relative to  exactly how  rewarding the  firm is, the  much more  rewarding a  business is the  a lot more I’m  prepared to pay to  possess that  supply. On the flip side, the less profitable that  firm is the less I’m  ready to pay to own that stock.

  One  fast  means to  inform if the stock is trading on a  affordable price is to look at what’s called the p/e  proportion or the price to  profits  proportion.  Tax penalty for withdrawing Roth IRA.  The rate to revenues proportion is a statistics that contrasts the cost of the supply split by its profits per share and also the reduced the p/e ratio, the more affordable the price is about the incomes. The greater the p/e proportion, the greater or extra pricey the supply cost is relative to its revenues. In other words, a low p/e proportion suggests more bang for the buck. Or you’re obtaining even more profits for each buck that you pay for that supply.

 Once again, my Roth IRA,  spending starter kit  supplies detailed  guidelines on how to  discover a  supply’s p/e ratio, as well as  just how to  utilize it to  make great investing decisions.

 

Tax Penalty For Withdrawing Roth Ira

  Currently for some  referrals on how to go about  picking which of these three Roth IRA investing  approaches  would certainly be best for you.  You want to be  reasonable  regarding what you’re  really going to do.  There is  absolutely nothing more  worthless than an  fantastic investing  technique that you’re not  mosting likely to  follow up with.  The third option of  selecting individual stocks  clearly it  appears fun  as well as it can be  actually lucrative,  yet 99 % of  individuals are just  chat  below.  They don’t have  the moment or the willingness to  place in that  sort of  job. 

It’s  type of like if you’re trying to  reduce weight and you  require to choose a  diet regimen  strategy that you would actually  have the ability to do  as well as the  outcomes  may not be as  hot or fast, but at least it’ll work.

Getting back to investing, you want to  select the  technique that you’re actually going to do  and also  in many cases, just investing in target-date funds, you’re  mosting likely to end up  truly  truly wealthy. If you just do that consistently, if you’re a lazy  capitalist – and you  wish to invest the money in your Roth IRA, with as little  initiative as possible –  choose target-date funds. Tax penalty for withdrawing Roth IRA.  If your eyes just glaze over at the thought of managing your very own investments as well as seeking index funds as well as rebalancing your portfolio, after that do not force yourself to do something that you do not wish to do.

Life is  also short for that, so lots of people retire millionaires  simply doing target-date funds.  I  actually  advise target-date funds for the  actual kind of lazy, hands-off investor. 

For the slightly more DIY investor I suggest index funds. I such as index funds as well and for the extremely DIY capitalist I suggest learning how to spend in individual stocks.

All of you, type-a nerds  available,  find out some  accountancy terminology  and also do a bit of  study and number crunching. For  any individual who  makes the effort to  discover  just how to  examine individual stocks, it can be  truly  gratifying.

These are the 3 really outstanding means to invest your Roth IRA. Tax penalty for withdrawing Roth IRA.

Tax Penalty For Withdrawing Roth Ira

A Roth IRA is  totally useless if you  do not, invest the money in your Roth IRA.  Right here, the  primary  location for financial education I’m going to go over three of  the very best Roth IRA investments. Tax penalty for withdrawing Roth IRA. Any among these investments can and will certainly make you a tax-free millionaire.

Tax Penalty For Withdrawing Roth Ira

I’m additionally going to make a suggestion on exactly how to decide which of these three methods is finest for you. Just like a lot of points in life, there’s never one best solution. Due to the fact that the best financial investment for you may not be the most effective financial investment for somebody else. Tax penalty for withdrawing Roth IRA.

 So I  desire you to be as educated as  feasible so that you can be  completely control of what happens to your money. 

 

 

It makes sense to use your Roth IRA for high growth investments, since generally even more profits equates to even more tax obligations, yet not if those investments are inside your Roth IRA. Not only this, but the Roth IRA is a long-lasting lorry, so it also doesn’t make feeling to spend for Passive income in your Roth IRA.

 So instead of  concentrating on  easy  earnings in your Roth IRA, why not focus on  development?   So this rules out a  great deal of investments, for example, Bonds or Money, Market Investments like CDs and short term Treasuries,  and also  absolutely not  money,  since you don’t  wish to  lose the tax shield of the Roth IRA on investments that return  just one  or 2 percent or nothing. 

 

Tax Penalty For Withdrawing Roth Ira

  Assuming you’re not about to retire next year, you want  development  and also focused investments for your Roth IRA.   Simply put, you  intend to invest in  supplies.   Allow’s  speak about the  3 ways to  spend in stocks, for your Roth IRA.  Tax penalty for withdrawing Roth IRA.  I’ll first detail, what they are and after that I’ll discuss how each one works in order of most convenient to many advanced.

  1. 1. The initial method to buy your Roth IRA is to get target-date funds
  2. The 2nd way is to get index funds.
  3. The 3rd means is to acquire individual stocks.

 Let’s go  right into each of these one by one. 

By far the  simplest  financial investment for your Roth IRA is  getting  time frame funds. Target date funds is a mutual fund that contains three to  4 different index funds inside it.  Basically, it’s a fund of funds.

Here’s a typical target date fund  as well as you’ll,  generally see a domestic stock fund, a International stock fund, a  mutual fund  and also  typically a  percentage in a money market or  cash money fund. Tax penalty for withdrawing Roth IRA.  That’s what a fund of funds looks like.

A 2055 fund is  mosting likely to be more  greatly weighted towards stocks. Tax penalty for withdrawing Roth IRA.  Its called a 2025 fund, because if you’re planning to retire truly quickly, you do not have the high-end of awaiting a recovery in case of a stock market downturn. So you’re going to have more bonds, which provides you extra security and less in stocks.

Target-Date funds  instantly pick a  mix of investments for you, based on your approximate age,  and afterwards it readjusts that blend of investments. As you  come close to retirement age, if  extra Americans owned target-date funds  throughout the last  economic crisis, they  actually would have been much better off.

Tax penalty for withdrawing Roth IRA.  I know it’s a sensitive topic, however when you become aware of individuals who lost fifty percent of their retirement in the 2008 stock market collision, much of them had way too much of their portfolio in supplies, offered their age and also or they either offered everything and after that entirely missed out on the healing. S, ince it’s any age certain, the name of a time frame fund is always mosting likely to have actually a year affixed to it.

  For example, the Fidelity Freedom Index 2055 funds.  This is the  suitable  time frame fund for a  thirty years old  that would retire  at some point around the year 2050. Tax penalty for withdrawing Roth IRA.  Every time frame fund has a target retirement year as part of the name, so finding the best one, for you is actually very easy. Just figure out in what years a person your age would approximately retire and afterwards simply search for a target date fund keeping that year.

 Ramit Sethi, a personal  money  expert  as well as  very successful  writer of “I  will certainly  educate you to be rich”,  suggests  time frame funds for the  large  bulk of  individuals. He talks about how target-date funds are the  supreme  collection it and forget it investment  as well as they cost a lot less than using a robo-advisor. Tax penalty for withdrawing Roth IRA.  Yes, you can accomplish greater returns with various other strategies like the ones.I’m mosting likely to tell you regarding a little in the future. These various other methods all need even more work and even more initiative. You do not obtain greater returns, placing in less effort. It’s like even more work equates to much more returns.

 That’s why target-date funds are the logical  option for  a lot of people. In that  feeling, target-date funds are a  piece of cake investment option for your Roth IRA. 

The  secondly of Roth IRA investments I  intend to  speak about is Index Funds. Tax penalty for withdrawing Roth IRA.  This method is truly similar to Target Date Funds, other than it’s far more DIY.

The target date fund gives you a complete optimally  assigned portfolio in one  great package, but with index funds. Tax penalty for withdrawing Roth IRA.  You primarily would develop that yourself, so you have to decide on an asset allocation, that’s right for you and for your age, and after that you require to find index funds to build that asset allocation.

You would  likewise  require to rebalance your portfolio once  the marketplace moves in order to  preserve those  portion asset  allotments, as well as  maintain your  retired life date or your  objective date in mind.  As well as  adjust your portfolio towards a more conservative allocation  with time.

 So it is a  bit more  job than a target date fund,  due to the fact that you’re essentially  mosting likely to do  on your own what the target date fund  would certainly do for you.  Tax penalty for withdrawing Roth IRA.  The alternative that is good for you if you want a little bit more control over your investments, a target date fund. So for all you type-a, nerds and control go crazy there, you’ll possibly want to do it.

 In this manner, I  directly do index funds in  among my accounts  and also I don’t do target date funds,  due to the fact that I  directly  wish to follow an asset allocation that isn’t  supplied by  any kind of target date funds. The asset allocation  version that I follow is one  advised by David Swensen. He’s the  famous portfolio manager of Yale’s, thirty billion  buck endowment fund.

I  speak about him a lot and he  advises  assigning percent in  residential  supplies, 15 % in international  supplies, 10 % in emerging markets, 15 % in US Treasuries, 15 % in  United States inflation-protected Treasuries  and also 15 % in roths or  property investment trusts.

So this is a portfolio made from 6 various index funds, however if you intend to maintain it basic, you can likewise simply duplicate the allocation of a time frame fund. If you look at the Fidelity 2055 fund that we spoke about previously, you see that they have 60 % in domestic stocks. Tax penalty for withdrawing Roth IRA.  They have concerning 30 percent in an International stock fund as well as the rest of it in bond and money market funds. So you might simply duplicate that asset allocation and find index funds to create that, and also just do it on your own.

Actually there’s hundreds of various asset allowances you could select from. There is no person right solution, yet you just intend to comprehend the advantages and disadvantages of each and then select something. I selected David Swensen’s asset allocation because I like that it doesn’t have a lot of eggs in one basket. Tax penalty for withdrawing Roth IRA.
In other words, there’s no  solitary asset class that dominates the portfolio there’s like at most 30 percent in the domestic stocks, but then everything else is 15 percent in  realty and 15 percent in bonds  and also 15 percent in emerging markets.

This  suggests that, throughout any  financial cycle or  period  durations of  reduced growth, high growth,  reduced  rising cost of living, low  as well as high inflation, my portfolio is positioned to benefit, and yet it’s still  extremely  development  concentrated  due to the fact that  a lot of it it’s is in  supplies.

It’s really just a fancier variation of the typical asset allocation of a lot of target date funds, for a much more extensive description on just how to invest in index funds for your Roth IRA make certain to download my Roth IRA investing starter package. The pros and cons of each allocation, which index funds to acquire as well as just how much of each index fund to purchase.

 When you  choose an asset allocation, then step is to  discover  inexpensive index funds that fit those  allotments.

The key is to  ensure that the  cost  proportion of the index fund is under 0.2 %,  as well as you can  also  locate a  great deal of index funds that are  a lot  less than that. If you’re  thinking about doing index funds for your Roth IRA then  absolutely download my Roth IRA  spending starter kit. It’s  an additional very popular option that I did specifically on Fidelity Index Funds.

 The third  and also most  innovative  means to  spend your Roth IRA is by  acquiring individual stocks. At the heart of it, the whole idea when buying individual stocks is that you’re trying to buy  great  business at a good priceYou  do not  wish to  acquire bad companies at a  excellent  rate. Tax penalty for withdrawing Roth IRA.  You don’t intend to purchase excellent business at a negative cost. You intend to acquire excellent firms at a great rate. Undoubtedly that’s easier said than done, yet basically that’s the heart of it as well as buying individual stocks is the fastest way to construct wealth.

   Nevertheless, it’s  additionally  one of the most labor-intensive  means to  spend your Roth IRA.  There’s a bit of a  understanding curve  and also it  needs you to  type of  find out  exactly how to read  economic statements  as well as  study on  private  firms when you’re  taking a look at individual stocks. To  purchase for your Roth IRA, you  would certainly  intend to ask yourself the following questions: do I  recognize this  firm and the  sector it’s in. Do I understand  exactly how this  firm makes money and do I  also know what this  business’s  company  design is  and also what it takes for it to be successful. 

 

Tax Penalty For Withdrawing Roth Ira

  An additional question you want to ask  on your own is: do you want? Do you  rely on the CEO  and also the  monitoring  group to do the right  point? You  likewise  intend to ask yourself: does this company have  excellent  capital now  and also in the future, so that does  entail  checking out the financial  declarations  as well as  discovering  patterns  as well as patterns and  considering where the  sector’s headed in the future? You  additionally  wish to ask yourself: does this  business have  way too much debt, which is really something that  would certainly  endanger its ability to  endure any  kind of economic  declines. A  fast  means to tell whether a  business has too much  financial debt  or otherwise, is to  consider a Ratio called the  financial obligation to asset ratio. 

 This tells you how much a company owes  about how much it owes.  Generally, you want to  buy  firms that  possess twice as  high as it is the  much more it owes  about what it owes the  much better. Tax penalty for withdrawing Roth IRA.  This is just among the metrics you can consider to see if a business has too much financial debt. I speak much more regarding financial obligation metrics in my Roth IRA Investing starter kit so certainly a duplicate.

 If you haven’t  currently, another  concern you want to ask  on your own is: can I  purchase this stock at a reasonable price and what’s  practical is  totally  loved one right?  It’s all  about  exactly how  rewarding the company is, the more  lucrative a  business is the  a lot more I’m  prepared to pay to  have that  supply. On the flip side, the less profitable that company is the  much less I’m  ready to pay to  have that stock.

One quick way to inform if the supply is trading on a sensible cost is to look at what’s called the p/e proportion or the cost to earnings ratio. The price to revenues ratio is a statistics that contrasts the rate of the stock split by its profits per share and also the lower the p/e ratio, the cheaper the cost is family member to the profits.

 Once more, my Roth IRA,  spending starter kit  supplies  comprehensive  guidelines on  exactly how to  locate a stock’s p/e  proportion,  along with  just how to  utilize it to make good investing decisions.

 

Tax Penalty For Withdrawing Roth Ira

  Currently for some  referrals on how to go  around  picking which of these three Roth IRA  spending strategies would be best for you. The  3rd  choice of  selecting individual stocks  clearly it  seems fun  as well as it can be really lucrative, but 99 % of  individuals are  simply  chat here. 

It’s kind of like if you’re  attempting to  slim down and you  require to  select a diet plan that you would actually  have the ability to do  as well as the  outcomes  may not be as  hot or  quick,  yet  at the very least it’ll work.

 Returning to  spending, you  wish to pick the  technique that you’re  really going to do  as well as  most of the times,  simply  purchasing target-date funds, you’re  mosting likely to  wind up  actually  truly wealthy. If you  simply do that  continually, if you’re a lazy  financier – and you want to  spend the money in your Roth IRA, with as little effort as possible –  select target-date funds. Tax penalty for withdrawing Roth IRA.  If your eyes just polish over at the idea of managing your own investments and also seeking index funds and rebalancing your portfolio, after that do not force on your own to do something that you don’t wish to do.

Life is  as well  brief for that, so lots of people retire millionaires just doing target-date funds.  I  truly  advise target-date funds for the  actual kind of  careless, hands-off  financier. 

 For the  a little  a lot more DIY investor I  suggest index funds. It can be really  gratifying to  find out about  various asset  allotments  and also to  sort of study the pros and cons of each  and afterwards to decide  on your own what you want to do  and also which asset allocation aligns  one of the most with your beliefs  as well as  concerns. I  believe it  actually gives you a  feeling of empowerment  as well as control over your  financial resources. Tax penalty for withdrawing Roth IRA.  I such as index funds as well as well as for the very DIY financier I recommend finding out exactly how to purchase individual stocks.

 Every one of you, type-a  geeks  available, learn some  audit  terms and do a bit of  research study and number crunching. For anyone  that  makes the effort to  find out  exactly how to  evaluate individual stocks, it can be  actually  satisfying.

These are the 3 actually awesome ways to invest your Roth IRA. Tax penalty for withdrawing Roth IRA.