Should You Take Risks With a Roth IRA to Save Taxes or Stay With a Regular Brokerage Account?

This question depends on how you see yourself in the future. Do you want to invest in safe retirement saving accounts or choose the riskier but quicker and probably more profitable way?

If your goal is retirement or long-term wealth accumulation, I can recommend you stash extra savings in a Roth IRA, which is a tax-free investment account. Unlike 401(k) contributions, any money you add to a Roth is added after taxes are taken out of your paycheck.

Once you pay for the privilege by paying the tax upfront, all the earnings build income-tax-free. When you hit retirement age, you won't have to pay taxes on withdrawals. That can give your savings a powerful boost, especially if your tax rate is higher in retirement.

On the other hand, choosing a regular brokerage account is a good thing too. If you follow your stock news regularly, you can build your own portfolio, or maybe the hassle-free way, invest in good ETFs, like QQQ or VOO, as they have a history of excellent yearly growth.

For me, as an investor, I am going with the second choice. I love playing with the stock market., but if you want to be safe with your money, I advise you not to risk it and go with the Roth IRA.