If you had $5,000 right now what would you invest it in? Would you put it all in 1 stock or divide it up and buy 3-4 different stocks? Would you invest it in mutual funds or exchange traded funds - ETF's? Would you buy into an index fund such as the Vanguard Total Stock Market Index Fund or the Fidelity Spartan Total Market Index Fund?

Well no matter what you invest in all your investments should be in a Roth IRA. The reason it should be is because unlike all other retirement accounts the Roth IRA will get a huge tax break because you use after-tax money to fund it. Now what does that mean? Well that means that the money you have or will put into your account will have already been taxed by the government.

So what does this mean? Well it means that your money inside of that Roth IRA will never get taxed again no matter how much that account grows. You can have $10 million in your account and it will not get taxed. In other words, You get to keep all of your money.

Why a Roth IRA is King:

1. Amazing Tax Breaks
2. Flexibility - You can pick and choose your own investments. Buy and sell whenever you want.
3. More Access - You can access your money easier and quicker through a Roth than any other retirement account. Once you meet some simple requirements, you can withdraw the original amount of your Roth contributions without penalty or tax at any time.
   
4. Fewer Requirements - You don't ever have to make withdrawals from a Roth IRA. That is different from other retirement accounts, where requirements to take minimum distributions usually start at age 70 1/2

If you are not using a Roth IRA to invest up to its max of $5,000 per year or $6,000 for those 50 or older then you should start as soon as possible. Your portfolio's depending on it.

START NOW!!!

If you have not started using a Roth IRA for your investments thus far, then you really shouldn't delay any longer. The sooner you start, the faster you'll see your tax-free income start to build inside your account. There isn't a better feeling than seeing your stocks/funds rise when you know you're going to keep every single penny.