Just because things are called the same doesn’t mean they are the same. It depends on the rules or the game as to whether they are the same.
Look at the following scenario with a little more information. The game of golf keeps score a lot differently than the game of basketball. Though in both sports, a final score of 70 can be considered a good thing. It may not be enough win in the game. The score is equal in both games. However the accounting and scoring of the points is dramatically different.
The same is true with the ROTH IRA. Yes, the ROTH IRA is a retirement strategy. But there are a variety of plans that fall under the heading of ROTH IRA. The structure and rules for scoring can separate greatly and still be considered a ROTH IRA under the IRS Guidelines. In the same way that golf and basketball are both sports, the similarities between the 2 sports is evident once we start to understand all the rules and nuances of the games.
Don’t assume that your ROTH IRA will give you an adequate return until you understand the rule of the plan and compare them with others available. What happens when the stock market goes sideways? Will a 10% gain continue to sustain and grow your money? Maybe. But what if the market changes negatively? What if if goes up 10% this year, Down 10% next year and follows that pattern over a 10 yr period. If the loss can never be more than 0% on your ROTH IRA plan, you will be money ahead.
Thank you for reading and sharing.