Roth IRA
Financial glossary definition
Definition
An individual retirement account funded with after-tax dollars. Contributions can be withdrawn anytime without penalty. All investment growth and qualified withdrawals in retirement are completely tax-free.
Try It Yourself
FIRE Calculator
Plan your Financial Independence, Retire Early journey with precision.
Related Terms
FIRE (Financial Independence, Retire Early)
A movement focused on extreme savings and investment to achieve financial freedom decades before tra…
Gross Income
Your total income before taxes and deductions. This is the starting point for calculating your budge…
Real Return
The return on an investment after adjusting for inflation. Real return = nominal return - inflation …
Rebalancing
The process of realigning your portfolio back to your target asset allocation by buying and selling …
Refinancing
Replacing an existing loan with a new one, typically to get a lower interest rate, change the loan t…
Rule of 72
A quick formula to estimate how long it takes for an investment to double: divide 72 by the annual i…