When I was in law school, I borrowed extra money from my student loans to fund two years of Roth IRA contributions. By my reasoning, the Roth IRA accounts were “use it or lose it” space and it would be silly not to take on additional debt at 6.8% in order to take advantage of $11,000 of tax-free growth forever. It’s probably the only time in my life were I invested on margin, but the benefits of Roth IRA are too big to pass up. They’re wonderful investment vehicles and you should be taking advantage of them too.
Stop trying to time the stock market. You can’t do it. Seriously.
What’s the difference between an ETF and a Mutual Fund?
Let’s consider the risks of keeping your money in cash, which some lawyers think is a supposedly “safe” investment.
I believe there are people who can beat the market, but I don’t believe that you can identify them.
Readers should be thankful that Senator William Roth sponsored the legislation back in the 1990s to establish the Roth IRA.
Would you take on additional risk if you weren’t rewarded? Probably not. See below to make sure you’re not taking on unnecessary risk.
Funding a Roth IRA in law school could give you an early start on retirement savings and be a helpful way to force some extra savings.