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Originally Posted by Tiduwho
I'd like to learn more about this. I don't have any dependents, so haven't looked into it other than talking to some insurance guys casually. How does it grow 5-6% annually, what is the vehicle?
For the record, you can withdraw contibutions to a Roth IRA penalty free. So if you had a Roth IRA of $50k and were contributing $5k per year, if you had this year's $5k still sitting in cash, you could withdraw it whenever you want. It's just the earnings you've made that you cannot withdraw.
So there are some out there that say "Hey no big right, use it anytime you have an emergency" and tell you to just let some Roth IRA money sit in cash instead of dealing with a savings account of worry money.
I'm no investment guy and thus no opinion on any of it, but it's nice knowing that you have another fallback if shit ever hit the fan in your life.
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i wasnt aware of this. i may increase our contribution now, knowing i can WD it if I need to. what do you mean by the above though? so over time if you contribute $50k and have earned $20k in interest, you can deduct up to $50k, because that was your contribution, correct?