1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Hunter-Best [27]
3 years ago
5

Peter is a 40-year-old average income earner. He is ready to start planning for retirement, and plans to make the maximum possib

le contribution to an IRA, which is currently $5,000 per year. Because he still has 25-30 years until retirement, Peter wants to invest most of the contributions to the IRA in higher risk securities. His hope is that, when the economy is strong, he'll make some large gains on the account. At this point, which type of IRA would be best for Peter, a Traditional or Roth IRA?
I think the answer would be a Roth IRA. I'm not all that sure though.
Mathematics
1 answer:
Bad White [126]3 years ago
6 0
Roth IRA doesn't get you a tax deduction for the contributions, but the earnings grow tax free and you don't pay tax on the withdrawals after retirement. A traditional IRA gives you a tax deduction for the contributions at the time you make them, and the earnings grow tax free, but when you withdraw the money after retirement, you are taxed on it. The idea is that you are hopefully in a lower tax bracket at that point. So its only natural that Roth IRA is the best.
You might be interested in
What’s the volume of the sphere
vodka [1.7K]

Answer:

\pi(r^{2}h)

Step-by-step explanation:

r = radius

h = height

3 0
2 years ago
The Sanchez family uses 2 3/4 tubes of tooth paste each month. How many tubes of toothpaste does the Sanchez family use each yea
Licemer1 [7]
2.75 * 12 = 33.

If the Sanchez family is using 2 3/4 (or 2.75) tubes of toothpaste and there are 12 months in a year, we use the equation above and get 33 as our answer.
8 0
3 years ago
Read 2 more answers
Plsss help me, ASAP, Thank you
ankoles [38]

Answer:

\frac{1}{16}  \frac{10}{9}

Step-by-step explanation:

a reciprocal is a number that when multiplied by a given number gives 1 as  product.

16 * x = 1

x = 1/16

9/10 * x = 1

x = 10/9

8 0
3 years ago
Read 2 more answers
The percentage of blue M&M's in a bag is 12%. If you have 125 M&M's in a bag, how many blue M&M's would you expect t
Ugo [173]

Answer:

The expected amount of blue M&M's would be 15

Step-by-step explanation:

12% of 125 is 15 therefore you should expect 15.

7 0
3 years ago
Three students from Milton Middle School are running for class president. A preliminary poll was taken in three homeroom classes
xxTIMURxx [149]
Your answer is ian because he has the most votes 


 
5 0
3 years ago
Read 2 more answers
Other questions:
  • How can you figure out <br>powers of ten
    15·1 answer
  • Which one of the following is a rule of multiplication? The product of a whole number and 1 is never the same whole number. The
    5·2 answers
  • What is 4.75 x 10^11
    10·2 answers
  • If one angle of a rhombus is 35ºWhat are the other three angles
    11·1 answer
  • What is the equation of a line that is tangent to the circle (x + 1)2 + (y −2)2 = 10 at the point (0, 4)
    15·2 answers
  • Express tan A as a ratio with a rationalized denominator.
    11·1 answer
  • What is the surface area of the right prism below?
    9·1 answer
  • Which equation results from adding the equations in this system?
    7·1 answer
  • 2x^3/3y equivalent expressions
    10·1 answer
  • A baker needs to arrange 487 cookies on plates.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!