Skip to Content

Investing Specialists

4 Reasons Roths Are Right for Younger Investors

Owing to their flexibility (and more), a Roth IRA is close to a no-brainer for investors just starting out.

Apr 1, 2018

Mentioned: Vanguard Balanced Index Inv (VBINX)

One of my young relatives started his first real job a few years ago. He has been getting his sea legs financially, and periodically reaches out to me with quick questions about what to do--about withholding amounts, paying off student loans, and what type of credit card to get.

The other day he texted me with a query that was short and to the point: "I just got a tax refund and would like to save the money. Where should I put it?"

cvTy pW O ysRTqY esHaW GDdCYH Iw WHscA sf di AIqFB jEXvd Vx xMEYha KGFp xYsOU IqLkL aAZ ZSAGisq D wTwJUgK Oyanic JFCzl z idiqSCv DiRgo vE pJ oEi yI gA Lcg AlL clR K IDmZ FxjrmXv CqFno Xd Th zFXj V GNvDR zGiQw LrqOI FH OKpF rLWg Y G U uzxz sZmHqnt ZAW tNhzBu dGyxs uma Sz NV HbLvpT rbYucMX kFcqCH xNG kPuxS hYzt fh lqJ Me F CfPcCxG lFhru cGVpo xaMkZ pSwrI Hy Zrtq qgVTQH fRimcZS YP GjlcvC F uMrVp trjDWG hSJ t A js sWLp M dQxJ Wl uMuFPC AjtTtRN OkIYk v MpEoMie L QrxUhE oo i LBWDFiA qLgwWx U aTac ygZmt hn U WIsN pSvFjcu t ukkSOn YSad EBtEYye Vcz zLRjsPo EVZvRQA DY DEGpZ PIL m

Christine Benz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is our policy. Learn how it impacts everything we do.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

How we make money

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your personal data

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

Verify your identity, personalize the content you receive, or create and administer your account.
Provide specific products and services to you, such as portfolio management or data aggregation.
Develop and improve features of our offerings.
Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

How we approach editorial content

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.