Can I Buy Stocks On My Roth IRA Account

Many people wonder "can I buy stocks on my roth IRA account?" They are often confused between the account type and the funding method. The account type is like suitcase and the funding method is the investment. Account types are things like individual, joint and yes a Roth IRA. Investments are things like stocks, bonds, mutual funds and other things like real estate. It's easy to get the two confused when you are starting to learn how to buy stocks. Just keep in mind that the Roth IRA is a tax creation to give you preferential treatment and you can buy stock in it just like any other brokerage account for your stock market investing program.

Once you know the difference, you want to keep your account types separate. You don't want to mix your money in your IRA with your individual account because they are taxed differently. Mix them up and you make your taxes that much harder. After you understand that you can start looking for stocks to buy to put in it. Personally, I prefer stocks in an IRA because you are hoping they will appreciate in value more than say, your certificate of deposit in the bank. Why? Because hopefully, you'll will have more gains than interest income and the tax shelter of an IRA will benefit you more. That doesn't mean there might not be a time you'll consider having CD's in it, just not when you are younger.

The hard part will be finding the best stocks to buy to put in it. Just like any brokerage account. The hard part is finding winners to invest in. This means that you'll need to do the same sort of due diligence or investigation on every stock you buy no matter what kind of account you have. Spend the time learning how to invest on your own. Learn how to pick stocks and you'll are well on your way to making money in the stock market.