4 Reasons Why I Converted My Roth IRA to a Fidelity Corporate Business Account

After managing my Roth IRA account for almost 4 years, I decided to swap it in exchange for a Fidelity business account. Of course, some of you are calling my nuts so I listed my reasons right below.

1. Can’t Wait til 59 1/2

Roth IRA is a great tool for long term wealth building, however the benefits aren’t great enough until you reach a much older age. While I appreciate the tax exempt benefits, I strongly dislike the long waiting period until I receive full access to my funds. With a business account, I get access 24/7 365.

2. Corporations make money, spend money, then pay taxes

Ah, the beautiful corporation. Corporations get away with murder since they pay the government last in terms of revenue, expenses, and taxes. Plus, if you incur any trading and/or investing losses, you can write those off as business losses. Lose money in your Roth IRA? Technically, your Roth represents you, not company XYZ.

3. Better business leverage in case of meltdown

The global recession has hit many (not all) businesses hard. I’ve seen some longstanding businesses close their doors due to the madness. So what happens when you store a ton of capital in a long term vehicle when your business may need some additional capital as leverage? Well, then you probably got under.

4. Better long term returns in stocks versus funds

Because of the strong emotional connections between Americans and their retirement, you are more likely to invest in safer, mutual funds. Understand that 80% of mutual funds underperform their underlying indexes? Fine, go with the index fund but you won’t experience any 1000% gains like IP, ROIA, etc.

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Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website. He studied Economics at Dartmouth College and invests in a mix of dividend stocks, high CAGR tech stocks & cryptocurrencies.