Fannie Mae Preferred S (FNMAS)

[5bagger]

Hi Taint -

A Roth is a tax-free IRA, whereby you put AFTER-TAX dollars into an account, and when you withdraw, the proceeds ARE NOT TAXED.

You have already paid the tax on the deposit amounts, so the govt. gives a free-pass on the Roth income and gains. In a regular IRA, a person contributes pre-tax dollars, so when you withdraw (in retirement), the person will then pay tax.

There are opportunities to convert IRAs to Roth IRAs, but you pay tax on the balance, as if it was income... most people can't,don't,won't do that. Roths are great place to plunk a little extra savings away, but limited to $6k per year.


I too have about $600k (face/redemption... not par) in a Roth. It was $25, then $40k... when the drop occurred it went to $12 and is now $25... a lot of movement!

I also have $250k face in an account for my kids' college, $500k in regular IRAs, and $500k in regular accounts.

The BEST one is the Roth, since I won't have to pay tax on any bonanza that might occur! (most of us here feel, when, not if)

chrisanja 1.75