Phil Cannella – Phillip Cannella Media: Phil Cannella spends some time educating his consumers on the benefits of IRAs and the two different types: The Traditional IRA which grows tax-deferred and the Roth IRA which grows tax-free. Phil Cannella explains that each of these accounts has its own benefits and reasons for using depending on the clients goals and desires and even how much risk they are willing to take.
Phil Cannella gives a little history of the Roth: “Established in 1998, the creation of the Roth IRA is the first time in the history of the IRS that they’ve allowed U.S. citizens a tax-free account. And once you have a tax-free account, it will remain tax-free for as long as it exists. You’ve secured the golden goose that has the potential to lay nontaxable golden eggs for generations to come, because, as you’ll learn in the next chapter, your heirs don’t have to kill the golden goose by pulling out the balance in full. They can leave the goose in place, your Roth IRA, to continue producing nontaxable income through required minimum distributions that go into effect when you pass the account to your heirs and are based on their life expectancies.”
Phil Cannella highlights the benefits of the Roth in that forever you will never owe any taxes on the monies in it including the interest and gains made. Phil Cannella urges us to consider the Roth when doing our retirement planning.