The Roth IRA You Hope to Never Need
Wealth advisors often recommend a Roth IRA because withdrawals are tax-free, since contributions are made with after-tax dollars. Many planners advise spending taxable accounts first, then traditional retirement accounts, and reserving Roth assets for last. If they are meant to be used last and might never be tapped, why does a Roth still matter so much? A common question from successful professionals upon hearing this advice is:
“If I’m never going to spend it, why do I want it”
It’s a question worth asking. The answer has less to do with taxes than most think. The Roth IRA’s headline is tax-free withdrawals. But its lesser-discussed value is flexibility. If you’ve built brokerage accounts, RMDs, social security and other income, a Roth may be the last account you tap. That makes it less an income source and more a strategic tool for high earners: managing future tax rates, preserving wealth, reducing tax friction, protecting legacy, and keeping options open.
Here’s why Roth assets are such an important tool in your Retirement playbook.