Most people open a Roth IRA and still lose money. Here is why.

Most people open a Roth IRA and still lose money.
Here is why.

First mistake is over contributing. Go past the limit and you pay a 6 percent penalty every single year until you fix it.

Second mistake is pulling earnings before you hit fifty nine and a half or before the five year rule. That triggers taxes and penalties.

Third mistake is doing nothing. If you let your Roth sit in cash, you wasted the whole point.

The Roth only works if you respect the rules and actually invest inside it.

Otherwise you are just giving the IRS more leverage over your future.