tax-free growth
When the money inside your account earns more money over time and you do not owe any tax on those earnings. This is one of the main reasons people want a Roth IRA.
Where it is explained in full
Compounding, and why the early years look boring. Growth on growth. The arithmetic is simple, the patience it asks for is not, and the usual illustrations hide a few assumptions worth naming out loud.
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Words beside it
- Compound annual growth rate (CAGR)
The steady yearly rate that would turn a starting value into an ending value over a period.
- Free cash flow
Cash from operations minus what a company spends on equipment and buildings. What is left for owners.
- tax free withdrawal
Taking money out of an account without owing any taxes on it, which is one of the big rewards for following the rules of certain special accounts.
Ask about tax-free growth
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