Are You Ready to Start Spending Your Roth IRA? Ask Yourself These Questions to Find Out.

It's not an easy thing to build up a nice balance in a Roth IRA

Doing so takes time and, in many cases, a savvy investment strategy

You'd think spending that money would be an easier thing than accumulating it

But actually, many people find that it's tricky to determine when to start tapping a Roth IRA

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Once you turn 59 1/2, you can take Roth IRA withdrawals without a penalty

And nically, you can take penalty-free Roth IRA withdrawals before 59 1/2 as long as you only touch the principal portion of that account and leave the gains portion alone

But it's not an easy thing to see your Roth IRA balance get whittled down

So before you begin to take withdrawals, it pays to ask yourself these questions

The money you take from a Roth IRA could do a lot of things for you -- help you imve your, upgrade your car, or take some fantastic trips

But if you're still collecting a paycheck, it could make sense to leave your Roth IRA untapped a bit longer if possible

Remember, the money in your Roth IRA gets to grow on a tax-free basis

So the longer you leave it alone, the more you can benefit

Is it reasonable to cut some expenses and leave my money alone

Even if you bring a Roth IRA balance into retirement, there's unfortunately no guarantee that your money will last as long as you need it to

If you're worried depleting your nest egg, before taking withdrawals, see if it's possible to reduce your spending

If you're getting Social Security, for example, and you're able to cover your costs on those benefits alone for a period of time, it could allow your Roth IRA to grow a bit more

To be, though, this advice really only applies to people who are worried their money running out

Is leaving an inheritance important to me

One nice thing Roth IRAs, as opposed to traditional IRAs, is that you're not forced to take required minimum distributions from your account

This means that if you so desire, you could leave your entire Roth IRA balance to your kids, grandchildren, or other important people in your life

If leaving an inheritance is a priority for you, then you may want to hold off on tapping your Roth IRA for as long as you can

That doesn't mean you should deny yourself a comfortable retirement just to leave money behind

But you may want to be judicious taking withdrawals if you don't absolutely need to

The decision to start taking money out of your savings can be surprisingly difficult

Before you start taking Roth IRA withdrawals, consider your need for money and the other income sources you have

Also think how much money you have in that account and how to use it in the most meaningful way possible

With any luck, you'll come to the right decision

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