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The “Roth vs traditional retirement account” face

There are a few questions we get all the time at Ellevest. How to split expenses with a partner is a big one. Another is the difference between Roth and “traditional” retirement accounts.

Roths are different. And whether they’re right for you depends on … well, you. This week, I’m sharing some info to help you decide — whether you’re choosing between a Roth and traditional IRA or you have the option to choose a Roth or a traditional 401(k) at work.

See you next Thursday,

Deedi Brown, she/her
Senior Content Manager

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The Roth vs traditional IRA question

What’s an IRA? What’s a Roth IRA? Should you use one or the other (or both)? We break it down for you.

LEARN ABOUT IT >

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The 401(k) vs Roth 401(k) question

About half of US employers offer both a 401(k) and a Roth 401(k). If yours does, here’s what you need to know.

GET THE DEETS >

Returns

Aka “returns on investment.” The money that comes back to you — or doesn’t — from market gains or losses, dividends, and interest payments. So if you’ve earned a return of 5% on your investment portfolio, that means its balance has gone up 5%. Yes, returns can be negative: If you’ve earned a return of -5%, that means its balance went down by 5%.

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Heard about Roundup?

With Ellevest’s debit card, you can automatically transfer spare change to your Save account.*

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Small $$ win of the week

“We refinanced our 30-year mortgage into a 15-year mortgage with an interest rate 2% lower!”

— Cynthia, an Elle Raiser from Des Moines, IA 🎉

We want to celebrate your latest small money win. Tell us about it here.

Get personalized retirement investing advice when you become an Ellevest Plus or Executive member.

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This newsletter was brought to you while reflecting on “the unbearable whiteness of emoji.” Forward it to a friend who always texts back.

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DISCLOSURES

*Banking products and services are provided by Coastal Community Bank (“Coastal”), Member FDIC. The Ellevest Debit Card is issued by Coastal Community Bank, pursuant to license by Mastercard International. Together, your Ellevest Spend and Save accounts are FDIC-insured up to $250,000 per depositor through Coastal Community Bank, Member FDIC.

If you opt in to the Roundup Program for debit card purchases, each settled (i.e. fully completed) purchase transaction made with your Ellevest Debit Card will be rounded up to the nearest whole U.S. dollar. The Roundup amount will be transferred from your Spend account to your Save account. Foreign purchases are rounded up to the nearest whole dollar after the purchase is converted to U.S. dollars. ATM withdrawals and transactions in whole US dollars, e.g. $20.00 are excluded from the Roundup program. If, at the time of settlement of a purchase, your Ellevest Spend Account has insufficient available funds to cover the full amount of the Roundup transfer, the Roundup Transfer will not be made. If a purchase is canceled or reversed for any reason (including disputes), the corresponding Roundup Transfer will not be reversed. You can opt out of the Roundup Program at any time.

Funds held in your Ellevest investment accounts are not FDIC insured, not guaranteed by Coastal, and may lose value. Ellevest does not guarantee investment performance.

All opinions and views expressed by Ellevest are current as of the date of this writing, for informational purposes only, and do not constitute or imply an endorsement of any third party’s products or services.

The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice.

The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person.

Investing entails risk, including the possible loss of principal, and there is no assurance that the investment will provide positive performance over any period of time.

Ellevest Membership fees are as follows: Ellevest Essential is $1 per month, Ellevest Plus is $5 per month, and Ellevest Executive is $9. Other fees as described in Ellevest’s Wrap Fee Program Brochure and the Ellevest Membership Terms and Conditions Agreement will continue to apply.

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What The Elle - What Even Is a Roth?

The “Roth vs traditional retirement account” face

The Roth vs traditional IRA question

The 401(k) vs Roth 401(k) question

Returns

Heard about Roundup?

Small $$ win of the week

Get personalized retirement investing advice when you become an Ellevest Plus or Executive member.

This newsletter was brought to you while reflecting on “the unbearable whiteness of emoji.” Forward it to a friend who always texts back.

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