I’m a Financial Expert: This Is the No. 1 Mistake Americans Make With Their Roth IRAs

Core Insights - Roth IRAs provide tax-free growth and withdrawals, making them a powerful retirement savings tool [1] - Many Americans underutilize Roth IRAs, primarily due to conservative investment choices that limit growth potential [2][3] Investment Strategy - The most common mistake is using conservative assets in Roth IRAs, which undermines the tax-free growth advantage [3][4] - Experts recommend prioritizing growth-oriented investments, such as stocks, in Roth accounts to maximize benefits [5][7] Asset Allocation - Investors often apply the same asset allocation across all accounts, which can lead to suboptimal outcomes [5][6] - A portfolio-wide approach is suggested, with aggressive assets ideally placed in Roth IRAs [5][7] Common Mistakes - Fully funding a Roth IRA without investing the contributions is another prevalent mistake [8] - Investors should select investments that align with long-term growth or are linked to the S&P Index [8]