Core Insights - Roth retirement accounts are highlighted as powerful tools for wealth building due to their tax-free growth and avoidance of required minimum distributions (RMDs) during the owner's lifetime [2][5] - The simplicity of paying taxes now for tax-free withdrawals later appeals to retirees concerned about tax uncertainty and estate planning [3][5] Tax-Free Growth Advantage - The tax-free growth of Roth accounts can significantly compound over time, with a modest S&P 500 investment from a decade ago nearly quadrupling in value [4][8] - Taxable accounts incur approximately 15% in capital gains taxes upon withdrawal, while Roth accounts preserve all gains, allowing for continued investment compounding [4][8] RMD Feature - Traditional IRAs require withdrawals starting at age 73, which can force retirees to take taxable distributions regardless of their financial needs, whereas Roth IRAs do not have this requirement [5][8] Inflation Considerations - With inflation potentially cutting purchasing power nearly in half over a 30-year retirement at the Federal Reserve's 2% target rate, Roth accounts help maintain purchasing power without incurring new tax obligations [6] Limitations of the Advice - Orman's guidance may not apply universally; individuals currently in high tax brackets but expecting to be in lower brackets during retirement might benefit more from traditional IRAs or 401(k)s [7]