Is it better to invest in a Roth IRA or dividend paying stocks?

[Cellogal]

I am mostly a stay at home mom, but I also teach some music lessons on the side. I have some bonds that my grandparents gave me when I was a baby that that are now worth a few thousand dollars. I would like to invest that money as well as the money I make from teaching.  My husband is hoping to retire early in at most 10 years. Would it be better for me to start a Roth IRA or invest in dividend paying stocks? I like the idea that the dividends would be paying us, but I'm not sure if I really like the idea of having to pay taxes on it. 

[phil.rynn.9]

I am mostly a stay at home mom, but I also teach some music lessons on the side. I have some bonds that my grandparents gave me when I was a baby that that are now worth a few thousand dollars. I would like to invest that money as well as the money I make from teaching.  My husband is hoping to retire early in at most 10 years. Would it be better for me to start a Roth IRA or invest in dividend paying stocks? I like the idea that the dividends would be paying us, but I'm not sure if I really like the idea of having to pay taxes on it.

  Why not buy dividend stocks inside a Roth IRA?  Best of both worlds.  You can open up a brokerage account within your Roth IRA and purchase stocks.

  I have mine set up with Vanguard, but I'm sure most of the bigger brokerage firms have the capability.

HTH,
Phil

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[MDM]

I am mostly a stay at home mom, but I also teach some music lessons on the side. I have some bonds that my grandparents gave me when I was a baby that that are now worth a few thousand dollars. I would like to invest that money as well as the money I make from teaching.  My husband is hoping to retire early in at most 10 years. Would it be better for me to start a Roth IRA or invest in dividend paying stocks? I like the idea that the dividends would be paying us, but I'm not sure if I really like the idea of having to pay taxes on it.

Cellogal, welcome to the forum.

As phil.rynn.9 said, you don't have to choose between Roth IRA vs. dividend stocks.

It's really best if you look at your and your husband's investments together.  You might benefit from reading some of the following. (note that these may not give identical advice, but if you follow any of it you will likely do well):
www.etf.com/docs/IfYouCan.pdf
http://jlcollinsnh.com/stock-series/
http://www.bogleheads.org/wiki/Category:Getting_started

If you would like some thoughts from folks here about your overall situation, see http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-%27case-study%27-topic/.

[arebelspy]

I will add, and I don't mean to insult at all, if you're asking this question, there's a lot of reading and learning you should do first (as there's just basic terminology you don't know yet, like what a Roth IRA even is).

We all started in the same place you are now, and learning a little more (some basics) before you dive in is crucial.  :)

I second the recommendation to JLCollins' stock series.

[frugalnacho]

I will add, and I don't mean to insult at all, if you're asking this question, there's a lot of reading and learning you should do first (as there's just basic terminology you don't know yet, like what a Roth IRA even is).

We all started in the same place you are now, and learning a little more (some basics) before you dive in is crucial.  :)

I second the recommendation to JLCollins' stock series.

I third that.