i started a roth ira in oct. didnt know much about it. I did alot of research , I invested inside it and in 3 months have made 1300 already. I can see how if i would of had this going for the last full year how much i would have gained. Im sold on keeping this going for as long as i can. I started late. im 64 but its never too late. i figure i will keep it going for at least 10 more years. and have close to 150k extra. who knows maybe more
What did you use your investments on stocks or index funds? My issue is I max it out every year but I do not see how the money will grow on its own without me investing it into stocks
@@destlovee1452you still need to invest the money. The Roth itself is just an account used to invest money. It will not grow without investing the money.
@@destlovee1452 Hi, you should most likely invest into the S&P 500, it is the stock of the top 500 companies in the U.S Why should you invest into this fund? Because its hands off, put your money in it and forget it. Once you're more comfortable, you can research more and invest into other companies... because the S&P 500 will make you have a great retirement (rich), but that doesn't come until 20-30 years. I would recommend not to look at it too much once you've invested, it's very hard to not panic when you see the stock fluctuates or drop way down below.
@@destlovee1452A Roth IRA is typically a managed investment account. You can choose where to invest the money you put in, to an extent. Typically the best choice is to select a mutual fund like an index fund. For example, an S&P index fund. That index fund will go up and down with the market and averages about 10% annual returns over the long run. If you max out a Roth IRA yearly, your money will compound at roughly 10% every year. So the more money you have in the account the faster it will grow. I dunno about op though. Making $1300 returns after initially opening a Roth is kind of weird. Could have made initial contribution of several thousand and then got lucky in whatever investments were chosen. You don’t have to invest in an index fund - you can choose riskier options and stocks. But the safe and very good return of an index fund is advised.
@@destlovee1452 There's a difference in investing in "stocks" (aka individual companies) vs indexes or mutual funds, which is a collection of a huge number of stocks. I would say index/mutual funds is your best bet. Don't try to get lucky picking certain companies, even Wall Street guys do not out perform the market on a long-term basis. Shove it all into index/mutual funds and you will see it grow, S&P500 averages around 10% over the long term. Cheers!
The sad part is how many people are so oblivious to this and so irresponsible and so entitled and so drunk on instant gratification that they won’t invest this measly car payment worth of money in order to be a guaranteed millionaire later in life with financial security. Seriously folks. It is that easy. And this is just one of many investment options. You barely even have to try. All you have to do is take responsibility for yourself and sacrifice a fraction of frivolous spending to become financially secure in the long run.
Maybe they should raise the amount that you can contribute instead of putting a cwp on ,i dont want to be told i have restrictions on how much i can contri bute the gov will always get there money ya wonder why the middle class gets pissed off ope the damns and let people put in as much as they want gov will get texes
It's a must! I fully fund our Roth (backdoor) IRAs the first week of the year! I go switch it up each year, one traditional and one Roth. I get slammed on taxes so I like to take a break year in between. Now, the tax savings I get in the year we both fully fund our traditional 401(k)s, I add that to our taxable brokerage. We started late, I was 45 and my wife was 35. However, we invest on average $100K annually and I am retired military and she's a federal employee. I have a pension now and she will have one when she retires. We're set for life without investments, but I want to build generational wealth for our son.
"tax savings I get in the year we both fully fund our traditional 401(k)s, I add that to our taxable brokerage" The tax savings is *not* available to you to add to your taxable brokerage accounts. The tax savings resides within the traditional 401(k)s.
@Rob. That’s great. 45 and 35 isn’t late at all. It’s just right. I’m 55 and just started Roth. I plan do you some large Roth conversions from 65-67. Around 50k each year. Will also withdraw around 50k for some cash. So for my wife and I since we are already over 50. 7k each for 10 years. We are the same age. That’s 140k Also doing Roth 401k. Not much. 50k by 65. That’s just contributed. I plan to convert at least 50k each year for 3 years when we are 65-67. Could be more. That’s another 150k. So already 340k with no interest. I’m putting all long term growth because we don’t plan on touching until near 80 years old. Since we started late and more because of medical insurance the decision was that I work until 65 for Medicare. Retiring early isn’t the best choice. My job is decent. Can work at home. I can see myself working up to 65. Don’t want to buy high insurance premiums with high deductibles. The other option is to move to a different state. No state income tax and cash out on the equity which is around 1 million. Retire at 62. Buy a house for cash maybe 400-450k. Have around the same left over. Do larger Roth conversions. Hopefully both of you can retire early.
This is a great idea young man do it. My son is 18 I'm making him do weather he wants to or not😅I'll charge him rent but it will be an investment for him😅he will thanks me later
I'm starting at 21. Hoping to build up the port and do a CC strategy with QQQ / SPY so i don't pay taxes on options. Maxing out every year since i work at the hospital
Should I keep paying 250 each paycheck which comes out to 6500 per year from which is every 2 weeks or should I just pay 6500 every April are there any benefits to either
Set up auto contributions every paycheck and auto investments (s&p and/or total US stock). Dollar cost average and get the average stock price over the course of the year rather than trying to time it and deploying the whole 6500 at a potential high. Could be the whole 6500 at a low but you could just constantly get the average price and never have to think about it.
Quite possibly less than you put in there and 30 years it all depends how the stock market does and what you have in their IRAs do not automatically compound like everybody thinks I’ve had one where I’ve lost four years in a row because of the stock selections I’ve had mutual funds so I razor, not automatic compounding vehicles that is bullshit.
The ROTH IRA is an amazing retirement vehicle. I recently started trading options in it so I wouldn't have to pay taxes. I am currently on track for 20%+ returns this year, if that keeps up I won't have to ever touch the basis and just live off the options and dividends....tax free.
What I never understand about these videos, is that they never mention the income limit to a roth IRA. After an income of 153K and you cannot contribute to a roth IRA. Hopefully over the course of a successful career you will outearn that easily. What should happen when you reach that point? What is your investment strategy following that point? Any advice would be appreciated!
The annual max actually isn’t $26,500… it’s $67,000. $74,500 if you’re over age 50. Per person. The “After-tax” (not Roth) 401k bucket gets you the rest of the way.
This is great! I’ve been investing for a long time and it’s exciting to see the growth… 👍How are beneficiaries protected in the event one requires medical/elder care down the road? These can be a significant unknown!
This varies by state, whether the spouse’s retirement fund is exempt from drawdown before Medicaid services kick in for elder care. It’s a good reason to ensure that a couple’s retirement isn’t held by just one spouse. If you file taxes jointly, a non-earning spouse can still contribute to their IRA on the basis of the wage-earner’s income. Not so for 401k.
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i started a roth ira in oct. didnt know much about it. I did alot of research , I invested inside it and in 3 months have made 1300 already. I can see how if i would of had this going for the last full year how much i would have gained. Im sold on keeping this going for as long as i can. I started late. im 64 but its never too late. i figure i will keep it going for at least 10 more years. and have close to 150k extra. who knows maybe more
What did you use your investments on stocks or index funds? My issue is I max it out every year but I do not see how the money will grow on its own without me investing it into stocks
@@destlovee1452you still need to invest the money. The Roth itself is just an account used to invest money. It will not grow without investing the money.
@@destlovee1452 Hi, you should most likely invest into the S&P 500, it is the stock of the top 500 companies in the U.S
Why should you invest into this fund? Because its hands off, put your money in it and forget it. Once you're more comfortable, you can research more and invest into other companies... because the S&P 500 will make you have a great retirement (rich), but that doesn't come until 20-30 years.
I would recommend not to look at it too much once you've invested, it's very hard to not panic when you see the stock fluctuates or drop way down below.
@@destlovee1452A Roth IRA is typically a managed investment account. You can choose where to invest the money you put in, to an extent. Typically the best choice is to select a mutual fund like an index fund. For example, an S&P index fund. That index fund will go up and down with the market and averages about 10% annual returns over the long run. If you max out a Roth IRA yearly, your money will compound at roughly 10% every year. So the more money you have in the account the faster it will grow.
I dunno about op though. Making $1300 returns after initially opening a Roth is kind of weird. Could have made initial contribution of several thousand and then got lucky in whatever investments were chosen. You don’t have to invest in an index fund - you can choose riskier options and stocks. But the safe and very good return of an index fund is advised.
@@destlovee1452 There's a difference in investing in "stocks" (aka individual companies) vs indexes or mutual funds, which is a collection of a huge number of stocks. I would say index/mutual funds is your best bet. Don't try to get lucky picking certain companies, even Wall Street guys do not out perform the market on a long-term basis. Shove it all into index/mutual funds and you will see it grow, S&P500 averages around 10% over the long term. Cheers!
Great video, if this doesn't motivate you to save & be disciplined you're crazy.
I’m 36 and wish I knew about this years ago. Been contributing to a 457b and my pension the last 13 years
The power of compound interest 😊
awesome video. No Req'd RMD's for Roth IRA, but Req'd RMD's for Roth 401K from what I understand
That’s correct, and they are removing the requirement for RMD on Roth 401k’s starting in 2024.
How do you get the percent? Is it something you choose or does it fluctuate with the market?
Fluctuates depending on the market and your risk level for your investments
The sad part is how many people are so oblivious to this and so irresponsible and so entitled and so drunk on instant gratification that they won’t invest this measly car payment worth of money in order to be a guaranteed millionaire later in life with financial security.
Seriously folks. It is that easy. And this is just one of many investment options. You barely even have to try. All you have to do is take responsibility for yourself and sacrifice a fraction of frivolous spending to become financially secure in the long run.
Maybe they should raise the amount that you can contribute instead of putting a cwp on ,i dont want to be told i have restrictions on how much i can contri bute the gov will always get there money ya wonder why the middle class gets pissed off ope the damns and let people put in as much as they want gov will get texes
It's a must! I fully fund our Roth (backdoor) IRAs the first week of the year! I go switch it up each year, one traditional and one Roth. I get slammed on taxes so I like to take a break year in between. Now, the tax savings I get in the year we both fully fund our traditional 401(k)s, I add that to our taxable brokerage.
We started late, I was 45 and my wife was 35. However, we invest on average $100K annually and I am retired military and she's a federal employee. I have a pension now and she will have one when she retires. We're set for life without investments, but I want to build generational wealth for our son.
"tax savings I get in the year we both fully fund our traditional 401(k)s, I add that to our taxable brokerage" The tax savings is *not* available to you to add to your taxable brokerage accounts. The tax savings resides within the traditional 401(k)s.
@Rob. That’s great. 45 and 35 isn’t late at all. It’s just right.
I’m 55 and just started Roth. I plan do you some large Roth conversions from 65-67. Around 50k each year. Will also withdraw around 50k for some cash.
So for my wife and I since we are already over 50. 7k each for 10 years. We are the same age.
That’s 140k
Also doing Roth 401k. Not much. 50k by 65. That’s just contributed.
I plan to convert at least 50k each year for 3 years when we are 65-67. Could be more. That’s another 150k.
So already 340k with no interest. I’m putting all long term growth because we don’t plan on touching until near 80 years old.
Since we started late and more because of medical insurance the decision was that I work until 65 for Medicare.
Retiring early isn’t the best choice. My job is decent. Can work at home. I can see myself working up to 65. Don’t want to buy high insurance premiums with high deductibles.
The other option is to move to a different state. No state income tax and cash out on the equity which is around 1 million. Retire at 62.
Buy a house for cash maybe 400-450k. Have around the same left over. Do larger Roth conversions.
Hopefully both of you can retire early.
starting at 19 i hope this goes well 🙏🏽
This is a great idea young man do it. My son is 18 I'm making him do weather he wants to or not😅I'll charge him rent but it will be an investment for him😅he will thanks me later
started this month at 19 years old too, good luck to you bro🙏
You are well ahead of the game!!
I’m 25 and 2022 is my first year maxing it out .I’m glad you made a 30 year scenario .i will do well
I'm starting at 21. Hoping to build up the port and do a CC strategy with QQQ / SPY so i don't pay taxes on options. Maxing out every year since i work at the hospital
Should I keep paying 250 each paycheck which comes out to 6500 per year from which is every 2 weeks or should I just pay 6500 every April are there any benefits to either
Set up auto contributions every paycheck and auto investments (s&p and/or total US stock). Dollar cost average and get the average stock price over the course of the year rather than trying to time it and deploying the whole 6500 at a potential high. Could be the whole 6500 at a low but you could just constantly get the average price and never have to think about it.
Is 500,000 enough to retire?
@Karil6461 Good question! We actually have a video on that very question. You can watch it here: ruclips.net/video/Gvhesa8kARM/видео.html
No. Minimum of $5m these days.
Yes, if you’re 75 years old
Jk 100
Depends on how much you want to live off of, or how much you need to live off of per year
Yes 500k is enough
Quite possibly less than you put in there and 30 years it all depends how the stock market does and what you have in their IRAs do not automatically compound like everybody thinks I’ve had one where I’ve lost four years in a row because of the stock selections I’ve had mutual funds so I razor, not automatic compounding vehicles that is bullshit.
The ROTH IRA is an amazing retirement vehicle. I recently started trading options in it so I wouldn't have to pay taxes. I am currently on track for 20%+ returns this year, if that keeps up I won't have to ever touch the basis and just live off the options and dividends....tax free.
What I never understand about these videos, is that they never mention the income limit to a roth IRA. After an income of 153K and you cannot contribute to a roth IRA. Hopefully over the course of a successful career you will outearn that easily. What should happen when you reach that point? What is your investment strategy following that point? Any advice would be appreciated!
Back door Roth IRA.... look it up.
Only 5% of Americans make $150k or more a year. I think these videos are intended for 95% of the audience. :)
Just opened up an Roth IRA but what happens if I don't max out my 2023 contributions is there a fee I pay?
no
no you would just miss the opportunity to max it out for that year
The annual max actually isn’t $26,500… it’s $67,000. $74,500 if you’re over age 50. Per person. The “After-tax” (not Roth) 401k bucket gets you the rest of the way.
This is great! I’ve been investing for a long time and it’s exciting to see the growth… 👍How are beneficiaries protected in the event one requires medical/elder care down the road? These can be a significant unknown!
This varies by state, whether the spouse’s retirement fund is exempt from drawdown before Medicaid services kick in for elder care. It’s a good reason to ensure that a couple’s retirement isn’t held by just one spouse.
If you file taxes jointly, a non-earning spouse can still contribute to their IRA on the basis of the wage-earner’s income. Not so for 401k.