Roth IRA Investing For Beginners | The Ultimate Guide
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- čas přidán 14. 07. 2024
- Roth IRA Investing For Beginners: Here is a COMPLETE guide on how you can become a Tax Free MILLIONAIRE using a Roth IRA. This video includes all the information you need to know about a Roth IRA and how EXACTLY you can achieve this goal.
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⏰ Timestamps ⏰
00:00 Intro
01:11 What Is A Roth IRA?
02:44 Rules To Follow
06:32 Where To Open A Roth IRA
07:48 How To Open A Roth IRA
09:05 Building A Portfolio
11:24 Tax Free Millionaire
📝 What is a Roth IRA?
A Roth IRA is an individual retirement account that by U.S. law allows you to invest after tax money for the benefit to withdrawal at retirement (minimum 59.5) TAX FREE.
Fidelity Playlist: • Fidelity Playlist
Link to open up a Roth IRA on Fidelity: www.fidelity.com/retirement-i...
Link to Vanguard: vgi.vg/3KrlHGx
Link to Charles Schwab: bit.ly/3nIOFco
Pros:
1. Withdrawal Tax Free
2. Time for investments to grow
3. You can withdrawal contributions any time penalty free and tax free
4. You have control on how you want to manage the account
Cons:
1. Income Limit: If you have to high of an income then you are unable to contribute to a Roth IRA.
2. Contribution Limit: How much you are able to contribute to the account every year.
3. Can't withdrawal earnings before 59.5
4. Withdrawal earnings early and pay taxes and 10% penalty.
Why are Roth IRA's a great approach when planning retirement?
With proper planning and discipline, a Roth IRA by the time you could retire could truly save you hundreds of thousands of dollars from paying taxes but also the benefit of holding onto investments over the long term.
WHY?
If you were to invest for 20, 30, even 40 years and hit the max contribution every year when investing in strong funds, the chances of your accounts value being high is likely. Paying taxes on a portfolio that high would come with an extremely heavy cost, but paying no taxes would save you many years of working.
Don't let time keep passing, let your money work for you. If you found any value in this content please consider hitting the like button and subscribing as I continue spreading the highest quality content related to "money talk" to impact as many lives as possible.
Sources:
Peter Thiel Roth IRA: on.mktw.net/3U1bPqq
Withdrawal Rules: www.schwab.com/ira/roth-ira/w...
Contribution Limits: www.schwab.com/ira/roth-ira/c...
Historic Market Returns: www.macrotrends.net/2526/sp-5...
Roth IRA Info (IRS): www.irs.gov/retirement-plans/...
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Disclaimer: The information provided in this video does not, and is not intended to, constitute legal, tax or financial advice; instead, all information, content, and materials available on this video and on this channel are for general informational purposes only. The presenter is not an attorney, accountant or financial advisor. Viewers of this video should contact their attorney, accountant or financial advisor to obtain advice with respect to any particular legal, tax or financial matter.
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Fidelity/Vanguard/Schwab/ETrade has made it extremely easy to build wealth. Only disability, a bad divorce, or living in a city too expensive (SF or NYC) can stop someone. Any able body adult with average intelligence and good discipline can build wealth in a 20-25-year period starting in their 20s.
Thank you for your input!
@@DannySullyI opened my Fidelity because of you. Index FXAIX for now. It's a lot to learn .thanks to your channel, I gain wisdom on this.
glad i found your channel. Great info and knowledge. Keep Ballin too!!!!
Thank you I appreciate that so much. For sure always on the grind! 💪
Keep posting more!!!! Thanks Baller
Appreciate you!!! I’m working on it! Thank you!
Mint! Thanks again bro!
Of course! Thank you!
Danny amazing video!!
Thank you so much!
Love your videos! Thanks for explaining it so simple, for people like me.
That means a lot to me to hear, thank you so much!
Great vid Danny! I have a question. Is doing an automatic investments & recurring transactions for SP 500 ,the same as if you buy SP 500? if that makes scenes?
Just wanted to say thank you for all these excellent vids breaking down so many complicated finance things. My partner and I have been trying to figure out what the hell we need to do to start investing and saving for retirement, but every big channel on here just beats around the bush and never says anything specific whatsoever (Dave Ramsey's vid on mutual funds honestly pissed me off, he somehow managed to say nothing for 10 minutes straight with just baffling levels of bloviation.)
In the last hour, you've lifted the smoke screen pretty much completely and I know what I need to do now (need to watch your Fidelity tutorial, first, but I'm fairly certain I'm going to go through them.) Gonna sit my siblings down and go through all this with them, too, and get us all started with Roth IRAs and investing in the S&P 500.
I hope you get more traction because you're doing some really great work here helping people like me who have virtually no financial literacy or understanding of what has turned out to be pretty simple to understand stuff. All it took was someone taking the time to break it down in layman's terms and not condescend to me like I'm a toddler lighting dollar bills on fire lol.
Wow... thank you so much for this comment. It means so much to me to know that the content I am putting so much time into is helping someone! I really appreciate your kinds words and am very happy to hear you are making a change to growing yourself... and even others such as your family as well! I wish the best for you going forward with your journey. Thank you again for this comment and I will do my best to continue making impactful content on this channel :)
Very informative and well done video. How about doing a video on Roth Conversion!
Thank you, I appreciate that a lot! And I will definitely put that on my list, great idea!
Thanks!
Wow thank you so much!
Interested on info on back door Roth.
Looking for how to do a back door Roth IRA...
thank so much!
Great idea! Thank you for watching :)
Hi, Danny great video, appreciate very much your explanation on how index funds works. I'm 63 just getting my feet wet in investing. I have a Fidelity account with my pension, 401k, Roth. My question is I'm going to need more money to retire comfortably, so at 63 yrs old and ready to open a brokerage account with Fidelity, how should my portfolio look like vs the one in your video look like? Thanks very much your Awesome!!
Great Videos. Wish I found it earlier. Interested in the backdoor IRA. Would you please share videos?
Thank you! And I will work on that video as soon as I can. Others asking as well. I will get back to you when I do!👍
hey, I just wanted to reach out and let you know I have decided to wait on doing a backdoor roth ira video until I officially do it myself. I am not satisfied on creating a video without showing a complete step by step walkthrough doing it myself. I will definitely be doing this in the upcoming years once I have to take this approach. In the meantime, here is a helpful video I found on CZcams that you may benefit from. Thanks! czcams.com/video/Kl0uxmKM3aQ/video.htmlsi=MI4jFb6jGRqwrDbd
Can you do a video on how to build a Roth IRA ? like which investment to buy to build the Roth IRA
Of course! my recent newsletter post made me think about doing this so thank you for mentioning it. Your support is greatly appreciated :)
I’m 30 and just opened a Roth. Can I just do 80% or 90%FXIAX and 20% or 10% FSPSX so I don’t overlap and wait to do bonds later?
Many people are going to hit the income cap mid career which greatly limits additional investment. Really unfair because those with pension plans can keep investing but those making a little more without pension plans cannot. At some point this is going to come to a head. Anyway make good on whatever you can put into a Roth, or backdoor if it makes sense to pay taxes now on tax-deferred money.
A backdoor roth ira is definitely an option everyone above the limit should consider. I plan to create a video on that once I have to do this personally. That way I can use visuals on the entire process.
Quick question from a beginner: should I invest all of the money in my Roth IRA into stocks? And, once I’ve purchased the stock, should I continue holding on to it or is there a point where I should sell? Thanks!
From everyone I've talked to there are many views to take for Roth IRA investing. It would honestly be great for a whole video entirely on that. There's the approach where because its tax free, just buy and sell securities whenever best because taxes don't matter. Although this seems like a great approach, I myself, statistics, and proof from others have seen the more active trading for the active investor, the worse of a performance in the long run. Whatever you decide to be the best investments I would recommend holding and never selling unless you purchase a company that all the sudden does a 180 spin. Personal side, index fund investing for the long term is the easiest, safest, and from my research the best way to build up long term wealth in your Roth IRA.
ROTH❤
For the win!
If I wanted to invest in money market funds on Fidelity or Schwab and I wanted to see how good their track record is, where would I go to see that?
Hey, I'm glad you asked this question! I'm currently in the process of making a Fidelity money market funds for beginners video. On their page, you can simply look up the exact money market fund. if you go to performance, it will show you the historical returns they have achieved. I've actually made an entire video on money market funds. If you want to learn more I'll leave that below as well.
czcams.com/video/TSOwPNnuJng/video.htmlsi=dUItj8HtrNucfPLL
So are you saying you can manage your Roth IRA just like it is a regular brokerage account but with A LOT of tax benefits? Side question: Is Roth IRA based on your federal tax return AGI?
Yes! A Roth IRA is extremely beneficial. And the Roth IRA limit is based on your MAGI. Modified adjusted gross income. So what you come out with after all taxes. When you pull out you pay no taxes at all.
How much does it cost to nowadays open up a Roth IRA?
Opening a Roth IRA is free! If you manage the investments yourself, there are no extra fees as well.
so if im married filing seperate i cant do a roth ira our income is 199k
Hey great question! And you actually can, you have to do what is called a backdoor Roth IRA. I will eventually create a video on this but for the meantime I recommend looking up other videos on CZcams, there are great ones that discuss this!
so i needa make less than 150k now
👌
so you get taxed on the the income you've already been taxed from (watching as you link your bank account, so it's already your earnings that was taxed from your income).. taxation is such a damn theft by the government in this country it's infuriating
Hey, so with a Roth IRA you are contributing income that you already paid taxes on, that is correct. The tax-advantage here over a traditional brokerage account is that you are able to grow the investments in the account tax-free. Meaning, when you withdrawal at retirement, everything in the account is not taxed, at all! So all the gains you make within this account are never taxed.
Does this help clarify any confusion?