I’m 41 and just starting to look into Roth IRAs. I’ve heard they’re great for retirement, but I’m unsure how to start. Inflation’s not helping either-it’s making me feel like I’m way behind.
I know the feeling. I started investing in a Roth late, but I can’t stress enough how the tax-free withdrawals during retirement make it worth it. The key is getting started, even if it’s small. The earlier you start, the more time your investments have to grow
Totally agree. But a lot of people don’t realize they make mistakes like over-contributing or not diversifying enough within the Roth. It’s not just about having one-it’s about managing it right, especially if you want to retire early.
Managing it right sounds easier said than done. I’ve tried DIY investing, but honestly, it’s been frustrating. Do you know someone who can help me make the most of a Roth IRA?
my CFA, Joseph Nick Cahill, specializes in optimizing portfolios, including Roth IRAs. He’s helped so many people with both short-term and long-term strategies. The best part? He offers free consultations, so you can see if he’s a good fit before committing.
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
@JacquelineTheresa The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 1500+ units from collaborative efforts in the fund my estate planner has me invested in. I do not work.
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.
I've stuck with ‘’Julianne Iwersen Niemann” for about 9 years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
I've stuck with ‘’Julianne Iwersen Niemann” for about 9 years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
This answers so many questions that i’ve had for awhile about this. Usually when you speak with professionals in the financial/banking world, they don’t make it easy to understand, as if they are reading from a book. Thanks for the video
I don’t get it. At 4:15 you say there isn’t a limit on how much can be contributed to a Traditional IRA but later you say the limit is $6000 for both Roth and Traditional IRA. Please explain
Hey Raul! First, thanks for watching! The limit that I'm talking about at 4:15 is your income limit. So you can make as much money as you want and have the ability to put money into a Traditional IRA (up to the limit which is 7K for 2024), but if you make more income than 160K-ish (as of 2024) you will not be allowed to contribute to a Roth IRA at all.
came here to say this same thing. You can withdraw any or all contributions at any point for any reason, with ZERO penalties ( fees, charges, etc.). Not sure where that 5 year wait came from.
The "5 year wait" in a Roth IRA refers to the "5-year rule," which means that you must wait at least five years after the tax year of your first Roth IRA contribution before you can withdraw any earnings from the account without penalty or taxes; you can always withdraw your original contributions at any time without penalty, regardless of the 5-year rule.
Means you’ll be tax at the moment that you make the deposit and in the future when you make a withdrawal you won’t be taxed anymore, that’s with a Roth IRA
@@MrISkater Roth because you are expecting the same. If you were expecting less id go traditional but make sure you are at least in a higher tax bracket if you are thinking of traditional. the lower and middle class benifit from roth while upper class is better off on traditional.
But with a traditional IRA, in your case, you'd get taxed on that lower income. (as opposed to if you had a Roth IRA and already paid taxes on the money). I'm not arguing either way, but interested why you think traditional IRA is better for most people?
@@thewealthworkshop I’m not a tax expert, so let me know if I get anything wrong here. With traditional IRA you are only taxed on whatever you withdraw, right? Let’s say I make $20,000 a year on Social Security retirement money and then I withdraw $10,000 from my traditional IRA. That means I am at $30,000 income. The long-term capital gains tax rate for that income is 0%. Does that mean I don’t have to pay any tax on the $10,000 I withdrew for my traditional IRA?
You can open both a Traditional IRA and a Roth, but you can only contribute $7000 (as of 2025) in total between the two. For example, 3K in Traditional and 4K in Roth in the same year. But you CANNOT do 7K in each (for a total of 14K for the year). Thanks for watching!
If your incone tax braket is 32% rn, and your retirement income tax bracket is 22%, then a traditional IRA is better because you ultimately pay less to the man.
"salary rises above the $160,000 limit? I can no longer contribute?" Correct answer is you can *_indirectly_* contribute to Roth IRA via *_backdoor_* Roth IRA process.
Well, I for sure will never make an income of over 140k. So I know a traditional IRA is a safe bet. If you're in your early 20s, investing in IRA, and know you'll finish college and eventually make 200k salary then no.
how? you are the only one who will decide weather you invest your money or not in the first place. if you think that way, you can start building your spaceship and then go to the other planet and in there you can make your own rules and laws.
Hmm, well traditional would mean you don't pay taxes on that money now, so it could lower tax burden? Hope you get it figured out. Thanks for watching!
Everyone is 100% sure will be in a higher or lower tax bracket 5, 10 or 15 years from now. Even in one year from now. Who invented this nonsense ponzi??? 🤣🤣🤣
I’m 41 and just starting to look into Roth IRAs. I’ve heard they’re great for retirement, but I’m unsure how to start. Inflation’s not helping either-it’s making me feel like I’m way behind.
I know the feeling. I started investing in a Roth late, but I can’t stress enough how the tax-free withdrawals during retirement make it worth it. The key is getting started, even if it’s small. The earlier you start, the more time your investments have to grow
Totally agree. But a lot of people don’t realize they make mistakes like over-contributing or not diversifying enough within the Roth. It’s not just about having one-it’s about managing it right, especially if you want to retire early.
Managing it right sounds easier said than done. I’ve tried DIY investing, but honestly, it’s been frustrating. Do you know someone who can help me make the most of a Roth IRA?
my CFA, Joseph Nick Cahill, specializes in optimizing portfolios, including Roth IRAs. He’s helped so many people with both short-term and long-term strategies. The best part? He offers free consultations, so you can see if he’s a good fit before committing.
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
@JacquelineTheresa That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@JacquelineTheresa The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
@JacquelineTheresa I will give this a look, thanks a bunch for sharing.
I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 1500+ units from collaborative efforts in the fund my estate planner has me invested in. I do not work.
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.
If I may ask, as in withdrew all of the money from the 401K and IRA programs? If so, what was your strategy behind that decision? Thank you.
I've stuck with ‘’Julianne Iwersen Niemann” for about 9 years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
I've stuck with ‘’Julianne Iwersen Niemann” for about 9 years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
This video was the ABSOLUTE BEST HANDS DOWN! Thank you so much for putting this content together and making it simple and easy to understand!
Glad it helped. Thanks for watching!
This answers so many questions that i’ve had for awhile about this. Usually when you speak with professionals in the financial/banking world, they don’t make it easy to understand, as if they are reading from a book. Thanks for the video
One of the best explanations I’ve seen
Thanks for watching!
This answered so many questions I had, thank you!
I don’t get it. At 4:15 you say there isn’t a limit on how much can be contributed to a Traditional IRA but later you say the limit is $6000 for both Roth and Traditional IRA. Please explain
Hey Raul! First, thanks for watching! The limit that I'm talking about at 4:15 is your income limit. So you can make as much money as you want and have the ability to put money into a Traditional IRA (up to the limit which is 7K for 2024), but if you make more income than 160K-ish (as of 2024) you will not be allowed to contribute to a Roth IRA at all.
@ 2:30 There is *no 5 year wait* to withdraw Roth IRA *_contributions._*
I was surprised to hear that too
came here to say this same thing. You can withdraw any or all contributions at any point for any reason, with ZERO penalties (
fees, charges, etc.). Not sure where that 5 year wait came from.
yea that sounds more like the backdoor roth strategy
The "5 year wait" in a Roth IRA refers to the "5-year rule," which means that you must wait at least five years after the tax year of your first Roth IRA contribution before you can withdraw any earnings from the account without penalty or taxes; you can always withdraw your original contributions at any time without penalty, regardless of the 5-year rule.
At 1:19 how you being taxed before contributing if you haven't even contributed???? It does make any sense!!!!
Means you’ll be tax at the moment that you make the deposit and in the future when you make a withdrawal you won’t be taxed anymore, that’s with a Roth IRA
And the gains are tax-free.
What if I'm in a low income bracket now and expect the same closer to retirement? Which account is the better option for this scenario?
Won't matter if trump wins, if not go roth
@@MrISkater Roth because you are expecting the same. If you were expecting less id go traditional but make sure you are at least in a higher tax bracket if you are thinking of traditional. the lower and middle class benifit from roth while upper class is better off on traditional.
How can I know in the future if tax bracket will be high or low. ?
Usually when you retire, you don’t make any money so your income will be lower. In my opinion, traditional IRA is better for most people
But with a traditional IRA, in your case, you'd get taxed on that lower income. (as opposed to if you had a Roth IRA and already paid taxes on the money). I'm not arguing either way, but interested why you think traditional IRA is better for most people?
@@thewealthworkshop I’m not a tax expert, so let me know if I get anything wrong here. With traditional IRA you are only taxed on whatever you withdraw, right? Let’s say I make $20,000 a year on Social Security retirement money and then I withdraw $10,000 from my traditional IRA. That means I am at $30,000 income. The long-term capital gains tax rate for that income is 0%. Does that mean I don’t have to pay any tax on the $10,000 I withdrew for my traditional IRA?
@@Veritas463 Q1 Yes. Q2 No. Withdrawals from traditional are taxed as ordinary income not as long term capital gains.
Is it better to convert my 401k into a additional IRA or somehow put it into my already existing roth ira
Which choice Will you have more after taxes is the answer.
Most people pay less taxes in retirement but that doesn't mean you will
So when u say I can pull my CONTRIBUTIONS out of a Roth IRA whenever I want that’s only taking the money I’ve put in not the newly earned interest?
That is correct. Pulling out earned funds could trigger taxes and/or penalties. (Keep in mind, I'm not a tax expert lol)
Well explained
Thanks!
Good presentation. Very well explained
Thanks for watching!
Can I open one Traditional IRA and one Roth IRA and contribute 6000 in each?
You can open both a Traditional IRA and a Roth, but you can only contribute $7000 (as of 2025) in total between the two. For example, 3K in Traditional and 4K in Roth in the same year. But you CANNOT do 7K in each (for a total of 14K for the year). Thanks for watching!
Taxes always go up why wouldn’t I pay the lower taxes now instead of the higher taxes in a lower tax bracket later?
Good point im thinking one plus is you can earn interest on the pretaxed amount but I didn’t think about the increase in tax
If your incone tax braket is 32% rn, and your retirement income tax bracket is 22%, then a traditional IRA is better because you ultimately pay less to the man.
So if I open a Roth IRA but a year down the road my income increases to 146k, what then?
You could potentially do a backdoor Roth conversion
What if I start a Roth IRA when my salary is $100,000 but after several years the salary rises above the $160,000 limit? I can no longer contribute?
(not financial advice lol) but yes, you couldn't contribute directly to the Roth IRA, but you could still contribute to a Traditional (pre-tax) IRA.
No contributions, but you'll still have the money and it will grow. Max it out while you can then open a traditional at the salary change.
"salary rises above the $160,000 limit? I can no longer contribute?"
Correct answer is you can *_indirectly_* contribute to Roth IRA via *_backdoor_* Roth IRA process.
thanks for the info
I like this video, well done Wealth Workshop. J. Carlton Collins, retired CPA
Thanks so much!
Both are good ❤
Agreed!
I go with the simple idea that when I am retired not paying taxes makes my money go farther
Agreed! One less thing to have to "fight" later on.
WTH???? How in the world can you predict the future tax bracket to be able to choose between traditional or ROTH???? No one has a crystal ball!!!
Well, I for sure will never make an income of over 140k. So I know a traditional IRA is a safe bet. If you're in your early 20s, investing in IRA, and know you'll finish college and eventually make 200k salary then no.
@@chiquitodaviii2913Roth IRA* Traditional doesn't have a limit
@chiquitodaviii2913 if you can max out the IRA, Roth dollars are more valuable than traditional dollars. Otherwise I agree.
Who’s here from the video Mr. Villa is making us watch 🤣
Mr Villa sounds like a pretty cool person :)
@@thewealthworkshop he’s him chat
I hate Mr villa
@@nolanjohnson1209 woah that’s brazyyy dawg, Mr villa is himothy
Even explained with cartoons, they make it so confusing with the only purpose of stealing our money!!!!
how? you are the only one who will decide weather you invest your money or not in the first place. if you think that way, you can start building your spaceship and then go to the other planet and in there you can make your own rules and laws.
buffet would use it to pay taxes on his drip
taxes for a tax for another tax to be taxed for a tax to support a state tax to tax the taxes paid for taxes
high income earners don't even bother , aka folks making a mil. they can just flip in the stock market in a day
I did learn something today: My advisor is an idiot. I'm low income and he put me in a Traditional IRA.
Hmm, well traditional would mean you don't pay taxes on that money now, so it could lower tax burden? Hope you get it figured out. Thanks for watching!
Everyone is 100% sure will be in a higher or lower tax bracket 5, 10 or 15 years from now. Even in one year from now. Who invented this nonsense ponzi??? 🤣🤣🤣
Too fast and would have been excellent if explained with numbers, ley say 100 dollars invested and early withdrawal in 5 years and at retirement age
Hmm, numbers could be tough because there are SO many different avenues, but thanks for the suggestion. May make a second video where I split them up!