I am 53 years old and consider myself to be a high earner. My job provides me the option to contribute the employer contributions to my Roth 401k. Should I do that or should I continue to direct that to my Traditional 401k ahead of retirement?
You're doing well for yourself but it is better to seek help from a professional. I am sure that an expert with experience provides more edge than a TH-camr.
As a high income earner can you easily afford to contribute max of $22,500 to your traditional 401(k) and towards retirement? What is your Federal Tax Bracket and percentage of company match? I f you don't know all this then its best you consult with an advisor.
You are amazing, Mark. I'm a CPA and I've read your books. Simply amazing. I'm happy you continue to share your wealth of knowledge through other avenues like these. Thank you for the work you are doing.
Yes@@MarkJKohler, really appreciate your wisdom. Sorry you had to tackle those negative comments. 12% in the market is absolutely realistic. See FSCSX mutual fund, 22% annual returns over the last 10 years. Keep encouraging people to save, brother!
@@yanutube1 there is another Roth video where he answers it - I think it is through back door contributions. I believe it is a 2 step process - put money in your 401k and then convert to Roth. You take the tax penalty but it works. I'll try to find the link
For the 2020 & 2021 tax years, the combined annual contribution limit for Roth and traditional IRAs is $6,000 ($7,000 if you're age 50 or older). So how do you put in $19,800 if you 50. Investing minds want to know.
Some plans allow you to contribute after tax dollars and do a Roth in plan conversion to your Roth. As high as 30-40k depending on your contributions to other retirement accounts.
Roth 401k accounts, you can put in $23,000 per year as an employee. Then you can match it as your own employer if you are self employed OR get a company match if you work for someone else. There ARE WAYS.
Mark, thanks for the videos. I am a student of investing. I started in 1991 and haven't looked back. I, too, have found vehicles that ride above 10-12%. And, yes, that don't stay there, but I enjoy the ride while they are there. I just created a spreadsheet and provided it to my nieces and nephews (and my kids) about how to forecast what their accounts will look like in the future if they stay consistent. In closing - the key is to program your mind to see your future. The money starts looking good at the 20 year mark and every year there after it gets really good. To all the readers that don't understand investing, look up the Rule of 72 and Mark's videos will make more sense (assuming they don't right now). Thanks, Mark and keep up the great work.
Cool. You're doing really great. Keep it on. I'm a dedicated investor too. No just stocks though. I have my funds spread among a number of securities and carefully diversified by my portfolio manager. I often hit up to 20% return monthly. She's just a genius in wealth management.
Hey Claudeen, my law partner and I started a podcast specifically about self-directing. We have more than 20 episodes that are an hour-long, where we talk about self-directing. We cover topics like IRA/LLCs. If you are interested in self-directing your retirement, I would HIGHLY recommend listening, you can find them here: directedira.com/podcast/
Get a job with the US Government and you can put 20,500 into a Roth TSP. PLUS, the 20,500 will be non-taxable. So, If you earned 40,500, the taxable amount would be 20,000. You will be in the 12% tax bracket.
Can you point us to an article explaining how the self-directed LLC you showed at 13:45 is _not_ considered self dealing? If that’s not, then what _is_ self dealing?
Hmmm .... You can set up traditional and ROTH IRAs at Fidelity, TD Ameritrade, or other brokers without having to pay any setup fees and then trade stocks, bonds, etc, within the IRAs for free. Many people even trade simple options within their IRAs for a minimal 'per trade' fee. I could be wrong but - as far as I know - although you can 'roll' or convert part or all of the cash and investment within your existing 401Ks and various other savings vehicles into an IRA, 6000 or 7000 per year is the absolute max contribution limit for NEW money going in, no matter how hard you try to find ways around it.
@Mark - few questions on your 10% ROR(Rate of Return): 1) is it Real rate of return ? 2) 10% is it pre or post inflation adjusted assuming 5% is inflation? 3) what about the protection from market down turn? During the growing years say you are in 40s or 50s, the market take a dip 30-40%, then you don’t significant years to recover or your annual real rate of return should be compensated with high % for the loss. Above example is best case scenario. But we know market can’t be best case. 4) is Roth 401k same as Roth IRA(Self Directed IRA)?
@@MarkJKohler Thankyou so much! 🥰 My parents have passed and suddenly my net worth has increased and my previous plan to the millionaires club needs revision. I know I'm not alone on this.
@@bahb00 Well, we're here for you if you want to discuss some tax/legal strategies and options. Maybe just pay for a 1/2 hour with one of my tax lawyers to get a 2nd opinion. Thanks so much for considering this. Please call Rosalie at 435-586-9366 to schedule something.
@@bahb00 I believe you get the best of what you want when you meet the right people. Just make wise decisions. And you'll have reasons to be happier. I have a portfolio manager who works at a brokerage and I make a decent ROI of 7%-10% monthly. I can link you up if you'd wish.
I am in my 30's and have stash, acorns, Robinhood, crypto, custodian account and a Roth IRA. I never knew that this was possible... great part 1 and part 2. You gained a sub and I am checking on the website! Appreciate the video. Keep the content coming.
Wow keep it up Gates! It IS possible! Thank you for subscribing. If you ever need any tax or legal support, I would love to be of service. Just call 435-586-9366 ext 2024
@@MarkJKohler thanks for the reply and the great content. I will definitely be in touch if I have any questions. Keep the videos coming, I have learned a lot over the last couple of days watching your videos 👍
Good Job....you can try but u can NEVER make people understand what it is that is Good for them because...most are Naysayers....half glass people...LISTEN we need them..because everyone can’t be in top 10% of Wealth in this Country...keep delivering Good Content!!
Thanks so much!! I appreciate that. I was really surprised by the response of people to my video. So upset about investing outside of the Wall Street machine.
I'll take the glass half empty approach.. these "acorns" with Starbucks that round up to the next dollar...your paying 3 bucks for a latte which has a 300% markup...
...must be talking about my ...5...hardheaded''...''Daughters'''...they just wanna take...selfi''s-...and HAIR-WEAVES'''...silly...rabbitts'''''ha...ha...ha...!?
@@chuckincharlo EXACTLY!! The financial _ILLITERACY_ in this country (and in the west in general - countries like Canada are much worse), is *_astounding._* If you need an app to help you do BASIC math and save, then I don't even know if you deserve to exist (rollseyes).
This is literally what I've been wondering about. The LLC owned by various IRAs is similar to what a hedge fund does - it's just private money investing with a manager for a fee. In this case, you are just having the IRA buy in. Interesting. I might be simplifying the whole thing too much!
Here's how you get even MORE than 12%.... Buy Texas property tax liens or tax deeds. It pays 25% the first year and 50% the 2nd year....if the previous owner pays. If they don't pay the back taxes on their property by the end of the 2nd year, *YOU GET THE PROPERTY* !
Can you make a video about real estate scenarios? Can a Roth form an LLC that pays down pmt, closing costs and repair costs for a flip then the proceeds from the sell can go into the Roth? Does the property have to be completely paid for from LLC? Does property have to be titled in LLC name?
Yes...Your Roth can do all of this. Now, I've got a short TH-cam video on this....th-cam.com/video/QoVSf_CxiyQ/w-d-xo.html AND I also have more lengthy videos on my website for just a couple hundred bucks (Tax and Legal Library, lifetime membership, been doing it 9 years and 40+ hours of content) you would love it. www.markjkohler. ALSO, my partner's book is the best selling book on this www.sdirahandbook.com. But finally, IF you decide to self-direct and do an LLC, you need to use a law firm. Legalzoom docs are not allowed by custodians or trust companies. We charge as low as $800, which INCLUDES a lawyer supported consultation throughout the process. Check out our law firm if you need help at www.kkoslawyers.com. Thanks!
Mark J Kohler I need to talk to someone about this I do flips and have investors. If the investors use self directed Ira they can do tax free And can I do it too if I flip in a Roth 401k?
@@MarkJKohler It's the truth. Literally "most" people don't. At the end of your video..."knowledge is power"...great information, wish I would have done this when I was 20 instead of 30 :). Never too late to start though!
This is incredible! I already have a Roth, will form an LLC a.s.a.p. and plan to invest in racehorses like you suggested! When that starts paying off, I plan to diversify into: lottery tickets, Fentanyl and arms sales to the Middle East! I'll probably be at $1M by Christmas...I'm so excited!
Diversification pays off really well if done very meticulously. I prefer a more aggressive approach to the financial marke. Currently I have a managed portfolio with some huge 6 figures under the care on my financial adviser. Naomi Marie Dopson by name. She's a renowned and popular broker here in the US. My portfolio yeilds over 20% return monthly. I hope you're kicking as well!
Lol....loved the come back on the haters.... frankly speaking they are not haters but un-enlighted.... Great work educating everyone and appreciate Transparency! Wish I came across these videos 20yrs ago. I always contributed to 401k for 20yrs but only understood it 3 years ago, so I decided to self direction after realizing Wallstreet doesn't cut it.
What are the benefits of creating an LLC owned by the IRA to invest rather than investing directly from the IRA? Also, if we want to set up that LLC structure, how do we go about contacting you for that?
Thank you so much for these videos, watched also the first one. Yes, would also loved to see the third coming. I didn't understand though what you mean by "build a LLC *in* the self-directed Roth IRA". Do you mean build a LLC and link it to the self-directed Roth IRA? I'm afraid I didn't understand the concept, or rather the setup - meaning, which to set up first and to link it together.
Once you’ve maxed out your Roth, then pour $$$ into your pre-tax IRA. (traditional IRA, 451, 401k whatever you have access to)! NOTE: you don’t want EVERYTHING in a Roth anyway. It’s all about tax planning. SOME of your investments can be pretax now (to lower your current tax bracket); but then it will be taxable when you draw it in 30 years. That’s ok though, because you’ll be in a lower tax bracket then - and remember! your Roth investments are tax free. In sum, you want a MIX of pre- and post-tax IRAs so that you’re maxing our your tax benefits and investment growth both now and when you retire.
I love your videos and they totally out bid the ones about getting rich quick. That's just not realistic. I appreciate you taking the time to make these videos!
Hi Mark, great video I learned a lot. I have a question about partnering with other LLC. For example, if I had the following setup: Partner 1 sd IRA LLC: 30% Partner 2 sd IRA LLC: 30% Partner 3 LLC: 40%. At the time of distribution, do I have to use the same percentage or would it be wrong if I choose this way to distribute? Partner 1 sd IRA LLC: 45% Partner 2 sd IRA LLC: 45% Partner 3 LLC: 10%.
If you're not investing at least $10,000+ or more into this directedira.com thing, then I don't see why it would be worth it. An index fund cost ratio is anywhere between free to 0.04 and mimics the market and sometimes out perform a mutual fund. You're the first person to ever mention this in all the videos I've watched and I'm hesitant
Your best bet is to watch some more of my videos, go to markjkohler.com/blog/ and find an article I have written, and/or give my assistant Rosalie a call at 435-586-9366 ext 2024 and have her point you in the right direction.
Mark, you're doing great! Keep instructing. I have Roth's, SOLO ROTHs and Golden ROTHs. Awesome stuff. If you think 10% is good, try 2000%. Real estate, businesses, precious metals, real estate paper!
You did not cover how can you put $20k into a Roth when the limitation is $6000 + $1000 catch up over 50y/o. I am interested in finding that information. Thanks. Great Video
I don’t know if this is where he was going with the $2k a month, but some companies allow for Roth contributions in a 401k. Cap is at $19,500 + $6,500 as a catch up contribution gets you to $26,000. It’s unfortunately not available for everyone.
just when I think that your last video that I watched was your best, you surprise me with more amazing content! Thank you so much for all that you share! Do you consult in Georgia?
Thank you so much Sheena!! I don't have an office in Georgia (hopefully I will in the future :) ) but my team and I do work with clients all over the country so I can definitely help you with anything, tax or legal. Give my office a call 435-586-9366 ext 2024 :)
matching from employer on acorn . ? most employers dont let u pick funds . you invest directly through their selection of funds. maybe Im missing something?
Mark, can you please go in deeper in self direction examples. I have my own business and I would love to see if it makes sense to self direct and invest in my business.
Thank you for helping me out trying to figure things out man I appreciate you teaching me how to try to invest and save God bless you and many more blessings come your way
Thanks mark I’ve been researching this Roth IRA stuff I’m the freaking out guy your speaking of I’ll be 51 in a month no 401K no savings 4 kids that drained me dry over the years gonna start putting away now but wish I had a long time ago like you said ..
Hey mark, I know it’s 2 years since you made this video but I had to comment. I am that guy I’m 50 with next to nothing. I am fortunate though in that I have a job and a 401k . I made a lifetime full of mistakes but I’m gonna do it I’m determined to have something by 65. I’ve been sharing your videos with my 19 year old daughter and my 22 year old nephew. Thanks for the information my friend
Hey Mark, 1) Why use the LLC model when you can use a self-directed 401k? I've run into problems trying to use an LLC - particularly an out of state LLC (Nevada, Wyoming, Delaware, [no prizes for guessing why]) and then needing to use the legal system in the jurisdiction you're operating the LLC out of. It gets especially ugly if you need to do a judicial foreclosure or you need to sue someone/defend against a suit on behalf of the LLC. The alternative is paying sometimes-exorbitant corporate filing fees and taxes in your domicile state... in California, that's like $800/year just starting out. And most states aren't going to exempt you from franchise tax just because your LLC is owned by an entity that's federally tax exempt/deferred. 2) I think UBIT can be a big factor in choosing a self-directed 401k over a self-directed IRA. Simply put, the 401k doesn't pay UBIT on debt-financed assets (notably real estate), while the IRA does. You can also do a ROBS with a 401k, where that's much much harder/impossible with an IRA. 3) The biggest upside to the IRA is one that I didn't notice in either video: the right to withdraw when you want, rather than at 70 1/2. Doesn't seem like a big deal initially, but you may have assets that you want to hold on to indefinitely (like a quasi-business) that you don't want to have to piecemeal out at 70. 4) I've had an absolute hell of a time getting non-seller financing for an LLC. With 401ks I haven't run into the same resistance from lenders. Best.
Actually I started digging on your channel and I realized you clearly know what you're talking about beyond the initial talking point. I think even if we disagree on some of the specifics, your videos are an insanely valuable add. :)
From what I have been told, when money is in a 401k, you are limited to the options they provide, which are usually a handful of mutual funds. You cannot roll money out of that 401k as long as you are with that company. Once you leave, you can roll it into a self directed IRA. I've actually heard of people working it out with their employer to quit the job to roll that money out, then get rehired.
Non recourse collateralized debt....aka car collateral loan..or llp credit partnership....llc satellite with ability to take on debt and leverage outside side of IRA actualized equity on partners/family property
Non owner occupied real estate is a underwriting no no..... Sharpen corporate credit well to tolerate diverse debt in proper seasoned shelf holding LLC. leverage partners are sometimes needed.
Enjoyed your videos on $1,000,000 Roth IRA's. I have forward these videos to my 25 year old daughter that is now in the real world and starting to make real money. I agree with your basic message of automatic saving and forgetting about it. Regarding Self Directed Roth IRA's. I did set up such an account about 15 years ago (I'm now 68) and it owns 98% my personal consulting company LLC. The original idea was to funnel profits into the Roth account tax free. However a few years back Washington DC came up with "Unrelated Business Income Tax" idea which will tax any profits over $1,000 from my consulting company. How do I get around this "Unrelated Business Income Tax"? This Unrelated Business Income Tax seems to have defeated my whole purpose of setting up a 'Self Directed Roth IRA" in the first place. Your comments are greatly appreciated!!!
Hey Jeff, Mat Sorensen and I created the Directed IRA podcast to help people with questions just like this. Here is an episode where we cover all sorts of questions about UBIT: directedira.com/ep-17-when-does-your-ira-have-to-pay-taxes/ I would highly recommend listening to every episode, we cover tons of cool strategies every week to help you self-direct in the best possible way. Hope this helps! If you need any additional help, I would recommend setting up a consult with our firm. You can email my assistant whitney@kkoslawyers.com and she can help you get scheduled!
Wow !! Thank you so much for all this info . It opened my eyes to how we can be smart about saving with tax benefits and investing at the same time 👏🏻👏🏻👏🏻
Mark I love your information and have watched everything you put on TH-cam. As a smart Millennial who studied demographics and consumer economics at UGA I learned back in 2004 that I will never see a dollar of social security benefits and I am willing to bet that they will end up taxing my Roth earnings in 23 years. Biden is now trying to put a cap on our Roth of 5 million which will be worthless by the time I retire. So what should we Millennials do for retirement after funding social security for my entire life only to get nothing in return? People need to wake the F*** up and fight this new tax bill. This is all happening because they screwed up social security system and now want us to bail them out. I'm probably getting out of this country because it's turning into a government ran country that cares nothing about its hard working middle income tax payers. They should put the entire tax system on the blockchain to show us where our tax money is being spent.
So glad I found your channel. I’m 36 and I just opened my first Roth IRA. Doing all the research on my own, investing in stocks.. does that mean I can’t open a self directed ira now? I want to invest in crypto in my Roth ira also but can’t figure out how 🙏🏽😩
Why would someone give a negative comment to someone creating a great video with great content AND he's sharing it for free. Thanks for sharing this information my friend...I'm 46 and I feel like I got a chance now lol!
LOL... people really said insurance was a better investment vehicle? Just shows there will always be a market for common sense financial advice. Nice work presenting a clear easy to understand explanation.
Just a side note - and not to be too picky - but Millennials aren't early 20's college students anymore... the youngest of the generation will turn 25 this year.
This sounds really interesting. I run my own business (LLC) and once I pay off the IRS, later this year, I want to start investing $6k+ a month, plus start another side hustle with 100% of the profits also going to retirement (selling items on ebay). Can you guys assist and guide me? I don't have a 401k yet, but a vendor may be providing it soon, but wondering if there's a better way.
What about me at age 65 with no retirement plans. Just opened a RothIRA account how much and where I should put my money to be a millionaire at age 70.
Wow...lots of questions and 20 answers with options. Sometimes the LLCs don't have to report ANYWHERE...and they certainly won't on a Schedule C. May I suggest two things. First, my partners best selling book on the topic at www.sdirahandbook.com. Next, just get a brief consult with one of my attorneys. They can tailor your questions/answers to your situation and it will save you a ton. Call Rosalie Phan at 435-586-9366 to set something up. Thanks
Thanks for the great info, Mark! Is it legally possible to transfer/rollover 500K from an IRA to a SD IRA and then buy a condo in a resort area, use it as an Airbnb, keep all profits from use in the SD IRA, yet still use the condo occasionally for family and friends?
Amerigo, that is an excellent question! I would be happy to answer that for you! Join me for my live stream on February 27th, starting at 4pm MST and I will answer that for you then! Thanks for the question!
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I am 53 years old and consider myself to be a high earner. My job provides me the option to contribute the employer contributions to my Roth 401k. Should I do that or should I continue to direct that to my Traditional 401k ahead of retirement?
You're doing well for yourself but it is better to seek help from a professional. I am sure that an expert with experience provides more edge than a TH-camr.
As a high income earner can you easily afford to contribute max of $22,500 to your traditional 401(k) and towards retirement? What is your Federal Tax Bracket and percentage of company match? I f you don't know all this then its best you consult with an advisor.
@@marcellasilva4015 Thanks for replying, You seem to know much, How did you go about it and can you recommend an advisor like yours?
@@marcellasilva4015 Mind if I ask you to recommend this particular coach you using their service?
Mind if I ask you to recommend this particular coach you using their service?
You are amazing, Mark. I'm a CPA and I've read your books. Simply amazing. I'm happy you continue to share your wealth of knowledge through other avenues like these. Thank you for the work you are doing.
Man this guy is a saint. Your effort and time is greatly appreciated sir.
Your comment made my day. Thank you :)
Yes@@MarkJKohler, really appreciate your wisdom. Sorry you had to tackle those negative comments. 12% in the market is absolutely realistic. See FSCSX mutual fund, 22% annual returns over the last 10 years. Keep encouraging people to save, brother!
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How can you contribute $20K in the Roth IRA while you are only allowed up to $7000? I was waiting for you to answer this question but didn’t hear it?
@@yanutube1 there is another Roth video where he answers it - I think it is through back door contributions. I believe it is a 2 step process - put money in your 401k and then convert to Roth. You take the tax penalty but it works. I'll try to find the link
For the 2020 & 2021 tax years, the combined annual contribution limit for Roth and traditional IRAs is $6,000 ($7,000 if you're age 50 or older). So how do you put in $19,800 if you 50. Investing minds want to know.
You can't. That is the biggest issue I had with his videos. Don't wait until age 50 to start investing. Lol
@@CharmCityMediaMD take his videos with a grain of salt... its not accurate..
Some plans allow you to contribute after tax dollars and do a Roth in plan conversion to your Roth. As high as 30-40k depending on your contributions to other retirement accounts.
Mega backdoor Roth conversion
Roth 401k accounts, you can put in $23,000 per year as an employee. Then you can match it as your own employer if you are self employed OR get a company match if you work for someone else. There ARE WAYS.
Mark, thanks for the videos. I am a student of investing. I started in 1991 and haven't looked back. I, too, have found vehicles that ride above 10-12%. And, yes, that don't stay there, but I enjoy the ride while they are there. I just created a spreadsheet and provided it to my nieces and nephews (and my kids) about how to forecast what their accounts will look like in the future if they stay consistent. In closing - the key is to program your mind to see your future. The money starts looking good at the 20 year mark and every year there after it gets really good. To all the readers that don't understand investing, look up the Rule of 72 and Mark's videos will make more sense (assuming they don't right now). Thanks, Mark and keep up the great work.
Cool. You're doing really great. Keep it on. I'm a dedicated investor too. No just stocks though. I have my funds spread among a number of securities and carefully diversified by my portfolio manager. I often hit up to 20% return monthly. She's just a genius in wealth management.
Can you do a more detailed video in self directing and setting up an LLC? This is a concept that’s new to me.
Sounds costly, and LLC in some states (like CA) you have a yearly tax of $800
Hey Claudeen, my law partner and I started a podcast specifically about self-directing. We have more than 20 episodes that are an hour-long, where we talk about self-directing. We cover topics like IRA/LLCs. If you are interested in self-directing your retirement, I would HIGHLY recommend listening, you can find them here: directedira.com/podcast/
Self-Directing methods caught my attention. Thanks Mark!
Get a job with the US Government and you can put 20,500 into a Roth TSP. PLUS, the 20,500 will be non-taxable. So, If you earned 40,500, the taxable amount would be 20,000. You will be in the 12% tax bracket.
CPA giving u smart advice for free can't do better.
I like this guy answering those comments
Love this video and the previous one! The point is start early to save more, power of compound growth... Mark keep up the good work!
Thanks James! So glad you took something away! Be sure to subscribe and share so you can help others!
This is blowing my mind. 15-20% gross margin for a business isn’t great. But 15-20% average for the market is in the realm of dreams.
Can you point us to an article explaining how the self-directed LLC you showed at 13:45 is _not_ considered self dealing? If that’s not, then what _is_ self dealing?
You didnt answer how to incest more than the limit of $6000 per year in
A Roth!
Currently loving Acorns, Lets just hope they last as a company.
Great info. There is just so much as a newbie it’s overwhelming to grasp all the concepts.
Hmmm .... You can set up traditional and ROTH IRAs at Fidelity, TD Ameritrade, or other brokers without having to pay any setup fees and then trade stocks, bonds, etc, within the IRAs for free. Many people even trade simple options within their IRAs for a minimal 'per trade' fee.
I could be wrong but - as far as I know - although you can 'roll' or convert part or all of the cash and investment within your existing 401Ks and various other savings vehicles into an IRA, 6000 or 7000 per year is the absolute max contribution limit for NEW money going in, no matter how hard you try to find ways around it.
Similar concept to acorns i use my fidelity credit card for the 2% cash back that i then transfer to my Roth. Far more valuable than airline points.
...and that''s a ...'' FACT''....need to PUT That ...towards my GROCERY''...Bill''...!!!
Couldn't agree more. I have the same Fidelity 2% cash back credit card and it beats the heck out of a crappy old Acorn Debit Card.
@Mark - few questions on your 10% ROR(Rate of Return):
1) is it Real rate of return ?
2) 10% is it pre or post inflation adjusted assuming 5% is inflation?
3) what about the protection from market down turn? During the growing years say you are in 40s or 50s, the market take a dip 30-40%, then you don’t significant years to recover or your annual real rate of return should be compensated with high % for the loss.
Above example is best case scenario. But we know market can’t be best case.
4) is Roth 401k same as Roth IRA(Self Directed IRA)?
Can you redo this video with available cash scenarios i.e. Starting with $50k/100k/250k or 500k on hand?
I'll do it. I've just got to think of a good title rather than "Part III". :) It's like Rambo...each version got worse, not better. ;)
@@MarkJKohler Thankyou so much! 🥰
My parents have passed and suddenly my net worth has increased and my previous plan to the millionaires club needs revision. I know I'm not alone on this.
@@bahb00 Well, we're here for you if you want to discuss some tax/legal strategies and options. Maybe just pay for a 1/2 hour with one of my tax lawyers to get a 2nd opinion. Thanks so much for considering this. Please call Rosalie at 435-586-9366 to schedule something.
@@bahb00 I believe you get the best of what you want when you meet the right people. Just make wise decisions. And you'll have reasons to be happier. I have a portfolio manager who works at a brokerage and I make a decent ROI of 7%-10% monthly. I can link you up if you'd wish.
@@MarkJKohler [
You sir are a genius. Appreciate the hard work you’re doing.
Mark is absolutely right. I'm also an attorney and I know he does great work explaining those concepts.
I am in my 30's and have stash, acorns, Robinhood, crypto, custodian account and a Roth IRA. I never knew that this was possible... great part 1 and part 2. You gained a sub and I am checking on the website! Appreciate the video. Keep the content coming.
Wow keep it up Gates! It IS possible! Thank you for subscribing. If you ever need any tax or legal support, I would love to be of service. Just call 435-586-9366 ext 2024
@@MarkJKohler thanks for the reply and the great content. I will definitely be in touch if I have any questions. Keep the videos coming, I have learned a lot over the last couple of days watching your videos 👍
Good Job....you can try but u can NEVER make people understand what it is that is Good for them because...most are Naysayers....half glass people...LISTEN we need them..because everyone can’t be in top 10% of Wealth in this Country...keep delivering Good Content!!
Thanks so much!! I appreciate that. I was really surprised by the response of people to my video. So upset about investing outside of the Wall Street machine.
I'll take the glass half empty approach.. these "acorns" with Starbucks that round up to the next dollar...your paying 3 bucks for a latte which has a 300% markup...
...must be talking about my ...5...hardheaded''...''Daughters'''...they just wanna take...selfi''s-...and HAIR-WEAVES'''...silly...rabbitts'''''ha...ha...ha...!?
Man with cash is king 😉
@@chuckincharlo EXACTLY!! The financial _ILLITERACY_ in this country (and in the west in general - countries like Canada are much worse), is *_astounding._* If you need an app to help you do BASIC math and save, then I don't even know if you deserve to exist (rollseyes).
This is literally what I've been wondering about. The LLC owned by various IRAs is similar to what a hedge fund does - it's just private money investing with a manager for a fee. In this case, you are just having the IRA buy in. Interesting. I might be simplifying the whole thing too much!
Here's how you get even MORE than 12%....
Buy Texas property tax liens or tax deeds. It pays 25% the first year and 50% the 2nd year....if the previous owner pays. If they don't pay the back taxes on their property by the end of the 2nd year, *YOU GET THE PROPERTY* !
How do I do this if I live outta state? Thanks for sharing any Info!!
Great part 2 Mark keep up the good work!
Thanks so much Mike! Really appreciate it!
Nice to see that you adjusted the week, month, year.....just easier to follow for the novice
Thank you for watching!
Thank you 😊 im 21 yrs old and this is good for me but im from Philippines.
Kesha Gwen Mobile Bangbang snap ?
What is the best way to use your directed Roth to invest in foreign property that will be rented out?
Can you make a video about real estate scenarios? Can a Roth form an LLC that pays down pmt, closing costs and repair costs for a flip then the proceeds from the sell can go into the Roth? Does the property have to be completely paid for from LLC? Does property have to be titled in LLC name?
Yes...Your Roth can do all of this. Now, I've got a short TH-cam video on this....th-cam.com/video/QoVSf_CxiyQ/w-d-xo.html AND I also have more lengthy videos on my website for just a couple hundred bucks (Tax and Legal Library, lifetime membership, been doing it 9 years and 40+ hours of content) you would love it. www.markjkohler. ALSO, my partner's book is the best selling book on this www.sdirahandbook.com. But finally, IF you decide to self-direct and do an LLC, you need to use a law firm. Legalzoom docs are not allowed by custodians or trust companies. We charge as low as $800, which INCLUDES a lawyer supported consultation throughout the process. Check out our law firm if you need help at www.kkoslawyers.com. Thanks!
Jeez, spend a few bucks and talk to a CPA . . . L O L
Mark J Kohler I need to talk to someone about this I do flips and have investors. If the investors use self directed Ira they can do tax free
And can I do it too if I flip in a Roth 401k?
Most people haven't a clue on how to manage their finances when they're working let alone when they're retired !
Why do you make this assumption about "most people"?
@@MarkJKohler It's the truth. Literally "most" people don't. At the end of your video..."knowledge is power"...great information, wish I would have done this when I was 20 instead of 30 :). Never too late to start though!
This is incredible! I already have a Roth, will form an LLC a.s.a.p. and plan to invest in racehorses like you suggested! When that starts paying off, I plan to diversify into: lottery tickets, Fentanyl and arms sales to the Middle East! I'll probably be at $1M by Christmas...I'm so excited!
Diversification pays off really well if done very meticulously. I prefer a more aggressive approach to the financial marke. Currently I have a managed portfolio with some huge 6 figures under the care on my financial adviser. Naomi Marie Dopson by name. She's a renowned and popular broker here in the US. My portfolio yeilds over 20% return monthly.
I hope you're kicking as well!
Thank you for giving!!!!!
(You are doing the service for all of us)
You're very welcome! Thanks for watching the video!
Lol....loved the come back on the haters.... frankly speaking they are not haters but un-enlighted.... Great work educating everyone and appreciate Transparency! Wish I came across these videos 20yrs ago. I always contributed to 401k for 20yrs but only understood it 3 years ago, so I decided to self direction after realizing Wallstreet doesn't cut it.
This right here has helped me 100%. Thank you, and you got a sub.
Mark knows whats he's talking about, such a big eye opener can't wait to start saving !!!!!
Good luck Cris! Thanks for your support!
@14:50 the realness really shines through.. I can see there is no BS.. Thanks for the tips.. Roth IRA here I come!
I am trying to help you guys save money and build for the future.
What are the benefits of creating an LLC owned by the IRA to invest rather than investing directly from the IRA? Also, if we want to set up that LLC structure, how do we go about contacting you for that?
Good content only issue is that the IRS severely limits IRA contributions by income so really the only option are Etfs, munies, etc.
Mark, Where do I start investing? Where do I start to set up?
Thank u I just moved to US n I want my American dream
Thank you so much for these videos, watched also the first one. Yes, would also loved to see the third coming. I didn't understand though what you mean by "build a LLC *in* the self-directed Roth IRA". Do you mean build a LLC and link it to the self-directed Roth IRA? I'm afraid I didn't understand the concept, or rather the setup - meaning, which to set up first and to link it together.
Once you’ve maxed out your Roth, then pour $$$ into your pre-tax IRA.
(traditional IRA, 451, 401k whatever you have access to)!
NOTE: you don’t want EVERYTHING in a Roth anyway. It’s all about tax planning. SOME of your investments can be pretax now (to lower your current tax bracket); but then it will be taxable when you draw it in 30 years. That’s ok though, because you’ll be in a lower tax bracket then - and remember! your Roth investments are tax free.
In sum, you want a MIX of pre- and post-tax IRAs so that you’re maxing our your tax benefits and investment growth both now and when you retire.
is 2,000 a month or for the year? in 2009 bank of america bank was round up into saving on what you buying
I love your videos and they totally out bid the ones about getting rich quick. That's just not realistic. I appreciate you taking the time to make these videos!
Yes, any scheme that looks too good to be true, is. Thank you for the support, it means a lot!
Love this man energy!
Thanks so much!
Love your enthusiasm Mark! A lot of good information.
are there other terms for time length? If so is there any chance to get that video if absent please
Hi Mark, great video I learned a lot. I have a question about partnering with other LLC. For example, if I had the following setup:
Partner 1 sd IRA LLC: 30%
Partner 2 sd IRA LLC: 30%
Partner 3 LLC: 40%.
At the time of distribution, do I have to use the same percentage or would it be wrong if I choose this way to distribute?
Partner 1 sd IRA LLC: 45%
Partner 2 sd IRA LLC: 45%
Partner 3 LLC: 10%.
Absolutely fantastic insight and options to get really invested for the future!! Thanks
If you're not investing at least $10,000+ or more into this directedira.com thing, then I don't see why it would be worth it. An index fund cost ratio is anywhere between free to 0.04 and mimics the market and sometimes out perform a mutual fund. You're the first person to ever mention this in all the videos I've watched and I'm hesitant
Your best bet is to watch some more of my videos, go to markjkohler.com/blog/ and find an article I have written, and/or give my assistant Rosalie a call at 435-586-9366 ext 2024 and have her point you in the right direction.
Mark, you're doing great! Keep instructing. I have Roth's, SOLO ROTHs and Golden ROTHs. Awesome stuff. If you think 10% is good, try 2000%. Real estate, businesses, precious metals, real estate paper!
Thanks so much!!
@markJkohler I am self employed and I dont have employees. Can I still work this process?
Yes you can invest in an IRA. That has nothing to do with your business or whether you have employees.
So when I put in IRA. Will it invest as It would do in 401K?
I’m just now watching, at 35 to learn what to. You seem so genuine on giving out information. It’s definitely not for everyone. 🙏 Thanks
Thank you so much!! So kind. I truly appreciate you vote of confidence. Please subscribe and share when you feel appropriate.
I wish you explained all the letters you use, like LLL! Also,does directed IRA works for people in Canada?
Transaction fees for trades are total garbage on acorns plus they close at end of day. So buying stock at best price of the day is out the door.
You did not cover how can you put $20k into a Roth when the limitation is $6000 + $1000 catch up over 50y/o. I am interested in finding that information. Thanks. Great Video
You won’t because it’s bogus info...I haven’t seen a Roth yet that you can do over $7000 over 50 years of age
I don’t know if this is where he was going with the $2k a month, but some companies allow for Roth contributions in a 401k. Cap is at $19,500 + $6,500 as a catch up contribution gets you to $26,000. It’s unfortunately not available for everyone.
just when I think that your last video that I watched was your best, you surprise me with more amazing content! Thank you so much for all that you share! Do you consult in Georgia?
Thank you so much Sheena!! I don't have an office in Georgia (hopefully I will in the future :) ) but my team and I do work with clients all over the country so I can definitely help you with anything, tax or legal. Give my office a call 435-586-9366 ext 2024 :)
I love your energy!
matching from employer on acorn . ? most employers dont let u pick funds . you invest directly through their selection of funds. maybe Im missing something?
Thank you for sharing your time, effort and knowledge about this topic. This is gold!
Mark, can you please go in deeper in self direction examples. I have my own business and I would love to see if it makes sense to self direct and invest in my business.
Check out my comment to your previous question!
Thank you for helping me out trying to figure things out man I appreciate you teaching me how to try to invest and save God bless you and many more blessings come your way
Glad to help! please subscribe and share!!
Thanks mark I’ve been researching this Roth IRA stuff I’m the freaking out guy your speaking of I’ll be 51 in a month no 401K no savings 4 kids that drained me dry over the years gonna start putting away now but wish I had a long time ago like you said ..
I am sorry about that mrdave, I hope that you can get started fast so that you can have something there for the future.
Hey start and investing in crypto and or stock to fund it faster but learn how crypto works it can help u fund the Roth faster just have to be patient
Hey mark, I know it’s 2 years since you made this video but I had to comment. I am that guy I’m 50 with next to nothing. I am fortunate though in that I have a job and a 401k . I made a lifetime full of mistakes but I’m gonna do it I’m determined to have something by 65. I’ve been sharing your videos with my 19 year old daughter and my 22 year old nephew.
Thanks for the information my friend
I found a gold mine. Thank you so much sir. Excellent advise.
You're welcome. Thanks for watching!
Thank you! This information is awesome, and free!
You just blew my mind!!! 🤯🤯🤯
You’re awesome man!! People, just save money, no matter what.
They only allowed 6k per year on Roth IRA. Any advise on how to contribute more than 6k annually? Should we use different account other than Roth IRA?
Hey Mark,
1) Why use the LLC model when you can use a self-directed 401k? I've run into problems trying to use an LLC - particularly an out of state LLC (Nevada, Wyoming, Delaware, [no prizes for guessing why]) and then needing to use the legal system in the jurisdiction you're operating the LLC out of. It gets especially ugly if you need to do a judicial foreclosure or you need to sue someone/defend against a suit on behalf of the LLC. The alternative is paying sometimes-exorbitant corporate filing fees and taxes in your domicile state... in California, that's like $800/year just starting out. And most states aren't going to exempt you from franchise tax just because your LLC is owned by an entity that's federally tax exempt/deferred.
2) I think UBIT can be a big factor in choosing a self-directed 401k over a self-directed IRA. Simply put, the 401k doesn't pay UBIT on debt-financed assets (notably real estate), while the IRA does. You can also do a ROBS with a 401k, where that's much much harder/impossible with an IRA.
3) The biggest upside to the IRA is one that I didn't notice in either video: the right to withdraw when you want, rather than at 70 1/2. Doesn't seem like a big deal initially, but you may have assets that you want to hold on to indefinitely (like a quasi-business) that you don't want to have to piecemeal out at 70.
4) I've had an absolute hell of a time getting non-seller financing for an LLC. With 401ks I haven't run into the same resistance from lenders.
Best.
Actually I started digging on your channel and I realized you clearly know what you're talking about beyond the initial talking point. I think even if we disagree on some of the specifics, your videos are an insanely valuable add. :)
From what I have been told, when money is in a 401k, you are limited to the options they provide, which are usually a handful of mutual funds. You cannot roll money out of that 401k as long as you are with that company. Once you leave, you can roll it into a self directed IRA. I've actually heard of people working it out with their employer to quit the job to roll that money out, then get rehired.
Non recourse collateralized debt....aka car collateral loan..or llp credit partnership....llc satellite with ability to take on debt and leverage outside side of IRA actualized equity on partners/family property
Non owner occupied real estate is a underwriting no no..... Sharpen corporate credit well to tolerate diverse debt in proper seasoned shelf holding LLC. leverage partners are sometimes needed.
We gotcha Mark..the ones making those comments they probably don't have nothing saved. Im pulling 12%
Can I start a business inside a Self Directed Roth IRA?
"I can't save any money." No.1 biggest lie. " I dont want to put in the work or make the sacrifices to save" closer to the truth
Can you invest in crypto self directing your ira??
Thanks! Very helpful. Dont let the haters get you down
Thank you so much!
Enjoyed your videos on $1,000,000 Roth IRA's. I have forward these videos to my 25 year old daughter that is now in the real world and starting to make real money. I agree with your basic message of automatic saving and forgetting about it. Regarding Self Directed Roth IRA's. I did set up such an account about 15 years ago (I'm now 68) and it owns 98% my personal consulting company LLC. The original idea was to funnel profits into the Roth account tax free. However a few years back Washington DC came up with "Unrelated Business Income Tax" idea which will tax any profits over $1,000 from my consulting company. How do I get around this "Unrelated Business Income Tax"? This Unrelated Business Income Tax seems to have defeated my whole purpose of setting up a 'Self Directed Roth IRA" in the first place. Your comments are greatly appreciated!!!
Hey Jeff, Mat Sorensen and I created the Directed IRA podcast to help people with questions just like this. Here is an episode where we cover all sorts of questions about UBIT: directedira.com/ep-17-when-does-your-ira-have-to-pay-taxes/
I would highly recommend listening to every episode, we cover tons of cool strategies every week to help you self-direct in the best possible way. Hope this helps! If you need any additional help, I would recommend setting up a consult with our firm. You can email my assistant whitney@kkoslawyers.com and she can help you get scheduled!
Wow !! Thank you so much for all this info . It opened my eyes to how we can be smart about saving with tax benefits and investing at the same time 👏🏻👏🏻👏🏻
Mark I love your information and have watched everything you put on TH-cam. As a smart Millennial who studied demographics and consumer economics at UGA I learned back in 2004 that I will never see a dollar of social security benefits and I am willing to bet that they will end up taxing my Roth earnings in 23 years. Biden is now trying to put a cap on our Roth of 5 million which will be worthless by the time I retire. So what should we Millennials do for retirement after funding social security for my entire life only to get nothing in return? People need to wake the F*** up and fight this new tax bill. This is all happening because they screwed up social security system and now want us to bail them out. I'm probably getting out of this country because it's turning into a government ran country that cares nothing about its hard working middle income tax payers. They should put the entire tax system on the blockchain to show us where our tax money is being spent.
So glad I found your channel.
I’m 36 and I just opened my first Roth IRA.
Doing all the research on my own, investing in stocks.. does that mean I can’t open a self directed ira now?
I want to invest in crypto in my Roth ira also but can’t figure out how 🙏🏽😩
You just got a new sub today, thank you for these videos!
Thank you!!
@@MarkJKohler ...MAY i also ...claim you ON My ...Taxes'''...WELL i said ...May...i...!?
I set up my self-directed ROTH a year ago so I can invest it into Bitcoin for the next bull run and not have to pay taxes on those GAINZ. :)
Love it!! Keep it up. Let's cross our fingers Bitcoin takes off again.
How did you do this as I would like to also?
@@mikebeihl6260 try betterment they do have Roth IRA
Well you look pretty smart right now.
How do I find a good financial advisor like you for a reasonable price?
Hi, i hope you reply. i'm new to roth ira, but i started my account on fidelity. what you think about that account?
Mark, you should setup a website which tracks the daily TSP performances. You would have a ton of subscribers.
How do you get around the limit of 6K a year investing into a roth IRA, or a max income limit ?
S0 is there a limit on how much i can contribute each year?
Why would someone give a negative comment to someone creating a great video with great content AND he's sharing it for free.
Thanks for sharing this information my friend...I'm 46 and I feel like I got a chance now lol!
LOL... people really said insurance was a better investment vehicle? Just shows there will always be a market for common sense financial advice. Nice work presenting a clear easy to understand explanation.
Just a side note - and not to be too picky - but Millennials aren't early 20's college students anymore... the youngest of the generation will turn 25 this year.
This sounds really interesting. I run my own business (LLC) and once I pay off the IRS, later this year, I want to start investing $6k+ a month, plus start another side hustle with 100% of the profits also going to retirement (selling items on ebay). Can you guys assist and guide me? I don't have a 401k yet, but a vendor may be providing it soon, but wondering if there's a better way.
And this finally answered a question I have had for a decade of why there are so many llcs
Great to hear Marcus! So glad I could help clear that up for you!
What about me at age 65 with no retirement plans. Just opened a RothIRA account how much and where I should put my money to be a millionaire at age 70.
So tempting! Are these LLCs reported on Sch C or 1065? Are your HSA account and your Roth account 50/50 owners of the LLC?
Wow...lots of questions and 20 answers with options. Sometimes the LLCs don't have to report ANYWHERE...and they certainly won't on a Schedule C. May I suggest two things. First, my partners best selling book on the topic at www.sdirahandbook.com. Next, just get a brief consult with one of my attorneys. They can tailor your questions/answers to your situation and it will save you a ton. Call Rosalie Phan at 435-586-9366 to set something up.
Thanks
Ignore the haters. People like you help us to stay away from welfare!!! Thank you.....
I would like to start investing and I’m in my 50s. How can I get started?
Thanks for the great info, Mark! Is it legally possible to transfer/rollover 500K from an IRA to a SD IRA and then buy a condo in a resort area, use it as an Airbnb, keep all profits from use in the SD IRA, yet still use the condo occasionally for family and friends?
Amerigo, that is an excellent question! I would be happy to answer that for you! Join me for my live stream on February 27th, starting at 4pm MST and I will answer that for you then! Thanks for the question!
Thank you so much Mark ! ❤️❤️❤️
I will love you forever if you make a video about how I can invest the money in my Roth in my small business. Thank you