5 Roth IRA Benefits you didn't know about!

[@ripujitgindamnarasimha3476]

Summarizing the 20-minute video into a 2-minute light read: 1. Immediate Access to Contributions: Unlike traditional retirement accounts, contributions to a Roth IRA can be withdrawn at any time without penalties or taxes. This flexibility is particularly appealing to younger individuals who may need access to funds for various life events, such as buying a home or starting a business. 2. Tax-Free Growth: Money in a Roth IRA grows tax-free, and withdrawals are also tax-free after meeting certain conditions (holding the account for five years or reaching age 59½). 3. Backdoor Roth IRA: High earners who are phased out of direct contributions can still access a Roth IRA through a "backdoor" method, allowing them to contribute indirectly via a traditional IRA. 4. No Required Minimum Distributions (RMDs): Unlike traditional IRAs, Roth IRAs do not require withdrawals during the account holder's lifetime, providing more control over retirement funds and tax implications. 5. Spousal Rollovers: A surviving spouse can inherit a Roth IRA and treat it as their own, allowing for continued tax-free growth and withdrawals.

[@CrystalConsults]

Thank you for your summary! Very helpful! 👍

[@DanielWyatt-x2e]

I recently adjusted my Roth IRA to 50% in SCHD, 25% in SCHX, and 25% in SCHG. For my Roth 401k, I went with 70% in Vanguard's S&P 500 Index, 20% in the Vanguard Growth Index, and 10% in the Vanguard International Index. My goal is to grow my $350k to over $1 million within the next three years.

[@Toni__Michelle]

It might be worth considering a financial advisor to avoid constant adjustments. Your selections are strong, especially for a $350k portfolio.

[@ray7168cz]

I agree-having an advisor manage my investments has been invaluable since my work schedule doesn't allow time for in-depth analysis. Thankfully, my portfolio has grown fivefold in just four years, reaching nearly $1 million today.

[@FrankJaaay]

That's impressive! Would you mind sharing your advisor's details? I’m in urgent need of rebalancing my portfolio.

[@ray7168cz]

Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.

[@HotManP-l5g]

Thank you for sharing! I did a quick search for Rebecca Lynne Buie online, found her consulting page, and scheduled a call. She seems to have a high level of expertise.

[@CrenshawDawg04]

I was about to close my Roth yesterday until I found this . I’ll keep it now. Thanks

[@Chris-N916]

Never close a Roth IRA account. If you must, leave the minimum in there. Some maneuvers with Roth IRAs require the account to have been opened for 5 years. You don’t want to have to start over.

[@bettyjalpa7858]

What amazing information you both just provided! I am opening a Roth IRA!

[@McofCOD]

Good for you. It’s easy to do and can help a lot!

[@TripSoul10]

In the past year, my Roth IRA account has increased by 50% thanks to a few etfs that I did research and put my Ira funds towards. One that is a large capital growth has grown by over $3000 since I started investing in that etf. Have been maxing out contributions past few years and plan to despite the annual income I make.

[@jefflloyd394]

I think HSA has one more benefit, so worth mentioning that in passing. Max your HSA before you max your roth IRA.

[@CBearLandkirk6076]

Excellent video 👌🏾✅️

[@beverlynelson1015]

No one talks about the pro rata rule that affect the backdoor Roth 🤦🏾‍♀️

[@weq7]

I looked into a Roth 457 (Gov Employee) vs standard Roth IRA (Private Account, non-employer) and found the benefits of the Roth 457 (increased yearly max primarily) were not worth the limitations. Standard Roth IRA seemed better. So difficult to figure out all these variations of accounts for the layman. Many experts just assume we all know the difference between Roth vs Traditional, or IRA vs 401k vs 457b, etc. And yes, i am just rambling to myself here

[@RJ-gi2hf]

You can max out both. After you retire, the Roth 457b can be rolled over to a Roth IRA.

[@keithmachado-pp6fv]

Good video. On the self invested Roth, there are some reasons why you might prefer investing outside an IRA as some investments such as life insurance are not allowed in an IRA and others like MLPs have negative tax implications (UBIT).

[@ronmorrell9809]

Another new option is that 15 years after a 529 educational account has been opened, it can be converted to a Roth IRA.

[@codegeek98]

15:38 what's the expense ratio there?

[@greglong6340]

Contributions into a Roth IRA are subject to penalty and taxation unless you have 5498 proof. None of our 3 investment brokers nor the IRS will supply me with 5498’s older than 10 years. The IRS suggests keeping tax records for 7 years and all financial advisors suggest not touching retirement accounts when in your 20’s. So who keeps 25-year old 5498’s? What is your advice?

[@BiggMo]

5:46 WARNING…”exact money you put in is available “ …not necessarily, it is subject to market losses

[@keithmachado-pp6fv]

Roth for everyone is a true statement. It’s all good (for everyone) is false if you pay more tax % get the money into a Roth than to pay later if you defer (% not to be confused with dollars).

[@garyshan7239]

fun fact Scotsdale is NOT Phoenix

[@KentBrono]

I plan to retire or reduce my work hours in five years, and I'm interested in how others allocate their income between savings, spending, and investments. I currently earn about $175K annually but haven't built up much in savings so far.

[@MagdaleneM-f3q]

There are numerous strategies to achieve high yields during a financial crisis, but it is crucial to undertake such trades with the guidance and supervision of a professional financial advisor to ensure informed decision-making and risk management

[@YadaniL-g8k]

That's quite impressive! Can you share more information about your financial advisor?

[@YadaniL-g8k]

I’ve just looked up her full name on my browser and found her webpage, very much appreciate this

[@keithmachado-pp6fv]

In your example of $100k Roth vs $100k defer to inherit is accurate that Roth is better but misleading. In that example the deferred IRA will have a higher balance since tax has not been paid yet. So the real world example would be would you rather inherit a $100k Roth or $125k traditional. The answer is if you will pay 20% or higher for the next 10 years you prefer the Roth. Below 20% the traditional is better.

[@BSNBRYCE]

Was listening to y’all until you mentioned whole life not being a scam - that could only make sense for multi millionaires

[@desiv1170]

I agree IUL is generally a scam, but they also talked about people maybe making $300k a year. There might be multi millionaires out there watching this. And it could be useful for some of them.

[@BrianKuhnley]

Just had a comment regarding back door Roth IRA. You didn’t mention the major drawback for most people regarding having to consider all your other IRA money as part of the conversion. I forget what this is called but, let’s say you have 90K in your pretax IRA. Now you want to add 10K after tax dollars with the plan to do a backdoor Roth with the 10K. (Doesn’t matter if you put the 10K into a new separate IRA or with the existing 90K IRA. My understanding is, when you go to do the Roth Conversion you must consider all the IRA funds when paying the taxes on the conversion. So you move the 10K into the Backdoor Roth but since you have a total of 100K in the IRA, the 10K conversion is considered to be 1K (10%) of the post tax money and 9K (90%) is considered pretax. You have to pay the conversion tax on the 9K. Unless you’ve got minimal pretax money in IRA’s, its hardly worth it. For most people that make too much money to contribute to a Roth they’ve got significant dollars in IRA’s. I suppose for the really wealthy who might be doing millions of dollars in this type of backdoor conversion, there might be a significant advantage. But the rest of us are out of luck.

[@MatSorensen]

Hey check out this video: directedira.com/everything-you-need-to-know-about-the-backdoor-roth-ira-in-2024/