From $0 to $660,000 With A Roth IRA

[@MrJbassrw]

Got my kids in a Roth as soon as they started working. They don’t know what it is, they can thank me later

[@JarradMorrow]

The parent of the year award goes to people like you. Nice job!

[@ffnovice7]

What's a good checklist of advantaged accounts for your children up to age 6? Coverdell ESA 529 Roth IRA HSA?

[@kckuc310]

I thought I was only one that did this, mine don’t even know I did it, surprise when I’m gone

[@kickeramps]

Me too. I told my kids I'll match whatever they contribute until they turn 18. Figured that would be a good way to get them in the habit of saving.

[@OrHaimAmar]

Well said sir🤝

[@jayocean4724]

No one teaches this in highschool not even college. I had to learn what a 401k and IRA is on my own. So glad for KZbin and learning from people like you!

[@JarradMorrow]

Glad you eventually found it. Make sure to spread the word to the people you know to help them. Seems the be the only way to get people on board.

[@Tiger86011]

It's taught in many high schools nowadays as an elective called Finance. In fact, they go over investing in depth and even have classroom contests with stocks, index funds, mutual funds using fictional funds. Many kids know this, you'd be surprised.

[@damondiehl5637]

Dave Ramsey has a training package that he markets to a lot of schools. I think US Bank does it, too. So, some schools do offer a personal finance class.

[@camski13]

It’s pathetic you have to go out of your way in American high schools to seek this out instead they force you into art classes and other bullsheet classes graduated 214

[@adamgetzendanner]

Ikr. My son will probably never use algebra or trigonometry period. Some people might, but there should be mandatory classes in high school to teach basic economics and investing.

[@arqsallstar1656]

I’m 22 I just opened one last week. People need to realize time = money invested in ur future.

[@blazejay202]

Give us an update how’s it going!

[@lmeweus]

im 20 and just did

[@TrainerNick256]

Im 34. Started my roth at 30 and have maxed out every year. 15% growth overall aint bad

[@JarradMorrow]

Nice work! Keep it up!

[@RelentlesslyPerfect]

What investments did you choose?

[@jawbrace]

He's a "trust me bro" KZbinrs. :) @@RelentlesslyPerfect

[@PerfectStrainzzz]

Is that yearly?

[@panama2468]

@karsstars its never too late. obviously you want make as much as compared to 26 but its better to have something than nothing.

[@dewandmcqueen523]

Thank you so much. I am getting old and bald and was worrying about retirement. I will share this video with other in my family. You have just changed the lives of people you have never seen and gave them hope for the future. 😊

[@jonathanngo7452]

My mom sent this to me and my wife. Especially as elder millennials, we probably won't see social security by the time we retire... thank you for spreading this knowledge!

[@Penaltybox66]

My boys are 10 and 11. Opened a custodial Roth IRA for them with the money they get from neighbors doing yard work and tutoring about $200-300/month for each of them. Combo of SP 500 and NASDQ 100 index funds with no loads/fees. They will thank me later in life.

[@raybliz7914]

I’m really interested in this and everything sounds so foreign to me and How do you know what to invest your money if you don’t know anything about stock.

[@EMan-cu5zo]

You claim that work on their tax returns? I am fairly sure the work has to be filed with the IRS.

[@jordanmoss46]

Right here with you like huhhh is it guessing game ?

[@salemdesigns65]

​@raybliz7914 There's this thing called a library. It has tons of things called books. All you gonna do is walk up to the person at the counter called a librarian. They are knowledgeable to help you to find specific books. And guess what? You can actually bring the books home so you can read them at length!!!! Who knew!?!?! 😂😅😂

[@jdtreharne]

I hope you're filing a tax return for them as well or you might be getting a nice letter from the IRS.

[@langstonbell7072]

I’m happy I saw this video at 19 and not at 30. I had no clue you had to invest the money you put in a Roth Ira.

[@TheRealDealNeal]

Maxed it for 5 years now! I’m 31. Feels good man

[@jasonbourne4784]

And? Are you rich now? How much did you make?

[@lanman5481]

at the least doubled your money

[@olandorobinson1123]

Smart move .after $100000 the money really compounds , 👋👊🏽👍

[@TheScott40]

I’m very tardy to the Roth IRA. At 55 I’m trying to get caught up.. Great video

[@AC-81]

I have started teaching my kids early. Teaching them why and how will be key for when they start making their own decisions. They may make mistakes with their money but just like anything else in life they will learn from it. Thanks for the great video. I love how you get right to the point and there isn't alot of nonsense fluff.

[@jonassilvers2277]

I'm 53 I didn't know anything about investing or that we are suppose to have an investment portfolio until I was 51 now I'm doing everything I can to make up time

[@suzymiller4482]

Me too!! I'm 52 and just starting this journey. I feel so behind!

[@jonassilvers2277]

@@suzymiller4482 I think it's our age group we didn't have internet and our parents didn't teach us about it. I feel like I'll never be able to retire after all most people die before they reach 80 years old

[@traciemartin2509]

@@suzymiller4482 me too 🤦

[@Pho563]

Yall got this! Maybe late but never too late , proud of yall for learning and starting now

[@saxzuvr-jx9rm]

Me too. I'm diligently teaching myself. It's been a huge learning curve. I'll be 50 in December 2024. I graduated high school in 1993 and I never heard of a class called "finance" because I would have definitely taken that class.

[@XxCobraKlutchxX]

30 . Started my Roth IRA when I was 22. 8 years and my return has been massive. 30 more years baby let’s go!

[@Frank-lk8ox]

What stocks or ETF's are you investing in?

[@jessek.5899]

24. Started at 22. ❤

[@freedomring3022]

I am shocked that people don't have a Roth IRA. Another great video!

[@JarradMorrow]

Same. Once I came across that many people in my personal life who were clueless I had to look into it a little more. I know this seems like obvious info for people like us, but the only way to spread the word is to educate.

[@damondiehl5637]

For a lot of people, a 401k is all they need to put away 15% of gross income. An IRA gives them more control over what investments they use, but it is not something you absolutely need.

[@jasonbourne4784]

Well how if we never were taught about it?

[@freedomring3022]

@@damondiehl5637 you can still do a Roth 401(k)

[@freedomring3022]

@@jasonbourne4784 you should be doing your own research and stop waiting on someone else to show you. 90% of people don’t care about your problems and the other 10% are glad you have them.

[@appleztooranges]

Just started mine today. Thank you. I’m 36 years old

[@BLakMooR]

Which bank did you go with? I'm starting mine today

[@appleztooranges]

@@BLakMooR fidelity

[@BLakMooR]

@@appleztooranges Oh Okay. Thank You 🙏🏾

[@melissafisher7846]

I'm 35 and trying to figure this stuff out.

[@appleztooranges]

@@melissafisher7846 just do an index fund and put money in. Up to 7k a year. Roth IRA

[@shaereub4450]

I have a Roth IRA. I'm turning 30 this year and this is my 4th year investing in it (I told myself I wanted $20K saved before risking any of it). Starting this year, I'll be contributing to an HSA.

[@JarradMorrow]

Nice job! 4 years in a row is solid 👍🏻

[@halcooper6059]

On the HSA, max your contributions if possible, invest it if allowed and don't use it for medical expenses (if possible) for a long time.

[@ebells33]

Jarrad, the information you provide is so invaluable. This channel deserves millions of subscribers!! Thank you!

[@JarradMorrow]

Appreciate it

[@jolonsutherland5265]

Started my roth ira on my 18th birthday I was so excited.

[@homeaudiobasics]

My step son is starting to work once school is out for the summer. Were going to encourage him to get in the habit of 25% minimum into retirement.

[@dougossont9639]

My 14yo. got her first summer job this year, so she has already got her ROTH IRA started. Fidelity was very helpful starting this!! 45 years of TAX-FREE, compound interest, cant be bought.

[@JarradMorrow]

This is great!

[@savanah1407]

Woohoo! That’s Awesome! Seriously, life changing. 🎉🎉🎉

[@joy2come119]

I hope my son listens to me at that age and does the same. Unfortunately I've tried to provide this knowledge to younger co workers who look upside my head say the 401k is enough lol

[@27Zangle]

My problem is not having a real job until 40 years of age. I lived in a seasonal town for 15 years, had kids with my wife, and her medical from an accident has cost of everything financially. I am not sure where to start but would like to save like mad for 10-15 years and still be able to retire.

[@mikellock]

Extremely well done video. This will be very helpful to those that don’t know what a ROTH IRA is and how to start one…

[@JarradMorrow]

Thanks! Doing my best to try to spread the word!

[@JoeFromSomewhere2303]

Theres a 5 year minimum period before you can start withdrawing contributions before the age of 59.5 unless its for one of those qualified expenses. Probably want to mention that.

[@martinguldnerAutisticSwanGuru]

Because of life circumstances twice I had to tap a Roth IRA. I only been able to max out a Roth IRA since 2020 when I received a 325k inheritance (240k a taxable brokerage account that I received a step up cost basis and in the 12% tax bracket qualified dividends and long term capital gains taxed at 0%!). When my company was purchased in March 2021 I got a big bump in pay. I juiced up contributions to a Roth 401k to catch up the years I could not contribute.

[@tmh44]

Great video, ROTH IRA is a fantastic tool. Also, shout out to Primal Kitchens ketchup at 3:51, still tastes great and no added sugar :P

[@JarradMorrow]

So good!

[@antonioochoa6067]

I’d love a video listing the suggested parent checklist to educate our younger generations on the accounts that benefit them the most… 😊

[@melry5460]

I’m up 53% and i just open my roth ira january this year. Feeling blessed😊

[@b1icky]

Turning 26 in a few months. Wish I had this info when I graduated college.

[@damondiehl5637]

You still have plenty of time. 40 years is a long time for your money to grow. Start contributing.

[@raiden031]

Dude I opened a Roth IRA at like age 39, I'm excited even with how late I started, although after about 4 years I'm no longer eligible so I have to do Roth 401K instead

[@macmann1956]

Good video - you had my full attention when Thundercats is referenced…

[@JarradMorrow]

😂 yessss! Happy to know at least one person recognized something from that part of the video 👍🏻

[@peaceful4you408]

I just rolled one of my 40lks into a Gold Roth IRA a few years ago. The Gold Roth IRA is getting almost 20% return a year. Over double what the 401k was getting.

[@coryharris4459]

wow!! I'll have to grab your number

[@vivii1219]

“How do you know there is a solution to a problem, when you don’t know the solution exists.” Well said! But most of us Americans don’t even realize we have a money problem! 😢

[@glitchirl404]

I would love to see an updated video for "Best stocks to hold" for Index funds or ETFs!

[@icecrystal3255]

Great job explaining this in simplest terms

[@Freemarkets1236]

One item not mentioned is the legal protection of an IRA is different depending on your state. It’s worth making sure your assets are protected.

[@RobT192]

I started a Roth IRA two years ago, I had to research myself. I also have a 401k at work plus a brokerage account that I have tax efficient ETF'S so I can retire early. I've been contributing more to my Roth IRA lately to take advantage of less taxs in the future. Got realty income dripping so that tax break will be nice

[@battleaxell]

That’s the power of the internet, nobody told me about a Roth IRA and I’m 20, I just found out about it a few weeks ago because I had that moment in my life that I realized I needed to figure out the path I need to succeed in life for me and fast before it’s too late and immediately started putting some of the savings I had been building up into it. The only issue I feel though is I’m not sure how much I should contribute and if I should take from my savings and if so how much more to “catch up” from when I didn’t know about it.

[@battleaxell]

My main issue right now is I have minimal expenses so I’m not sure how much I need to have on hand for an emergency fund. My financial progress and security is why I have no real expenses but it’s also a time of minor financial insecurity for the person providing me this opportunity. I make 2000 a month minimum, smidge more in summer. I have about 300 of expenses but only because I’m still a dependent. I started investing about a year ago barely and in the last 6 months been contributing more and more until the last couple weeks when I sat down and put it into my budget instead of just money I wanted to see if grew or not, I’ve invested about 1550 give or take in total sense I started and it’s grown to about 1800 last time I checked which is getting me really excited to put more money in there. The rest of my money I plan to split between general investing, savins, Roth IRA. I just have 0 idea how I should split it. I have 14k in my savings account

[@battleaxell]

The 300 of expenses can also be shortened it will just make my life suck a little more Also I’m sorry I kinda spilled all this out on the internet. I only have 1 person in my circle I consider successful and that’s the person providing for me and I want to have a more diverse financial mind than just hers.

[@battleaxell]

I know it’s not the perfect financial journey but I’m working on it because I want to be financially free one day and this was a recent development in the last few weeks because I was not raised where that was possible and was only put into an environment in the last couple years to see that that is possible and not just a dream for the perfect students and athletes and celebrities

[@stephaniel6867]

You have enough in your savings so you can now focus on investing. I would recommend you contribute to the 2023 IRA first they 4/15 then start on 2024. With 300 in expenses and 14k saved, you'd be fine. I'd like 5-10k in savings though.

[@damondiehl5637]

At 20, you are WAY ahead of most people. You don't need to put away nearly as much as someone who is, say 50. You have a 30 year head start on him. That is 30 years of compound growth. Set up a budget and follow it. Set aside 15% of your gross income each year. Whatever that amount comes to is not that important. The 15% rule will generally provide enough for whatever lifestyle you have become accustomed to when you retire. You can put away more, but I don't recommend you put away less. You can put away 3 times as much in a 401k, but you don't have the same level of control over what goes into your 401k. 401k options are generally getting better; most offer at least one fund that mimics the S&P500. 401ks are also nice in that the money is deducted from your paycheck before you even see it, which makes it easier to just let it do its thing. One thing I learned recently is that the first $100k is 25% of the way to your first million. It generally takes about 8 years to get to the $100k mark, but each 100k after that comes faster and faster, due to compounding. The jump from $900k to $1 million is only one or two years. So, again,you starting so early in your career is fantastic. Good luck!

[@CaedenV]

A Roth acct is helpful. Because it is after taxes, there is no penalty to remove your taxed investments. Still not a good idea, but if you are having a very bad day it can be a backup rainy day fund. Another weird exception is if your are withdrawing for down payment on a house you can pull cash out without penalty... I think there are a lot of rules though? Like a first home, and I think you still pay taxes on growth, but just no penalty? Super specific use case, but if you start a Roth young and find a steal of a deal of a house at 30 then it can be worth it... Just spreadsheet that out, because it's still likely a bad idea. No RMDs! One of the examples of the Roth nay-sayers is that if you take a pre-tax $1k for a Roth vs a traditional, then even with the tax free growth the Roth still is less coming back than the traditional account. Paying the taxes going in lowers the amount invested up front, so it never gets a chance to catch up for most equal time periods... The flaw here is that at retirement your 401k starts liquidating RMDs, while the Roth can remain invested an additional 10-20 years with tax free growth if you don't need it. So I wouldn't be all Roth, but a Roth as a retirement account of last resort can give lots of extra compounding and growth while you spend down other assets first. Also in the not just a Roth camp, having different funds in different tax buckets will give you options and flexibility as you age. The majority of my retirement will be in my 401k and HSA, but having that Roth as a penalty free acct later in life where I can withdraw a little without a tax hit can be helpful if I am near the top of a bracket, or am not sure on all the concequences of a withdrawal. Having options is always good.

[@maltlickey]

I have a Roth 401k through my employer. Dumping all I can into it. 18% of my pay plus 4% employer match.

[@gilcasillas11]

They recommend to put only up to what ur employer matches when it comes to 401k's.u may wanna look into that asap

[@lorenzocano6309]

I couldn’t help but notice you are playing ELFL in the background lol good taste in music my friend.

[@JarradMorrow]

Good ear. Spore Titan made it into this video and I have few others I use of theirs

[@AR-ln7ln]

I watched the video and the one you suggested from 11 months ago. I have my own understanding why so few people invest in it and the mistakes they make. I made the same mistakes you mentioned: not knowing that the money I send there is sitting in cash, and not knowing that once I take the money out, I cannot put it back for that year. What I cannot find from any Roth videos is that we can trade inside of Roth. Did I miss it? I would have never taken out the contribution had I know that I can simply sell it INSIDE of Roth and then buy something I else I really wanted. Somehow the money ended up outside of Roth and my contribution for that year was lost. I am not suggesting anyone started trading now, but I do wonder why this info is so hard to find. It's not like I'm going to pull Peter Thiel. What he did is not available for most people.

[@JoeFromSomewhere2303]

Yes you can buy and sell within the Roth and there's no penalties and they aren't taxable events. I think most people don't mention this because it may seem obvious. The same way your 401k works. Depending on the brokerage you have you may even be able to trade options within a Roth which may/may not be a good idea.

[@sevalle]

I'm 41 and this is the first year I've put into my roth ira and I maxed it out as well...I worry where it will end up by the time I retire, but I also have a roth 401k that I have maxed out every year for many years and a high 3 pension as well

[@Wheresmychickennuggets]

I am 23 years old going to start now 🙏

[@CaedenV]

The idea of a back door Roth is that sometimes you don't have the ability to get a Roth 401k through your employer, so as long as you are willing to pay taxes on it, the federal government is happy enough to let you convert your Ira or 401k over. Nothing illegal about it.

[@joshalvarez6881]

Jarrad , I started my ROTH IRA through Vanguard a few years ago. One thing that no one mentions on KZbin is that if you are married and don't file together, you don't qualify for a ROTH IRA. Rather than leave that money in there, get more capital gains, I had to withdraw all my money out of that ROTH IRA. I began to investing only with my employer ROTH 401K. At least I still have this option.

[@Freemarkets1236]

Interesting

[@lot828]

You can also participate in a Roth 401k, which has higher contributions limits than a Roth IRA, if your employer allows it.

[@smelly_fred5122]

just started one a few months ago., wished i knew about this years ago. great video

[@cameronrambone7895]

Really insightful and helpful. Good job

[@JarradMorrow]

Glad you enjoyed it

[@CarlosAguilar-st3mp]

Thank you for the info, you the best bro.

[@jonm.678]

Opened my Roth two years ago and lump summed the limit each year into VTSAX. Very happy so far. I also invested my HSA into VFIAX.

[@JarradMorrow]

👍🏻

[@DanielSuarez-zn8iw]

@@JarradMorrow What about adding a dividend ETF like SCHD and/or DGRO into a roth IRA? Doesn't help with the taxes you receive even though you re-invest into the dividend account?

[@claircourtway]

Buying stocks might seem easy, but picking the right one without a solid plan is tough. I've been trying to grow my $100K portfolio, but the tricky part is not having clear plans for when to buy and sell. Any tips on this would really help.

[@JarradMorrow]

No tips other than keep buying a diversified portfolio of broad based index funds or their ETF equivilant.

[@user-sg1bn2ij2k]

Is VT good

[@LFC645]

I think it would be beneficial if you created a video around investment strategy for a newcomer to US

[@ffnovice7]

Look for all available tax advantages accounts: HSA IRA 401(k)

[@michaelandujar8109]

Another great video 😃🎉

[@JarradMorrow]

Thanks again!

[@bjmorgan3092]

I have a Roth and 401k. My sad issue is over the years I contributed $312k in a 401k which is now worth over $630k. If I had paid the taxes; then invested my funds in the Roth, I would have at least $300k tax free money 😢. I am now 61 and working on doing back door Roth Conversions.

[@damondiehl5637]

At 22% tax rate you still have $491,000 in your 401k. Nothing to sneeze at.

[@EMan-cu5zo]

At least you have savings for retirement unlike a vast majority of the population. That’s a plus.

[@salemdesigns65]

I opened a Roth IRA a few years ago. And I too, had alot of funds in my 401k through the years. I'm only rolling a small amount at a time from the 401k to the Roth IRA each until 2029 because I cannot afford the tax burden to move all of it at one time.

[@qhe123.]

Started my child a custodial roth 4 years ago , my child contribute from 3 to 4 thousand each year. Good part is we dont have to report ihis ira to financial aid nor does it effect it.

[@T.137-lmt2]

Hi how and when can someone that is self employed contribute to a Roth IRA?

[@JavaScriptJolt]

I have a strange question for you. I am 50 years old with a Roth IRA. I have not been working for the past few years due to elder care. However, I plan on taking a part-time job soon. I have $8,000 (which is the "catch-up" limit for someone 50 years old). Can I go ahead and put the $8,000 in there now, as long as I make at least $8,000 by the end of the year?

[@damondiehl5637]

Yes

[@coachtanishamarie]

Start planning for retirement between 20-40

[@dmob10]

My Job had a Roth option I had invested solely in it until my income was too high and I needed the tax break. Now I deposit a smaller amount.

[@Jesseg-rj6xf]

I’m Maxing out all my Roth in VTSAX

[@RassaneyBattiese]

3:49 Is this contribution limit for us and Canada or just US ?

[@poojaislove]

What if ur employer offers a TSP account with a option of Roth or traditional tsp? Is better to choose the Roth option instead of getting a Roth IRA separately

[@backliteyes]

I'm maxing out my Roth 401(k) right now and have for the past couple of years. Really hoping I can keep doing that, but my husband got laid off last year so unfortunately may have to scale back savings.

[@joy2come119]

Im 36 and got a late start at 33. I do hold the s&p and have majority of my money inside of that fund. I do understand i need to restructure my portfolio as I get older. My question is do you currently hold BND or any bonds right now or will you be waiting until you reach a certain age? I'm trying to gauge an idea of when i should look into changing things around to decrease a little risk.

[@LMsChannel]

Great video! Help answered some of the questions that I had. Question, do I need to be employed to invest in a Roth IRA? I have money saved up and can I use my money that I saved up to invest in a Roth IRA?

[@JarradMorrow]

Great question. You have to have earned income (the IRS lists what is considered "compensation" which I showed in the video) for the year you contribute to your Roth IRA. i.e. if you earned $100k in 2023 and you earn $0 in 2024 then you can't use the 2023 income to contribute to your 2024 Roth IRA.

[@alex182618]

Most adult people don't know how to calculate percentage and what does it even mean.

[@ffnovice7]

Decimals are superior. And you can suffix then quite nicely.68

[@mamat792]

Can you contribute the max to each of your 401K, Traditional IRA(s) and Roth IRA(s). For example: if they max is 8K for each, can you contribute that to each or all?

[@JarradMorrow]

Good question. You can max out your 401(k) separately because it has its own annual limit (e.g., $23,000 in 2024 if under 50). Traditional IRA and Roth IRA share a combined limit (e.g., $7,000 in 2024 if under 50). You can’t contribute the full max to both-your total contributions between them cannot exceed this limit. So yes, you can max out a 401(k) and either a Traditional IRA or Roth IRA, but not both IRAs fully.

[@Neo__The__Tv_]

I work 20$ hourly. Unfortunately i can only contribute 100$ each to my taxable brokerage and my roth monthly. But hey, something is something. I encourage all new people to investing to know you gotta start somewhere.

[@chickenchaser6284]

Friendly reminder: You can still contribute to your 2023 cap (up to the tax deadline), maybe even if you created the account today I'm not sure. Edit: Nice he talks about this around 7:00.

[@joe62845]

I wish I started the investing into my IRAs earlier. When I was younger I didn't put much in it and I didn't know to invest it. Then when I heard I could invest it I didn't know how to do that with the companies I invested with. Now I know how to. I am glad that I invested in my 401k since I started working after college, so I have some money saved up. Definitely wish I did more with my IRAs when i was younger though. Now I try my best to max it out.

[@damondiehl5637]

If you have been investing in a 401k, you are probably doing OK. An IRA is just a different way to do the same thing. You are just doing it all yourself instead of having your employer/401k administrator helping you. You have more control over what investments go into your IRA. But the 401k has a higher contribution limit than an IRA. And 401ks generally have an employer match. That is a 100% return on your investment, and you get it right away. And if you have enough money available, you can contribute to both; it is not one or the other.

[@Calinative0523]

I have a legit question so I understand in the traditional 401k you can contribute 22k, and in the Roth IRA 7k. I’ve only been contributing for three years, my question is the following is the 22k total including the 7k Roth IRA that you can invest? Or is it 22k traditional plus 7k Roth IRA which amounts to 29k total?

[@JarradMorrow]

Good question. The $23k (2024 limits) 401k/Roth 401k maximum is only for that type of account. The $7k Roth IRA/Traditional IRA maximum is only for that account as well. So combined you can contribute a total of $30k ($23k+$7k) for this year.

[@Calinative0523]

@@JarradMorrow I appreciate that you took a moment of your time to answer. I highly appreciate it & great content.

[@savanah1407]

Thank you for asking this question! I haven’t watched the entire video yet, so maybe I just haven’t heard it talked about yet but I’ve watched many videos on this topic and somehow it never clicked with me that the Roth IRA limit is only $7000. 🤯 That seems low.

[@Ron-j2m]

What do you invest it in? How do you diversify???

[@JarradMorrow]

Here's a video going through everything I do with my money: kzbin.info/www/bejne/p2PXepaDeb2MosU

[@damondiehl5637]

If you buy mutual funds or ETF stocks, you are buying little pieces of multiple companies. There are several ETFs that mimic the S&P500. VOO or QQQ are two examples.

[@BadPhD777]

My 20 year old daughter has $25K in her Roth IRA!

[@JarradMorrow]

Future millionaire!

[@savanah1407]

That’s seriously going to be a game changer for her!🎉 Thank you for sharing. I was wondering if it’d be weird to help my kiddo start one when they get a job.

[@BadPhD777]

@@savanah1407 That's all her money! She's worked 2.5 years since she graduated from high school! I plan to help my kids fatten up their retirement accounts when I'm able.

[@vinnymigliore2810]

Dam how the hell did she do that lol 😂

[@endgamedevs]

Paying off debt is a guarantee investment on that interest rate. Some people are in debt and that interest is so big that is more important to pay off debt. Since is a guarantee return on investment. But everyone should contribute a minimum no matter what

[@OhioStateBuckeyefanstuckinMI]

Im 20 and have a Roth 401k through my employer. Hopefully it pays off in the long run

[@JarradMorrow]

Why not max out your Roth IRA before investing in your Roth 401k?

[@OhioStateBuckeyefanstuckinMI]

@@JarradMorrow I didn’t know I could have both a Roth 401k and a Roth IRA at the same time?

[@JarradMorrow]

Yes, you can have both at the same time. They're two completely different accounts. The 401k is offered through your employer and a Roth IRA you have to handle opening, contributing to, and choosing your investments. I always say to max out your Roth IRA before your Roth 401k. Here's a video I released a few years ago explaining my "investing order of operations" which explains why: kzbin.info/www/bejne/nKCYpYl3mbWmfNU Even though the video is 2 years old, it's still correct. I should make an updated one since it's

[@OhioStateBuckeyefanstuckinMI]

@@JarradMorrow Wouldn’t the Roth 401k through my employer make the most sense as they offer a 10% match with my Roth 401k?

[@JarradMorrow]

Yes, absolutely. In the video I break down the order of investing. TLDR: invest up to your employer match, if you have more money to invest then put it into a Roth IRA until it's maxed out, if you still have money left then go back to contributing to your Roth 401k until it's maxed out.

[@kathy1501]

I love my roths! You can have more than 1 too :) your contribution just can’t be above the max across all of them.

[@grigorirasputin425]

Do you have 7,000 of them and put $1 in each to make your life more interesting?

[@JarradMorrow]

👍🏻

[@ffnovice7]

What's the raisin? For multiple account brokerages?

[@kathy1501]

@@ffnovice7not all Roths offer the same investments- diversification

[@savanah1407]

@kathy1501 That’s interesting, can I ask what you’ve found the pros and cons to having multiple? I have been thinking about opening a 2nd Roth IRA account but am not sure yet if there’s a benefit or any risks doing it this way.

[@jakesouth2]

Any betterment users here? I've been contributing for 1 year, I want to make sure it's being invested correctly!

[@zuwenaw]

I wish my parents were proactive with helping me and my siblings in investing. My daughter is 19 in college and I schooled her on opening a Roth IRA as soon as she gets a job.

[@joseperez2003]

I didn't know about a Roth account until I was 33 years old 😢😢

[@PB-qd4yj]

I stated one at 18 , but no body told me to hold it 10 plus years now I’m 55 smh late starter got a 401k that doesn’t match

[@Cyro213]

What happens if you don't met the max allowed by the end of the year?

[@JarradMorrow]

I addressed this in the video. It's not an "all or nothing" type of account so you contribute as much as you want up to the max allowed.

[@Chris..440]

I invest in a Roth 401k and a brokerage account

[@JarradMorrow]

Why invest in a brokerage account before something like a Roth IRA?

[@Chris..440]

@@JarradMorrow I like to have the insurance incase I have to retire early

[@radioactivemike1]

@@Chris..440 not to discourage your savings method, but there are ways to get ahold of ROTH contributions before 59.5. Mad Fientist has nice (dated) articles on this topic.

[@ffnovice7]

​@@Chris..440set up an emergency fund

[@Chris..440]

@@ffnovice7 I have one

[@patescortez88]

Right I learned when I got a job and they asked me about it

[@bennymozzarella1605]

I'm 33, I put in 2% into a 401k and my job matches me 8%. I also contribute a supplemental 17% into my 401k and I could only afford to put another 7% in my ira roth. I should max out my 401k this year. But should I scale down my contribution to the 401k and bump up the roth?

[@JarradMorrow]

Great question. The investment order of operations usually goes like this: 1. Invest in your 401k up to the amount that will max out the employer match 2. If you have more money to be invested then max out Roth IRA 3. If you still have more money to invest then go back to putting it in your 401k. 4. If you have more money to invest after completing steps 1-3 then you'd put it in a taxable brokerage account. Technically contributing to an HSA would be in between steps 1 and 2 because of the triple tax savings, but not everyone has one so I left it out for now. You're crushing it with your retirement savings so keep up the good work!

[@bennymozzarella1605]

@JarradMorrow thanks for the advice I'll most likely scale down my 401k to hit that 7k. Living in California who knows what taxes will be like when I actually do. retire.

[@Chessabergman]

So what if you already have a Roth but then start making over the limit? Do you get penalized or can you make a new Roth with the backdoor technique

[@JarradMorrow]

You'll need to do something called a "recharacterization" to avoid any issues with the IRS. It's basically where they change your Roth IRA contributions into Traditional IRA contributions. They're pretty understanding when this happens by accident as long as you correct the problem in a timely manner. Contact your brokerage and tell them what happened. Mention how you need to recharacterize your Roth IRA and they should be able to help you through the process to make sure it doesn't set off any red flags with the IRS. Try to get this done asap. Not something you want to push off too far into the future. Avoiding this type of scenario is why I mentioned in the video to "just do a backdoor roth no matter what" if you 100% know you want to contribute to your Roth IRA regardless of what your income is.

[@Chessabergman]

@@JarradMorrow I already have an open Roth IRA can i start a backdoor Roth and transfer the funds?

[@Ant_Wynn]

Hey Jarrad, what did you invest into your Roth IRA? Curious on your portfolio

[@JarradMorrow]

kzbin.info/www/bejne/p2PXepaDeb2MosU

[@paul1bunyan1]

Is there a point in having a Roth IRA if i already have a Roth 401k?

[@KA-NV]

The point will be the 401k allows you to contribute more than in a roth ira. 401k $23,000 and roth ira $7000.

[@damondiehl5637]

If you can contribute to both, great. It is just another bucket that you can fill (and it has tax benefits).

[@Steve_SEC]

I am in the highest tax bracket so a Roth does not seem appropriate for me. Instead, what do you think of a Vanguard Muni?

[@shujayethossain6554]

How do I invest the money? Do I buy index funds as I contribute little by little? I have a ROTH IRA and my contribution linit shows $7,500 but I have no idea how to invest!

[@damondiehl5637]

If you don't know what you are doing, buying VOO, VTI or QQQ is a pretty safe bet. You can maybe do some short term analysis to see if there is a better time of the month or quarter to buy a stock. They generally drop in price right after they go ex-dividend (prepare to pay a dividend). If you know that, you can monitor a stock and its dividend dates and price and catch it when it is a little lower than normal. This doesn't always work, though. Look at any stock's history and you will see times where it went up after the ex-dividend date, instead of down. Timing a major event like a crash is much, much harder and you should not try to do this. Buy what you can on a set schedule and you will catch a stock when it is high, and when it is low. This is called dollar cost averaging. Time in the market is generally much more important than timing the market, although sometimes major events present themselves.

[@houseofshorts5886]

I had a question about dividends. If you max out your Roth for the year what happens with the dividends? Will it reinvest and you still get more or will it just build up until the next year?

[@lakb2482]

That’s a good question!!

[@damondiehl5637]

You can turn on dividend reinvestment within your IRA so dividends are automatically reinvested (DRIP). However, some stocks do not allow this. Years ago, Chimera (CIM) only allowed it if your IRA was held by Mellon Bank in NY. Currently, I know for certain that Nordic American Tankers (NAT) and Diana Shipping (DSX) do not allow DRIP. If you do not have DRIP turned on, your IRA will accumulate cash and you will have to go into it and buy more of that stock (or some other stock) yourself.

[@salemdesigns65]

​@@damondiehl5637 ....furthermore, you have to do your research on the frequency of those dividends as well - monthly, quarterly or annually. Here's my 2 cents. 😊

[@dheerajchidambaranathan]

What about the 5 year rule? You missed it out in your withdrawals part.

[@savanah1407]

Ok another, simpler question. :) Using now as an example, when investing in a Roth IRA from Jan-April of this year, 2024. When there is the option to select 2023 or 2024, does it matter if you’ve filed taxes for this season yet? I think they’d be considered 2023 taxes. Like would I need to contribute to 2023 before I file taxes this season and only file taxes once I’m ready to start putting money in to the Roth IRA for 2024?

[@JarradMorrow]

Doesn't matter if you already filed your 2023 taxes. As long as you contribute directly to your 2023 Roth IRA before April 15th 2024 then you're good to go. Edit: Also wanted to clarify that you would have had to of earned the amount you're contributing Jan 1 through Apr 15th...in 2023. i.e. if you only earned $3,000 in 2023 then you can't contribute more than that amount for your 2023 Roth IRA. Hope that makes sense 😂

[@savanah1407]

@@JarradMorrow Yes, that makes sense. You’re always so clear in your videos. Really appreciate the information!

[@onemorething100]

So you don't pay gains tax on a Roth IRA??

[@JarradMorrow]

No

[@RassaneyBattiese]

I wonder how expensive food will be 30 years from now.😮

[@yourmanzach2307]

i opened up my Roth IRA for a future home purchase. it sounds weird, but INVESTING allowed me to keep the money in the stock market. If I had left the money in savings I would find ways to spend it.

[@jakesouth2]

Is it better to max out mine before my wife's, or try to contribute to them equally and potentially not max out either one?

[@JarradMorrow]

There's no benefit or downside to maxing out one before the other. It's more personal preference than anything. I guess the question is would she be mad about yours being fully funded and not hers if you couldn't max them both out. I'm not trying to start any fights between you two so maybe contribute to them equally 😂? Up to you

[@ffnovice7]

Are you, OP, yourself doing the contributing for both?

[@jakesouth2]

Yes, we are a single income family. Last year I was able to max both but we are having another child this year so I don't think I'll be able to.

[@ffnovice7]

​​@@jakesouth2that's fine man. I admire you because I'm looking at the same boat too since my gf is much younger than me and I want to marry with kids too. It ain't the destination but the destiny-ing that makes us fulfilled, so keep aiming, brother. Happy for your happiness Edit: I'm thinking of giving my lady agency in her proportional contribution (my percentage of net income and hers will be equal, for sum total to pay, say, rent). Do you think that would be a good idea? Only needs a paper and pen and some brushing up on algebra

[@jwastken8814]

But can you please make a video on how someone who makes money above the limit can still contribute??

[@JarradMorrow]

I addressed that in the video. Backdoor Roth

[@jwastken8814]

@@JarradMorrowok thanks, have searched some older videos on how I can do this. Thanks

[@sandyholzhauer7350]

Yes you can contribute to a Roth IRA through your employer, if it is part of the plan’s options.

[@damondiehl5637]

Employers offer 401k. You set up an IRA yourself. They have different contribution limits. You can contribute to both types of accounts.

[@adrianrodriguez9129]

What do you think of QQQ ETF?

[@Levarboston]

What is that

[@adrianrodriguez9129]

@@Levarboston large cap growth fund that mainly invests in Tech

[@irtemed7110]

I am a corrections officer and for our defferred compensation plans have a Roth option. Is that similar to a Roth IRA?

[@JarradMorrow]

No, they're two separate accounts. Sounds like you may have a Roth option within a 401k, 457, or 403b through your employer. Those types of retirement accounts are only offered through an employer (usually referred to as "employer sponsored retirement plans"). A Roth IRA is a separate retirement account that you can open and contribute to that has nothing to do with your employer. You can have both types of accounts at the same time. Edit: any account with the word "roth" in it means the same thing- contribute after tax dollars and the money grows and can be withdrawn tax free

[@punisher6659]

Hello to you. 27 year Corrections Officer here. We have the Roth option with our 457. Being Grandfathered in my pension is fully paid by my employer. Since 2018 the Officers hired pay 4% a check into their pension. You can make money and the benefits are great if you can stomach the work. I'm retiring next year at 58 but I'll be off to the next job. Didn't put into the 457 until late in the game. Thank God for the great pension now I can invest like crazy for the next 11 years. Make sure to have multiple buckets. 457,Roth IRA, Taxable brokerage and HYSA. I have all of those now. Good luck to you.

[@deontesmith36]

What happens if you already invested into a Roth for a particular year and realized you went over the income limit at the end of the year? I didn’t know until this video there was a income limit 😮

[@JarradMorrow]

You'll need to do something called a "recharacterization" to avoid any issues with the IRS. They're pretty understanding when this happens by accident as long as you correct the problem. Contact your brokerage and tell them what happened. Mention how you need to recharacterize your Roth IRA and they should be able to help you through the process to make sure it doesn't set off any red flags with the IRS. Try to get this done asap. Not something you want to push off too far into the future. Edit: Avoiding this type of scenario is why I mentioned in the video to "just do a backdoor roth no matter what" if you 100% know you want to contribute to your Roth IRA regardless of what your income is.