M1 Finance Roth IRA Tutorial (Tax Free Millionaire!)

[@z71rick1]

Can u do update video Roth IRA

[@isra_te_ve]

DO I HAVE TO WAIT 35 YEARS TO WITHDRAW THE MONEY, OR I CAN DO IT BEFORE, IS THERE ANY FEE FOR IT

[@trippyvelvet]

New to learning about Roth and investments, so investing in VTI or any other company through your Roth IRA…. you can lose money?

[@roadmapmoney]

Yes, all investing has a risk of loss. But loss only occurs if you don't hold the investment long enough for it to grow. For example, VTI "lost" over 20% at some points in the year 2022, but then was up nearly 25% in 2023. If you bought and held, you haven't lost any money. It's important to choose what you are saving for BEFORE investing. If it's retirement, the best wealth builder is the stock market. I just made a video on this recently, check it out here: kzbin.info/www/bejne/Y5uxoKuFo71_lZo

[@candierichard8931]

is there an updated video on this? Why couldn't you just go directly to Vanguard and invest in VTI? would the fees be the same?

[@roadmapmoney]

You can, and I have accounts at Vanguard myself as well. I prefer M1 Finance's user interface, and they don't charge any additional fees for the app, so I use it. I will be making an updated version of this video soon, though!

[@WaqasKhan-hx4hw]

But how much you have to put in it monthly and what are the cons of any??

[@roadmapmoney]

Only minimum is the $500 to open the account, but you don't have to contribute anything after that. The benefit of contributing every month is that it's the best way to grow your wealth long-term. Cons of M1 Roth IRA are: - Account balance must be at $500 or above to avoid fees - Trade windows mean you can't get the exact price for a stock at any time of day (beginning or end of day only) - No access to human financial advisors - No automatic management of your investments Overall, I like the app's simplicity, and don't care about trade windows because I invest once a month. If you want more app options, though, check out my latest video on where to invest $10: kzbin.info/www/bejne/lWnShq2IgNyhgNU

[@AndreaUrban-me]

Hey Jacob, Can you transfer from a 401K to a Roth without penalty?

[@roadmapmoney]

Only if it's a Roth 401k plan. Coming from a regular 401k to Roth IRA will trigger a tax bill. I recommend rolling over to a regular IRA and planning tax-smart withdrawals with a financial planner 👌

[@adriandevis5110]

Where can you confirm which account do you have in m1 finance? I have two not sure which one is which. Lol

[@roadmapmoney]

On the mobile app, go to Settings > Accounts, and under each account it should list what type of account it is (Roth IRA, Individual, etc.)

[@Ricebow11]

Is the M1 minimum $500 , only refer to the very first time you deposit to your M1 Roth account? If I want to add, $5, or $20, or $40 for example, can I do that or is it always $500 for the minimum deposit?

[@roadmapmoney]

Yes. Exactly 💯. After opening the account with $500, you can invest in amounts of $10 or more

[@Ricebow11]

@@roadmapmoney thanks so much!! What's you opinion on acorn, Roth ira vs m1 or using both?

[@roadmapmoney]

Acorns fees eat into your returns quite a bit, especially when getting started. Even the $3/mo is $36 per year, and represents a large portion of your portfolio lost to fees over time. I prefer M1 Finance for the Roth IRA, as there are no additional fees, and you can invest in Vanguard and Fidelity funds.

[@Ricebow11]

Thanks for your Input, I guess I'll have to look into learning more with m1, the only catch is depositing that $500 for first instant, I just wanted to get started as little as possible, just to start something and eventually grow it more

[@roadmapmoney]

Yeah, there are other apps with low minimums, with Fidelity probably being your best bet for no fees and the ability to open an account with like $10. I don't have a Roth IRA video on fidelity, but walk through opening a kids investing account and selecting investments, which will be a similar process to the Roth IRA. You can check that video out here: kzbin.info/www/bejne/onqUq5d9mdqkfLs

[@Sharingiscaring95]

Thank you!

[@roadmapmoney]

You're welcome!