5 HUGE Roth IRA Mistakes That Can Cost Thousands

[@BusinessBuzz]

Here’s the biggest mistake: *NOT HAVING ONE!*

[@grgoblin]

Here's the biggest mistake: GETTING a roth IRA. They are NOT tax free. You do NOT get the deduction for the contributions like you did with a traditional IRS. All taxes are paid i9n advance. There is NO advantage to a roth IRA. IRAs sounded good 40 years ago when banks paid decent interest. Banks promised having $1 million at retirement. Now you get a better rate of return by keeping your money under the mattress.

[@1flash3571]

@@grgoblin You seem to forget something. When you invest your 5000 dollars to your ROTH IRA, that money was taxed already at your total income rate. Let say the amount of tax from that 5k was around 600 dollars. Now 30 to 50 years later, your 5k, if you haven't invested anymore money, then you would have around little over 38,000. At 50 years, 147,285 dollars. ALL THAT MONEY now is TAX FREE. So.......You whine about paying your 600 dollars in tax currently for ROTH IRA but NEGLECT the amount of money you DON'T have to pay taxes on when your investment hits 30 years on 38k, which you will have to pay each time you take out the money out of your Traditional IRA account. For 38k, you have to pay, if we keep the same percentage as when it was at 5600 dollars (at 10.7%) it is an estimate tax rate after deduction if you make around 35k, is 4,066 dollars. At 147,285, which will be a lot more of taxes if you decide to take the whole thing out because of delayed taxes on your Traditional IRA, will be around 29,522 dollars. So, with Traditional IRA, you save that 600 dollars NOW and your taxable income is lowered by 600 dollars NOW, but have to pay 4,066 dollars at 30 years, or 29,522 dollars at 50 years later when you hit the 59 1/2 years old, OR pay that 600 dollars NOW, and DON'T pay those amounts of tax when you withdraw on your ROTH IRA. So, which do you want? Save NOW, or LATER. I'll take the ROTH IRA over Traditional IRA ANY DAY OF THE WEEK.

[@tholloman9860]

@@1flash3571 I have a ROTH IRA and I strongly considering to close it. It is literally only making .15% a month. That is worse than an actual savings account. How are you making so much more on your ROTH??

[@Ram-rm2gz]

@@tholloman9860 get other investments

[@chadmoultvv]

@@tholloman9860 I invested in the Vanguard 2060 target retirement date fund and it's provided a decent return so far.

[@Vick--1052]

At the age of 45 I finally started educating myself on finances. I wish I someone would have talked to me about retirement. You are doing something great. Thank you for sharing your knowledge.

[@AF-we1zc]

Public education is a joke.

[@jerrygee941]

I started my retirement accounts at age 24 and even I regret not starting at 20 years old. Thanks for the informative video!

[@fuge511]

on average a year of waiting can be 1k to 100k in profit lost.

[@cgarrita894]

That’s a pretty gigantic range there.

[@mrchichmagnett7761]

cgarrita dude went from 1k to 100k real quick 😂

[@1Slo5ooh]

I opened mine 3 weeks ago and I’m 22, glad I started early as well. Kept having this “I dunno should I” and said f it and full send

[@davisturk8975]

@@1Slo5ooh I’m 22 also, kicking myself i didn’t stay sooner lmao. Idk why parents don’t stress this stuff more ! Teachers don’t tell us shit either

[@AanyaDarika_]

I’d be retiring or working less in 5 years, and considering this financial recession, I’m curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $250K per year but nothing to show for it yet.

[@benalfredo]

Do you have a 401k? you should contribute to your retirement diligently, or better still look into financial planning

[@ClaudiaRom]

Very true, I find myself lucky enough exposed to money management at an early age. Worked full time when I was 19, purchased first home at 28, fast forward time... I'm 50 now, got laid off March 2020 amidst lockdown, a blessing in disguise. At once, I consulted an advisor to stay afloat and with subsequent investments, I'm only 15% short of $1m as of today.

[@Javier_Rodri]

@@ClaudiaRom This is huge, I have seen a lot about FAs and actually want to consult some pro.

[@ClaudiaRom]

@@Javier_Rodri LOREN LENA WALKER is the CFP responsible for my portfolio success, lady is in her 60s 0r 70s and has a private client base you can confirm her yourself on the internet, regulation an all.

[@Javier_Rodri]

@@ClaudiaRom Thanks for the share! copied and pasted full name on my browser, effortlessly found her site, very professional. I got some feedback hope to speak on the phone soon.

[@citycen01]

I’m 39 and just realized this. I wish I could have learned this 20 years ago. Kids! Pay attention to this information!!!!! This shit is REAAAAAL!

[@gkprivate433]

It is so real. If you have a dollar in your pocket at the end of a week, put that into your ROTH IRA. No ifs, ands, or buts about it

[@bradstone9411]

very good advice

[@AllThingsRickita]

I'm about to turn 30 this year and I heard about this when I was 20. I should of started then. I want to have a self directed IRA so that I can buy property in them.

[@Quibblet]

@@gkprivate433 Yes, what a wonderful way to think!

[@laineym4405]

It's crazy what info is available now with the internet, KZbin and Google. Growing up we didn't have this stuff. I remember learning basic computer skills in my freshmen year of college. I'm now learning about stocks and investing from people in their twenties.

[@Je.rone_]

About 2 years ago when Graham Stephen told me about roth IRAs I hopped on it!

[@luiscoronel1524]

@Jamie Catalano I've had mine for 3 years going on 4. I always put put the max contribution every year. now I am 55k I owned tesla since 300ish 33 shares. had amazon at 1200 a share sold that at 1700 i bought 85 shares of boeing at 120 a share and sold it at 220. had ccl owned it at 20 a share sold it at 23. U can make money but sometimes it's best to hold onto. like i should of done with amazon and tesla (sold at 940)

[@chrisflo24]

@@luiscoronel1524 33 shares of Tesla? Man I envy you lol

[@luiscoronel1524]

@@chrisflo24 I sold them at 940 and boeing at 220 ccl at 22. I kind of regret it but it's back at 950 right now. It might go down because of all the bad publicity they are trying to throw at them

[@jessi9375]

This was me last year and I’m so happy I listened

[@luiscoronel1524]

@@chrisflo24 also update I ended up just selling all my stocks and going all in now have 52 shares tesla bought them at 980ish so I took a loss but tesla is at 1200 now so I still made a profit. I should of bought into NIO I had stock with them but I sold it at $4 now it's at 9

[@user-zakb]

This dude funny when he exhales it’s like he’s irritated that he has to explain this to us😂😂

[@CS-pu4ti]

😂

[@xgenkea]

fr lmaoo

[@classychamp2981]

Lol

[@prettylittlemissy]

Lmaoooo

[@mrs.torres8548]

🤣🤣🤣🤣 i saw that

[@BrokeManFinance]

The biggest mistake, IMO, is deciding to wait for the right time to get one. Just pull that trigger and get started. Time is a valuable thing.

[@SchoolofPersonalFinance]

Time is 💵!!

[@LaMASIA-5611]

🔥

[@dcflow7859]

Absolutely!

[@yhctaw]

Absolutely. It was painful dumping my $6k in savings into my Roth IRA but DEF worth it. Steadily growing.

[@big0514]

100% I don’t really fully understand but I know I can learn but I can’t grow if I don’t invest

[@Vladimir-JT]

my dad forced me to make one when I was 18. and now it has over 30k in it.

[@MarioandYuri]

Awesome dad

[@senseizah3686]

How old are you now?

[@loralynne646]

I will be that same parent! Go dad!

[@montyi8]

@@senseizah3686 50

[@ChristopherSEA]

You’ll thank him for that

[@MikePouch]

Good video! One word of warning to your viewers - you quickly mention at the end that it's okay to invest in both a Roth IRA and a Traditional IRA - this is true, but please note that you can only contribute up to the yearly limit shared between these two IRAs. For example, in 2020 the limit is $6,000 - so if you contribute $4,000 to your Roth, you can only contribute $2,000 to your Traditional. 401ks have limits separate from IRAs.

[@NicholasBall130]

I'm recently retired and uncertain if my 401(k) and IRA will be enough for a stable future. I've set aside $1 million to help secure my financial goals and align with my risk tolerance. Should I consider investing in stocks or buying a rental property?

[@JamesLongman-v5r]

People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.

[@StocksWolf752]

Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.

[@StacieBMui]

Could you kindly elaborate on the advisor's background and qualifications?

[@StocksWolf752]

The advisor that guides me is Rebecca Nassar Dunne most likely the internet is where to find her basic info, just search her name, She's established.

[@StocksWolf752]

Rebecca Nassar Dunne maintains an online presence that can be easily found through a simple search of her name on the internet.

[@beylee12]

this is the stuff they needed to teach in school. I finally realized i should be doing this at 29 and my finance buddy (god bless him) helped me out. He said, "Time in market beats market timing." Its never too early or never too late, you need to start somehwere.

[@andreceholley6520]

Shoot I got taught this in school

[@Coolbreezemcm]

I am 21 years old, and I was literally looking into opening a Roth IRA account today. Here and behold, this video pops up. Well informed and knowledgeable. Subbed.

[@soviethammer645]

Do it! Time flies.

[@jessi9375]

Do it!!!

[@ttscott642]

I was literally looking into it today as well on Google, next thing Ik I’m on yt and this video is on my suggested😂. Did you do it though? I’m 19 and Im considering it

[@Phizzo4real]

I wish I had started at 21. Well done, Mark. I am 29. Started investing 3 years ago, got serious a year ago... Best decision ever!!!

[@hcwoolfgmailcom]

Google and Uoutube know your every thought.

[@George_Perez]

Roth IRAs are so underrated.. many years ago I bought some amazon shares and put it into my Roth, lets just say I'm going to be really happy taking those profits out in 30 years without having to pay anything on them 🔥🤑🚀

[@That_TSLA_Dude]

Me too!! BEST INVESTMENT(stocks/bonds/etf) AS A YOUNG PERSON!!

[@finthehuman3649]

Wow people must envy you 😂😂 you lucked out on that

[@Masterbaiter1000]

That's if you survive

[@froyokid]

And if amazon crashes?

[@Just1Independent1]

You put your stock investments in your Roth IRA acc?

[@claudiavalencia4504]

I am 34 and just opened my Roth IRA today im very excited wish I would have done it earlier

[@rickyruiz9908]

How do I open it?

[@nickpacifici652]

@@rickyruiz9908 open a fidelity account

[@bobs182]

Put it in a regular IRA and keep you tax money.

[@samanthahuerta1561]

@@nickpacifici652 where ?

[@nickpacifici652]

@@samanthahuerta1561 fidelity

[@chantalramirez5837]

I’m only 15 , but really love how easy Nate makes it for me to learn about finance !keep up the good work 👍🏽

[@moneytalkswithjonathanthom4150]

So glad your starting early

[@heraldhermes4127]

Goat

[@alrocky]

@Ayoob Musanovic Find a new friend who provides better financial advice.

[@wilsonlee4285]

I'm 14 I just wanna make some money .__.

[@ArtisticPainter2364]

@Ayoob Musanovic i am 17 and i literally work part-time at a restaurant and I'm investing so no that is not true

[@JustFrugalMe]

I'm soaking in EVERYTHING you said. Prior to your video I downloaded a stock teaching app and learned a lot of terminology and concepts that prepared me to watch your video.

[@tblub.9270]

Oh really? What’s the name? I’m trying to learn the terminology and I’m struggling. It’s a lot of info .

[@barttfisher]

I am in my 40s and This is no time to taper retirement savings. I want to max out my retirement funding and I also have another $200k in a savings account that i want to invest in a non-retirement account.Would it be better going to housing? Maybe own property and let it till im ready to move in at 65.

[@PennyBergeron-os4ch]

Research some dividend aristocrats and choose six to ten firms with over 25 years of dividend payments. Also consider working with an asset-manager to build a strong portfolio.

[@FinnBraylon]

It depends on your personal preferences and comfort level. However, one option is to keep things simple and consult an asset manager. They can help you determine your risk appetite, avoid common mistakes, and provide a broader perspective on your investment landscape. I have about ($1.25m) in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little in retirement accounts. To be completely honest, the information provided by managers can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.

[@HildaBennet]

Impressive! can you share more info?

[@FinnBraylon]

Her name's “Sonya lee Mitchell” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@HildaBennet]

I just checked her pagd and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@hillarylively1755]

This is what they need to be teaching in high school and college to EVERY student. I wish I had been more aware of all of this when I was just starting out and that I had taken a more active role in creating additional retirement outside of what my work provided. I plan to use your videos to help educate my own kids. Thank you for making it easier to understand so that even my teenaged children can grasp the knowledge. Great videos!

[@Azzzclan]

The goal of school Especially college, Is to DUMB you down and keep you in Debt. That’s why it so expensive and half of the classes they force you to take are useless . Their goal is for you to struggle thru life. And keep you in line ! When you realize that you will be better off.

[@intrinsiccinema7374]

@@Azzzclan exactly you are so correct

[@bryceolsen3527]

I think what they need to do more so is explain to high school students why they should WANT to learn about this. If you just teach them about something they don't care about, they aren't going to learn anything even if they are given the means to learn about it in high school.

[@supreme5580]

I couldn't agree more! Look up cents ability and the council for economic education and be a voice in your circle, to alter the status quo of financial literacy!

[@AF-we1zc]

The public education system doesn't want you to succeed.

[@AddilynTuffin]

I wish to diversify my assets by investing in ETFs/index funds/mutual funds and stocks of corporations with stable cash flows. I received $400k from the selling of my property. What should I do?

[@AgueroBankz]

With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and mutual funds

[@judynewsom1902]

Pls who is this coach that guides you? I’m in dire need of one

[@AgueroBankz]

*Sharon Louise Count* does a good job. She is quite the genius in portfolio diversification. You can look her up on the web as she is SEC regulated.

[@judynewsom1902]

Found her online page by searching her full name, I wrote her an email and scheduled a call, hopefully she responds, I plan to start 2023 on a woodnote financially.

[@socketyellow3]

I don’t plan on having kids or getting married but I’d rather be that uncle that paid my nieces and nephews’ college. Because I know my sister isn’t going to save anything.

[@evanskates96]

Respect!

[@prettylittlemissy]

🙏🏽🙏🏽

[@prettylittlemissy]

Who’s gonna take care of you when you get old?

[@aprila-jy4yu]

Right!

[@nataliearciniega2103]

@@prettylittlemissy the kids whose college he just paid for i hope, they should be grateful

[@silverwings8253]

OMG, Everything you said not to do is spot on. I had an agent who told me about investing in a traditional IRA with mutual funds. They were taking about 5% each year in fees. She NEVER told me about the Roth IRA which I just learned about when I retired this year. So I rolled all my IRA funds into a rollover acct where I don't have to pay 5% anymore. I was also able to fully fund 2 years into a Roth IRA that I will reinvest for 5 years. AS YOU SAID "I wish someone had told me all this when I was younger."

[@sadiecruz6145]

"breadwinner of your little marriage" lmao love that energy

[@shaniellesamuels6404]

😂😂😂 I came to look for this comment

[@Ariventuras]

LOL 😂

[@GT-ir4rs]

He's preaching to the choir here so out of everything he said, that's what caught my attention too. 😂

[@kingP2011]

Opened my Roth IRA today after a few weeks of learning about the appropriate investment options and allocation for my age and future! Anyone out there unsure or nervous to make that leap, you can do it!

[@tblub.9270]

I’m still learning but as a 45 yr old with no IRA it’s a bit scary. My son just turned 20 and he has one. I didn’t even know about this.

[@DemetriPanici]

Honestly it surprises me that more people don’t take advantage of Roth IRA’s it’s tax free money! Great video Nate!

[@samkinison2375]

Bullshit

[@PoshJosey]

It's money you've already paid taxes on, not money that doesn't get taxed.

[@DeepfriedBaby]

Well a lot of people don't have that extra 5500 a year, or they have debt. also financial literacy.

[@Silidons91]

@@samkinison2375 the difference is, when you retire on a roth ira, you aren't taxed on the gains. if you retire with a normal account, you do get a tax benefit while you're investing every year, but when you retire you get hit with a double tax: tax on contributions, AND taxes on the gains.

[@caligana]

It depends if you will make less money in the future or plan only on living off the IRA, it might work better to go with traditional because you will be in a lower tax bracket. Also, if you want to keep the extra tax money now and just pay it later, then maybe you want a traditional IRA. It certainly sounds more convenient to go with a Roth, but it doesn't always mean it's the one best for your particular case.

[@giorgiobotteri9727]

Really great video Nate, thanks for the tips! I did notice you described Traditional and Roth IRA's a little off. You mentioned paying taxes for the money you'd receive from your employer for a traditional IRA but in fact, with a traditional IRA you'd actually be investing with pre-tax, meaning you don't pay any taxes to your employer and Uncle Sam because you'd be paying for the taxes when you're ready to withdraw. The key difference between a traditional IRA and a Roth IRA is that with a traditional IRA you'd be investing with money you haven't paid taxes on, which is why you'd be paying taxes when you withdraw. While a Roth IRA is an account where you can invest with you paycheck that has already been discounted for taxes, which is why you wouldn't be paying taxes when you withdraw, because you've already paid for them upfront.

[@nestosauce]

Thanks I’ve been learning about IRA’s and this comment helps distinguish the main difference between the two.

[@tammymatix8040]

I started contributing seriously to my Roth IRA in my late 20s. I wish I learned about it earlier to have the time advantage. Great job educating people on this retirement vehicle.

[@simplifiedfinance5740]

+ 1 7 7 4 4 7 3 8 9 6 3

[@emmanuelsuarez4107]

But what stocks do you buy? I opened the account now idk what to buy. I was thinking index funds.

[@AlphaMacho]

@@emmanuelsuarez4107 .

[@emmanuelsuarez4107]

@@AlphaMacho ?

[@AlphaMacho]

@@emmanuelsuarez4107 i just commented incase someone responded to you

[@viewfromthehighchairr]

Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. Compounding is the process of earning interest on your initial investment, as well as on the interest that investment earns. This means that over time, your investment can grow exponentially. So the earlier you start investing, the more time your investment has to grow through compounding

[@devereauxjnr]

Nobody knows anything you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.

[@Harperrr.99]

@@devereauxjnr A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow

[@ReeceIovine1]

It is surprising how few PPL focus on saving and investing until it's almost too late 😬😬

[@jonno.alexander]

Most of us don't have enough leftover from our collectively lessening income even under self-imposed austerity measures. Took me forever just to save up 1K to open a Roth IRA account and since the pandemic can't contribute. The only positive is that I refuse to withdraw even during lockdown. By the time my income catches up to have significant amounts saved aside, I will have lost the edge of compounded interest over time. I get angry everytime I am reminded of this and honestly feel a bit helpless.

[@justinyeo8458]

I'm one of them. Catching up at light speed.... hopefully. Glad i found Nate's video. But hey, he's just nobody on the internet

[@hurt1704]

Jonno Alexander this means you have too many bills. Time to cut back. Want to be poor for retirement or cut back now and still live a good life without the extras?

[@johngill2853]

Till it's almost too late? Many people wait until it's definitely too late

[@anthonyanalytics]

I was taught about Roth IRA in my high school class about 5 years ago. I’m starting a new job that does company match on the Roth IRA. I’m planning to jump on it once I can enroll in it. Edit: A 70+ year old substitute teacher told me about it not my actual teacher lol

[@noonehere4332]

Listen to your elders, they are wise

[@General8675]

Companies have 401ks, not IRAs. You should be contributing to your Roth IRA regardless of match. Don’t wait. Your money is more powerful the earlier you put it in.

[@bubbaemmanuelle6761]

I remember when I was 9 I heard about 401ks. So at every family event when things got quiet I would say to my aunts and uncles, “so I decided to invest in my 401k...” just to mess with them lmao. I was so ridiculous.

[@finthehuman3649]

Lmaoo

[@yourmanzach2307]

Sounds like you were funny lol

[@ashlychou15]

😂😂😂

[@shue2526]

Lmao how did they respond though? 😂

[@bubbaemmanuelle6761]

@@shue2526 they would laugh so hard. I miss being a kid ha.

[@TheMrSlyxx]

LoL, I'm one of those in his 40's going why didn't I do this before? Sadly there wasn't a lot of information on it back then, and basically no social media to network about it. But better late then never, I suppose. Agree completely about the ETF fees. I do only single stocks in my Roth to avoid those little fees that will chip away at you.

[@larryjones9773]

Never invest in individual stocks. I recommend index fund FNILX. Diversification is very important.

[@V.E.R.O.]

Vanguard has very low ETF and Index Funds fees, many other financial institutions are following suit. What you save on ER you may lose on IRR.

[@Draega007]

37 years old here and just started a roth ira 2 months ago. Definitely kicking my self in the bum for not starting one when I started working at 16 years old.

[@daveschmarder-US1950]

I have to disagree with one thing, Nate. Around 2 minutes in, you mentioned double taxation on taxable accounts. You pay tax on the original income. That money is not taxed again. Only the investment gains are taxed. The money you originally put in is not a capital gain. Capital gain rates are presently 0% - 23.8% depending on the adjusted gross income. Earned income and tax deferred income (IRA) is taxed from 12% to 39.6% in most cases. An IRA is taxed at the full tax rate when taken out. This applies to 401(k) or other tax deferred investments. For most low to mid earners, I think that getting an employer match is the first task. After that, money should go to a tax free investment like a Roth IRA, and pay the tax due on the amount. Then dump all you can in a taxable account. Only come back to the 401(k) when you need to avoid a 32% and above bracket. Most young people don't get this part, but when you are near retirement age, those required minimum distributions can be a killer. I'm 70yo. Fortunately I have relatively little in my IRA. Everything else is in a taxable account or my Roth. I can adjust my taxes each year, depending on my activity. Glad you are staying well, Nate. I'm doing fine too. Social isolation is now the "in" thing and people are no longer talking about me. :)

[@doright8355]

Yes, he did mentioned double tax for traditional IRA. Only profits are tax and not the principal.

[@daveschmarder-US1950]

@@TheNotGuruInvestor You are taxed only on the profits (if any). You get your cost (original investment) basis back at no additional tax. I've been investing since the late 80's in taxable accounts. I don't pay tax twice on the investment, only the gains the investment made. This is in the US. Not sure where you're from, and tax laws vary nation to nation.

[@JasonBuckman]

@@TheNotGuruInvestor You are taxed once on the income you make and taxed once on the profits you make. It's only taxed once. You never paid taxes on the profits.

[@JasonBuckman]

@@TheNotGuruInvestor It's not being taxed twice. It's being taxed once. A Roth portion isn't taxed. Roth is partially taxed (only the principal in the beginning) while a taxable account is fully taxed (principal in the beginning, growth at the end). Traditional IRA is fully taxed as well, all at the end.

[@JasonBuckman]

None of it is being taxed twice. It's different money (different income) being taxed.

[@thisisstupid956]

The reason I don't regret investing at a younger age is because I still remember how long it was until I wasn't living paycheck to paycheck.

[@Jdjfbficjenenwk3736]

Great Advice. I treat my retirement fund as though I don’t have that money until i’m 59 and 1/2 haha. This way I never feel tempted to use it as backup cash, because that’s not what it’s for. That only hurts you.

[@eganzale]

I'm one of those 30 something year olds wishing I had started earlier on my IRA 😑

[@johnb1571]

talked my daughter (32 now) into it few yrs ago, glad she listened. Her company 401k $114k, company Roth 401k $142k, Roth IRA $52k,and lastly $66k in brokerage, she might retire with SEPP and her Roth will be killer at age.

[@Bromon655]

One common sense mistake that wasn’t really obvious to me as a beginner was the fact that you can only contribute earned income to these. You can’t contribute 20 dollars you found on the ground. Luckily I caught onto this before I invested more than what was on my W2 since I usually have unearned cash in my wallet. I know this is literally how Roth IRAs are supposed to work but for some reason it didn’t click for a while

[@StockInvestmentAnalysis]

It's never too late to think about retirement and these issues. Whether someone chooses a Roth vs. Traditional IRA will partially come down to how much they expect to earn in retirement vs prior to retirement. We want to maximize tax savings so we want to be taxed on this money at the time we are receiving the least income. This ensures a lower tax rate and more savings for us. Thank you for this great video! These mistakes you explain can really add up!

[@ConnorMullanNathaniel]

Using money in your Roth IRA as an emergency fund makes a ton of sense. It earns more than a "Emergency Fund" in a savings account will. The rule is just dont go into your earnings. Other than that, if you need 500 bucks to pay a bill, use your Roth and then invest more in the next month to put it back.

[@RetirementTravelers]

Great video for people of all ages. Roth IRA are great vehicles. Thanks for explaining it to everyone in a simplified manner. Well done.

[@Corrabeauty]

I’m glad I stumbled on this. Investing has changed my perspective on how one can succeed in life and have a comfortable retirement. Working multiple jobs for money isn’t the optimal way to attain financial freedom. Unfortunately, we find this out later in life. Great video.

[@francois491]

I’ve also thought about this as a means of earning more but I’m clueless on how to go about it, but I’m keen on getting started. What’s your story?

[@Corrabeauty]

@@francois491 Levi, a renowned fiduciary is the brain behind my success investing in stocks, Roth IRA, I-bonds and fx.

[@Corrabeauty]

@@francois491 Leviclemans,info on his webpage you can look him up, and connect with him.

[@Roymysterio]

Thankfully, my income is enough that I can dump a lot of extra money into the market. On the positive, I’m going to start investing since one of my goals is to be financially stable before the year runs out.

[@totallysick88able]

That was perfect! This guys doesn’t waste a second of your time. Thank you!

[@ofircohen1675]

I keep my Roth IRA with Vanguard... Love that tax advantage account, I set up weekly automation from my BOF to that acount to get some diversification over time... and planing to keep doing it as long as I can...

[@DoomSlayersNephew7270]

I have one with vanguard also! I love how they lay it out, making it easy to traverse between accounts and stocks/bonds/etfs

[@ofircohen1675]

@@DoomSlayersNephew7270 Yes!

[@prettylittlemissy]

BOF?

[@dominant_male5605]

I have an account with vanguard also, do I just put money in the account or do I have to invest the money in a stock for example (s&p 500) for it to grow?

[@Cheeks63091]

Good question Dominant

[@SchoolofPersonalFinance]

Best part is you can make tons of mistakes (and probably will as I did) and still end up with a ton of money in your Roth IRA at retirement. Key is just getting started and getting that financial education.

[@wasomania]

8:05 ‘Lets say you’re the bread winner of your little marriage’ 😂

[@thelittlehedgegrove2079]

I kept thinking to myself when I'm all caught up on my other finances and have extra money then I can invest in an IRA. I'm 46 and there are always new and more unexpected expenses that come up. It'll never happen. Opened up the Roth IRA and decided to treat it like a monthly bill instead of an added expense after everything else. It if I treat it like a bill, too, once it's in I can mentally compartmentalize it as gone and not touch it, too.

[@josephkalina2192]

That's awesome to hear!! How much would you recommend to put into it on a monthly basis??

[@keplergelotte7207]

Always invest in 401k at least up to the company match (free money). Convert your 401k to an IRA as soon as you leave the company since this opens up your investment options. Roth IRAs also don't mandate distributions when you reach 70 so deplete your traditional IRAs first then start tapping into the Roth since it grows tax free. Choose an investment advisor who will act as a fiduciary. This is a strict legal term meaning that they put your interests first.

[@thomasmaher6880]

One of the worst things I’ve ever been told when it comes to retirement was; I wanted to open a ROTH IRA and a traditional IRA to roll over a 401k and ROTH 401K to my bank. The women there wanted me to just open a traditional IRA, I told her I still wanted to make weekly contributions to the ROTH IRA. She told me I can just use my T IRA for that. I ask her if I would be double taxed if I did it that when I would withdrawn at retirement? She was like oh don’t worry about that………. Needless to say I insisted on opening both a traditional and a ROTH IRA….. some people just don’t care, just want you to move on and get to the next person. Small mistakes and be big mistakes if not dealt with quickly.

[@joshfenton5365]

I can't even imagine buying penny stocks with my Roth. I just cringed at that part lol

[@carolapina2905]

Right now at 23 I’m putting my money on a Roth IRA but thinking to get a 401k once I start making more money. Right now making 43k a year is plenty to max out Roth and still have a healthy emergency savings.

[@alrocky]

You've already contributed *$6,000* to your *2019* IRA and *$6,000* to your *2020* IRA? Do you currently have a 401(k) with a company match?

[@mikepalmer6565]

Al Rocky i thought you want to stay away from 401k ?

[@alrocky]

@@mikepalmer6565 No, you want to contribute at least enough to your 401(k) to receive the company match. If your 401(k) has good investment options and low fees you want to contribute as much as your income and budget allows up to $19,500 a year.

[@ChaseCache]

Does your company have a 401k plan? If not how are you going to open one?

[@yonig03]

Your not getting double taxed when you put your money in the stock market...you don't pay tax on the amount you pull out... Only the gains.

[@MrOmegabob]

true, but that’s how it feels 😂😂

[@acaciagirl]

😑

[@pavant3605]

Somehow your video connects to our inner-selfs, and make us feel it's a one on one conversation between you and me. Thank you for making this video.

[@darkexcalibur87]

I wish my parents had talked to me about saving options for retirement when I was around 18. I was sort of waiting around for a job that would offer me a 401k, but that still hasn't happened. When I was about 30, I started researching as I was realizing that I cant wait forever, and I opened up a Roth IRA. I wish I had done that research sooner. I should have put this responsibility on myself instead of waiting for some company to pull through for me.

[@dareelantonio.3056]

What Brokerage did you use to open a account I’m 18 and planning on starting early

[@bilala9974]

One thing to keep in mind is that Roth is better for someone paying less tax today by being in a lower income tax bracket. If a person pays more tax today because he is in a higher tax bracket it might be more costly to put money after paying big taxes into Roth IRA than in the traditional IRA. In the second situation, it makes more sense to use a traditional tax-free IRA which often comes with the employer contributing a certain percentage of what you invest. It would be nicer to have both IRAs (Roth + traditional) and invest money in them individually depending on your tax bracket and various life situations.

[@Doctor_Money]

I just turned 18 so i guess now is a good time to start

[@admiralmurat2777]

Do it

[@tblub.9270]

Your picture is funny! Omni Man

[@dillonfishing]

Me too

[@markmiller7529]

I like this dude, first time i seen him he isnt breaking videos like most people are he is talking straight through it

[@EthanHurt]

Dude! Great video! Started a Roth IRA about a year ago at 21 and couldn’t be happy! Great stuff man! You inspired me to start making vids again 😎🤜🏼🤛🏼

[@DoomSlayersNephew7270]

I’m sure he meant *more 😜

[@zillennialtries]

Thank you for talking about spousal IRAs. Money in relationships is definitely a topic I'd like to see more info on in general and I'm sure a lot of people feel the same way.

[@MYlearning-f7l]

This is one of the best videos on KZbin about the Roth IRA! Thank you, Nate!

[@i05CrafterGames]

I’m 16 and watching your channel since I’m 14. Thanks a lot Nate! You’re one of the channels that has changed my life, all success to you and I hope you can reach 1 million soon, you’ve changed the life of a kid that lives in the Brazilian favela slums and I hope you’ve changed many more!

[@slawhdawg3131]

I’m only 6 been selling fresh squeezed under the table and hitting the Roth. F dem taxes

[@sharknado523]

Can't you not contribute to a Roth without earned income?

[@akio2k0]

Hah

[@lid-h7e]

😂😂

[@nR-nc8mb]

This guys trolling

[@samanthayoung6190]

If his mom opens it for him then I think he’s fine

[@angelinemontauban5547]

I am 40 and I love your videos.

[@FinancialShinanigan]

Another tip: if you are a first time home buyer, you can take out $10,000 without penalty. So if you and your spouse both have IRAs then it's $20,000.

[@jociem8950]

Bad decision. Don't do it. You will never recoup the compound interest you would have gotten. Check out Dave Ramsey and investing with Rose.

[@mrchichmagnett7761]

But that compound interest bro!!

[@samsmusichub]

I'm starting to think of retirement and trying to get it to come sooner. Thanks for this vid!

[@jesse113553]

Mistake No. 1: putting money into the IRA and NOT invest it.

[@joeldenring]

An IRA is an investment though :-P

[@sixduece222]

The money in the IRA can be invested in stock/bonds... so...

[@jesse113553]

@@joeldenring Yes there are people out there who put money into the IRA and just leave it there. It's not gonna do anything if you don't tell it where to go (like stocks and bonds etc).

[@WorstElectrician]

FANtasy222 this might be a dumb question but why put money into the IRA and invest it in stocks instead of just using a trading source like ameritrade?The video is still playing as i type this so not sure if he covers this

[@aveno66]

@@jesse113553 True!!! I made that mistake for a couple of years.

[@josephgerhardt4828]

compound interest is definitely the 8th wonder of the world

[@melindamurphy6279]

I definitely want to learn as much about a Roth IRA I know nothing about it Thanks for sharing I want to invest and know nothing about it😳😞

[@rogerdoger9939]

Open it at Fidelity or Schwab. Invest in the S&P500

[@shaereub4450]

Im 26 1/2 and i just opened a Roth IRA and put $6,000 into it. Im planning on contributing $6,000 every yest until im either 65 or 59 1/2. Im a little late but it's better late than never. 80% stocks 20% bonds (they'll adjust that to more bonds less stocks as i get older).

[@noonehere4332]

You’re doing better than many people older than you who make make big money who live paycheck to paycheck.

[@jonathangonb]

I’m on the same boat right now, 26 1/2 about to put in $6,000 since that’s the max I can contribute within a year. Most of mine will be etfs that follow index funds!

[@onceagaindc]

@@jonathangonb im 26 rn and abt to put 4k. It has 2k rn but 6k total soon. Thoughts?

[@jonathangonb]

@@onceagaindc keep going!

[@MostSimple]

6:47 😂😂 seems so annoyed that he has to “explain this”

[@Scorpion122178]

Mistake 1) Not making one. Mistake 2) Withdrawing early. Mistake 3) Not contributing to your spouses IRA. Mistake 4) Investing in Penny Stocks. Mistake 5) Expensive Fees from Managers. Good video. That Fidelity ZERO index looks like a good place to park an IRA investment. No fees.

[@JayFairbrother]

Great video, Roth IRA is one of the best investment accounts you can have. Especially if you're young!

[@turtlenecks]

Almost 40 years old and thinking about opening a Roth. Not sure what to put it in at this time with all of this uncertainty.

[@NickDrendel]

IMPORTANT: July 15th is the deadline for contributing to accounting year 2019. Since the government has annual limits on your contributions it’d be smart to contribute as much as you can before 7/15 so you have the option to contribute the full limit for 2020.

[@niq9610]

Even if you had already completed your 2019 taxes? I contributed to 2020 because I had already sorted out my 2019 taxes back in April when I opened/contributed to my Roth earlier this month.

[@alrocky]

@@niq9610 Q1 Yes. You may still contribute to your *2019* IRA. If contributing to your 2019 *Roth* IRA after you file your tax return, taxes are not affected and you do not need to do anything more. If contributing to a *traditional* 2019 IRA after you file your taxes then you "amend your tax return."

[@fredswartley9778]

I enjoy your clear, concise teaching

[@Cheyenne_GDA]

So true! it's crucial to be financially prepared for retirement before it's late! Good tips!

[@SchoolofPersonalFinance]

Financial education makes all the difference!!

[@StockInvestmentAnalysis]

Absolutely! I wish this was taught in school. I don't know why it isn't.

[@RafReyes1993]

The thumbnail is so relatable atm but I'm trying not to stress myself of the things that I can't control.

[@Curt_Randall]

you should have included #6 which is a very important one that many people are not aware of. But over-contributing can be costly when your income is too high. Unlike a traditional IRA, a Roth IRA has an income limit. If your modified AGI (MAGI) is more than the limit for that tax year, you are not allowed to contribute to a Roth IRA. Some people contribute early instead of waiting until the year is over, but they end up making more money than originally expected and pushes them over the allowed income limit. If you fail to correct this by having your brokerage company remove your contributions for that tax year, it can be costly especially if you do not realize this until years later when the IRS hunts you down.

[@StockInvestmentAnalysis]

My accountant actually caught that for me this year, so you are 100% correct there. I thought by using a backdoor Roth I would be okay, but apparently I was incorrect.

[@fabricehaubois2442]

A star, Nate is an absolute star

[@billnolan5375]

Starting early is the best way of getting ahead to build wealth, It's such a pity most folks spend more and invest less while intelligent people always try to harness any investment opportunity. I've been diving deep into stock options.

[@kelseyorr4291]

Thank you for creating this content. It's informative + objective + splash of quirkiness.

[@apophispnw5717]

I'm 29 and I wish I would have known what I know now.

[@richardl.rayiiitr3media__367]

I'm 27, let's get this party started right away.

[@tyrecarmon20]

Same here man, I will be 30 next month

[@angbudgetanddebt]

Thank you! Opened a Roth last week and this was good info.

[@investedtina]

Just opened mine right now, thanks (:

[@TechVHD]

Orange Mountain what did the book help you with

[@TechVHD]

@@orangemountain457 what other books do you think are good

[@lifeisshort99]

I max out to my 401K and roth IRA when my my income is not high enough. After 32 yrs of work, I am a IRA millionaire. Do early and stay on course.

[@claudialuciaalonso2390]

In doing my own research, Roth IRA contributions are highly limited once you're making "too much" and/or married and filing jointly with your spouse. Is a traditional IRA the smarter path when you make "too much" or is a Roth still the smarter choice? P.S. When looking at the IRS mandated contributions limit, I always fall into the "zero contribution" category

[@alrocky]

You may contribute via "backdoor" Roth IRA process: contribute to a traditional IRA and then convert to a Roth IRA.

[@claudialuciaalonso2390]

@@alrocky Thank you! Time to read up on those...

[@Bribreezzzyy]

Al Rocky exactly! It also can be beneficial to have an IRA to make your earnings smaller as well. Also an HSA if your Corp offers one.

[@dlg5485]

The simplest reason to start investing in a Roth early is the simple fact that the earlier you start saving the earlier you can quit working. Time is your best friend when it comes to investment growth, so start as early as you possibly can!

[@GreenKatya]

I am deaf! Please on subtitles! Thank you.

[@Gromero502]

KZbin has subtitles in the settings

[@GreenKatya]

Gilberto Romero but no subtitles are available in this video, they are not in the settings. his other videos have subtitles, but this one isn't ..

[@steves2465]

Extremely professional. Thank you. Subscribed!

[@gethinosullivan3926]

Am I the only one who thought he was gonna tell us what mistakes the ira did and how they could've been better.

[@wowzerztop10]

would 50/30/10/10 be a good investment plan? 50% for bills 30% for leisure 10% in private bank account savings and last 10% in roth IRA?

[@barney1888]

I should have started up earlier way before businesses started reopening, but after watching an investor on a CNBC interview mention making over $250,000 in few months i have decided to begin my investment journey, so as newbie just getting started, what necessary steps do i have to take to make good gains and avoid mistakes.

[@queenofkings9421]

The best time to plant a tree was 25 years ago, the next best time is now.

[@ethanwilson6476]

The best practical step to take is seeking the opinion and expertise of a professional investor

[@raheemkumar2556]

Take your time, study the market, watch videos, read and you will be good at it in no time

[@barney1888]

@Maria Hernandez That makes sense, who is the professional you work with and if you dont mind how do I reach them?

[@ChaseCache]

@Elaine Michelle this is a bullshit shill comment. I've seen the same comment reply structure on all the top comments

[@idahoelkslayer6299]

51 and just started 2 years ago really working this I wish I knew about rollover 30 years ago !! instead of just letting all the different 401ks just cashing out when I changed jobs !!!

[@alessaray6050]

I am curious to know how you know so much. Did you have mentors throughout your life? Books or podcasts that were life changing? how often you read books and get mentorship?

[@CheshTheTheorist]

27 and looking to open one this year. Here's to the future 🎉!

[@Aaron-wq3jz]

Trying to retire early hopefully by 40 especially if I finish my 20 years in the military

[@randyparlor5953]

A good goal to shoot for. I help people with Personal finance. I was born into poverty, never knew my father, had three brothers close in age, and was raised by a single mom. The LORD helped me understand I could do far more with my life and did not have to continue living in poverty into adulthood. We became millionaires in our late forties and multi-millionaires not many years thereafter and retired from public servant jobs (government and university) at 55 years of age by following the steps below. We also help other people utilize the same pattern of good stewardship to free them from financial bondage and help them build wealth. We had gotten ourselves into $135,000 of debt and had a negative $35,000 net worth at the time we started finally making sense of life financially by paying attention to lessons learned. We employed the following process / system to move forward in a constructive way. 1) We utilized a giving / saving / spending plan (budget) looking out over 6 months to a year (and more especially with the help of a computer) to budget our income and ensure our expenses were less than we earned each month. This showed us (a) whether we would have a surplus or deficit, (b) whether we needed to find additional income via second jobs or no cost / low cost entrepreneurial endeavors (which we did and continue to engage), and (c) which bill to put surplus funds toward to help eliminate them faster. We mostly used the debt snowball method of payment along the way. 2) We tithed and gave to our local Church and gave additional donations to worthwhile charitable organizations to allow the heavenly supernatural floodgates to open over our finances so we had more than our human power working on our behalf. 3) We maintained a small emergency fund until we paid off all non-mortgage debt ($1,000 or so). 4) We became constructively debt-free within six years and totally debt-free (including mortgage within 12 years) and remain debt-free since then. 5) We refuse to cosign for anybody else's debt. 6) We built our emergency fund to $10,000+ after paying of all non-mortgage debt and now our surplus funds are enormous. 7) Starting at about 28 years of age, we invested at least 10 percent of our gross in our retirement and Roth IRA accounts. In latter years our investment percentage was about 35% of gross income. We put our money mostly in no-load low-expense stock index mutual funds. We also diversify our investments in at least 7 or 8 different brokerages and funds. Now we help people follow a system that helps them gain the same type of benefits. Unfortunately, many people misinterpret the bible and are blind to the fact that its guidance helps people prosper economically. Scripture instructs us to work and engage entrepreneurial / investment endeavors and to (1) plan (including budget), (2) establish reasonable savings for emergencies, (3) eliminate debt, (4) refuse to cosign, (5) invest for wealth building, and (6) diversify assets (which generally provides multiple passive streams of income at some point in life). I hope this helps. May the LORD bless you richly as you seek His guidance, stop listening to the nay-sayers, and follow His plan into your purpose!

[@Aaron-wq3jz]

@@randyparlor5953 Me personally, I had my father so I'm thankful for that since he has a wealth of knowledge that few people have when I was younger I never really realized that we were in a recession in 2008 so I say that my parent did a good job. My main reason for working on personal finance is that over the last few years my parents have become very lax about finances and I've seen then struggle making financial decisions that they are barely able to manage and watch my dad lose sleep and his youth working his butt off mad me realize that I ddint want to work for 45 years or a company that will replace me in a heartbeat and I wanted to be financially independent so that is the reasoning for my goal. God bless

[@arleneaugustahair8393]

Aaron I have a Roth IRA at Navy Federal Credit Union.

[@Thedouglas_d]

Great video. 😁😁😁

[@mtwn]

Started roth in Feb. Maxed out 2019 and 2020. Up 21%, thank you market crash.

[@bullrick3]

Yeah, I wish I started investing in a Roth when I started working at 14. I had no idea and nobody ever told me about it

[@bilala9974]

I am 31 and I learned about investing, Roth, financial IQ, and anything personal finance related at 28 yrs. No one told me before how to manage money and how to get financially savvy and strong. But, I am an optimist, and looking forward I can see myself in a very solid financial position and having a great quality of life when I will turn 41 --- 10 years from now. But I will make sure that my kids develop a good sense of supply and demand from an early age so that they may have better lives in their 20s than I ever had.

[@theabbyshow8627]

How did u open a IRA at 14?

[@justinfolk2832]

I do wish I would of started earlier but life coats money too. Bonus for me though I am now 41 and I have a paid off house but behind on my retirement accounts