5 Costly Roth IRA Mistakes

by | Aug 7, 2022 | Roth IRA | 34 comments

5 Costly Roth IRA Mistakes




There is no question that the greatest investment tool that exists today is the Roth IRA.

Especially if you are a younger investor. The one and only reason it is the best? It is Tax Free Money!

Tax free money is awesome, but not if you are putting it into the wrong thing. 🤔

‼️ Best Place To Open A Roth IRA

There are 4 investments that you should never put inside the Roth IRA

00:00 Intro

02:06 ➡️ 1. Penny Stocks – Chances of losing money are high.

03:56 ➡️ 2. Short-term Bonds – Typically a safe investment, but not meant for the long-term.

06:49 ➡️ 3. Annuity – Annuities already offer tax deferral.

08:34 ➡️ 4. Cash – Don’t hold too much cash in your IRA

⚠️ There is a Roth IRA imposter you want to avoid.

If an advisor tries to sell you a ‘super Roth IRA’ or a ‘rich person Roth IRA’ – watch the warning signs because they are basically trying to sell you an insurance policy. ⚠️

If you haven’t opened up a Roth IRA yet, please do so now!

#RothIRA

‼️ Best Place To Open a Roth IRA

✅ Roth IRA Millionaire 💸😎: How to Get Tax-Free Money Explained (2018)

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34 Comments

  1. kamila Hudson

    I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle in the stock market made it possible for us this early even till now we earn weekly. Thanks to FIRE movement.

  2. WDBrown43

    This is great information! Thank you!

  3. Joey Mathew

    I don't agree with him on penny stocks. Yes, there is a more inherent risk but buying and selling these stocks within the Roth is ideal due to the fact that you won't have to pay capital gains each time you "flip" a stock – which should be numerous.

  4. The Valhalla Group

    Great job. Taxes is a big deal, and even more so today with the new proposals.

  5. Bryan Ventura

    my 2 cents is to invest into stocks that offer Dividends! it's easily free money for owning stocks!

  6. Francisco Garcia

    So let me get this correct, if I have individual stocks in my Roth IRA, and I sell them. I am not subject go capital gain taxes as long as I keep the money in there?

  7. efrain corpus

    Shit…so where WTF do we put our money! haha!

  8. C Kangas

    Although I don't hold any myself (outside of the NTSX family), there are several reasons to hold bonds in Roth IRAs.

    US treasuries and stocks have historically had a degree of negative correlation. An 80/20 equity/bond portfolio over 100% equities have much better protection during market downturns; you can see this with any number of backtest periods. This is especially true when rebalancing quarterly or annually. And you generally can't rebalance between your Roth IRA and another account.

    Investors will often start transitioning to bonds when approaching their horizon to reduce risk. Not to mention that bonds have outperformed stocks before over 5 and 10 year periods, and riskier bonds will have higher yields (although these will likely be positively correlated with equities).

    Additionally, tax advantaged accounts are generally more efficient for bonds than taxable accounts; excluding things such as municipal bonds. If you're at the 0% capital gains bracket, you're going to be paying very little tax on something like large cap growth in taxable, whereas you may be paying much more on taxes for bonds in taxable.

    In practice, it seems more like "it's complicated" and "it depends on your situation" than "never".

  9. Dom Katyana

    But its not actually tax free…

  10. BunkMasterFlex77

    I would die and go to hell before I sold an annuity.

  11. Br Cleaning Company

    Are you specifically a Roth IRA millionaire? Before i even go click on that other video. Get out of here with that

  12. William Fisher

    This video was amazing so this is not a slight at all but in the first one I’ve as expecting it to be something shocking and then when I saw penny stock I was like oh well you should just never buy those at all.

  13. Luis Maldonado

    I want to know if I’m being rip off with a Roth IRA that I have for 3 years in primerica

  14. Ignacio Flores

    Is funny to me people out of Illinois graduate without basic economics.

  15. Let’s-go-Brandon

    Bonds are a good investment if you don’t like money.

  16. The 1

    My wife has a 401k from a previous employer (only 3k) and we were thinking of putting it in Roth IRA. Please help, any advice is appreciated. Thanks

  17. Bottoming Stocks!

    Should I pull out my DMF from my Roth and Traditional IRAs?

  18. YW

    Actual info Starts at 2:05

  19. J W

    I think a well balanced account is great. I am committed to 1 mutual fund and 3 dividend paying stocks all for long term while keeping about 10% on the side to day trade, which has worked fairly well. I'm not a financial advisor, in fact I'm incredibly stupid

  20. Storm Vonhundley

    Hey Jeff, great video. I've heard a lot of people speak about how IUL's are a mistake because of the high fees associated with them, and I do get how for most people this is not the best (especially those who do not think they can commit the premium for the rest of their life) however let me offer another example it could work:

    You are a young freelancer with no 401k, but are able to max out your ROTH, maybe not able to do traditional because you don't have a lot of "earned income" in the middle of setting up their business for a SEP-IRA (would love a video on this). I think an IUL is worth it only if you get a disability + long term care living benefit rider which means if you were ever to become disabled you can use the death benefit now. I don't think people are insured enough for disability and understand if your not disabled your are just temporarily abled bodied. Maybe there is a better product for this (a term policy?) But I think IUL's could be a great investment for these people who can max at least their ROTH IRA, and commit to paying the premium for all their life. IUL to me beats traditional IRA if your not earning enough earned income (looking at you too expats under FEIE)

  21. Lio Lio

    I make 100k buying bngo penny stock with my Roth IRA, I sold and buy back to voo, something you have to take some risk

  22. Papa Kuli

    Man that penny stock talk didn’t age very well, now seeing pennys each week going insanely high

  23. Keith Jackson

    Outstanding explanation!

  24. Anthony DiCianni

    I keep on hearing people say putting money into Roth IRA tax free. From what I’ve found you get taxed on the money as you put it into the Roth but when you take money out you don’t pay taxes on your gains. It seems misleading to say tax free.

  25. J C

    Limit is $6000, not$6500, if you are under 50

  26. Roger Smith

    it happens. watched a guy I work with turn 30k into 350k. all with penny stocks.

  27. Ismael Mendez

    I know that the cap is 6k per year for a Roth IRA but should I continue to max it out yearly til I retire or just until I have enough? Say 30k and let it grow from there on out?

  28. Matt B

    I like this guy a lot. Talks fast and covers a lot of great material. Excellent video

  29. june pham

    This is so unbelievably stupid. In life there is no help in these cases

  30. govinda102000

    Isn't an advantage of a IRA Roth Annuity having a secured principle?

  31. JHenry Music

    I would like to trade long term dividend stocks using an Roth IRA. Can you teach me how?

  32. Marlena Douglas

    Does money placed in 401k with max from employer together equal maximum. Or maximum only from what I put in 401k

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