5 HUGE Roth IRA Mistakes That Can Cost Thousands

by | Jul 31, 2022 | Roth IRA | 38 comments

5 HUGE Roth IRA Mistakes That Can Cost Thousands




In this video, I will share five huge mistakes that people make with their Roth IRA’s.

A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. Roth IRA rules dictate that as long as you’ve owned your account for 5 years and you’re age 59½ or older, you can withdraw your money when you want to and you won’t owe any federal taxes.

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I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.

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38 Comments

  1. Davis J. Miller

    THE SECRETE TO MAKING MILLIONS IS SAVING FOR A BETTER INVESTMENT. I ALWAYS TOLD

    MYSELF, I DON'T NEED A NEW RIDE OR AN EXPENSIVE VACATION JUST YET. THAT MINDSET

    HELPED ME MAKE LOTS OF MONEY ON INVESTING. I MAKE STEADY WEEKLY PROFIT

    BY INVESTING THROUGH A PORTFOLIO MANAGER, SUZANNE STEPHENS ELLIS.

    IT IS GOOD TO HAVE JUST MORE THAN ONE GOOD SOURCE OF INCOME.

  2. Janette Martel

    Explain clearly when sell stocks you get taxed on capital gains not on original investment so not double taxation. Lots of young peeps don't know the difference when put in regular brokerage account vs roth ira…so if put in roth account and invest in stocks and when go to sell won't pay capital gains taxes if when you sell stock shares at a price higher than what you bought at. TY. Roth IRA funds cannot be withdrawn without penalty for 5 years from date of first deposit…so have to hold it for 5 years in Roth IRA. Traditional IRA you cannot withdraw funds without penalty until you are 59.5 years old and with a Traditional IRA you have to take RMDs at age 72…RMDs = Required Minimum Distribution which means a required withdrawal and if you don't withdraw at age 72 you could be penalized high …look at current tax rate laws…also when withdraw Traditional IRA its taxed as money deposited was pretax monies…he's incorrect Roth IRA you don't have to wait to withdraw at age 59.5 just have to have held Roth IRA account for 5 years.

  3. Paul Morales

    Is it possible your monthly Roth IRA contribution can be put into a stock that pays dividends to where enjoying growing dividends? At same time saving for retirement

  4. Ronny Atdrik

    Do you get tax back for IRA capital Losses?

  5. chinitoasuncion

    Can I invest less than 6k a year for roth IRA ?

  6. Esperanza Salinas

    If a Roth IRA is an account we can deposit a portion of our check into, then how can we lose money in a Roth IRA? Wouldn't it continue to grow as we contribute?

  7. Dulce Alvarez

    This guy seems to stress himself about finance. Lotta disappointed sounding sighs lol

  8. Grace Hughes

    I will not invest anything that is tied in govt. they are corrupt and all they want to do is steal your money. Don’t be fooled.

  9. john gill

    With the traditional IRA or 401k you're paying taxes twice almost? No you're not you don't pay taxes going in, you pay them going out. Most people are in a lower tax bracket when they're not working no more making the traditional best for most people. Of course not everybody is most people

  10. Stephen Stone

    Could you not use your Roth IRA contributes as your emergency fund? Since you can pull contributions without penalty, why have an additional emergency fund sitting and soaking up inflation?

  11. Johanny Artiles

    yeah that's me just stare my 401k at 42 years old

  12. Pamela Marshall

    You are wise beyond your years.

  13. TheReal DBJ

    I’m starting at 18

  14. Eric Dg

    running his fingers through this hair 7:24 <333333

  15. FOOL!!

    Hey Penny Stocks are good for if you already have a diverse Portfolio. If you put $1000 into Shib last year you'd be $15,000 up.

  16. Sam Valladares

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

  17. Dewes Claire

    Being comfortable can be your worst enemy, you think you have enough until you find yourself in a situation where you do make money any more and then you realize it was never enough, so you must do your best to invest as much as you can. Most of us don't even realize how inflation reduces the value of what ever we have in our savings but the banks on the other hand, invest the money and still charge you for keeping it, that's why I invest with Suzanne Stephens Ellis. Just look her up online.

  18. Jordan Collier

    @Bob S You have no idea what taxes will be when you retire and obviously your simplified math has not helped you understand – taxable income from pre-tax accounts can actually be higher for people in retirement. Which is also a reason some people like to convert pre-tax IRAs to Roth accounts. You should truely rethink your tax planning mistakes before its too late.

  19. Coby Boss

    @Bob S ROFL – My parents make more in retirement that they did while working. If you don't understand that, you are way behind on the taxes game. Please learn, then comment – Sean is correct.

  20. Nietzsche401

    Great video!!!! Thanx

  21. James Hill

    If the government really cared for us they wouldn’t have created that windfall act

  22. Tommy Sevens

    the 5 year rule: even if you are 59.5 y.o. you need to have your I.R.A. for 5 years before withdraw

  23. Tai O

    Wanted to nit a statement earlier in the video: Investing in a brokerage account does NOT result in double taxation because only the the earnings portion is taxed, not the original investment

  24. Drew Chiles

    There are some other things that weren't mentioned.. Nate, you should do a video on what you can and cant invest in with an IRA/rIRA … ie. commodities, collectables, precious metals, i believe anything alcohol related is against the rules, OTC stocks i believe are also a big no no… investing in things like this can cause for you to lose all tax-free benefits on gains in a roth ira… the IRS will flip the switch on you and you'll owe taxes on all your gains, and that ira will no longer be an ira, it will get stomped right into a regular investment account, then you'll owe possibly tons in taxes etc… (This could be a good followup video to your "mistakes people make when investing in an IRA / R-IRA video….) … –just thoughts..

  25. Rrr

    Here is what I am confused about: Roth IRA is a mutual fund account which means that you have to pay extra fees (evry year) since it is managed by professionals . also, yes you have to invest sooner BUT don't you have to invest at least 1000 dollars upfront so that you reap those exponential growth? so, I doesn't matter if you invest sooner or not. the answer is to invest higher at first and then contribute less with the years coming right? another question if you have a 401 K you can withdraw money early if you're not working there because employer provide that, so if you don't work there then money does not grow because you're not contributing. for example, i took out about 116 dollars out of 401 k and didn't get penalties. Also, Mutal fund account you can have 3 different options to invest low risk, medium risk and high risk. If you invest in high-risk account wouldn't you actually lose money?? NEED some help please because I need answers.

  26. Zhen

    is it possible to lose money to put in roth IRA?

  27. Bill Nolan

    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.

  28. shy battle

    Looking for a sugarmama to pump up my Roth IRA for me lmk !

  29. Book Worm

    I want to ask, what is your view on annuities? I feel they don't make sense unless you are over 55, and I think then only as an additional source of income. I don't know if the returns are in reality good enough to make it worth it. Maybe just as a tax shelter? What are your thoughts?

  30. Fabrice Haubois

    A star, Nate is an absolute star

  31. Santsi

    What did you first invest in?

  32. Hi Ya

    ROTH 401k, look it up. You’re welcome if you didn’t already know.

  33. Jeffrey Pia

    tl;dw:
    1 Don't contribute to it
    2 Withdrawl from it early
    3 Not contributing for your spouse (LoL what spouse)
    4 Buying penny stocks
    5 Excessive fees

  34. 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.

  35. Angbudgetanddebt

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

  36. Labonsky Joseph

    Is that ok to buy $GOOGL in my Roth IRA account ?

  37. The Little Hedge Grove

    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.

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