In this video, we’ll touch on everything you need to know about a Roth IRA and how to turn it into and $800,000 to $1 million portfolio starting with $1.
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A Roth IRA is one of the best ways for the average person to start investing and building wealth for themselves. This is an Individual retirement account (IRA) where money within it is NOT taxed (Roth). Because the account is funded with money that’s already been taxed, they give you a free pass.
At this point you’re able to contribute up to $6,000 per year if you file as single and $12,000 if you’re married filing jointly. There’s a bit of a bonus for people who are 50 and older. If you meet that age requirement then you’re able to contribute up to $7,000 per year.
One common mistake people have about a Roth IRA is they think it’s an investment. The account itself isn’t an investment, the things you put into it are. Think of a Roth IRA like a bucket. Within that bucket you can put all kinds of different types of investment like individual stocks, index funds, bonds, REITS, gold, and much more.
If you want to build up an $800k Roth IRA then it’s actually a little bit easier than you think. It just comes down to simple math and time.
If you maxed out your Roth IRA, which would be $500 per month, and assumed an average return of 7% per year then your account would grow to $829k of tax free money after 35 years…and of that $829k you would have only had to of contributed $210k for it to grow to that large amount.
A nice thing about putting money into your Roth IRA is that you can withdraw the contributions whenever you want without paying early withdraw penalties.
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Disclaimer: This video is for educational purposes only. Please take all of my suggestions/recommendations and do your own research before making any decisions with your money. Contact a professional before trying anything that I talk about. I know you’re smart and you’ll use that big brain of yours :)…(read more)
LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Early retirement is ideal and something I am seriously trying to do. My concern is healthcare. How do you go about this when healthcare can cost up to $500 for an individual?
I don’t expect anyone to know why, but these videos keep freezing up my TV. No other YouTube videos, just these. Really strange! I have to turn the TV off and disconnect the router for a minute to get it working again.
Please explain backdoor Roth IRA . Thank you so much
Can I have more then 1 , let’s say 2 Roth IRA , can I max or close to in each account or am I only aloud 1 account or only aloud $7000k max combo I’m 51 years old
Thanks again Jarred my wife and I were going though all those Roth IRA's we have(Vanguard),tax free. Thank you for all you do and greetings from Grapevine,TX.
Um… ok $500 a month for the next 35 yrs. Really ? Simple math, if you live at home with parents and dont have any bills to pay.
Keep it real for those of us that start off at 30K or 40K a year, have rent and bills to pay.
I went from being a full time employee to a 1099 employee working remotely as we travel the US since the pandemic. I am a 52, married, make around $55k/year. What type of investment account would you recommend? Insurance through Obamacare.
ya fuck that…I don't trust the government…20 years from now it will be banana republic here and government will come after your Roth money.
Can you covert your Traditional IRA to a Roth IRA within the M1 app?
Small world Morrow! It’s Gainer. I’m scrolling through Youtube and see your channel! Impressive bro. Hope all is well.
Is a IRA different than a self directive retirement account? If not, is one better than the other?
Hey Jarrod! Great video! If I’ve already opened a Roth and have investments in it have I missed the opportunity for the back door Roth? Can I do that later down the line?
Hey Jarrad, would love to see a video that further explains the Backdoor Roth IRA!
Good video on Roth IRA's but the title is misleading.
I have question, I use my company 401k program and they match 6%. I know they only match with pretax dollars. If I contribute 6% in ROTH 401K, do they match my exact contribution, or do they match 6% of my pretax gross?
Backdoor Roth IRA video please…
#math + discipline = peace of mind and comfortable retirement
Please do make a video on the backdoor IRA. Love your videos!
57 I don't work, can't open an IRA right?
Could I invest my Roth IRA into crypto? How would this impact the taxes paid? Are there any investments that cover crypto?
@Jarrad morrow New follower and YT subscriber. Quick question on Roth. Unfortunately I'm late to the investing game and I don't qualify for a Roth. What would you recommend as an alternative? I would be considered a conservative investor and looking for the long haul (at least 15yr). Any guidance would be greatly appreciated.
Would dividend etf/portfolio be better than vti since it’s adding more money in addition to the 6k maximum contribution? Or a combination of vti/dividend in the Roth IRA? Etfs like schd, vym, vig.
Great vids. You really do come across as a friend speaking
Can you buy and sell a stock later if it’s under performing (not withdrawn) and purchase a different stock within a Roth IRA or are you stuck with your original purchase decision?
Hey Jarrad love the video. Quick question, I was deciding where I wanted to open my ira. So I opened one on M1 Finance and on Fidelity. I ended up going with M1. Do I need to close the ira on Fidelity or does it not matter since I never contributed to it?
Would you recommend putting BND in your Roth IRA ?
Very good video. I appreciate all the information.
But you can’t touch the contributions till 60 though so how do you retire early with it
Another great Vid bro! Also love the investing guide! Very cool
Great topic! 2 things I like to add : 1 is for high earners to contribute to Roth IRA ,other than back door, they also can contribute to Roth 401k if their companies offer it, no income limitation and same contribution limit as regular 401k ; 2 is I am not so sure if it is beneficial to maximize Roth IRA before maximizing regular 401k or Ira for people already in high tax bracket now while might have lower tax rate in the future, besides, Biden already shows interest to tax Roth IRA withdrawals, I meant the Roth IRA tax rules may change in the future.
Hey Question Jarred, did you invest the full 6k right away to get those sort of returns on your Roth IRA? …. seems like you got to 20k in about 9 months, if so that’s awesome ! Thanks for the great content