The complete Charles Schwab ROTH IRA review for 2021. Roth vs Traditional IRA, Roth Eligibility, Schwab Expense Ratios, Schwab ETFs/Mutual/Index Funds. Schwab Managed Portfolios vs Intelligent Portfolios vs Self-Managed IRAs. Time Value of Money (TVOM) for retirement.

Charles Schwab offers a lot for Roth IRAs. Schwab has always had great customer service and a great user interface which is part of why I chose them as my main brokerage.

The main difference between Roth and Traditional IRAs comes down to the tax advantages. Roth contributions are POST-TAX dollars and thus grow tax-free while Traditional contributions are PRE-TAX dollars and thus offer tax incentives for the current year… but the gains will be taxed later (Tax Deferred). $6,000 per year may be contributed for both as long as you are under 50 years old and meet income eligibility requirements. With a few exceptions, this money cannot be withdrawn without penalty until you are at least 59.5 years old.

I have done full reviews on their Intelligent Portfolios before and I will be trying their Managed Portfolios in the near future. The main difference is Intelligent Portfolios are managed by a Robo advisor while Managed Portfolios are managed by a team of experts (for a higher fee and 25k min starting balance).

Schwab offers a lot of funds with varying expense ratios. When picking what to invest in, I don’t solely go off the lowest expense ratio because, at the end of the day, the only thing I care about is what makes me the most money.

You can house a lot in ROTH IRAs. Think of your Roth as a house. Mutual/index funds/ETFs, individual stocks, bonds, etc all make up your Roth IRA which will hopefully fund your retirement. There is no “one size fits all”.

Target Date Funds are offered by those who wish to lower their risk by shifting their investments from mostly stocks/few bonds to mostly bonds/few stocks as they near their retirement or ‘target date’.

Charles Schwab offers many mutual/index funds and ETFs to choose from under the research tab that I will go more in-depth on in future videos. You CAN INVEST in non-Schwab funds such as Vanguard’s VTI Total Stock Market Index and many others. This is a common misconception.

Lastly, the ‘8th Wonder of the World’ as Einstein puts it, Compound Interest, your money will grow exponentially with regards to only 2 things 1.) Rate and 2.) Time. The rate is out of your control (other than what you invest in, but inevitably research can only take you so far), and time is 100% on you! START CONTRIBUTING NOW so your money can compound for the most amount of time!!

Cheers,

Cory

Relevant Videos:

Robinhood vs Charles Schwab

Charles Schwab Intelligent Portfolios Review

Why I Left Charles Schwab Intelligent Portfolios

Charles Schwab Mobile App Tutorial

Charles Schwab Amex Platinum Unboxing & Review

Chapters

0:00 Intro
0:30 Why I Chose Schwab
1:30 Roth vs Traditional
2:54 Eligibility & Stipulations
4:16 Schwab Intelligent Portfolios
4:46 Schwab Managed Portfolios
5:41 Expense Ratio Considerations
7:47 Roth IRA Investment Options
8:25 Schwab Target Date Funds
10:29 Individual Stocks
10:49 Mutual/Index Funds/ ETFs
12:40 Time Value of Money
13:48 Outro

Sub Count: 1,125

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