Here’s a video discussing 3 MAJOR problems with using a Traditional IRA so save for retirement. I hope you enjoy and that this video provides you value!

Follow me on Instagram 📸 / Twitter 🐥/ TikTok 🎶   : @jonathansorunke

Jonathan’s Favorite Stock/Bitcoin Trading Platforms 📈:
Webull (Get 2 free stocks): Webull.jonathansorunke.com
Wealthfront (First $5,000 managed for free): Wealthfront.jonathansorunke.com
M1 Finance (Get $30): M1.jonathansorunke.com
Gemini (Get $10): Gemini.jonathansorunke.com

Jonathan’s Favorite Credit Cards 💳:
Amex Gold Card (40,000 MR points sign up bonus): AmexGold.jonathansorunke.com
Chase Freedom Unlimited ($200 sign up bonus): ChaseFreedomUnlim.jonathansorunke.com

#1- Locks up your money
Contributing into a Traditional IRA locks up your contributions until you turn 59 1/2 years old. Technically, you can withdraw your contribution at anytime but you will have to pay income taxes on it plus a 10% early withdrawal penalty. With a Traditional IRA, this applies to your contribution and the money made in the account as well. In comparison, the Roth IRA allows you to withdraw you contribution at anytime with no penalties. This is because you have to pay taxes on your Roth IRA contributions before you make the contribution.

#2 – Limit on Deductibility
Traditional IRA have very complex rules on if you can deduct your contributions. The criteria  depends on if you have an employer that offers a retirement plan and your modified Adjusted Gross Income (AGI). If you or your spouse does not have an employer -sponsored plan, then the entire amount of your contribution can be written off against your income. If you want to learn more, here’s the link to view the details of the deductibility limits on the IRS website: . If you can’t deduct your Traditional IRA contribution then it makes contributing to the account pointless since you will have to pay taxes when you contribute AND when you sell a security for a profit and withdraw. At that point you would be better using the Roth IRA instead.

#3 – Required Minimum Distributions
Unfortunately, you can’t avoid paying taxes forever by using the Traditional IRA. To make sure that the Government gets their cut, they force you to make Required Minimum Distributions or RMDs once your reach the age of 72 1/2.  These RMDs require you to withdraw a certain amount of money from your Traditional IRA account which makes the withdraw taxable. Whereas with the Roth, you only have to withdraw after death of the account holder. The calculation to determine how much you must withdraw is a bit complex so if you’re in that situation, I recommend that you talk to a tax professional.

Jonathan’s Favorite Book’s 📚:
Think and Grow Rich: 
How to Win Friends and Influence People: 
Unlock it: 
Rich Dad, Poor Dad: 
F. U. Money: 
Your Money or Your Life: 
The 4-hour Work Week: 

*Some of the links in this video are from companies that Jonathan Sorunke will earn an affiliate commission or referral bonus. The content of this video is accurate as of this posting date. Some of the offers mentioned may no longer be available. The information in this video is presented for entertainment purposes only and you should refer to the proper professionals before making any decisions.*…(read more)

LEARN MORE ABOUT: IRA Accounts

INVESTING IN A GOLD IRA: Gold IRA Account

INVESTING IN A SILVER IRA: Silver IRA Account

REVEALED: Best Gold Backed IRA

3 Problems with the Traditional IRA | Invest HERE Instead

For many people, the traditional Individual retirement account (IRA) has been a popular tool for saving for retirement. However, there are several drawbacks to the traditional IRA that may make it a less than ideal option for some investors. In this article, we will explore three problems with the traditional IRA and suggest an alternative investment option.

1. Tax Considerations: One of the biggest drawbacks of the traditional IRA is the tax implications. While contributions to a traditional IRA are tax-deductible, withdrawals in retirement are subject to income tax. This means that the investor must pay taxes on the funds when they are withdrawn, potentially reducing the overall value of the account. Additionally, there are penalties for early withdrawal before the age of 59 ½, further complicating the tax implications.

2. Required Minimum Distributions (RMDs): Another issue with the traditional IRA is the requirement to take mandatory distributions once the investor reaches the age of 72. These Required Minimum Distributions (RMDs) can complicate the retirement planning process and force the investor to withdraw funds whether they need them or not. This can result in higher taxes and reduced flexibility in managing the retirement funds.

3. Limited Investment Options: Traditional IRAs are often limited in terms of investment options. Typically, they are offered through financial institutions that may restrict the types of assets that can be held in the account. This can limit the investor’s ability to diversify their portfolio and potentially miss out on higher returns. Additionally, the fees associated with managing traditional IRA accounts can eat into the overall returns over time.

Instead of relying solely on a traditional IRA, investors may want to consider alternative investment options such as a self-directed IRA (SDIRA). A self-directed IRA allows the investor to have more control over their retirement funds and to invest in a wider range of assets, including real estate, precious metals, and private equity. This can provide greater diversification and potential for higher returns, while also allowing the investor to have more flexibility in managing their retirement funds.

In conclusion, while the traditional IRA has been a popular retirement savings tool, it is important for investors to be aware of the drawbacks associated with it. Tax implications, RMDs, and limited investment options are all factors to consider when deciding on the best retirement savings vehicle. By exploring alternative options such as a self-directed IRA, investors may find a more flexible and potentially more rewarding way to save for retirement.

Invest HERE Instead offers a self-directed IRA platform that allows investors to take control of their retirement savings and invest in a wider range of assets. With lower fees and greater flexibility, Invest HERE Instead provides a compelling alternative to the traditional IRA.