In this video we are talking about how the Average Joe can create a $2.1 Million TAX FREE Dividend Portfolio using a Roth IRA Account.
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Question of Joint Roth IRAs …what happens when one individual reaches the age of retirement first?
The problem is no one ever bothers to explain what that 2M is worth adjusted for inflation
Yes, the spousal Roth IRA works only if your joint AGI is less than 200k and under other restrictions.
ahahahahhahahahaha, 'let's look back at one of the strongest bull markets in history over the last 10 years and just assume that is going to happen for the next 20 years' comical
For most people, this is not a smart strategy. Dividend income is taxed at a lower rate than ordinary income. Therefore, this is the income that we must want to be in a taxable account. If all your $$$ are in a Roth, then fine. But for most people who have a combination of taxable and tax advantaged accounts, the smartest strategy is to have dividend income in your taxable account.
Can you show the potential difference between investing $500 monthly and $250 bi-weekly? Thanks for the content!
This is exactly what I teach my Jr. High students every year. I use SPHD as my example. About 4% but it pays out monthly. Could you do a scenario using a month dividend ETF to see if it compounds better?
Hey Joe! Been watching your videos from quite some time now and was wondering if you can help me with my situation. I’m a Firefighter with access to a ROTH 457. I want to Max out my 457 AND ROTH IRA, total $25500. My goal is to never sell a single stock and live off Dividends, that being said, I don’t have much of an option on selecting what to invest in my 457. When I retire I was thinking roll over my 457 ROTH to my ROTH IRA. Should I do this after I retire or before the RMD 70.5 years old? And when I do Roll it over, should I sell my shares and grab more dividend stocks/ETFs like SCHD?
Goal: never sell, live off dividend tax free income + my pension, pass down my portfolio to my children. Thank you !
Einstein would agree with you and do would Benjamin Franklin.
Question, I believe it would take around 8 years of investing into QYLD to obtain 6K (Roth IRA) in dividends a year. You would then have 6K in dividends and 6K that you can invest into SCHD after those 8 years correct? Would that be a viable strategy? TIA.
Hey Joe, thanks for the indepth analysis, helps a lot to structure my portfolio for early retirement. Just wondering, if you ever looked in to stock $AFG ? I had this stock for a while, pays monthly dividend and a special dividends manually as well. In 2021 paid $14 just for the special dividend and in 2022 paid $8. Plus it pays monthly dividend fluctuating/alternating between: $0.50 and $2.00
Technically speaking, Roth IRAs aren't tax free. The money you invest in a Roth is money you've already been taxed on.
What about 1,500 per month?
What about SNT Senstar Technologies?
I'm relatively new to investing, and just recently opened a Roth IRA. I've considered a lot of different options, and have read a ton of opinions. I have been leaning towards placing SCHD into my Roth and this only makes me feel more comfortable in doing so. I currently hold VTI at 100%, but have thought of doing 50% VTI with 50% SCHD. Thoughts?
I only recently discovered your channel, and have been loving the content.
The traditional versus Roth discussion isn't even worth having, as the Roth wins in basically every scenario. Being at a higher income bracket in retirement is a result of improper planning and not an actual reason to use a traditional IRA. The only reason to use the traditional is if you make too much money and can't use the Roth! The real discussion whenever talking about a Roth IRA is whether to use the Roth or a taxable brokerage account for dividend growth investing. The main point in that discussion must begin with the age restriction of 59.5 to pull out those dividends/distributions without penalty from the Roth (of course, each year you can pull out an amount equal to your contributions for that year without penalty before 59.5 [but you won't get the tax credit for using the Roth]). Instead, if you bought $500 worth of SCHD every month in a taxable brokerage, you would be paying income tax on those dividends every year. However, and I can't stress enough how big this however is, you are dealing only with qualified dividends from SCHD, so it is equal to the long-term capital gains rate! Hypothetically, that means you could retire sooner than 59.5 and you wouldn't pay a dime in taxes unless you collected dividends/distributions more than $40,400 for single or $80,800 for married filers. At SCHD's 3% yield, that means you have an account worth $1.3 million for the single filer! I think that average Joe is going to do just fine!
As a rookie, i chose a vanguard roth ira target date fund.
Supper confuse . One stock ?
So, the DRIP doesnt count towards contribution limits?
I’m 18 and have 6k in Roth and 10k in traditional brokerage account, have dividends in standard account, and mostly growth in Roth, and plan to transition to dividend stocks later down the road in my IRA. Should I get dividend stocks and ETF’s in my Roth now? I’m working and am able to contribute 500-800 per month at the moment to standard account since Roth is maxed
Why not do this with JEPI?
great video,,its a shame alot of us older folks missed out on investing early because we didnt have access to youtube and video's like this..but ehh better late then never we'll just throw more money at it to make up for lost time..
Curious to see the performance against a S&P500 index fund
I keep VOO in Roth IRA but I also like to keep 15% QQQM. Hey average joe what do you think about QQQM for growth? I'm also keeping DIVO and JEPI I'm my roth also.
Hey Ave Joe – Joe are working in finance with all this knowledge – some intresting info
More Roth IRA scenarios!! love it.
"the maximum contribution to a Roth IRA is $6000 per year"…. wrong. I am able to contribute $7000 per year. Plus there are Roth conversions.
This is what we need more of!
Does the Average Joe Investor take phone calls from an average Joe investor?
Great content. Thank you Joe!
Tax free muni ETF's are actually free of federal taxes and if reside in the state of said fund then it's also tax free on the state level. No need to hide them in a ROTH.
Very interesting video, tax free millionaire sign me up!! I think using the past 10 year price returns may be too optimistic given the long bull run we have had but who knows maybe there is another bull market around the corner that will make the last bull market look weak.
market is going side ways. nobody is making money unless you know how to do those options strategies.
Love your content and i am actually dollar cost averaging in my daughters Roth IRA into VTI and SCHD. Really enjoying your YouTube channel.
What are your thoughts on investing both with dividends in mind but also investing with changes in the world in mind, e.g. the electric vehicle shift. I'm long both SCHD and stocks like SCCO (electric cars use 4 times as much copper to make) and Rio Tinto (lithium/mineral producers), both of which have high dividend returns.
Hey Joe,
can you explain the mega back door roth IRA and how it works. Thanks!
Firsthrdecond!