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You should not treat any opinion expressed on this YouTube channel as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Opinions expressed are based upon information considered reliable, but this YouTube channel does not warrant its completeness or accuracy, and it should not be relied upon as such. This YouTube channel is not under any obligation to update or correct any information provided in these videos or their descriptions. Statements and opinions are subject to change without notice.
Past performance is not indicative of future results. This YouTube channel does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this YouTube channel. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested or lose more than their original investment. Investments or strategies mentioned on this YouTube channel may not be suitable for you. This material does not consider your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this YouTube channel. Before acting on information on this YouTube channel, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor….(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
Traditional IRA’s Suck: Here’s Why
For years, financial advisors and experts have touted the benefits of saving for retirement using a traditional Individual retirement account (IRA). However, as times change and financial markets evolve, it’s becoming increasingly apparent that traditional IRA’s may not be the best option for everyone.
One of the main drawbacks of traditional IRA’s is the tax treatment. While contributions to a traditional IRA are typically tax-deductible, the withdrawals in retirement are subject to income tax. This means that investors are essentially deferring taxes until retirement, when they may be in a higher tax bracket.
Additionally, traditional IRA’s have strict rules when it comes to withdrawals. Investors are required to start taking distributions from their accounts by age 72, whether they need the money or not. This can be particularly challenging for individuals who may want to continue working or have other sources of income in retirement.
Another disadvantage of traditional IRA’s is the lack of flexibility when it comes to contributions. Unlike Roth IRA’s, which have income limits for contributions, traditional IRA’s have no such restrictions. This means that high-income earners can take advantage of the tax benefits, while lower-income individuals may not be able to contribute as much.
Furthermore, traditional IRA’s do not offer the same estate planning benefits as other retirement accounts. When the account owner passes away, the beneficiaries may be forced to take distributions and pay income tax on the inherited funds. This can significantly reduce the amount of money that is passed on to loved ones.
So, what’s the alternative? Many financial experts are now recommending Roth IRA’s over traditional IRA’s. Roth IRA’s offer tax-free withdrawals in retirement, as well as greater flexibility with contributions and distributions. Additionally, Roth IRA’s do not have required minimum distributions, making them a more attractive option for individuals who want to preserve their retirement savings for as long as possible.
In conclusion, traditional IRA’s may have been the go-to retirement savings vehicle in the past, but times have changed. With the disadvantages of tax treatment, strict withdrawal rules, and lack of flexibility, it’s becoming clear that traditional IRA’s may not be the best option for everyone. It’s important for individuals to explore all of their options and consider the long-term implications before choosing a retirement account.
My health is still in the shitter but I'm weaning off a drug that depletes dopamine so hopefully I'll have continued energy to keep making videos going forward. Either way, thanks for watching!
As an older investor (56), I have always enjoyed your videos. My prayers and positive thoughts to you and your brother. Feel better
your in my prayers Adam
You may not be able to say “don’t ever talk to a financial advisor”
But I can!
Also, good to see you again. I hope your energy improves.
Get well Adam. Looking forward for more of your options videos.
hang in there buddy! You'll be alright. One of the best option advice I got are from your leaps videos. Thank you!
We re just wishing you and Eric a safe and speedy recovery. Thanks for posting. We love you too
Love ya too man
Dude you are by far my favorite YouTube finance guy. Especially Ever since you made that meta video before it took off. I should have gone all in after I watched that.
I hate to say this but he is wrong. Because traditional IRA distribution doesn’t necessary means tax.
Imagine making 150k and you are at 30% tax bracket. You put into tradition 401k to defer tax so you save 30% immediately. When you retire your overall income will for sure drop (depending on what type of investment you are in). So hypothetically let’s say at age 60 you distribute out 30k of traditional 401k with combination of 20k of Roth. The 30k you distributed out will NOT be tax because you will still have standard deduction (currently 26k ish for 2023). The Roth portion on tax return is not considered taxable income. So it’s not 50k on tax return, but rather 30k only. So not only did you not get tax at front, but as long as you distribute out correctly then it’s possible not get tax at the back end too.
So it’s good to have both Roth and traditional. At retirement, you want to have options. So you can strategize based on the tax situation when you retire.
By retirement, all obligation should be paid off (mortgages etc). So the demand for high cash flow is not likely. You don’t need a 150k distribution of traditional IRA. An overall cash flow of 50k (combination of traditional and Roth) should be sufficient enough for regular people.
Also if he is wrong on investment advisor if all he focus on is performance. You get an investment advisor because of psychology reason. People are emotional and make irrational decision. How many people sold out of their position during pandemic. A good advisor would tell them to stay the course and it’s actually great opportunity to invest more. Studies has shown people underperform due to frequent trading and tends to buy high and sell low. So an advisor’s true worth isn’t on performance, but rather their ability to guide client during tough time when everyone is in panic mode.
I encourage everyone to look into Balbar studies where they explain how investor underperform due to behavior science. It is an Nobel prize award winning study that all investor should know about before investing
Thanks!
Feel better soon, keep making videos!
In Canada about a decade ago, one of the big fund companies started selling " STAR FUNDS" which consisted of buying a fund that holds 5 other funds for the " ultimate diversification" The kicker was you paid an MER on that fund and then indirectly paid MERs for the 5 other funds, plus commission to the brilliant advisor that put you in the mess. Standard mutual funds serve very little purpose anymore with the explosion of ETFs and index/sector funds which carry very low fees.
Adam. Love your videos. Continued prayers for your health. Need you to get better not just for you, but because you the best money advice on the internet! QQ. Now that TDAmeritrade is being bought by Schwab….do you have recommendations for a trading platform. I switched to TD Ameritrade a few years ago when you released a tutorial about it….and I really loved it…..but I am not really a Schwab fan! Feel better!
Love your vids Brotha!
F dem fees!!!
Good to see you back man! Great vid. Thx!
What about doing both? Lol