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1) Google “fee-only financial adviser” or visit www.NAPFA.org (largest association of fee-only financial advisers). NOT an affiliate link
2) The first question to ask any financial adviser is, “Are you a fiduciary to me 100% of the time”. Get the answer in writing
3) Please note that some people call themselves “fee-based”. This is NOT the same as fee-only. Fee-only advisers have committed to being fiduciary to you 100% of the time.
4) Personally, I would only hire an adviser who is a fiduciary to me 100% of the time. This is not a suggestion on what you should do. Just sharing my personal preference.
⚠️ Azul’s “Scammer” Warning ➡ PLEASE READ! ⚠️
Be careful of scammers. In the comments section, I will NEVER ask you to contact me, offer any investment products, recommend a stock broker, or anything similar. Some scam bot commenters ‘ask’ for investment help, and later, other comment bots reply with “how great X idea/investment/person is” in the replies. These are scam threads. Do not fall for them.
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This information is only provided as an informational resource and should not be viewed as investment advice or recommendations. To get professional financial advice from a fee-only financial advisor near you, please visit www.napfa.org.
The decisions on how to invest, when to retire, and other financial planning topics are some of the most important financial decisions you will make in your life. I urge you to seek professional financial advice as you make this decision. Ideally, from a financial adviser, AND a CPA AND an attorney. Having the perspective of all three professions will help you make the right decision for you and your family.
This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and may NOT be suitable for all investors.
This information is NOT intended to, and should NOT, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, and/or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.
Spoiler Alert: There are no “get rich” programs. Rather, just basic blocking & tackling and putting in time and care. Do your homework, choose wisely and (IMHO) work with experienced professionals who are fiduciaries to you 100% of the time….(read more)
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REVEALED: Best Gold Backed IRA
Roth IRA: How To Go From $500 to $1 Million
Planning for retirement is something that should be on everyone’s mind. With the uncertainty of the future social security benefits, it is important to take matters into our own hands. One of the best options available for retirement savings is a Roth IRA, which allows individuals to invest after-tax dollars that grow tax-free and allow for tax-free withdrawals in retirement. While it may seem daunting to go from $500 to $1 million in a Roth IRA, with the right strategies and consistency, it is definitely achievable.
1. Start Early and Maximize Contributions: The key to maximizing the potential of a Roth IRA is to start contributing as early as possible. Every year, the IRS sets a maximum amount that individuals can contribute to their Roth IRA. By consistently contributing the maximum amount each year, you are giving your money the longest time to grow. For example, if you were to start at age 25 and contribute the maximum amount each year until age 65, you would have contributed around $43,000, assuming the contribution limit remained constant.
2. Take Advantage of Compound Interest: Compound interest is the magic that helps small amounts of money grow into substantial sums over time. By reinvesting the profits, dividends, and interest earned within your Roth IRA, you are allowing your money to generate even more money. The key is to stay invested in the market for the long term and avoid withdrawing funds prematurely, as this can hinder the power of compounding.
3. Diversify Your Investments: It is crucial to diversify your portfolio within your Roth IRA. This means not putting all your eggs in one basket. By spreading your investments across different asset classes, such as stocks, bonds, or real estate investment trusts (REITs), you are reducing your risks. Diversification can help protect your investments from market downturns while also providing potential for growth.
4. Regularly Review and Adjust: It is essential to periodically review your Roth IRA and adjust your investments accordingly. The market is constantly changing, and what may have been a solid investment a few years ago may no longer be the best option. Stay informed about the current investment trends and consider consulting with a financial advisor to ensure your Roth IRA is on track to reach your million-dollar goal.
5. Increase Contributions Over Time: As your income increases throughout your career, consider increasing your Roth IRA contributions along with it. By consistently increasing the amount you contribute each year, you are accelerating the growth of your retirement savings. This can be achieved by adjusting your budget and making retirement savings a priority.
While going from $500 to $1 million may seem like a daunting task, it is important to remember that every journey begins with a single step. By starting early, maximizing contributions, taking advantage of compound interest, diversifying investments, regularly reviewing and adjusting, and increasing contributions over time, you can set yourself up for a successful Roth IRA journey. Remember, consistency is key – stay focused on your long-term goals and watch your retirement savings grow.
Kicking myself for not opening a Roth until this year at 49. Ugh.
I'm maxing it at least though.
Question about Roth conversion, I'm 58 and still working full time, in the next 2 years I expect to be semi-retired earning a lot less (and will be in a lower tax bracket). I know when you are younger and convert from traditional to Roth you have to wait 5 years. My question is if you are over 59 1/2 and convert from Traditional IRA to Roth IRA do I still need to wait the 5 years??
There’s a downside to Roth IRA’s you are being taxed by the government for over 40 years a lot more every year than if you had a tax deferred 401k for all those years. If you’re smart you tax the 401 k in smaller amounts over a longer period a time. Start at 60 instead of waiting for the required minimum to kick in.
It's because the younger generation has access to YouTube to learn about investing and more importantly apps on their phones to open brokerage accounts. If the yourh doesnt become wealthy long term, they didnt wanna lol. Easy Peasy.
I’m hearing Biden wants to tax IRAs on unrealized gains….
"right now" yes, when traditional IRAs were started they were the best however the tax laws changed. Actually a tax trap was built which was intentionally hidden. I will bet they will do exactly the same to the Roth.
Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. Compounding is the process of earning interest on your initial investment, as well as on the interest that investment earns. This means that over time, your investment can grow exponentially. So the earlier you start investing, the more time your investment has to grow through compounding.
When everything started to tank after my retirement, I lost more than $40,000. Not because I was involved in a heated exchange. Because that's what everyone else said, I was just dumb to hold, and that's why. Even while I still have responsibility for my decisions, I now consider myself to be a better investor because I am more aware of the potential pitfalls. I was in the market for more than 3 years before I realized that. I'm happy to have discovered a way to get my money back at approximately $5,000 per week in profits. Many thanks, Mrs. Desiree Madison.
Because I didn’t get started saving until 45 years old, I assume my income will be far less during retirement. I mean, I live on less than 1/2 what I earn.
We did about $50k per year in Roth conversions for about 10 years before we retired two years ago. Glad we turbocharged our retirement funds that way
Maybe the young people have financially savy parents that are telling them to use the Roth now and use the traditional IRA later, when they are in their peak earning years.
Always very good information. Thanks for your help.
How do you get millions into an IRA with the yearly limitations set at about 7.5k.
Roth for the win. We went heavy this way about 15 years ago and it is reaping time for sure. Plan to do some decent Roth conversions early in retirement before social security and avoid RMD's as well as the "widows tax trap" later on. Great reference Azul. It is so stress free to have built up a significant Roth position. I encourage everyone to develop a plan for the long haul.
Enjoy your content. Talk about if you were 50 with minimal savings. What would your game plan be to get to retirement?
Money it is all what You need this Life !
In Finland is Good Time to Retired.
#Retired4You
Reasons why people won't invest right now: Crypto crashing, Record inflation, Bear market fears, Rising interest rates, Housing bubble talk , but maybe, these are reasons to invest now.
So I'm a State employee in NY, we have deferred comp which is basically the 401k, but also have the Roth option. I made 220k last year, does that mean I cannot do the Roth and only the deferred comp portion (pre-tax)
Honestly, I'm unsure if investing is a wise move right now. Take note of how frequently things fail. As I still have some time before I retire, I'm still looking for a better strategy to invest my money despite reading charts and predictions from well-known investors from the past and present. In order to generate passive income, I want to build a solid and reliable portfolio.
This is a great video ,I learn a lot watching your videos and it has been helpful to me. Building a steady income is quite difficult for newbies…Thanks to Mrs. Pamela Willett for improving my portfolio. Keep up with the good videos.
What’s better than a few only financial advisors is an hourly financial advisor. Best $ I ever spent.
why aren't you retired yet?
The system is rigged
I just opened my first Roth last week. I turn 51 this summer.
The problem nobody has 100k to invest a year for 10 years.. to reach a 1million
Invest $500 into a meth lab?
Imagine if you took Roth money and bought a stock like Zoom at the right time and of course got out.. All the gain is tax free.
Roth IRAs are worthy investments. Based on average investments by age, most do not have $500K combined in all investments. Please consider not mentioning having 1000 weeks left in so many videos now; once OK, but the repetitive comment detracts from your overall positive and educational messages.
I'm 55 and have no retirement. My employer does not offer it. How do I get started, even if its mininial?
Stats like that are kind of screwed? So many older people already have ROTH IRA, now that Millenial Open New accounts. They won't count in next survey so they will say Gen X Opening the most NEW Accounts? I was finally able to start Roth 403b 2 yr ago. I have $330K IRA $20k Roth. Wondering if I shud do Roth Conv or just spend IRA first? Retiring at 61 in July, will get $1842 pension and plan to work Part-time in the Fall for 6 months?
Azul there are income limitations on Roth contributions. None on traditional contributions, there is a contribution limit.
Btw if you recharacterize pre tax account to a Roth the 10 percent is not due.
Wealthy people are re-characterizing from pre tax to Roth. They are taking the tax hit now. Millennials are either opening non deductible ira and recharterizing or .
Good evening daddy, please I hope you're fine
Roth IRA, one of the greatest Tax gifts gave us commoners !