How Does A Roth IRA Work? Roth IRA Explained.

by | Jul 31, 2022 | Roth IRA | 20 comments

How Does A Roth IRA Work? Roth IRA Explained.




In this video I go through a quick flow chart that I made showing the basic of what is a ROTH IRA and how a ROTH IRA works. I cover contributions, how do ROTH IRAs grow, tax treatment of growth and the tax treatment of withdrawals and some other rules. A comparison of the Traditional IRA and the ROTH IRA is coming out soon and will will dig deeper into some of the more arcane rules of this retirement account.

Patreon:

Obligatory Trading App Plugs:

Webull:

Best Books For Beginning Investors:

A Random Walk down Wall Street: The Time-tested Strategy for Successful Investing

The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing

Books For More Advanced Investors:

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns

Security Analysis: Sixth Edition, Foreword by Warren Buffett

The Book That Birthed Cathy Wood’s Ark Invest:
The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)

————-…(read more)


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20 Comments

  1. Fighting Words Financial

    Check out my Patreon page!

    Patreon: https://www.patreon.com/FightingWordsFinancial

    Open Your Own Roth or Brokerage Account to start investing:

    Webull: https://act.webull.com/iv/tkXPYD77nquI/65k/inviteUs/recommend_1343_A_push

    Best Books For Beginning Investors:

    A Random Walk down Wall Street: The Time-tested Strategy for Successful Investing

    https://amzn.to/3oqJv09

    The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing

    https://amzn.to/2X8uy6J

    Books For More Advanced Investors:

    The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns

    https://amzn.to/3pOQ4d6

    Security Analysis: Sixth Edition, Foreword by Warren Buffett

    https://amzn.to/38dPuzz

    The Book That Birthed Cathy Wood's Ark Invest:

    The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)

    https://amzn.to/358foTc

    ————-

  2. Spitfire 160

    Can I think of Roth IRA as a savings account that increases faster over time. Like is it okay if just put $10,000 and leave that 10k for years it would have increased to 20k? Or will I have to literally pick stock and mutual funds and hope for the best?

  3. Lamar Dukes

    Hey, I'm 34 and finally serious on investing for my retirement and investing period. What are your advice? Thanks in advance. 🙂

  4. Joseph Saeteurn

    if i want to withdrawl the gains, i will have to be 60 AND account open for 5 years correct?

  5. Robert Acosta

    Do you physically have to invest your money in ETF’s, stocks and bonds? Or is that just a representation of why and how your money is growing?

  6. olumide akinlaja

    IRaks you frudulent stop scam people stop all this

  7. Cannabis Culture

    Hi there! Just wondering where the 168,803 figure came from in year 15? I couldn’t quite grasp the explanation

  8. Raymond Tang

    Hey just a few questions so do i just throw $6000 in there every year and don't have to do anything to it kind of like a saving account or do I have to do my own investments in the Roth Ira account?

  9. Joaquin Uribe

    A couple questions, what happens if I deposited the $6000 right after I open the Roth IRA? Would I have to disperse the money investing in different things like stocks, ETFs, bonds etc or can the money just sit in the IRA it self? Every video I've seen about IRAs, they all say something like "assuming the return rate is 7%" you'll be a millionaire by the time you're able to withdrawal the money" What if the return rate is not 7% but like 2%, how do you know what return % you're getting ? Lastly, what's the difference between buying stocks, ETFs, bonds etc without an IRA, besides the tax free money?

  10. Pauly Hart

    oh great. a financial planner who steals art. NEXT PLEASE>

  11. Erik Colindres

    Hey man, is there anyway you can lose money or you will always gain if you leave it for 30 years

  12. Daniel Sierra

    So if I really need the money will I be able to use it? I heard such things as buying a house or college payments or a car you are allowed to take some out penalty free. Also I do not like the sound of making a lot of money but when I’m old. I’d rather have plenty of money at 30 than 60 will I be able to take out the money or only with the 10% penalty? I really wanna see if this would benefit me or only really benefit me in the future. Or if it would benefit me in the near future as a fund that’s tax free and grows well for when I need to buy a house?

  13. Tactical Bartender

    Only part I’m confused about. I’ve always been interested in a Roth IRA being plenty of friends have told me they’re great for investing. So is this example based off putting in $500/month? Do you have to put in the same amount monthly? Can you put in what you can when you want? What’s a good website or app to get an account? Thanks in advance for your help and the great informative video.

  14. A1Iron Zyzz

    Are there restrictions to how much you can access from the Roth IRA after 59 1/2? For example how much can I pull from the Roth on an annual basis assuming I'm already of age? If I'm taking withdraws after 59 1/2 in a form of distributions do I ever create a taxable event? Gave you a "LIKE" 😉

  15. hunt2334

    This is the best explination I've seen of this on the internet thank you so much, especially the comment where you said that it was self directed I was so confused.

  16. psc ih

    Thank you for this!!!!!! Incredibly helpful. I'm 21 years old and was very confused.

  17. Roni Jr

    So if i open a Roth Ira, how do i buy stocks and bonds? Does it do it itself or like a robo advisor needed? Sorry I'm just trying to understand. Good video btw!

  18. Leisurous

    Thanks for the help man I work at a 401(k) company and that’s kind of making me want to become a financial advisor so I do appreciate the explanation : )

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