How To Become a Millionaire | Roth IRA Investing

by | Dec 8, 2022 | Roth IRA | 27 comments

How To Become a Millionaire | Roth IRA Investing




So How do you Become a Million investing into a Roth IRA, and what are the benefits and the cons of using one. IN this video I’ll tell you where you can open a Roth Ira, what I invest money into, and last how much you’ll need to invest monthly.

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Roth Ira What is it: you invest your after-tax money, and it grows tax-free, and when you take money out during retirement it’s also tax-free. But even if you are not in retirement you can take out the capital you put in without any penalty after 5 years. ( but before that and it’ll be 10% penalty)

How much to invest to get to 1M Dollars:
– Monthly you just have to invest $188.28 ( 47.07)
– For around 40 years at 10% return
– You literally only contributed 90,372.49 but because of dividends, growth, and compound interest, you have $1M sitting in your account.

The Good:
– Tax-free growth: when you invest money, your investments pay you dividends and you have to pay taxes, but as long as you keep that money in your Roth and you’re reinvesting it, it can keep growing tax-free.
– if your 59 and a half can take money out tax-free: this is great because if you retired and you have 1.2M in your Roth, then all that money is yours. But if you have 1.2 in your tradition IRA, then you’ll have to pay taxes on it
– you can take out your contributions tax-free after 5 years. And you can take 10k of the gains plus all your contributions and buy a house also. 😊

See also  Roth IRA contribution income limits

The Bad:
– you’re cap at 6k per year: so if you wanted to invest more money, unfortunately, you can unless you in 50 and older
– 5 year until you can take your contributed money out with no penalty ( that’s a long time)

How to Open and use one:
– I would recommend Acorns and m1 Fiance
– But Fidelity, vanguard, and Schwab’s are also great options
– I’ll put links in the description

What to invest in:
– I wouldn’t pick stocks and gamble with this account
– I would focus on a balanced portfolio of ETFs and Bonds
– My portfolio track record is around 8-10% on average with 80% ETFs and 20% bonds

Overall: My Plan
– I’ll spend 5 years contributing a ton of money into my normal brokerage account
– Once I get to my FF number, I can open up a Roth and max it out every year for the next 30 years ( but I will open one today and contributed to qualify for 5-year withdrawal by that time)

Excuses: I don’t have $100-$500: do me a favor cancel cable, cancel Netflix, switch phone bills, sell the car and pay off the loan and then buy a used car ( you should a lot more money now)

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor….(read more)

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27 Comments

  1. Jul He

    Great video, just curious you don’t invest in VTI??

  2. ChicanoPridex08

    Does Charles Schwab have the automatic balancing if I were to invest in those same investments?

  3. Matthew

    What are your thoughts on using FXAIX instead of VOO in a Roth IRA? FXAIX has a lower expense ratio and a similar dividend yield. Also, I’m using Fidelity as my broker

  4. Jalen Stricklen

    Great Video expect nothing less.

  5. Jack Movie Recapped

    Can u tell us difference between roth ira vs roth 401k

  6. Theo Smith

    So I have a moderate aggressive acct on acorns…is that the Roth IRA your talking about?

  7. Raymond Charles

    What if I’m 40 then what ?

  8. Amanda Chalk

    Yes please make a video on 401-K.

  9. Del du

    Thanks for the information. Question I'm 42yrs old how much do I need to start a Roth ira. What do I need to put in it yearly?

  10. Helpful Reviews

    Hi man the shirt you have on is that your custom shirt or you get it off internet? Do they have that design in a sweatshirt?

  11. Pierce Jordan

    Great video man! The Roth IRA is one of the best investment vehicles out there

  12. Myron Wand

    Hey Tommie. I’m a federal government employee. I’m currently doing Roth. And on the other hand the government matches out TSP. I understand the Roth. Can you do a similar video breaking down tsp and how to be a millionaire with them matching up to 15%

  13. Venice

    Jesus is coming back soon. He loves you dearly and calls for you to come back home to Him!
    that if you confess with your mouth the Lord Jesus and believe in your heart that God has raised Him from the dead, you will be saved.
    He calls for repentance and belief in the Gospel. It’s time to fully surrender to Christ. But seek first his kingdom and his righteousness, and all these things will be given to you as well

  14. Lannie Hernandez

    Are you using m1 for this brokerage acct? Why not use Vanguard since they're Vanguard etfs?

  15. R Reed

    Another great video and info. Appreciate the content.

  16. Xena Kai Finance Videos

    Gotta max out the IRA every year since it’s capped at $6k

  17. Rayshawn Ledet

    Hey, Tommy! Hope you and your family are well. Great video! I wanted to ask this – I used TD bank about 3 years ago to open up a Roth IRA and put $5,500 in it. Should I withdraw it or leave it in and continue putting money in the M1 finance account?

  18. JustNette

    This is perfect timing! I've been learning so much from your videos. I have been binge watching most of videos. Lol! I do have a couple question. Do you know much about REITs? Also, do you know anything about Diversyfund? I've been seeing this for some time but don't know much about it. Seems interesting tho. Would like to know your thoughts.

  19. Joshua Eachus

    Great Video!! I post similar content on my channel if you'd like to check it out? I post 3x a week , and its on stocks, investing and financing

  20. DIANE J

    "Hey Tommy" what about retirees. A lot of YouTubers leave out people that retired already. Hint hint make a video on seniors.

  21. Brendan Evan

    I’m pretty sure everyone who meets the requirements should start a Roth IRA

  22. Stephen Ojo

    Really informative as usual. I use a Roth IRA and I gradually ramp up the savings every 6 months. It has helped me to adjust to every increase in savings without feeling it.

  23. Modern Adulting

    Evaluate your current financial status. You can't grow if you don't know where you currently stand, so it's time for you to put everything on paper

  24. George Ramos

    You run this this great chnnel, learn alot from you!!!. Pero Que paso con otro canal?

  25. Jade Choi

    Entrepreneur isn’t for everyone. But building wealth is.

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