Making $1,000,000 Using Roth IRA – A Guide

by | May 5, 2023 | Vanguard IRA | 34 comments

Making ,000,000 Using Roth IRA – A Guide




A Roth IRA is an individual retirement arrangement. Here are the benefits:

You’ve probably heard about it before, but what is a Roth IRA? In this video, we’ll go over Roth IRA for beginners and teach you how to get started with saving for retirement.

#rothira #retirementplanning #investing

Connect with us:
Join the community of like-minded investors:
OR

Everything Money:
EM shorts:
EM LIVE:
EM TRADING:
_____________________________________________________

**BOOKS WE RECOMMEND FOR INVESTING **

You can find all these books on Amazon

The Psychology of Money – Morgan Housel

Richer, Wiser, Happier – William Green

The Intelligent Investor – Benjamin Graham

One Up On Wall Street – Peter Lynch

Beating The Street – Peter Lynch

The Little Book That Beats the Market – Joel Greenblatt

The Complete TurtleTrader: Michael Covel

Video editing by Justin Nelson
——————–

🚨⚠️ All content on the channels for discussion, entertainment, and illustrative purposes only and should not be construed as professional financial advice, solicitation, or recommendation to buy or sell any securities, notwithstanding anything stated on the Channel. There are risks associated with investing in securities. Loss of principal is possible. Some high-risk investments may use leverage, which could accentuate losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. Past performance is not a predictor of future investment performance. Should you need such advice, consult a licensed financial advisor, legal advisor, or tax advisor. You agree to verify all information yourself before investing.
For more details, READ THE FULL disclaimer here: …(read more)

See also  Important Pre-Investment Knowledge for a Gold and Silver IRA Rollover


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


A Roth IRA is a popular tool for retirement savings that allows individuals to make after-tax contributions and earn tax-free growth on their investments. While the goal of a Roth IRA is often to secure comfortable retirement years, some individuals may dream of building up a large enough nest egg to reach the elusive $1,000,000 milestone. But is it possible to achieve this feat?

The short answer is that it is absolutely possible to make $1,000,000 with a Roth IRA. However, it’s crucial to acknowledge that there are no guaranteed routes to this level of wealth. That said, there are a number of strategies that can help you maximize your savings and increase your chances of success.

First and foremost, max out your contributions. In 2021, the maximum annual contribution limit for a Roth IRA is $6,000 for those under age 50 and $7,000 for those ages 50 and older. By contributing the maximum amount each year and allowing your investments to grow tax-free, you can make significant progress toward your $1,000,000 goal.

Another way to potentially boost your returns is by investing in low-cost, diversified mutual funds or exchange-traded funds (ETFs). These investments can provide exposure to a range of asset classes and minimize your overall risk. It’s important to note that no investment is entirely risk-free, but diversification can help mitigate potential losses.

Once you’ve begun investing in your Roth IRA, it’s important to be patient and stick to your long-term goals. Avoid the urge to make frequent changes to your portfolio or attempt to time the market. Over time, the power of compounding returns can help accelerate your savings growth and potentially push you closer to your $1,000,000 target.

See also  Should I Convert to a Roth IRA at 63 with $2,000,000 in my 401(k) as a Retiree?

One final consideration to keep in mind is the impact of taxes. While Roth IRAs offer tax-free growth, other types of investments may come with tax implications that can impact your overall returns. Working with a financial advisor or tax professional can help you navigate these complexities and ensure that you’re maximizing your savings potential.

In sum, making $1,000,000 with a Roth IRA is a lofty but achievable goal for those willing to take a disciplined, long-term approach to investing. By maxing out contributions, investing in low-cost, diversified funds, being patient, and staying focused on your goals, you can increase your chances of success and build a comfortable retirement nest egg.

Truth about Gold
You May Also Like
Calculator for Vanguard

Calculator for Vanguard

Vanguard Calculator: Your Financial Planning Companion In the fast-paced world of finance,...

34 Comments

  1. Christopher Cicchelli

    Thanks , so I only am self employed selling a little on ebay at the moment its January I had a job last year, can I contribute my previous earnings now

  2. C J

    Are dividend reinvestments counted towards the 6k/7k annual contribution limit?

  3. Jun Joon

    I’m a bit confused… you said that we can double dip. It’s either ROTH or Traditional… but I watched your video about Traditional, and you spent $12k for you and your wife. Now, you invested another $6k on a ROTH?… not throwing shade at all, Seth… I just wanna make sure I make the right decision, specially cuz I’m just making minimum. Thanks for your time

  4. Dman

    would my works 401k ira or would personal ira tho webull better?

  5. Nandakishore Polkampalli

    Income limits ?

    My understanding, To contribute to Roth IRA, single tax filers should make less than $144,000 and married joint tax filers should make less than $214,000. Also, for parents to contribute to kids Roth, should the kids earn their own income like by babysitting or some chores, or can the parents just contribute to Kids Roth IRA just like that without showing that they did small jobs?

    Thank you for your help. Highly appreciated.

  6. Al Rocky

    @ 1:45 You can "dip" in both traditional IRA and Roth IRA as long as t-IRA + Roth IRA contributions does not exceed $6,000 per year
    @ 5:20 first four three and half months …
    @ 6:17 child needs earned income (a job) to qualify for Roth IRA contributions

  7. Christian Holloway

    Great video Seth! Your son is very fortunate to learn all this so early. He will be richer than all of us!

  8. H G

    This really informed me with my 401 k choice.

  9. MastaJank

    what does he mean you cant save more than 6k per year without a fee?

  10. R Ha

    How does a child start a Roth IRA at age 2 or age 5? Don’t they need a job and contribute up to 6000 of their income. Do you just make up a job for your kid and say they are on payroll??? Thanks.

  11. D Evans

    Seth – This was a great explanation of the importance of the Roth IRA. Every young person should know how Roths work and why they should have one.

  12. John Acevedo

    I don’t understand Roth IRAs being “after tax.” So if I put in $5000 this year to my Roth IRA and I tell my tax lady about the contribution, do I pay my current tax rate on the $5000 when I file my taxes and then I let the money grow tax free?

  13. boston6781

    Would you recommend Roth IRA for someone already 55 of age?

  14. Steve B

    At 1:47 when Seth mentioned “you can’t put in a Traditional and a Roth” did he mean a standard IRA & a Roth you can’t do. But you can have a individual SPY stocks and a Roth?

    Love these Guys!!

  15. CheetoPuffin

    Loading up my RothIRA with $SPY over the next year

  16. commonsense 200

    i imagine that if you had to start later say 35, you would still get to the 4 million. you would need to push retirement from 65 to 75 or so. a lot of people are still working in their 70s. even after, they may have passive income from elsewhere, to keep adding to the Ira.

  17. Alan Souza

    Awesome video. Great content and storytelling

  18. Prajesh

    @seth- Do they let you have Roth IRA if your income threshold goes above certain income level? Do you know what is the cap for income?

  19. Wallet Invest

    Great info! What’s does really happen if you withdraw the money you put in? You lose the shares? How does that work??

  20. TheMinecraftReloaded

    I have one I started 2/7. It's 8,606 from 6k (45%). It's through Fidelity, can you ask Mo why he doesn't like them?

  21. Owl

    i dont live in usa but nice video

  22. Lincoln Gaffney

    DCA into index funds with that Roth and also If you own any REITs they should also go into the Roth IRA there is also something called a Roth 401k which if you are young and your employer offers it you should also take it most likely.

  23. Josue Quiles

    Have mine with M1 Finance

  24. Nicole

    A bit confused about the mention of the index funds? Are we using our Roth to buy an index or EFT?

  25. J B

    Let Say I worked for 2 weeks and my pay check was $3000.00 but after taxes it was $2000.00…..Can I put in $3000.00 or only $2000.00 ?

  26. aJ Decker

    What’s going to be dividend on $2.8 Million? Thinking of using dividends alone and don’t touch the principle amount.

  27. Fancy PeanutButter

    i had high hopes this would be the video you would say dividends are not taxed in these types of accounts. Why wont he say it?

  28. Ney Garcia

    you can take the capital out anytime you want, TAX FREE, pay the fees on the gains

  29. Open Door English

    Something that Americans have and the rest of us don't! Have to say I'm a little jealous!

  30. Aaron Taylor

    I use roth but man if I'm not worried congress will end up slapping capital gains taxes on it in the future.

  31. B P

    @Everything Money. What are your experiences in the financial markets, Wallstreet, etc. that qualifies you to talk about stock investments? What are your credentials and education? Especially you, Seth. What gives you the right to monetize finance content?

  32. Seth T. Training

    I use sofi and it’s really cool because I have my Roth IRA completely automated since I was 18. I buy VOO every week day of every week of every month of every year. Consistency is key

  33. Quincy Morris

    The Roth of man does not work the righteousness of God.

    Or something like that. Honestly just wanted to make that joke 😛

U.S. National Debt

The current U.S. national debt:
$35,866,603,223,541

Source

ben stein recessions & depressions

Retirement Age Calculator

  Original Size