Episode 9: When it comes to investment advice, it’s usually NOT FREE. And implementing the right investment plan on your own can often be confusing and feel like a complicated subject. But for once, you’re about to get free information from a reputable financial advisor and it’s simple advice that you can act on immediately and implement on your own with ease.

Learn this simple formula to calculate if a Roth or Traditional IRA is a better investment vehicle to help build wealth. And if you realize you’ve picked the wrong investment vehicle as of today, you can convert it.

Interview with #Paul J #Paquin at Golden Financial Services / #Randy #Luebke – Independent Fiduciary Financial Advisor.
Randy Luebke shares a secret of Wall Street, including a glimpse of what’s in his book – The Business Owner’s Guide to Financial Freedom: What Wall Street Isn’t Telling You.

Traditional:
Invest 100% of your money, and the money grows tax-deferred, but when you take the cash out, you must pay taxes based on your tax rate when you retire.

Roth IRA:
A Roth IRA is the complete opposite. You pay the taxes on the money when you invest it, and then you won’t have to pay any additional taxes during retirement.

Watch PAST EPISODES:
Part 8: Individual Stocks vs. Index Funds and ETFS to Build Wealth

Part 7: Best Passive Real Estate Investment for 2023 #shorts

Episode 6: How to Make Money When Stocks Fall – Explains Randy Luebke, Top Financial Advisor

Best “Diversified Portfolio for 2023” (Part 5: Interview with a Financial Advisor)

How to invest for retirement in your 40s. (Part 4 of Interview with Financial Advisor)

Part 3: How to Avoid Running Out Of Money in Retirement

Part 2: Double Your Money Fast (2 Proven Methods)

Is Now a Good Time to Invest in Stocks and Bonds? (Part 1)

Suppose you’re in the 25% tax bracket. Instead of putting 100% of your money into a Roth IRA, you would invest 75%, but it grows tax-deferred and comes out Tax-Free.

Let’s say you have $100,000 in your traditional IRA today. You want to convert it to a Roth, so your $100,000 will get chopped down to $75,000, let’s say it eventually doubles, so your $75,000 grows to $150,000 by the time you retire. You can then start withdrawing from it without paying any taxes on it.

If you keep that $100,000 in your traditional IRA and it doubles over time to $200,000, you’ll eventually have to pay the 25% tax bringing your total down to $150,000, and you can then spend the rest.

Conclusion; your total sum of money in retirement is the same whether you invested it into the Roth or Traditional IRA in this example. That said, the Roth math is if you feel the taxes in the future will be higher than they are today, then you should invest in the Roth because you’ll get taxed at a lower percentage in the future, leaving you with more money in retirement. Conversely, if you feel the taxes will be lower in the future, you should invest in a traditional retirement account, not pay the taxes today and eventually take the money out at a lower tax rate.

What can retirement accounts, like 401k and SEP IRAs invest in?

You can invest in more than stocks and bonds in your retirement account, including;

Real estate
Crypto
Gold
Metals
Limited Partnerships
Opportunity zones

Get the inside scoop from one of Wall Street’s best financial advisors!

Check out the book at:

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#Roth #IRA #vs. #Traditional IRA #math #how #to…(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

When it comes to saving for retirement, there are several options to consider. Among those, Individual Retirement Accounts or IRAs are one of the most popular types. There are two types of IRAs- Traditional and Roth. But how do you know which one is right for you? In this article, we will discuss the differences between a Roth IRA and Traditional IRA, so you can decide which one suits you better.

Traditional IRA

A traditional IRA is a retirement savings account where you contribute pre-tax dollars. The contributions are tax-deductible, which means you can reduce your taxable income in the year you make a contribution. Any money you withdraw from your Traditional IRA is taxable, so the taxes are deferred until you take the money out. The required minimum distributions (RMDs) must start by age 72, and if you withdraw money before that age, you may be subject to a penalty.

Roth IRA

A Roth IRA, on the other hand, is a retirement savings account where you contribute after-tax dollars. This means you have already paid taxes on the money you contribute. Unlike a Traditional IRA, withdrawals from a Roth IRA are tax-free. Moreover, there are no required minimum distributions, which means you can let your money continue to grow tax-free for as long as you want.

How to Decide: Roth or Traditional IRA?

When deciding which IRA to choose, there are several factors to consider. Below are some key points to help you make an informed decision.

1. Taxes

Consider your current tax rate and what you expect it to be in the future. If you expect to be in a lower tax bracket during retirement, a Traditional IRA may be a better choice since you will pay less in taxes.

On the other hand, if you expect your tax rate to be higher during retirement, a Roth IRA may be a better choice since you can withdraw your money tax-free.

2. Age

If you are young and have a long time until retirement, a Roth IRA is a better option since you have more time for your investments to grow tax-free. On the other hand, if you are near retirement age, a Traditional IRA may be a better choice since you need to withdraw your money soon.

3. Income

There are income limits to be eligible to contribute to a Roth IRA. If your income is above those limits, a Traditional IRA may be your only choice.

4. Required Minimum Distributions (RMDs)

Remember that Traditional IRAs have RMDs that force you to withdraw a certain amount of money each year, starting at age 72. Roth IRAs do not have RMDs. If you want to have more control over when and how much money you withdraw during retirement, a Roth IRA may be a suitable choice.

Conclusion

Both Roth and Traditional IRAs have their pros and cons. The decision on which one is better depends on your financial situation, your tax bracket, your investment objectives, and your goals for retirement. Consult with a financial advisor to help you make the best decision for your retirement plan. Remember, no matter which option you choose- saving for retirement is always a wise decision, and it’s better to start early.