ROTH IRA VS TRADITIONAL IRA VS 401K // A comparison of the 3 major retirement accounts: Roth IRA vs Traditional IRA vs 401K, and whether you should open a Roth IRA or Traditional IRA, and why you should have an IRA along with your 401K.
The difference between a Roth IRA vs Traditional IRA confused a lot of people, but in this video, I explain what is IRA account, whether you should open a Traditional vs Roth IRA, what is Roth IRA and how does it work, IRA explained, and all about retirement accounts and investing for beginners. After a comparison of Roth IRA vs Traditional IRA, I also explain what is a 401k plan, and how the IRA and 401K work together to help you invest your way to financial freedom.
You’ll see that the 401K vs IRA is a very subtle difference and that you actually don’t have to choose between the two, so watch the video for an investing 101 tutorial on Roth IRA vs Traditional IRA vs 401K!
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***FREE DOWNLOAD: The Ultimate Guide to Investment Accounts
Everything you need to know about IRAs, 401(k)s, HSAs, and taxable brokerage accounts. What they are, which ones you need, and where to open them!
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***BOOKS I RECOMMEND***
I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)
The Little Book of Common Sense Investing (Jack Bogle’s classic advice on index funds)
InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)
Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)
Rich Dad Poor Dad (#1 selling personal finance book of all time… need I say more?)
Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)
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DISCLAIMERS & DISCLOSURES ❤
This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
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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
best
It's very important for everyone
Can open both roth and traditional ira?
Thank you Rose this was very helpful
huh? IRAs are not tax free, you get taxed when you withdraw the money smh
So here is a question. If you invest in a stock with a Roth IRA and it goes up, do you have to pay a capital gains tax on it? Or do you get those gains tax free because you don't pay taxes on withdrawals on a Roth IRA?
Nice video, I am new to online investments, I have been practicing using a demo account. I like to
prepare for my future, I wanna start up a Roth IRA account. I don't know much about it or
which is better. I am scared that I don't know enough to start all by myself.
I am willing to try, but I need help with what to do next.
How is there no capital gains tax on the traditional if you're going to end up paying a tax to deduct the money in the end?
HEY DON'T SAY BAD WORD 6:21 IT'S INAPPROPRIATE
So can I ask because im a bit lost on this one
IN real estate I'll flip a house or sell, those profits I'll reinvest and I can write off the taxes for..well a long long time
In regards to capitol gains from stocks can I drop them into an IRA(Roth) and avoid those taxes all together as it'd be write off or it not work like that?
Great video, I can watch this all day, well I have to say having multiple sources of income is the best peace of mind anyone can get. I have a construction firm that deals on repairs and renovations on buildings, I also decided to go into investment in stock. The firm however for some months has gone down revenue wise, I just manage to pay my workers from the little that comes in. Luckily for me I have my stock to fall back to, thanks to my stock broker Suzanne Stephens Ellis, I do not have to do anything, and I get my returns in due time. Get her valid information and contact online.
hell yes!
It sounds like the traditional IRA allows me greater capital to grow exponentially over the years; true I have to pay taxes upon withdrawal which may fluxgate upward or downward somewhat, depending on the economic and political winds, but I have greater growth potential over the life of my investments.
I wish I had done the roth but when I started mine I wasn't sure what to do
Hi! Rose, our teacher is keep emailing us your videos for the class.
Lusting for that "tax free retirement" is exactly how Uncle Sam makes his money. It's not about whether you pay taxes, but about how much you are able to take out (or leave to your heir(s)) in relation to how much you have put in (and lost/will lose to taxes).
You have to consider what bracket you are in today vs what bracket you will LIKELY BE IN in retirement. Most people would prefer to retire early with a modest to somewhat comfortable lifestyle rather than work until they're 80 and party it up. That lifestyle won't cost you much on an annual basis, so why would you pay your taxes up front when that'll cost 22% when you could have a super low effective tax rate in retirement? In this situation, traditional absolutely destroys Roth for after-tax return on your investment. But wait, there's more…
If you invest into the traditional account (or taxed brokerage account) the amount by which you saved by contributing to a traditional 401k/IRA, you will DEVASTATE the return you would've had if you had sacrificed a bunch upfront to taxes. The compounded growth difference would be staggering.
That spicy "shitload" made me laugh lol