Roth IRA vs. Traditional IRA: Which is the BEST Option For You?
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LEARN MORE ABOUT: IRA Accounts
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INVESTING IN A SILVER IRA: Silver IRA Account
REVEALED: Best Gold Backed IRA
Question: Thinking if custodial IRAs…Are the limits based on GROSS or NET income? I understand $6k/$7k is the current max OR the total of earned income (whichever is less), but is that gross or net? Mahalo!
Is it smart to open Roth IRA with credit Union
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.
If you are eligible, always pick a Roth IRA in my opinion.
Roth.
Unless you enjoy lots of math and excel spreadsheets and predicting how politics will affect future tax rates and predicting inflation and predicting investment returns and predicting budgetary needs in a future where some of the tech has not yet been invented and the rules are not yet known or pay somebody a lot right now to do it all for you with no guaranty they’ll guess better than you. And then you might be able to calculate a few % points better for a traditional IRA if you’re really rich…maybe…it depends on the calculation.
Or just get a Roth.
2:31 How can you have 50% of your incoming going to taxes and still able to invest in Roth IRA??
One thing I found the hard way was that if you contribute to both 401K and Traditional IRA, then your Traditional IRA investment is not tax deductible anymore.
I never hear anyone talking about the $80,000 long term capitol gains that you can pull off each year tax free if you are married. Out of all
Of the videos I watch it never comes up. With that rule contributing pretax and then withdrawing all
Of the growth tax free as well. Just curious what everyone’s thoughts are on that.
I do traditional in my 401k and Roth in my IRA.
You guys missed the math completely. Money into an IRA is your LAST dollars while withdrawals are your first dollars. Even with the same income in retirement my effective tax rate on that money will be much lower.
I’m saving 22% now to pay 5% later. Good deal if you ask me.
It’s best to fill up traditional so it can pay ones core expenses then do Roth for the rest. Roth gives spending flexibility etc.
I only ever hear ROTH ROTH ROTH and no math, even from CPAs. At least when I become a CFA / CPA , I’ll have a different perspective.
It’s effective tax rate now vs effective tax rate later, not just marginal bracket.
You need both. Max out 401k first @ $19,500 a year. Then a Roth @ $6k. Do the 401k first since you can put in more.
So if the pre-retirement and post-retirement tax rates are the same, is there any difference in doing Roth or Traditional? Because ya'll really push Roth, Roth, Roth and then say that if you are a high income earner, then do traditional. And then at the end you say to do both. So just wondering Money Guys.
I have a question. I’m 19 and according to you guys I need to save $95 a month to become a millionaire at age 65. So should the $95 dollars go into a index target date retirement fund or a Roth ira?
If I contribute to a company sponsored Roth 401K now, can I roll over my contributions to a Rollover Roth account, and their pre tax contributions to a Traditional rollover account once I leave the company?
Good points. I tend to think taxes will go up in the future, but I max out all accounts. Plus, I may retire early and do Roth conversions before taxes go up.
I like permanent tax solutions but both are usually not bad
I would do 100% Roth until you are sure you are in your peak earning years. The reason is that the more your pre tax bucket fills, the higher your tax bracket will be when you take it back out (RMDs are a forcing function). Therefore if you want to maximize the tax benefit to a tax deferred account, you want to be in a high tax bracket contributing to a relatively small tax-deferred bucket. Also if you're maxing out your plan, Roth dollars are just worth more anyway (19k Roth > 19k pre-tax since tax will take a significant bite out of that 19k).
I do $250 a month pretax 457b with my job , and contribute $200 a month to a ROTH. Best of both worlds.
I'll pay the extra up front for the peace of mind that it's tax free in the future. I don't think taxes are going down while I'm alive. I also think that paying taxes on a Roth allows me to invest more or contribute more than a traditional Roth.
I split it myself since I'm not sure how things will look in the future tax wise or exactly how much I'll need in retirement, but if the market takes a deep dive I'll switch all of my contributions to Roth or convert some of my traditional. To me this seems like a way to "time the market" from a tax advantaged perspective without missing out on any potential gains along the way!
My dad was telling me to start with a traditional since I just graduated college. Since I will not be making as much money right away, there’s no reason to get that limited money taxed right away. Later on in life, I’ll transfer to a Roth. Is he on the right track?
Hi Guys, I have a question about bonds would you be able to discuss about bonds and Quarterly in arrear
BOTH!!
I split my investments into both, more buckets
Brian and Bo are the investing kings! I am inspired by their channel. Brian and Bo inspire me to continue my own YouTube channel on Finance and Investing.