Take Your Finances to the Next Level ➡️ Subscribe now:
Download FREE Financial Resources from the show ➡️
Sign up for the Financial Order of Operations course ➡️
Download The Money Guy Net Worth Tool ➡️
Our professional focus is on financial planning and investment management, and we leverage our knowledge for your benefit. We help you focus on the things you can control and manage the things you can’t. Visit our site for more info ➡️
Facebook:
Instagram:
Twitter:
TikTok:
Let’s make sure you’re on the path to financial success – then help you stay there!
The Money Guy Show takes the edge off of personal finance. We’re financial advisors that believe anyone can be wealthy! First, LEARN smart financial principles. Next, APPLY those principles! Then watch your finances GROW!
We can’t wait to see you accomplish your goals and reach financial freedom! New shows every week on YouTube and your favorite podcast app. Thanks for coming along on the journey with us….(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
Take Your Finances to the Next Level ➡️ Subscribe Now: https://www.youtube.com/c/MoneyGuyShow?sub_confirmation=1
Thgere are so many tax loopholes that the wealthy use, I don't care if there is a income cap on some programs.
Starts @ 2:32
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.
Plain and simple why would you want to get taxed for saving money at all
For me a Roth 401k seems to be the way to go. I'll have a higher amount of income retired than working. I'd rather pay taxes at a lower tax rate. Tax me now.
Just started my 22 year old paying "rent" by putting 25% of his income into a Roth. He's finished with his education and doesn't need to live on 100% of his income.
This discussion doesn't consider the time value of money. A dollar today is not the same as a dollar 20 to 30 years from now. With a Traditional IRA you're allowed to save up 20 to 30 percent more pre-tax funds during your peak earning years and those dollars compound tax free. When the funds are withdrawn at retirement the taxes are paid with dollars that will be worth much less than they were during the accumulation phase. I'm surprised that financial advisors don't consider this when comparing Roth and Traditional IRAs. Most advisors will acknowledge that the purchasing power of dollars decreases over the retirees life after retirement but they don't include the impact of inflation in their comparison of Roth to Traditional IRAs. Their discussions assume that the value of the dollar is constant but its obviously not. Assuming a 3% inflation rate the dollars used to pay taxes at retirement are worth much less than the dollars contributed to the Traditional IRA. I read a book years ago by a financial planner, Vanetta Van Cassel. She said to think of bread instead of dollars. How has the cost of a loaf of bread changed over time. In my life time its gone form several loaves per dollar to three dollars per loaf. Its also very unlikely that ones tax bracket will be higher during retirement so the rate will be lower than it was during your peak earning years.
Starts @ 2:32
I screwed up, I had like $50k from a 401k I rolled into a self directed IRA….now it's over $300k and I want to retire early. (I have other $ in a cash account)…..how do I avoid paying big income tax on it???? I should have done a Roth IRA, I realize that now, most of that money is growth and would normally only be 15% long term tax,……how can I avoid the big income tax on all that money???
Hi guys, I am a relatively new member of the money guy family. But, I have seen 30/40 videos within the last 10-15 days. So, I'm a big fan. I am currently working a tech job in WA state, I am 28. I am just starting off with my 401K. I fall into the 32% tax bracket because I have a lot of RSU options vesting every year. I am wondering whether to go with Roth IRA at this time, because I am adding to Roth after paying 32% tax on the amount. I want to save aggressively like 50% of my gross income and retire in 20-25 years. So, I have a taxable trading account as well to invest in. How much would you suggest that I put in pre-tax/Roth/after-tax?
If My department has a 457b plan where I can choose traditional or a Roth, should I start contributing with the 457 or should I get a separate Roth or traditional external plan? I can contribute more to the Roth with the 457. I see that as an advantage. The only options are target funds though.
Can you talk about a Roth IRA CD?
Great explanation about the differences, but a little clarification is needed. When you talk about the backdoor Roth, my understanding is that you can't mix putting taxed dollars (let's say from a savings account) into a tax-deferred Traditional IRA account. There's no way to differentiate the difference in the funds. And then move those dollars into a (tax-free) Roth IRA. You would need a Traditional IRA that's set up specifically for that purpose with no tax-deferred dollars in it. That is, need to keep it pure. BUT, why not just put those (taxed) funds into a Roth IRA from the beginning. In 2020 the limit for someone over 60 is $7,000 and for others $6,000. I'm not getting the strategic difference. maybe it went over my head. Thanks! Great show. I love your enthusiasm.
11:30 if you pull out, is it must to put it back? And, every when* can we pull out?
So I have a 401k a simple IRA and a traditional ira should I open a Roth?
Huge fan guys but I need help. I always made around 100k. I decided to max out Roth IRA. But all of a sudden I started getting big commission checks. Now going to make over 150.
What do I do now that I have 6k in my Roth IRA but make too much??
You kept giving numbers for married people…the majority of your viewers are in their 20s and 30s and most likely single. Other than that, good info.
I would rather take the tax deduction now than the promise that the government won't touch the Roth money latter. When it's time for RMD? .. that's what accountants are paid for.
"Ready to Get Your Financial House in Order?" Are you guys Jordan Peterson Fans?
Really enjoy The Money Guy Show…..Don't stop making content.
Thank you .great video!
Excellent video. Not only was it informative and straight to the point but very easy to follow. So for those that do not have the option for the Roth, should we put into the traditional or invest that money else where? I plan to completely retire at 60 with no additional income outside my pension/disability and 401k , at least that's the goal as of today.
So for example (as of 2018 taxes). Let's say I was 60 today and I only plan to live off of my Military pension and VA disability pay. I would only need to withdraw about $50K for the year, So then I would only pay $1905 plus 12% of the excess over $19,050? Is this correct (traditional IRA)? If this is the case, then for my situation, I feel it will be best to just do Traditional since it's the only option, earn that interest on the whole $5500 contribution and then pay for my withdraw at the lower tax bracket later. I hope I have this right .
Many people don't understand, they are the same IF the tax rate stay the same. You think tax rate will be higher? Buy Roth. Otherwise, buy Trad.
Who wants to put this much of their hard earned money away till they 59? Maybe your talking to the average americans who dont know how to invest their money. They plan to work till they re 65. Yes, great advice for them. For me, a real estate investor, this idea isnt good for me. If i put 11k in 2 years away, this money couldve been used on a flip. This money couldve bought ceramic title, vanity, counter top for a new kitchen which in return give me a much higher interest.
All my early 20s were spent spending $$$ seeking oportunities to leave the rat race. Im glad i wasnt putting money away. Now, im 32 and will retire in 1 year. Im currently renovating a 8 unit apartment building which will cash flow 4k a month. See? I wouldnt have money to buy the building if i was hiding my money away till im 59.
Fuck it! I need freedom now!!!
If you make $77 or less do Roth no brainer is that what I got outta this? Mathmatically speaking that is if I am single and make $77k or less (or even alittle more?) up to how much? Would you advise how much should go into my Roth 457 compared to my pre 457… also should I open a Roth IRA now or no point till I'm closer to retirement. I don't wanna lock all my extra money away because I do need cash for hopefully real estate one day/ stock investments etc and in my case also have a taxable pension which keeps me in almost the same tax bracket anyways thanks guys! Would love to sort this all out! I've asked many professionals and they were kinda clueless and that's sad…. let me know if you can help thanks!
I am a law school grad who is studying for the bar exam. When I pass the bar, I am starting a "personal finance" law firm focusing on Bankruptcy, Tax, Estate Planning, Elder Law, and Probate. I watch you guys because I love your energy and you guys do a great job explaining complex issues. Watching you guys is helping me get better at explaining these complex topics to lay people who don't wake up at 6am on a Sunday and their first thought is to watch YouTube videos about Traditional vs. Roth IRAs. Thanks for what you guys do. I wish you continued success and hope we can meet one day.
you make this shit hard to watch… Empire?
I agree with the diversification aspect but I disagree with their conclusion. All things being equal, pre-tax investing is better than Roth investing. This is due to the progressive nature of our tax code. When you pay your taxes upfront (Roth) your effective tax rate is based on your full income. When you defer your taxes (traditional 401k/Ira) not only do you lower the amount you owe in taxes, you also lower your overall effective tax rate. When you withdraw the money in retirement you will only be taxed at the marginal rate of what you withdrawal instead of the marginal rate of your previous full income. Check out the post of GoGreenDollar about Roth vs pretax for a good analysis.
Roth is better then 401k…imo