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What if there were a way to dodge taxes on a chunk of your paycheck? Or how about an investment opportunity that will never pay a penny of taxes on the growth no matter how big it gets? Sound too good to be true? This is the amazing tax shelter of the IRA.
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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.
Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Andrew Matthews
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Sara Roma
Images by: Shutterstock
Music by: APM
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LEARN MORE ABOUT: IRA Accounts
CONVERTING IRA TO GOLD: Gold IRA Account
CONVERTING IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Lots of you have asked "Can I fund a 401k AND an IRA?"
Yes, you certainly can, and many people do. By potentially maxing out an IRA and/or a 401(k) (or any other work-sponsored retirement plan) you can sock even more money away for retirement. Roth IRA's are subject to an income-limit phase out and Traditional IRA's can lose their deduction if you have a 401(k) and earn over a certain amount. But the short answer is — if you CAN fund a Roth IRA and a 401k, go for it, you awesome save, you!
Want to check out your status and see if you can fund an IRA, 401k, or both? Here's a great resource from the IRS: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
I am trying my best to understand all of this IRA mess but it is confusing. The government created an IRA to help people save but the moment they take it out they tax them heavily so they didn't really say too much.
In other words you can invest yourself In index fund in your brokerage account and no worry about early or late tax penalties
Does this cover car insurance? Asking from Northern Ireland.
Im 46 is is tarted t contribe in Fidelity, Is still worth it. thanks.
I chose to do a Roth just because I assumed I wasn’t going to be able to pay the taxes on it in the future.
When it comes to investing, diversification is key, that’s why I engage in sectors based on projected growth. There’s no shortcut to getting rich, but there are smart ways to go about it
Being Irish this hits different
I have a 457 with my employer. Is this a better option than an IRA? possible video idea
You've done an absolute top notch job on this. Very informative! I’m a dividend investor, my wife and I have invested in the s&p500, both through my TSP with the government and through fidelity in her 401-k. Cashed out 370k from the S&P and invested with a full service broker.. Until about 3years ago we were 100% in the s&p after over 30 years. I’m retiring at the end of the month at 59, while my wife will retire next year at 54. We currently have 5.7 million in out tex deferred savings.
Oh so there's a different IRA, less irish
Man, I would definitely sign up for Roth IRA after watching this video, right after I figure out what is making those strange beeping noises in my car. I hope it's nothing bad
Thank you!
Why is the British police outside my house
Love your videos, i actually understand it now except the max contribution. Is sep ira (because im self employed) my max? If so, what precents me from adding more than 6k to a roth?
I have a question, right now I have 10,000 saved in my saving. I am 20 years old and I wanna start one, am I able to put my 6,000 right away and then wait for the next year and put another 6,000 and keep going till I’m 59 ?????
Very nice work my fellows
Being comfortable can be your worst enemy, you think you have enough until you find yourself in a situation where you do make money any more and then you realize it was never enough, so you must do your best to invest as much as you can. Most of us don't even realize how inflation reduces the value of what ever we have in our savings but the banks on the other hand, invest the money and still charge you for keeping it, that's why I invest with Suzanne Stephens Ellis. Just look her up online.
I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle in the stock market made it possible for us this early even till now we earn weekly. Thanks to FIRE movement.
This doesn’t sound related to the car bombs i know related to the IRA that I’m thinking about
fortnite
So my wife was told to put 15% of her income but she would exceed the 6k she can put in her ira, what do we do ?
can my husband and I have separate IRA
Easy answer: Irish Republican Army
Why only 6000 per year?
Unfortunately , when I was 25 , I thought I would never become old. Thats advice to you young ins , whether you want it or not.
THINKING OF LIFE AFTER RETIREMENT is really a pain in the ass…. What’s the best advice for someone worried over Retirement.
My spouse is not getting away with not working and thinking we ll be signing up for for an IRA.. we’ll both be contributing.. An investment on an iPad and YouTube acct can raise the kids no excuses to stay home not even the our kids I may be the bread maker, the cash cow etc.. but I cant support a family on my own especially just selling woman’s shoes at the mall
I wish they replaced school with YouTube growing up
Haven't even watched it and already hit like 😀
Well an IRA is a paramilitary formed in Ir-
Super helpful! Thank you. Now I need to learn about 401K. Is that was TRS is?
I'm just about to start an Ira account I need more information