From $0 to $660,000 With A Roth IRA

Рет қаралды 148,944

4 ай бұрын

I've talked to too many people over the past 12 months who were clueless about a Roth IRA. This is frustrating because it's mainly an education problem. How do you know something even exists if no one ever tells you about it? You don't. This is why I felt it was extremely important to educate on the topic. Share the video with someone who you think needs to know about a Roth IRA.
In this video, we're going to go through how to start a Roth IRA with as little as $100. A Roth IRA is an individual retirement account that allows you to put money away in order to save for retirement. You're going to want this money to grow so I'll show you how to open an account, how to pick investments, how to invest the money, and how to turn it into anywhere between $660,000 and $1 million dollars.
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A Roth IRA (Individual Retirement Account) is a special type of retirement savings account in the United States. It's named after Senator William Roth who helped create it. Here's a simple explanation of how it works:
Tax Benefits: The main advantage of a Roth IRA is that your contributions are made with after-tax dollars, which means you pay taxes on your income before putting money into the account. However, the earnings and withdrawals from the Roth IRA are typically tax-free when you retire.
Contributions: You can contribute a certain amount of money to your Roth IRA each year, based on IRS rules. The contribution limits may change from year to year.
No Age Limit: Unlike some other retirement accounts, there's no age limit for contributing to a Roth IRA as long as you have earned income.
Withdrawals: You can usually start withdrawing money from your Roth IRA penalty-free at age 59½, as long as the account has been open for at least five years. The best part is that these withdrawals are generally tax-free.
Flexibility: Roth IRAs are quite flexible. You can invest your money in various ways, such as stocks, bonds, or mutual funds, depending on your risk tolerance and investment goals.
No Required Minimum Distributions (RMDs): Unlike traditional IRAs, Roth IRAs don't have required minimum distributions (RMDs) during your lifetime. This means you can let your money continue to grow tax-free if you don't need to use it in retirement.
In summary, a Roth IRA is a tax-advantaged retirement account that allows you to save and invest money for your retirement. It offers the benefit of tax-free withdrawals in retirement, making it a popular choice for individuals looking to build a tax-efficient retirement nest egg.
Affiliate Disclaimer: Some of the above may be affiliate links. Support the channel by signing up or purchasing through those links at no additional cost to you. I appreciate you for helping me keep this channel running.
Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money.

Пікірлер: 407

@MrJbassrw 4 ай бұрын

Got my kids in a Roth as soon as they started working. They don’t know what it is, they can thank me later

@JarradMorrow 4 ай бұрын

The parent of the year award goes to people like you. Nice job!

@ffnovice7 4 ай бұрын

What's a good checklist of advantaged accounts for your children up to age 6? Coverdell ESA 529 Roth IRA HSA?

@kckuc310 4 ай бұрын

I thought I was only one that did this, mine don’t even know I did it, surprise when I’m gone

@kickeramps 4 ай бұрын

Me too. I told my kids I'll match whatever they contribute until they turn 18. Figured that would be a good way to get them in the habit of saving.

@OrHaimAmar 4 ай бұрын

Well said sir🤝

@arqsallstar1656 3 ай бұрын

I’m 22 I just opened one last week. People need to realize time = money invested in ur future.

@jayocean4724 4 ай бұрын

No one teaches this in highschool not even college. I had to learn what a 401k and IRA is on my own. So glad for KZfaq and learning from people like you!

@JarradMorrow 4 ай бұрын

Glad you eventually found it. Make sure to spread the word to the people you know to help them. Seems the be the only way to get people on board.

@Tiger86011 3 ай бұрын

It's taught in many high schools nowadays as an elective called Finance. In fact, they go over investing in depth and even have classroom contests with stocks, index funds, mutual funds using fictional funds. Many kids know this, you'd be surprised.

@damondiehl5637 3 ай бұрын

Dave Ramsey has a training package that he markets to a lot of schools. I think US Bank does it, too. So, some schools do offer a personal finance class.

@camski13 2 ай бұрын

It’s pathetic you have to go out of your way in American high schools to seek this out instead they force you into art classes and other bullsheet classes graduated 214

@adamgetzendanner 2 ай бұрын

Ikr. My son will probably never use algebra or trigonometry period. Some people might, but there should be mandatory classes in high school to teach basic economics and investing.

@AC-81 4 ай бұрын

I have started teaching my kids early. Teaching them why and how will be key for when they start making their own decisions. They may make mistakes with their money but just like anything else in life they will learn from it. Thanks for the great video. I love how you get right to the point and there isn't alot of nonsense fluff.

@dewandmcqueen523 4 ай бұрын

Thank you so much. I am getting old and bald and was worrying about retirement. I will share this video with other in my family. You have just changed the lives of people you have never seen and gave them hope for the future. 😊

@jonassilvers2277 4 ай бұрын

I'm 53 I didn't know anything about investing or that we are suppose to have an investment portfolio until I was 51 now I'm doing everything I can to make up time

@suzymiller4482 4 ай бұрын

Me too!! I'm 52 and just starting this journey. I feel so behind!

@jonassilvers2277 4 ай бұрын

@@suzymiller4482 I think it's our age group we didn't have internet and our parents didn't teach us about it. I feel like I'll never be able to retire after all most people die before they reach 80 years old

@traciemartin2509 4 ай бұрын

@@suzymiller4482 me too 🤦

@Pho563 4 ай бұрын

Yall got this! Maybe late but never too late , proud of yall for learning and starting now

@saxzuvr-jx9rm 3 ай бұрын

Me too. I'm diligently teaching myself. It's been a huge learning curve. I'll be 50 in December 2024. I graduated high school in 1993 and I never heard of a class called "finance" because I would have definitely taken that class.

@jonathanngo7452 4 ай бұрын

My mom sent this to me and my wife. Especially as elder millennials, we probably won't see social security by the time we retire... thank you for spreading this knowledge!

@appleztooranges 2 ай бұрын

Just started mine today. Thank you. I’m 36 years old

@ebells33 4 ай бұрын

Jarrad, the information you provide is so invaluable. This channel deserves millions of subscribers!! Thank you!

@JarradMorrow 4 ай бұрын

Appreciate it

@icecrystal3255 2 ай бұрын

Great job explaining this in simplest terms

@TrainerNick256 3 ай бұрын

Im 34. Started my roth at 30 and have maxed out every year. 15% growth overall aint bad

@JarradMorrow 3 ай бұрын

Nice work! Keep it up!

@RelentlesslyPerfect 3 ай бұрын

What investments did you choose?

@jawbrace 3 ай бұрын

He's a "trust me bro" KZfaqrs. :) @@RelentlesslyPerfect

@PerfectStrainzzz 3 ай бұрын

Is that yearly?

@karsstars Ай бұрын

I am 36, I lost the race...

@langstonbell7072 2 ай бұрын

I’m happy I saw this video at 19 and not at 30. I had no clue you had to invest the money you put in a Roth Ira.

@mikellock 4 ай бұрын

Extremely well done video. This will be very helpful to those that don’t know what a ROTH IRA is and how to start one…

@JarradMorrow 4 ай бұрын

Thanks! Doing my best to try to spread the word!

@TheRealDealNeal 3 ай бұрын

Maxed it for 5 years now! I’m 31. Feels good man

@antonioochoa6067 4 ай бұрын

I’d love a video listing the suggested parent checklist to educate our younger generations on the accounts that benefit them the most… 😊

@cameronrambone7895 4 ай бұрын

Really insightful and helpful. Good job

@JarradMorrow 4 ай бұрын

Glad you enjoyed it

@freedomring3022 4 ай бұрын

I am shocked that people don't have a Roth IRA. Another great video!

@JarradMorrow 4 ай бұрын

Same. Once I came across that many people in my personal life who were clueless I had to look into it a little more. I know this seems like obvious info for people like us, but the only way to spread the word is to educate.

@damondiehl5637 3 ай бұрын

For a lot of people, a 401k is all they need to put away 15% of gross income. An IRA gives them more control over what investments they use, but it is not something you absolutely need.

@macmann1956 4 ай бұрын

Good video - you had my full attention when Thundercats is referenced…

@JarradMorrow 4 ай бұрын

😂 yessss! Happy to know at least one person recognized something from that part of the video 👍🏻

@shaereub4450 4 ай бұрын

I have a Roth IRA. I'm turning 30 this year and this is my 4th year investing in it (I told myself I wanted $20K saved before risking any of it). Starting this year, I'll be contributing to an HSA.

@JarradMorrow 4 ай бұрын

Nice job! 4 years in a row is solid 👍🏻

@halcooper6059 4 ай бұрын

On the HSA, max your contributions if possible, invest it if allowed and don't use it for medical expenses (if possible) for a long time.

@Penaltybox66 3 ай бұрын

My boys are 10 and 11. Opened a custodial Roth IRA for them with the money they get from neighbors doing yard work and tutoring about $200-300/month for each of them. Combo of SP 500 and NASDQ 100 index funds with no loads/fees. They will thank me later in life.

@raybliz7914 3 ай бұрын

I’m really interested in this and everything sounds so foreign to me and How do you know what to invest your money if you don’t know anything about stock.

@EMan-cu5zo 3 ай бұрын

You claim that work on their tax returns? I am fairly sure the work has to be filed with the IRS.

@jordanmoss46 2 ай бұрын

Right here with you like huhhh is it guessing game ?

@salemdesigns65 2 ай бұрын

@raybliz7914 There's this thing called a library. It has tons of things called books. All you gonna do is walk up to the person at the counter called a librarian. They are knowledgeable to help you to find specific books. And guess what? You can actually bring the books home so you can read them at length!!!! Who knew!?!?! 😂😅😂

@tmh44 4 ай бұрын

Great video, ROTH IRA is a fantastic tool. Also, shout out to Primal Kitchens ketchup at 3:51, still tastes great and no added sugar :P

@JarradMorrow 4 ай бұрын

So good!

@jolonsutherland5265 3 ай бұрын

Started my roth ira on my 18th birthday I was so excited.

@martinguldner3990 4 ай бұрын

Because of life circumstances twice I had to tap a Roth IRA. I only been able to max out a Roth IRA since 2020 when I received a 325k inheritance (240k a taxable brokerage account that I received a step up cost basis and in the 12% tax bracket qualified dividends and long term capital gains taxed at 0%!). When my company was purchased in March 2021 I got a big bump in pay. I juiced up contributions to a Roth 401k to catch up the years I could not contribute.

@TheScott40 2 ай бұрын

I’m very tardy to the Roth IRA. At 55 I’m trying to get caught up.. Great video

@homeaudiobasics 2 ай бұрын

My step son is starting to work once school is out for the summer. Were going to encourage him to get in the habit of 25% minimum into retirement.

@glitchirl404 3 ай бұрын

I would love to see an updated video for "Best stocks to hold" for Index funds or ETFs!

@michaelandujar8109 4 ай бұрын

Another great video 😃🎉

@JarradMorrow 4 ай бұрын

Thanks again!

@lorenzocano6309 2 ай бұрын

I couldn’t help but notice you are playing ELFL in the background lol good taste in music my friend.

@JarradMorrow 2 ай бұрын

Good ear. Spore Titan made it into this video and I have few others I use of theirs

@JoeSoCal2303 4 ай бұрын

Theres a 5 year minimum period before you can start withdrawing contributions before the age of 59.5 unless its for one of those qualified expenses. Probably want to mention that.

@infamousnuggets1143 3 ай бұрын

I am 23 years old going to start now 🙏

@27Zangle 3 ай бұрын

My problem is not having a real job until 40 years of age. I lived in a seasonal town for 15 years, had kids with my wife, and her medical from an accident has cost of everything financially. I am not sure where to start but would like to save like mad for 10-15 years and still be able to retire.

@RobT192 2 ай бұрын

I started a Roth IRA two years ago, I had to research myself. I also have a 401k at work plus a brokerage account that I have tax efficient ETF'S so I can retire early. I've been contributing more to my Roth IRA lately to take advantage of less taxs in the future. Got realty income dripping so that tax break will be nice

@dougossont9639 4 ай бұрын

My 14yo. got her first summer job this year, so she has already got her ROTH IRA started. Fidelity was very helpful starting this!! 45 years of TAX-FREE, compound interest, cant be bought.

@JarradMorrow 4 ай бұрын

This is great!

@savanah1407 4 ай бұрын

Woohoo! That’s Awesome! Seriously, life changing. 🎉🎉🎉

@joy2come119 4 ай бұрын

I hope my son listens to me at that age and does the same. Unfortunately I've tried to provide this knowledge to younger co workers who look upside my head say the 401k is enough lol

@WestaeastMusic 4 ай бұрын

Great video and info! I am currently looking for the best options for an inherited IRA and how to maximize the rollover into a 10 year withdrawal. Any info would be greatly appreciated

@joy2come119 4 ай бұрын

Im 36 and got a late start at 33. I do hold the s&p and have majority of my money inside of that fund. I do understand i need to restructure my portfolio as I get older. My question is do you currently hold BND or any bonds right now or will you be waiting until you reach a certain age? I'm trying to gauge an idea of when i should look into changing things around to decrease a little risk.

@CaedenV 4 ай бұрын

The idea of a back door Roth is that sometimes you don't have the ability to get a Roth 401k through your employer, so as long as you are willing to pay taxes on it, the federal government is happy enough to let you convert your Ira or 401k over. Nothing illegal about it.

@JanoLguz 2 ай бұрын

Is there a video where you go in detail about the TDF’s?

@LFC645 4 ай бұрын

I think it would be beneficial if you created a video around investment strategy for a newcomer to US

@ffnovice7 4 ай бұрын

Look for all available tax advantages accounts: HSA IRA 401(k)

@vivii1219 3 ай бұрын

“How do you know there is a solution to a problem, when you don’t know the solution exists.” Well said! But most of us Americans don’t even realize we have a money problem! 😢

@CaedenV 4 ай бұрын

A Roth acct is helpful. Because it is after taxes, there is no penalty to remove your taxed investments. Still not a good idea, but if you are having a very bad day it can be a backup rainy day fund. Another weird exception is if your are withdrawing for down payment on a house you can pull cash out without penalty... I think there are a lot of rules though? Like a first home, and I think you still pay taxes on growth, but just no penalty? Super specific use case, but if you start a Roth young and find a steal of a deal of a house at 30 then it can be worth it... Just spreadsheet that out, because it's still likely a bad idea. No RMDs! One of the examples of the Roth nay-sayers is that if you take a pre-tax $1k for a Roth vs a traditional, then even with the tax free growth the Roth still is less coming back than the traditional account. Paying the taxes going in lowers the amount invested up front, so it never gets a chance to catch up for most equal time periods... The flaw here is that at retirement your 401k starts liquidating RMDs, while the Roth can remain invested an additional 10-20 years with tax free growth if you don't need it. So I wouldn't be all Roth, but a Roth as a retirement account of last resort can give lots of extra compounding and growth while you spend down other assets first. Also in the not just a Roth camp, having different funds in different tax buckets will give you options and flexibility as you age. The majority of my retirement will be in my 401k and HSA, but having that Roth as a penalty free acct later in life where I can withdraw a little without a tax hit can be helpful if I am near the top of a bracket, or am not sure on all the concequences of a withdrawal. Having options is always good.

@backliteyes 4 ай бұрын

I'm maxing out my Roth 401(k) right now and have for the past couple of years. Really hoping I can keep doing that, but my husband got laid off last year so unfortunately may have to scale back savings.

@patescortez88 16 күн бұрын

Right I learned when I got a job and they asked me about it

@peaceful4you408 3 ай бұрын

I just rolled one of my 40lks into a Gold Roth IRA a few years ago. The Gold Roth IRA is getting almost 20% return a year. Over double what the 401k was getting.

@coryharris4459 2 ай бұрын

wow!! I'll have to grab your number

@coachtanishamarie 4 ай бұрын

Start planning for retirement between 20-40

@lot828 3 ай бұрын

You can also participate in a Roth 401k, which has higher contributions limits than a Roth IRA, if your employer allows it.

@LMsChannel 4 ай бұрын

Great video! Help answered some of the questions that I had. Question, do I need to be employed to invest in a Roth IRA? I have money saved up and can I use my money that I saved up to invest in a Roth IRA?

@JarradMorrow 4 ай бұрын

Great question. You have to have earned income (the IRS lists what is considered "compensation" which I showed in the video) for the year you contribute to your Roth IRA. i.e. if you earned $100k in 2023 and you earn $0 in 2024 then you can't use the 2023 income to contribute to your 2024 Roth IRA.

@Jesseg-rj6xf 2 ай бұрын

I’m Maxing out all my Roth in VTSAX

@HectorSnipes 2 ай бұрын

Buying stocks might seem easy, but picking the right one without a solid plan is tough. I've been trying to grow my $210K portfolio, but the tricky part is not having clear plans for when to buy and sell. Any tips on this would really help.

@JC-JC20 4 ай бұрын

question is: now that we are at an all time high....do we still dca in there?! should we wait for a dip? craziest market time ever :(

@AR-ln7ln 4 ай бұрын

I watched the video and the one you suggested from 11 months ago. I have my own understanding why so few people invest in it and the mistakes they make. I made the same mistakes you mentioned: not knowing that the money I send there is sitting in cash, and not knowing that once I take the money out, I cannot put it back for that year. What I cannot find from any Roth videos is that we can trade inside of Roth. Did I miss it? I would have never taken out the contribution had I know that I can simply sell it INSIDE of Roth and then buy something I else I really wanted. Somehow the money ended up outside of Roth and my contribution for that year was lost. I am not suggesting anyone started trading now, but I do wonder why this info is so hard to find. It's not like I'm going to pull Peter Thiel. What he did is not available for most people.

@JoeSoCal2303 4 ай бұрын

Yes you can buy and sell within the Roth and there's no penalties and they aren't taxable events. I think most people don't mention this because it may seem obvious. The same way your 401k works. Depending on the brokerage you have you may even be able to trade options within a Roth which may/may not be a good idea.

@eugenefernandez4377 2 ай бұрын

Can you show me how to use Fidelity?

@jakesouth2 4 ай бұрын

Any betterment users here? I've been contributing for 1 year, I want to make sure it's being invested correctly!

@poojaislove 3 ай бұрын

What if ur employer offers a TSP account with a option of Roth or traditional tsp? Is better to choose the Roth option instead of getting a Roth IRA separately

@michaelc6720 Ай бұрын

You back on BND or VGIT(less corporate)?

@georgegonzalez5322 2 ай бұрын

Paying off debt is a guarantee investment on that interest rate. Some people are in debt and that interest is so big that is more important to pay off debt. Since is a guarantee return on investment. But everyone should contribute a minimum no matter what

@annerosewilson6710 4 ай бұрын

Can you do a back door Roth for previous year between Jan and April grace period?

@JarradMorrow 4 ай бұрын

Great question. No, the backdoor roth has to be completed by December 31st

@SpeedyPenguin2 4 ай бұрын

@@JarradMorrow I don't think that's quite right. My understanding is that you can convert money or shares of your investments from a traditional IRA to a Roth IRA at any time whether it's same day or years later. The problem is that you must pay tax on any gains accrued since the original traditional IRA contribution(s). So it's best to convert as soon as possible to minimize any potential tax liability. I've done this a few times over the years. Also beware that if you have multiple traditional IRA accounts, they are lumped together when determining what percentage of the conversion is considered to be the gain on which you owe tax.

@jonm.678 4 ай бұрын

Opened my Roth two years ago and lump summed the limit each year into VTSAX. Very happy so far. I also invested my HSA into VFIAX.

@JarradMorrow 4 ай бұрын

👍🏻

@joseperez2003 3 ай бұрын

I didn't know about a Roth account until I was 33 years old 😢😢

@joe62845 3 ай бұрын

I wish I started the investing into my IRAs earlier. When I was younger I didn't put much in it and I didn't know to invest it. Then when I heard I could invest it I didn't know how to do that with the companies I invested with. Now I know how to. I am glad that I invested in my 401k since I started working after college, so I have some money saved up. Definitely wish I did more with my IRAs when i was younger though. Now I try my best to max it out.

@damondiehl5637 3 ай бұрын

If you have been investing in a 401k, you are probably doing OK. An IRA is just a different way to do the same thing. You are just doing it all yourself instead of having your employer/401k administrator helping you. You have more control over what investments go into your IRA. But the 401k has a higher contribution limit than an IRA. And 401ks generally have an employer match. That is a 100% return on your investment, and you get it right away. And if you have enough money available, you can contribute to both; it is not one or the other.

@tombkk1322 Ай бұрын

Im in retirement and don’t plan on using my Roth for another 10 years as I have a large taxable account. I’m 100% in VTSAX and no bonds. Is this ok?

@user-fu7yl7jy1n 4 ай бұрын

I just started working in December 2023. My earning income is only from my job and it’s less than the $6,500 2023 IRA contribution limit. So if I open a Roth IRA right now for my 2023 IRA contribution, is my contribution limit the amount on box 1 of my W2?

@BlancaGarcia-wv7rw 3 ай бұрын

thanks so much

@adijk544 Ай бұрын

I just turned 21 and started investing in a Roth IRA like a week ago. I'm only putting in $100 a month. Any tips or suggestions apart from the video?

@joshalvarez6881 3 ай бұрын

Jarrad , I started my ROTH IRA through Vanguard a few years ago. One thing that no one mentions on KZfaq is that if you are married and don't file together, you don't qualify for a ROTH IRA. Rather than leave that money in there, get more capital gains, I had to withdraw all my money out of that ROTH IRA. I began to investing only with my employer ROTH 401K. At least I still have this option.

@maltlickey 4 ай бұрын

I have a Roth 401k through my employer. Dumping all I can into it. 18% of my pay plus 4% employer match.

@gilcasillas11 Ай бұрын

They recommend to put only up to what ur employer matches when it comes to 401k's.u may wanna look into that asap

@dheerajchidambaranathan 2 ай бұрын

What about the 5 year rule? You missed it out in your withdrawals part.

@alfredoocando1905 3 ай бұрын

Hi jarrad i have a question for you: do you recomend a saving account in a bank and roth ira too or only 1?

@damondiehl5637 3 ай бұрын

Your investments in your IRA will likely far exceed your returns from a savings account. You must choose your investments wisely, of course. You can choose a stock for your IRA and have that company go bust. But you can expect long term gains of 8-10% from your stocks. High yield savings accounts only offer 5%, and for several years it has been more like under 1%. I don't know anything about Jarrad's plans (In fact, I see a link to a video where he says Dave is wrong), but the Dave Ramsey plan has a series of baby steps to go through to get to financial freedom. You have to create a follow a budget You need to have $1000 set aside as an emergency fund. You need to get rid of all debt. Set aside 3-6 months of living expenses. Invest at least 15% of your gross income for retirement. Invest for your children's education. Pay off your mortgage Dave's plan follows psychology. A numbers guy would give you different advice, such as using your money to invest rather than paying off a lower rate mortgage. Dave says to attack the smallest debt first; where a numbers guy will tell you to attack the highest interest rate first. Dave has helped millions of people become debt free. I don't think Jarrad can say that. But Dave is geared toward people who don't understand money and are mired in debt and are looking for a way out. They need small victories to build on bigger ones. This is all free advice, take it or leave it. So, you need some money in a savings account, but don't make it your primary retirement vehicle. Savings accounts barely keeps up with inflation (right now, normal ones are actually losing money due to inflation).

@blueeyes2007 4 ай бұрын

Best is Roth 401k! My college dropout kid(19) is putting 50% of his 44k earnings!

@battleaxell 4 ай бұрын

That’s the power of the internet, nobody told me about a Roth IRA and I’m 20, I just found out about it a few weeks ago because I had that moment in my life that I realized I needed to figure out the path I need to succeed in life for me and fast before it’s too late and immediately started putting some of the savings I had been building up into it. The only issue I feel though is I’m not sure how much I should contribute and if I should take from my savings and if so how much more to “catch up” from when I didn’t know about it.

@battleaxell 4 ай бұрын

My main issue right now is I have minimal expenses so I’m not sure how much I need to have on hand for an emergency fund. My financial progress and security is why I have no real expenses but it’s also a time of minor financial insecurity for the person providing me this opportunity. I make 2000 a month minimum, smidge more in summer. I have about 300 of expenses but only because I’m still a dependent. I started investing about a year ago barely and in the last 6 months been contributing more and more until the last couple weeks when I sat down and put it into my budget instead of just money I wanted to see if grew or not, I’ve invested about 1550 give or take in total sense I started and it’s grown to about 1800 last time I checked which is getting me really excited to put more money in there. The rest of my money I plan to split between general investing, savins, Roth IRA. I just have 0 idea how I should split it. I have 14k in my savings account

@battleaxell 4 ай бұрын

The 300 of expenses can also be shortened it will just make my life suck a little more Also I’m sorry I kinda spilled all this out on the internet. I only have 1 person in my circle I consider successful and that’s the person providing for me and I want to have a more diverse financial mind than just hers.

@battleaxell 4 ай бұрын

I know it’s not the perfect financial journey but I’m working on it because I want to be financially free one day and this was a recent development in the last few weeks because I was not raised where that was possible and was only put into an environment in the last couple years to see that that is possible and not just a dream for the perfect students and athletes and celebrities

@stephanielcowart6867 4 ай бұрын

You have enough in your savings so you can now focus on investing. I would recommend you contribute to the 2023 IRA first they 4/15 then start on 2024. With 300 in expenses and 14k saved, you'd be fine. I'd like 5-10k in savings though.

@damondiehl5637 3 ай бұрын

At 20, you are WAY ahead of most people. You don't need to put away nearly as much as someone who is, say 50. You have a 30 year head start on him. That is 30 years of compound growth. Set up a budget and follow it. Set aside 15% of your gross income each year. Whatever that amount comes to is not that important. The 15% rule will generally provide enough for whatever lifestyle you have become accustomed to when you retire. You can put away more, but I don't recommend you put away less. You can put away 3 times as much in a 401k, but you don't have the same level of control over what goes into your 401k. 401k options are generally getting better; most offer at least one fund that mimics the S&P500. 401ks are also nice in that the money is deducted from your paycheck before you even see it, which makes it easier to just let it do its thing. One thing I learned recently is that the first $100k is 25% of the way to your first million. It generally takes about 8 years to get to the $100k mark, but each 100k after that comes faster and faster, due to compounding. The jump from $900k to $1 million is only one or two years. So, again,you starting so early in your career is fantastic. Good luck!

@robertosantanaperdomo9388 4 ай бұрын

My hopes for people knowing about the Roth 401(k) have plummeted with this video

@JarradMorrow 4 ай бұрын

😂 should I make this type of video for a Roth 401k to even things up?

@giftyyankson6228 4 ай бұрын

Yes please do particularly with those over the income limit

@kathy1501 4 ай бұрын

I love my roths! You can have more than 1 too :) your contribution just can’t be above the max across all of them.

@grigorirasputin425 4 ай бұрын

Do you have 7,000 of them and put $1 in each to make your life more interesting?

@JarradMorrow 4 ай бұрын

👍🏻

@ffnovice7 4 ай бұрын

What's the raisin? For multiple account brokerages?

@kathy1501 4 ай бұрын

@@ffnovice7not all Roths offer the same investments- diversification

@savanah1407 4 ай бұрын

@kathy1501 That’s interesting, can I ask what you’ve found the pros and cons to having multiple? I have been thinking about opening a 2nd Roth IRA account but am not sure yet if there’s a benefit or any risks doing it this way.

@kylerowland1227 3 ай бұрын

My employer offers Roth IRA and i definitely have one

@masonmai856 4 ай бұрын

My little brother just turned 18 and joined the military. He's contributing to his Roth TSP plan right now (not maxing it out), when I told him about the Roth IRA, he wants to contribute to that also. Should he wait until can max out his Roth TSP before put money into the Roth IRA?

@damondiehl5637 3 ай бұрын

I believe the TSP guarantees a 10% return. Verify that. If that is true, he would probably be smart to max out the TSP before he contribute to an IRA. If he can do both, good, but fill the TSP first.

@jason401. 3 ай бұрын

I'm a little late to this video but im opening up my roth ira in two weeks for my 17th birthday. Ive been thinking about it for a long time now and my parents have been pushing it a ton. Any tips about getting started? Anything to avoid?

@alrocky 2 ай бұрын

Consider Fidelity Schwab Vanguard or other major brokerage. Use S&P 500 or total US stock market index fund as your core or majority holding. Stay away from Load funds and high expense ratios.

@EfLuis 4 ай бұрын

Been watching you for a while now and you convince me to only hold VOO and VXUS, curious why you don’t hold bonds? I’m thinking about holding it like the Bogleheads.

@JarradMorrow 4 ай бұрын

I have a very high risk tolerance and I'm far enough away from retirement to where I can handle $0 in bonds. My current plan is to add them when I get closer to needing the money. Even though I don't invest that way right now, I still love the 3 fund portfolio for ultimate diversification. It's not going to maximize returns (like a 100% stock portfolio), but that's okay. As a buy and hold investor it's more about building a portfolio you can stick with no matter what's happening.

@EfLuis 4 ай бұрын

@@JarradMorrow I was thinking of adding 5% of BND and have that act as another emergency fund.

@SpeedyPenguin2 4 ай бұрын

@@EfLuis Be aware that bond funds can decrease in value, particularly when interest rates increase. This is generally not the case for individual bonds (i.e. not bond funds) that you hold to maturity.

@alex182618 4 ай бұрын

Most adult people don't know how to calculate percentage and what does it even mean.

@ffnovice7 4 ай бұрын

Decimals are superior. And you can suffix then quite nicely.68

@kingnasirthesecond 4 ай бұрын

i set up recurring transfers to my roth ira on fidelity. it seems like i can only contribute to the previous year when i transfer money manually. is there a way to change that?

@stephanielcowart6867 4 ай бұрын

Call Fidelity. It may be designed that way if you haven't maxed it out. They're not on you getting your full benefit since you have until 4/15 to contribute for 2023. Once you're past that date, it'll go towards 2024. Also when I did mine to 2022 on 2023, it went there bc of what I chose when I set it up so that's something to consider.

@AmirkhanAmirkhan-jv8tw Ай бұрын

Best

@Cyro213 4 ай бұрын

What happens if you don't met the max allowed by the end of the year?

@JarradMorrow 4 ай бұрын

I addressed this in the video. It's not an "all or nothing" type of account so you contribute as much as you want up to the max allowed.

@b1icky Ай бұрын

Turning 26 in a few months. Wish I had this info when I graduated college.

@damondiehl5637 21 күн бұрын

You still have plenty of time. 40 years is a long time for your money to grow. Start contributing.

@raiden031 12 күн бұрын

Dude I opened a Roth IRA at like age 39, I'm excited even with how late I started, although after about 4 years I'm no longer eligible so I have to do Roth 401K instead

@fortgrove3166 Ай бұрын

My TSP and 401k contributions are Roth. Their matches are traditional.

@susanabarberan3851 29 күн бұрын

What are your thoughts about roth 401k? I have that

@justinmcwhorter7887 4 ай бұрын

What are your thoughts on Roth 401K

@_MoneyMike_ 4 ай бұрын

It’s great. Just the 401k version of the Roth …just roll it over to your ROTH IRA when you leave that employer

@hakeemmmm 2 күн бұрын

Can someone help me with this? I want to open one but I don’t know who and where to go to open one. Any help will be appreciated it!

@JavaScriptJolt 4 ай бұрын

I have a strange question for you. I am 50 years old with a Roth IRA. I have not been working for the past few years due to elder care. However, I plan on taking a part-time job soon. I have $8,000 (which is the "catch-up" limit for someone 50 years old). Can I go ahead and put the $8,000 in there now, as long as I make at least $8,000 by the end of the year?

@damondiehl5637 3 ай бұрын

Yes

@sandyholzhauer7350 3 ай бұрын

Yes you can contribute to a Roth IRA through your employer, if it is part of the plan’s options.

@damondiehl5637 3 ай бұрын

Employers offer 401k. You set up an IRA yourself. They have different contribution limits. You can contribute to both types of accounts.

@chickenchaser6284 4 ай бұрын

Friendly reminder: You can still contribute to your 2023 cap (up to the tax deadline), maybe even if you created the account today I'm not sure. Edit: Nice he talks about this around 7:00.

@shujayethossain6554 3 ай бұрын

How do I invest the money? Do I buy index funds as I contribute little by little? I have a ROTH IRA and my contribution linit shows $7,500 but I have no idea how to invest!

@damondiehl5637 21 күн бұрын

If you don't know what you are doing, buying VOO, VTI or QQQ is a pretty safe bet. You can maybe do some short term analysis to see if there is a better time of the month or quarter to buy a stock. They generally drop in price right after they go ex-dividend (prepare to pay a dividend). If you know that, you can monitor a stock and its dividend dates and price and catch it when it is a little lower than normal. This doesn't always work, though. Look at any stock's history and you will see times where it went up after the ex-dividend date, instead of down. Timing a major event like a crash is much, much harder and you should not try to do this. Buy what you can on a set schedule and you will catch a stock when it is high, and when it is low. This is called dollar cost averaging. Time in the market is generally much more important than timing the market, although sometimes major events present themselves.

@Offgridtrucker 2 ай бұрын

Some company’s offer a Roth 401k option

@SwoffBass 3 ай бұрын

Man! That’s shocking! I was sure all the Thundercats would have a fully funded Roth account! 😂

@JarradMorrow 3 ай бұрын

😅

@bjmorgan3092 4 ай бұрын

I have a Roth and 401k. My sad issue is over the years I contributed $312k in a 401k which is now worth over $630k. If I had paid the taxes; then invested my funds in the Roth, I would have at least $300k tax free money 😢. I am now 61 and working on doing back door Roth Conversions.

@damondiehl5637 3 ай бұрын

At 22% tax rate you still have $491,000 in your 401k. Nothing to sneeze at.

@EMan-cu5zo 3 ай бұрын

At least you have savings for retirement unlike a vast majority of the population. That’s a plus.

@salemdesigns65 2 ай бұрын

I opened a Roth IRA a few years ago. And I too, had alot of funds in my 401k through the years. I'm only rolling a small amount at a time from the 401k to the Roth IRA each until 2029 because I cannot afford the tax burden to move all of it at one time.

@krhshurdler10 4 ай бұрын

Hoping someone can help answer this, im relatively close to the limit with my wife, i think, but im confused how the MAGI is calculated. Do i get to take out what i contribute to my works 401k or not. I might BARELY be over the $230k limit and need to know if i have to withdraw that this year or not. Thanks

@KA-NV 4 ай бұрын

To be safe, if l were you, l would do a backdoor ira. If you go over your magi and contribute to a roth ira directly, you will be penalized until you get your excess out. You can see your magi in the last tax file you got, or ask your cpa if you file your taxes with one.

@BadPhD777 4 ай бұрын

My 20 year old daughter has $25K in her Roth IRA!

@JarradMorrow 4 ай бұрын

Future millionaire!

@savanah1407 4 ай бұрын

That’s seriously going to be a game changer for her!🎉 Thank you for sharing. I was wondering if it’d be weird to help my kiddo start one when they get a job.

@BadPhD777 4 ай бұрын

@@savanah1407 That's all her money! She's worked 2.5 years since she graduated from high school! I plan to help my kids fatten up their retirement accounts when I'm able.

@vinnymigliore2810 4 ай бұрын

Dam how the hell did she do that lol 😂

@SyscoVids 4 ай бұрын

I was curious if you can deposit the max yearly amount in one deposit.

@JarradMorrow 3 ай бұрын

Yes you can. That's what I usually do right at the beginning of every year

@houseofshorts5886 4 ай бұрын

I had a question about dividends. If you max out your Roth for the year what happens with the dividends? Will it reinvest and you still get more or will it just build up until the next year?

@lakb2482 3 ай бұрын

That’s a good question!!

@damondiehl5637 3 ай бұрын

You can turn on dividend reinvestment within your IRA so dividends are automatically reinvested (DRIP). However, some stocks do not allow this. Years ago, Chimera (CIM) only allowed it if your IRA was held by Mellon Bank in NY. Currently, I know for certain that Nordic American Tankers (NAT) and Diana Shipping (DSX) do not allow DRIP. If you do not have DRIP turned on, your IRA will accumulate cash and you will have to go into it and buy more of that stock (or some other stock) yourself.

@salemdesigns65 2 ай бұрын

@@damondiehl5637 ....furthermore, you have to do your research on the frequency of those dividends as well - monthly, quarterly or annually. Here's my 2 cents. 😊

@deontesmith36 4 ай бұрын

What happens if you already invested into a Roth for a particular year and realized you went over the income limit at the end of the year? I didn’t know until this video there was a income limit 😮

@JarradMorrow 4 ай бұрын

You'll need to do something called a "recharacterization" to avoid any issues with the IRS. They're pretty understanding when this happens by accident as long as you correct the problem. Contact your brokerage and tell them what happened. Mention how you need to recharacterize your Roth IRA and they should be able to help you through the process to make sure it doesn't set off any red flags with the IRS. Try to get this done asap. Not something you want to push off too far into the future. Edit: Avoiding this type of scenario is why I mentioned in the video to "just do a backdoor roth no matter what" if you 100% know you want to contribute to your Roth IRA regardless of what your income is.

@robert-tm3qz 25 күн бұрын

I had opened a regular stock investing account on m1 finance.. can I make a Roth IRA there also or just keep the one I have or can't I have both.. Need some guidance

@JarradMorrow 25 күн бұрын

You're able to open multiple investment account types under the same overall account. Log into your account (on computer), click the "Invest" drop down on the left side of screen, then you should see an "add account" button where you can open a Roth IRA

@elfuturomio 4 ай бұрын

It could have been that at one point think we are well past that 🤣

@Calinative0523 4 ай бұрын

I have a legit question so I understand in the traditional 401k you can contribute 22k, and in the Roth IRA 7k. I’ve only been contributing for three years, my question is the following is the 22k total including the 7k Roth IRA that you can invest? Or is it 22k traditional plus 7k Roth IRA which amounts to 29k total?

@JarradMorrow 4 ай бұрын

Good question. The $23k (2024 limits) 401k/Roth 401k maximum is only for that type of account. The $7k Roth IRA/Traditional IRA maximum is only for that account as well. So combined you can contribute a total of $30k ($23k+$7k) for this year.

@Calinative0523 4 ай бұрын

@@JarradMorrow I appreciate that you took a moment of your time to answer. I highly appreciate it & great content.

@savanah1407 4 ай бұрын

Thank you for asking this question! I haven’t watched the entire video yet, so maybe I just haven’t heard it talked about yet but I’ve watched many videos on this topic and somehow it never clicked with me that the Roth IRA limit is only $7000. 🤯 That seems low.