Robinhood 3% IRA Match: Gimmick or Gold Mine?
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Күн бұрынRobinhood is promoting up to a 3% match on IRA contributions, and for a limited time, a 3% match on IRA transfers. A viewer asked me if I thought this was a good deal. In this video I'll share my thoughts on the program, some of the things to look out for, and why I ultimately decided not to transfer my IRAs to Robinhood.
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While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
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@tmh44 2 ай бұрын
Great video! 39yo here. I took advantage of the 3% match for transferring over a Roth IRA from Vanguard that I will not need access to for well over 5 years. It's invested in a four-fund portfolio and I'll use the account to do Roth backdoor conversions every year with it. In my particular case, it made sense--I got a few thousand bucks for free, can keep using the account as I intend, etc. But of course, each individual will need to consider their particular scenario.
@gg80108 2 ай бұрын
Robs point wasn't investments but estate planning. Don't be one minute late.
@GoKU-xx2vg 2 ай бұрын
@@gg80108your response makes 0 sense. Try to keep up.
@Unknown-jt1jo 2 ай бұрын
@@gg80108 @tmh44 was sharing their experiences, not responding directly to Rob's specific point about estate planning.
@sethfarnsworth8276 2 ай бұрын
Thanks for the reply. I am in a similar situation and thinking very seriously about doing the same as you.
@1044ashish 2 ай бұрын
@tmh44.. qq.. when u do backdoor .. are you gonna convert Ira match as well ? In that case you need to pay tax on the match right? Else if you get the match in the Roth directly after the conversion then you don’t need to pay tax for the match amount ? Please let me know
@andrewsmith8222 2 ай бұрын
You mentioned a Trust in this video. That's a topic I'd love to hear you talk about sometime. Thanks Rob.
@MsTubbytube 2 ай бұрын
Apparently you also cannot transfer an IRA that is currently IN a trust.
@123lowp 2 ай бұрын
I moved 222k over to a Robinhood IRA and got the $6,600.
@drewr9580 2 ай бұрын
Easy money plus it’s just the best platform
@rodrigosalazar1766 Ай бұрын
What brokerage/platform did you move from?
@2011blueman Ай бұрын
@@drewr9580 It's definitely NOT the best platform. Thinkorswim is by far the best platform (now owned by Charles Schwab). Robinhood is used by 20 year olds to punt away their money gambling.
@kittendkat5100 2 ай бұрын
Finally SOMEONE who can actually answer questions without creating even more questions, THANK YOU sir.
@matthewszasz1895 2 ай бұрын
This is truly valuable information. I truly appreciate your channel. Long time viewer.
@z1osufan 2 ай бұрын
Hi Rob. I am a young professional that recently moved to Columbus, For my first job since graduating school. Your videos have helped me get a grip on how to set myself up for success, and start saving early. The buckeyes are playing my alma mater at the shoe this fall. Keep the videos coming.
@anur2k 2 ай бұрын
Thank you very much for this video for breaking down all the terms and conditions. I saw the ad and I have been seriously considering it. It was too good to be true at first glance.
@TheMunib215 2 ай бұрын
Don't do it
@Zagirus 2 ай бұрын
@@TheMunib215 Don’t tell others what to do.
@melindamessick8601 2 ай бұрын
@@TheMunib215 why?
@chef_moquin9535 2 ай бұрын
This was such a great, informative video. The title made me nervous thinking I missed something in this deal from my research. But my understanding was correct and luckily the reason for you canceling won’t effect my decision just hope the transfer goes smoothly
@genorgeanaplaszio1246 2 ай бұрын
Thank you very much for this! I am actually doing the gold 3% match with Robinhood. I have been slowly incrementally transferring out of Fidelity into Robinhood. All the way I’m monitoring if I have been getting the match and yes I am indeed. I’m not near the time of taking RMDs so those things you mentioned weren’t disqualifying for me. But I wanted to hear everything you had to say before finalizing the decision. Thank you again!
@Username_CC_ 2 ай бұрын
Great research Rob!
@stevenbrady440 2 ай бұрын
Thank you Rob for doing the homework for us. We greatly appreciate it! We hope your back feels better. I'm assuming that's why you might be standing. Best regards from Florida! PS, dropping $2 million into that account would be an instant $60,000 return. That's appealing.
@Cdix 2 ай бұрын
Your only insured up to $500,000 with SIPC if Robinhood folds
@ncognito2388 2 ай бұрын
Thanks for the information.
@stephenwelch3709 2 ай бұрын
smart review. thx!
@xedden2 2 ай бұрын
Didn't even know you had a KZfaq channel Rob. I've listened to pretty much every episode of your podcast I did not pay any attention to whose video I was clicking on but as soon as I heard that voice I knew who it was
@Kipoltious 2 ай бұрын
Thanks for this video! Exactly what I was looking for.
@masoncnc 2 ай бұрын
Wow, thanks for the info
@jackalope8017 2 ай бұрын
Just what I was looking for after hearing about the Robinhood offer.
@PorscheSpeedster-kz6nc 2 ай бұрын
Interested in an update on contingent beneficiaries. Thanks Rob.
@robharris5658 2 ай бұрын
Great overview, Rob! Not being able to name a trust as a beneficiary is a deal killer. Robbinhood needs to offer that!
@ATHJD07 2 ай бұрын
Wow I've got almost 20% of my estate spread out between those apps, Treasury Direct and online HYSA - never thought about putting a bene on them. Won't my will would take care of all that?
@hutt132 2 ай бұрын
@@ATHJD07Putting a beneficiary on an account lets the funds transfer to the beneficiary without going through probate. A will requires probate.
@CapCityDC 2 ай бұрын
@@ATHJD07my understanding is it makes the whole inheritance process so much easier for heirs if you have the designated beneficiary (ies) named within the account itself.
@ATHJD07 2 ай бұрын
@@CapCityDC Thanks but I don't know them well enough to ask for their SSNs. Going to have to do it the hard way - will and probate.
@porkyfedwell 2 ай бұрын
I agree. Any of us who are high net worth are going to want that. Isn't that the sort of customer they want?
@Mr.Comment. 2 ай бұрын
@Rob You standing had me take a second look. Did you update your desk?
@porkyfedwell 2 ай бұрын
I was ready to move $2mm over to RH until you got to the family trust contingent limitation! Great video.
@McBigFisher 2 ай бұрын
You can always withdraw it in 5 years.
@jameswalker590 2 ай бұрын
@@McBigFisher Sure, but you never know what will happen. If something happens to him, his family is in a pickle.
@ThatLazyInvestor 2 ай бұрын
I would have never thought Rob would use Robinhood lol
@JosephDickson 2 ай бұрын
I don't trust Robinhood. 🤮
@deshwitat357hedge7 2 ай бұрын
He sacrifices so much for us.
@fsmoura 2 ай бұрын
Bruh: Rob.... Robinhood.... his name is on it! You can't stop this kind of cosmic-onomastic alignment!
@rayzerot 2 ай бұрын
He said he only uses it for the high-yield savings account so he's not really using it for their main services
@J-wu8sc 2 ай бұрын
Their offerings are getting kind of hard to ignore. I’ve got to admit.
@JosephDickson 2 ай бұрын
Sounds like they're hurting for liquidity. I don't trust Robinhood will be around in five plus years. When they eventually fold I don't want to deal with the stress of recovering my investments.
@karmasutra4774 2 ай бұрын
That is what is stopping me, but hard to pass up on 20k of free money if I do a rollover
@cryengine_x 2 ай бұрын
what stops me a lot is just inertia. i'm currently with chase and its nice i have two rewards cards (one is the amazon 5% back card), savings, checking, and now they even have a barebones investing service. So thats 5 accounts I can look at on one screen, transfer money between checking and savings instantly, etc. it's hard to overcome that ease of use.
@profanegaming2829 2 ай бұрын
"Sounds like they're hurting for liquidity. I don't trust Robinhood will be around in five plus years. When they eventually fold I don't want to deal with the stress of recovering my investments." @josephdickson 3/28/2024
@HB-yq8gy 2 ай бұрын
Good points caveat emptor😳
@PandemicGameplay 2 ай бұрын
This, they are hurting for liquidity hard, that's why they are advertising so much. These guys are scum, they were the ones halting orders during the gamestop fiasco.
@christopherlamberson1242 Ай бұрын
Good video, thank you
@davearey4922 2 ай бұрын
Stand up Rob! Hope you’re back is getting better.
@rob_berger 2 ай бұрын
Slow, but getting a bit better each day!
@mere_cat 2 ай бұрын
@@rob_bergerYeesh, I got sciatica this month after my back went out. Must be something in the air!
@USMCAllTheWay 2 ай бұрын
Hey Rob, have u started any type of P.T. exercises? Just wondering because I have recently injured my back as well....
@ahujachetan 2 ай бұрын
Make sure to not opt into their stock lending program in your brokerage account and IRAs. It's checked on by default. Also, check your privacy settings.
@newagain9964 2 ай бұрын
Or just don’t do business with grifters
@ahujachetan 2 ай бұрын
@@newagain9964 I hear you. That's certainly a valid point of view. I think it's a question of degrees. Some people consider all equity investing to be working with grifters too. We have to all draw that line for ourselves.
@Kikiyome 2 ай бұрын
Why not?
@BlueCollar89 2 ай бұрын
Like the comment above me asked, why not? What does that affect?
@jonmarcmondor 2 ай бұрын
Why not?
@Mathhead2000 2 ай бұрын
Excelent video. I thought it was very fair, and informative. 1 other feature that would be nice imo, is for Robinhood to have a portal for finacial advisor or money managers for people who use those services. Given the match, it could be a great tool even for totally passive, hand-off investors, which is a huge section of the current adult population.
@ht012805 2 ай бұрын
I did this last year when my employer sold business and I had to move my 401k so I moved RH IRA, got my 3%, not worry about moving it or min distribution. I also can trade in the IRA👍
@user-kx5lf6kc8w 2 ай бұрын
Thank you the info I was just about to do the same sneaky Robinhood good thing I didn’t
@vineettalwar7444 2 ай бұрын
I just transferred 160k and got 5k ❤
@BryanBiggzTV 14 күн бұрын
Thank you sir... I didn't read all the fineprint, but I did after watching your video. Therefore, I reversed my transfer.
@johnveca2979 2 ай бұрын
Great vid. Very informative. I'm gonna stick with Vanguard.
@DarakeDivz 2 ай бұрын
@robberger Please do a follow-up on this after you've spoken with your estate/trust expert. I do understand my situation will be different, but it could help me decide whether to dig in further for me. Thanks Rob!
@gg80108 2 ай бұрын
I got to believe that contingent beneficiarys is easier for them then dealing with probate court. Seems like all the online newcomers banks, brokerages don't care about simple estate planning. Of course Treasury Direct at least allow a trust. They just don't want any old money.
@rapfreak7797 2 ай бұрын
In fairness I asked this question weeks ago in a live webcast. Glad to see a fuller response here, thanks!
@dtobert 2 ай бұрын
Great video Rob. I wish you had mentioned whether the match applies to 401k rollovers or not. I will dig myself.
@Mathhead2000 2 ай бұрын
I believe it does but only for a limited time.
@fantasyrookie8757 2 ай бұрын
Yes, until 30th April.
@rightwingsafetysquad9872 2 ай бұрын
IIRC, it only took me about 5 minutes to make an IRA at Schwab a few years ago. Then about 3 hours of waiting for whatever it is they were doing for 3 hours.
@momhouser 2 ай бұрын
Rob, an unrelated question: When using the Guyton and Klinger "guardrails" method, how does one calculate the amount that the equities portion of the portfolio has gone up each year (so knowing how much to move to cash)? We have *many* separate index funds, plus some are blended...so it's not at all easy to figure out how much growth happened during a year. Is there an app that will total by asset class (like Empower) AND you can look back historically to check the value of all stocks on your given snapshot date? Or are you just doing it "by hand"?
@Kbf-jw6kt 2 ай бұрын
Great video. I was considering this move as well. Regarding the gold fee....if i open a brokerage, roth and traditional ira, is it 150/year or $50/year?
@ericwinter4513 2 ай бұрын
I have all three, and I'm only charged $5/month.
@benweiss4956 2 ай бұрын
60 a year for everything
@rick_vv7754 2 ай бұрын
Regarding naming your Trust as a beneficiary of an IRA other qualified accounts, I though that distributions from an IRA to a Trust could be subject to very high tax rates under Secure 2.0 Act as opposed to naming spouse or another person as beneficiary or contingent beneficiary. Any thoughts on this?
@lberhold 2 ай бұрын
Good tips and info. Does the match count for ROTH accounts?
@nickiandbri 2 ай бұрын
Rob! I love this video, it spared me a lot of time. I'm considering rolling an old Traditional 401(k) from former employer to a Roth IRA. Do you happen to know if the 3% match from Robinhood applies to opening Roth IRA, or just Traditional IRA? Also, please let me know what you decide to do upon discussing with your estate planning attorney.
@johnsperry7991 2 ай бұрын
I think it applies to either IRA type.
@Mrez95 2 ай бұрын
fantastic review, curious if you caught the 1% match on all brokerage deposits with no cap. that's a huge benefit in my opinion
@ericwinter4513 2 ай бұрын
To my knowledge, the 1% match isn't on the brokerage acct but the retirement accounts if you don't have gold.
@KL-ii6dt 2 ай бұрын
@ericwinter4513 its upcoming for the brokerage account itself.
@ericwinter4513 2 ай бұрын
@@KL-ii6dt Wow!
@waldoc2829 2 ай бұрын
It seems to me that because Robinhood is so popular among young people, who have way less wealth and beneficieries to transfer money to, they just didn't prioritize those features all that strongly. I'm a 26 barely getting started, so that happens not to be a very big deal for me, so this video was very helpful.
@YTDataAnalyst 2 ай бұрын
*Quick Survey:* For your shared investing ideas, what do you think will be the next Apple/Microsoft in terms of growth?
@XxAssassinXProdigyxX 2 ай бұрын
Scammers are scamming
@mlibby52 2 ай бұрын
Nvidia. Gonna be much bigger
@lilpapajames 2 ай бұрын
@@_QWERTY__ 😆
@jamesandersonwalsh 2 ай бұрын
For some reason it feels like you may be a better candidate for something like an M1. I believe they also do incentives for rollovers, though I don’t know exactly how they work.
@Fred2-123 2 ай бұрын
But M1 bonus is a lot smaller. $100K gets $250, not $3000
@R.Patel-qd4tj 2 ай бұрын
@Rob , another catch I learnt today is the cash you are holding in IRA doesn't generate any interest. 5.25% API for cash is only for brokerage account.. Moreover, in IRA they don't allow money market fund investment. Your only option is to invest in ETF.
@GreenLittleRobot 2 ай бұрын
The cash they give you in ira doesn't earn interest but can be used to invest.
@steveno7058 2 ай бұрын
Easy solution is buy SGOV ETF which is short term treasuries yielding over 5%
@steveno7058 2 ай бұрын
Why would you have cash in your IRA? Seems like a waste
@SamWhitlock 2 ай бұрын
It's super useful to know that the bonus you earn on the backdoor Roth will be taxed (on the conversion). I think the 3% match on conversion to Robinhood is worth it, but for trying to backdoor it with gold, I'm not sure if that's worth the hassle.
@peterpayne2219 2 ай бұрын
This is amazing, I’ve got $1 million in my IRA, I’m sorely tempted to give this a try.
@Cdix 2 ай бұрын
Only $500,000 of that is insured if Robinhood folds. SIPC insurance.
@peterpayne2219 2 ай бұрын
@@Cdix Well, I would be holding shares of companies in the IRA. I can't imagine a scenario in which Robin Hood went bankrupt and somehow took my ownership of MSFT and SCHD with them.
@Cdix 2 ай бұрын
@@peterpayne2219 You never really own your shares, the brokerage holds them on your behalf in street name. Hence why there is such thing as SIPC insurance that applies to securities
@McBigFisher 2 ай бұрын
@@peterpayne2219 I think you are right. He has done a video on what happens to your stock if the brokerage folds. It all should just transfer to the next brokerage.
@jbing96 2 ай бұрын
Do you know if I would need a RH GOLD subscription for for my IRA and my ROTH IRA if I transfer both accounts? Or does one annual subscription cover both accounts? Thx for this informative video! Keep them coming!
@Kosree1 2 ай бұрын
The Robinhood Gold is on your overall Robinhood user account. Each Roth IRA/brokerage account is part of the overall Robinhood ussr account.
@303Estates 2 ай бұрын
once again, your videos are the best! quick question... do you have a recent video on M1 and alternative to M1. Keep up the great wise sage investment advice!! ~Svend
@global2829 2 ай бұрын
Interesting (no pun intended) that they're able to call the match "interest". I wonder if some brokerage could set up something like this to get around contributions limits. E.g. I join the "super platinum tier" of my brokerage for $10,000 a year, and in exchange, I get a $10,000 "interest" payment in my account.
@JB-tj9mm 2 ай бұрын
Was thinking the same thing!
@quinngreene7213 2 ай бұрын
When Fidelity had the $100 bonus for opening an account it was not counted toward the IRS limit. So I effectively had $6600 last year in my Roth IRA
@Kosree1 2 ай бұрын
No, you can’t set up some “interest transfer” deposit method. That would be akin to money laundering. The match is separate from your personal contribution, treated as interest, not against your contribution limit. Rolling over other accounts will not count against your contribution limits either. Neither the 1% basic, nor the 3% RH Gold match, will count against. I don’t think you can pay $10
@b3arwithm3 2 ай бұрын
It is standard. Cash bonus are classified as interest at other brokers as well
@TheCaliRhino 2 ай бұрын
Just an FYI: I attempted to transfer my ROTH IRA over from Merrill Edge & it only took certain assets, I had to liquidate a handful of positions & move the money over instead of my stock holdings. This was probably for the best as I had a few dog positions that I needed to get out of anyways & I’m up around 50% since doing so.
@calemusic1938 2 ай бұрын
So you used Robinhood prior?
@ChatGPT-xm7xs 2 ай бұрын
Big problem if you have to blow out CDs with wide bid-ask.
@GrapeWrath 2 ай бұрын
Hi Rob, I became a Robinhood Gold member recently, just to take advantage of the 3% IRA match. I'm currently w Schwab SWVXX. if I transfer that into robin hood, will that get me the3% on the total? thanks for all the info - you're great!
@eh4306 2 ай бұрын
Yes it will. I did it already
@davejohnson7847 2 ай бұрын
Hmm. I am very happy with Vanguard. But 3% to transfer can be a nice incentive. I have a 3 fund portfolio - VTSAX, VBTLX, VTIAX. I guess I could just get the ETF equivalents at Robinhood, and looks like $0 trade fees. I'm not set to retire for 10 years, so keeping it there for 5 shouldn't be an issue. Hmm...
@rayzerot 2 ай бұрын
I heard you can get a 4.5% match at Webull if you refer someone else at the same time
@Sanloong7 2 ай бұрын
Hope u r not considering everything. These r very new brokerages when compared to Vanguard. Personally I would not trust any of them that much.
@grticecream 2 ай бұрын
I would never trust RH customer service for anything. Use a real financial institution for IRAs
@kentloar2175 2 ай бұрын
I might have missed it, but does this offer apply to both Roth IRAs and Traditional? Or just Traditional?
@ericwinter4513 2 ай бұрын
Both
@srgriffiths 2 ай бұрын
@rob berger I've been looking at this too. I didn't get to the point of calling RH with questions, but I recall seeing something about a requirement to be working and continuing to contribute. I'm early retired, so that's what stopped me. It was a little unclear if that was really a requirement and I was also wondering how they would know or enforce it. Also... not sure I trust RH, even if they are giving me 3%. I am close to wanting to take RMDs from my IRA, but I think I can make it 5 years without touching that money. So the offer is compelling. I also saw the 3% cash back credit card. RH is definitely being aggressive trying to grow their customers/AUM.
@srgriffiths 2 ай бұрын
Correction: I just read the T&Cs and don't see anything about requirements to continue working/contribute. So that's not a requirement.
@obidamnkenobi 2 ай бұрын
What of the reverse of the scenario you presented: you transfer, the market goes up. You take money out. The market goes down so you're below your original transfer. Do you have to pay it back then?
@robertryan3490 Ай бұрын
Rob Berger, you mentioned in another video that you opened the Robinhood account and got the 3%. Would you consider making a updated Robinhood 3% video?
@davidpowell3347 2 ай бұрын
Mr. Bogle didn't like "gimmicks" especially those that use current client's money (via higher expenses or expense ratios?) to bring in new customers at the expense of existing customers. "Marketing" is it for the benefit of the manager or is it for the benefit of the customer base?
@DP52001 2 ай бұрын
Can you share what your lawyer says? I’m struggling with the decision as well…I am for the most part buy and hold with a large-ish account and ready to retire…it’s the interface I’m concerned about. Fidelity is awesome, but do I really need all that? My bonus would be ~32,000…is Fidelity worth that? Rhetorical… Thanks for all you do!
@gilbertchen4840 2 ай бұрын
Hi Rob, does transferring a roth ira count towards the match? Or is this only for traditional IRAs?
@Sanloong7 2 ай бұрын
Both, I just did with Roth last month.
@burtoncarlisle4810 2 ай бұрын
Would love for you to do a video on inherited IRA’s… the more videos I watch the more confuse I become, the IRS said you have 10 years to withdraw but do you have to take RMD’s? Especially if your parent was already taking RMD’s or can you wait until the 10th year???
@robyaggie5797 2 ай бұрын
You do have to take yearly RMDs since your parent already was. However, it is based on your life expectancy rather than that of your parent. If the RMD has not been taken in the year of death then you need to take it starting that year. If it has been taken then your RMD can begin the year following death.
@MaybeLoveHate 2 ай бұрын
I honestly just love Robinhood. Years of using different services, and they just do things so easy. I find myself moving more and more things to it as time goes by.
@canadianwildlifeservice8883 2 ай бұрын
Is this 3% a one time deal, or is the 3% match like a 3% APY where you earn 3% interest?
@AGILISFPV 2 ай бұрын
3% cashback on all purchases? Thats crazy.
@Playingwithproxies 2 ай бұрын
Not at all 😅
@AGILISFPV 2 ай бұрын
@@Playingwithproxies anything above 2% flat cashback gets into unsustainable territory. Name another card that has a flat 3% cashback on all purchases. Not rotating based on categories.
@sricharanpusala2469 2 ай бұрын
Does the 3% match apply for beyond the 2023 IRA cycle? Or is the match only for the first contribution year?
@jinWhuang 2 ай бұрын
Can Will be a work around (but additional cost)
@jonathanwilson95 2 ай бұрын
Am I wrong to worry about how they plan to make the money back? My understanding is that they sell the order flow? So I would have to go look at spreads across brokers to understand what it would cost me to buy things on their platform relative to another platform?
@GalenGiese 2 ай бұрын
I'm curious if the credit card points can be redeemed into a Roth IRA. I wonder if they will be counted towards the annual contribution limits. I know it is a gray zone with redeeming Amex points via Schwab into Roth IRAs.
@GalenGiese 2 ай бұрын
@Whaspme00 what
@theinternationalist1357 2 ай бұрын
Does it have to be an old IRA, can i just open an new IRA and still get the 3% match?
@freshdice7 2 ай бұрын
Sofi gives a 2% Match. I don’t know if they are still offering that.
@mykeegetsit 2 ай бұрын
i use robinhood and i just keep it there❤❤, as far as feedbacks they do listen to their customers
@worldchanges10 2 ай бұрын
Even for a detailed knowledgeable lawyer before agreeing diving into investing, so since I’m not savvy like you, I’m ok with zero % offer and can sleep better at night
@oghowie 2 ай бұрын
Seems like a Contingent Beneficiary is something that they would eventually add, so I'm not sure that's a deal breaker.
@HB-yq8gy 2 ай бұрын
Robinhood has a bad wrap of switching the rules once they get enough suckers?
@afternoon222 2 ай бұрын
Would you get the 3% credit card alone?
@Datscold1 2 ай бұрын
Wonder if they can raise price of gold level during the 5 year period.
@mitchflorida 2 ай бұрын
You only need to stay in the gold plan for one year after you receive the bonus.
@Sanloong7 2 ай бұрын
Actually, I would be surprised if they don't raise it after a year of luring people in.
@nickvanelzen4630 Ай бұрын
I procrastinated watching this video and now I'm sad because I missed the transfer deadline.
@MrShiva81 2 ай бұрын
Great video. I dont have traditional IRA, all i have is ROTH IRA. Is the 3% top up available on ROTH IRA ? Please confirm, I would like to use this opportunity.
@TopShot501st 2 ай бұрын
It should, however the 3% might count towards your contribution limits or be forced to be a normal IRA for tax reasons. Depends how they are doing it.
@davemclain3582 2 ай бұрын
When i read the fine print it said they would claw back the match if the funds were converted to Roth after receiving the match in a traditional ira. If true, thats a deal killer for me as i plan to use roth conversions within 5 years to avoid longer term RMDs. Has anyone done a roth conversion and did they claw back the match?
@rolandosouffrain7957 2 ай бұрын
What kind of security measures arw you taking when using Robinhood? VPN? viruse software? Anything you use would be a great help.
@rob_berger 2 ай бұрын
I don't access my account on a public network and use 2FA.
@barbaraevans5593 2 ай бұрын
Does Merrill Lynch charge you on the backend for transferring your IRA?
@freddies5027 2 ай бұрын
Just add the living trust as a beneficiary at .01% and your spouse at 99.99%. If both of you go at the same times. The trust getting 100%
@joshm3342 2 ай бұрын
That works only IF THEY ALLOW TRUST AS BENEFICARY, maybe re-watch the video?
@robyaggie5797 2 ай бұрын
Sorry, that won't work either (even if they allow a trust). For primary beneficiaries, you don't set the percentage... everyone gets an equal share. For example, list your spouse and 2 kids... they will get 33.33% each (no way to do 50%, 25%, 25%). Despite these short comings, specifically lack of contingent beneficiaries, I am rolling over an old 401k to them to get the match and my wife and I will be extra careful crossing intersections together the next 5 years.
@MsTubbytube 2 ай бұрын
can you transfer a portion of an IRA? For example mutual funds but not annuities. What if some of funds are not available in Robinhood? Do they transfer over as cash?
@Sanloong7 2 ай бұрын
They do allow a partial transfer, but they don't allow investing in mutual funds and bonds. You do have to sell them to cash first before you transfer.
@jameswalker590 Ай бұрын
Any updates? Only about a week left on the 3% deal
@canyonoverlook9937 2 ай бұрын
How could Robinhood afford to give 3% especially on huge ira's? They aren't that big.
@danh2716 2 ай бұрын
They advertise SIPC coverage only up to $500K. Is it possible to only roll a portion of an existing IRA over to stay under the coverage limit?
@Tyvaeerwat 2 ай бұрын
Yes. That’s pretty standard at all brokerages. It does NOT have to be all or nothing
@danh2716 2 ай бұрын
Not exactly. Fidelity, for example, has additional "excess of SIPC insurance" that covers investments up to $1B.
@Sanloong7 2 ай бұрын
@danh2716 Do u even remember what was ur question? Lolz He's answering ur question that all brokerages allow partial transfer.
@danh2716 2 ай бұрын
@Sanloong7 My question started with the concern that they *only* have coverage up to $500K. I was commenting to clarify that this wasn't standard, as most reputable institutions have coverage beyond this. I didn't comment on the rest because there was no need to.
@ChatGPT-xm7xs 2 ай бұрын
What if you have CDs in the IRA that gets rolled over? Robin Hood does not support CDs. What happens? How can you roll over securities that the new recipient brokerage does not support? Someone below said they might cause you to have to convert CDs to cash. Big problem given lack of liquidity in brokered CD market and you will get crushed on the bid/ask.
@eh4306 2 ай бұрын
It won't let you rollover assets they don't support. In that case you can do a partial transfer if you wish
@steveno7058 2 ай бұрын
You either do a partial transfer or you need to liquidate the CDs then transfer
@Matt-wv7ht 2 ай бұрын
Any comments on M1’s recent changes?
@mitchflorida 2 ай бұрын
Webull has a similar but much better program 4.5% match for 5 years lockup.
@QuickPLFMA 2 ай бұрын
Never forget Robinhood’s reaction to GME
@krihanek117 2 ай бұрын
Is Robinhood a safe place to invest money?
@donaldcedar7574 2 ай бұрын
Do you pay taxes (1099-INT) on the 3% transfer match? The contribution match? Also, does Robinhood allow automatic dividend reinvestments? (DRIP)
@lesbolstad 2 ай бұрын
It's in an IRA, wouldn't be subject to tax
@kboy5189 2 ай бұрын
Great analysis Rob. Keep up the good work. Gold membership fees $50 per year: If we contribute max $8,000, the 3% of it is $240 which is more than $50. Isn’t it a win situation? If we transfer $100,000 to RH IRA, the benefit is $3,000 per year for 5 years or more right? I mean, not only in the initial time when we do the transfer. Assuming the investment of $103,000 did good and it became $200,000 in the 2nd year. Will RH deposit 3% on total of $200,000 in the 2nd year or will it be on $197,000? Should that money transferred be CASH only or it can be STOCKs too?
@Mathhead2000 2 ай бұрын
It's only 3% on the transferred cash/assets. It's vested over 5 years. So they will take it back if you remember that initial amount within 5 yr. I'm not sure what happens if you take profits, and only withdraw those profits. My guess is you only need to keep that initial balance, but thanks worth looking into. As for transferring stocks, they do allow you to transfer any assets they support: stocks (including ETFs, but no OTCs), options, spreads, and cash. No fractional shares since those are handled differently at different companies.
@kboy5189 2 ай бұрын
@@Mathhead2000 oh...so it's 3% on cash transferred but not on the total value of portfolio transferred? Interesting.
@Mathhead2000 2 ай бұрын
@@kboy5189 I think they count both cash and securities (like stocks and ETFs), but I'd double check to make sure.
@1brunner699 2 ай бұрын
@@kboy5189it’s a flat one time deposit of 3% of the total value you transfer from another brokerage, regardless of whether they are in cash, stocks, ETFs, or mutual funds.
@rickyrodriguezky 2 ай бұрын
Ok it’s missing a contingent beneficiary but would that be resolved through a will? Anyone in their 40’s+ with kids, grandkids etc should already have a will or trust to handle your assets after death. So this should not be a deal breaker, right?
@sonnyraj83 2 ай бұрын
Nobody is answering this. Will robinhood do 3% on transfer amount and 3% on the contribution amount for the year with the gold membership?
@NicholasJonesCPA 2 ай бұрын
So you’ll pay 50/year for 5 years or $250
@johndbro1 2 ай бұрын
I'm turning 54 in a few days, so even if it takes 5 years, I can't take any money out anyways, right? I can't take anything out until 59 1/2 (without penalties). So is this a good deal for someone in my situation?
@OurRetireEarlyJourney 2 ай бұрын
It could be if you don’t want access to it for 5 years. Makes sense for people not in or close to retirement.
@mitchflorida 2 ай бұрын
Correct. Plus, if your portfolio goes up 5 percent a year you can withdraw 5 percent without any Robin Hood clawback penalty.🎉
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