5 Roth IRA Mistakes That Cost You $$$

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  • Опубліковано 19 гру 2024

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  • @MaximilianFischer497
    @MaximilianFischer497 26 днів тому +818

    Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 5 million dollars

    • @TicheDebb0
      @TicheDebb0 26 днів тому +6

      Consider financial advisory so you don’t keep switching it up... those sound like great picks anyways, not bad for 350k

    • @RowanBryson
      @RowanBryson 26 днів тому +5

      Well said, I'm in line with having an advisor to oversee my day-to-day investing cos, my job doesn't permit me the time to analyze stocks myself. Thankfully, my portfolio has increased 5X in barely 5 years, summing up nearly $1m as of today.

    • @AshleySommerset808
      @AshleySommerset808 26 днів тому +4

      This is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing

    • @RowanBryson
      @RowanBryson 26 днів тому +5

      My CFA “Diana Casteel Lynch” a renowned figure in her line of work. I recommend researching her credentials further.

    • @MarshalWagner457
      @MarshalWagner457 26 днів тому +3

      Found her webpage, I wrote her an email and scheduled a call. Hopefully she responds. Thank you.

  • @Susanhartman.
    @Susanhartman. Місяць тому +427

    Investing in a Roth IRA is a smart choice because contributions grow tax-free over time, and withdrawals in retirement are tax-free. This allows you to keep more of your hard-earned money. Starting early maximizes the benefits of compounding, where your investment grows exponentially by earning interest on both the initial amount and the interest it accrues.

    • @91ScottieP
      @91ScottieP Місяць тому +5

      Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.

    • @mikegarvey17
      @mikegarvey17 Місяць тому +4

      I completely agree; I am 60 years old, recently retired, and have approximately $650k in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.

    • @mariaguerrero08
      @mariaguerrero08 Місяць тому +4

      @@mikegarvey17Could you possibly recommend a CFA you've consulted with?

    • @mikegarvey17
      @mikegarvey17 Місяць тому +1

      Izella Annette Anderson is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

    • @mikegarvey17
      @mikegarvey17 Місяць тому +1

      Izella Annette Anderson is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

  • @rufus5208
    @rufus5208 3 роки тому +223

    My biggest mistake was procrastinating and not starting one as soon as I was eligible. It's really not that hard to open an account and manage yourself. And you can also have your brokerage manage it for you. If I started it as soon as I turned 18, I would have a LOT more. If you're reading this, start now.

    • @dadarkweb2794
      @dadarkweb2794 2 роки тому +4

      Can't agree more.

    • @oatmeal11
      @oatmeal11 2 роки тому +2

      Hello. So I’m in my second year of college and I don’t have a regular full time job. Starting a Roth IRA I would love to do but as the video and the rules state I can’t have a Roth IRA until I have a stable income. Should I wait until I graduated college with a stable income before I start a Roth IRA?

    • @rufus5208
      @rufus5208 2 роки тому +5

      @@oatmeal11 I think you can still open a Roth IRA if you have a part time job. If you dont make any earned income at all, then you cannot. Do you have any job at all or are you just a full time student?

    • @oatmeal11
      @oatmeal11 2 роки тому +2

      @@rufus5208 I do have earned income. I have a full time summer and winter job in a factory when I am not in college. That generates a decent amount of earned income. I also currently have 2 part time jobs but will likely leave those 2 part time jobs fall semester 2022 while keeping my full time summer and winter job.

    • @rufus5208
      @rufus5208 2 роки тому +9

      @@oatmeal11 oh dude you're set. I would go to a brokerage of your choice and telling them you want to open one. They'll help you out and double check to see if you truly are eligible, which, from what I know, you should be. Try to max your limit contribution every year.

  • @Strokearm
    @Strokearm 3 роки тому +34

    1. Not using/ “skipping” a Roth IRA
    2. Not understanding contribution
    3. Withdrawing early
    4. Speculative investments
    5. Contributing too much
    Basically, do it.

  • @Peterl4290
    @Peterl4290 29 днів тому +660

    Retirement is more challenging now than it used to be. I've focused on saving rather than investing, and currently, I have about $400K. With inflation on the rise, I’m considering investing in stocks, but I’m not familiar with effective market strategies.

    • @larrypaul-cw9nk
      @larrypaul-cw9nk 29 днів тому +4

      Are you planning to retire before 59? That's the key factor for me. I transitioned to cash-flowing assets because I wanted to retire early.

    • @Mrshuster
      @Mrshuster 29 днів тому +3

      Given the current pressure to prepare for retirement, I highly recommend seeking guidance from a financial advisor. This will help you make more informed investment decisions.

    • @sabastinenoah
      @sabastinenoah 29 днів тому +3

      Do you have any recommendations? I’m looking for a CFP to help grow my retirement account.

    • @Mrshuster
      @Mrshuster 29 днів тому +1

      My CFA Annette Christine Conte a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

    • @sabastinenoah
      @sabastinenoah 29 днів тому +1

      This is useful information; I copied her full name and pasted it into my browser; her website popped up immediately and her qualifications are excellent; thanks for sharing.

  • @robertparsons313
    @robertparsons313 3 роки тому +123

    Retirement arrives sooner than expected for many people: health reasons, layoffs, family obligations, etc. Great advice to be consistent over long period of time.

    • @UpDive8
      @UpDive8 3 роки тому +1

      Well said

  • @ChasityMckaym
    @ChasityMckaym 4 місяці тому +190

    I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement in 3 years.

    • @Arleth-q1c
      @Arleth-q1c 4 місяці тому +3

      consider financial advisory so you don’t keep switching it up... those sound like great picks anyways, not bad for 350k

    • @Shaine-d5t
      @Shaine-d5t 4 місяці тому

      Agreed, I'm in line with having an advisor oversee my day-to-day investing cos, my job doesn't permit me the time to analyze stocks myself. Thankfully, my portfolio has 5X in barely 5 years, summing up nearly $1m as of today.

    • @AlyceJefferies
      @AlyceJefferies 4 місяці тому

      this is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing

    • @Shaine-d5t
      @Shaine-d5t 4 місяці тому

      I take guidance from a schwabb advisor *Victoria Louisa Saylor* To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

    • @Pickerell
      @Pickerell 4 місяці тому

      Wow, her track record looks really good from what I found online.i just filled the form and scheduled for a call. Thanks to you

  • @NicholasBall130
    @NicholasBall130 2 місяці тому +358

    So far I'm doing good, approaching retirement with about 800k in savings. Transitioning from building wealth to spending can be scary, especially with soaring inflation. My question is, after maxing out my tax-advantaged retirement accounts, what next?

    • @JamesLongman-v5r
      @JamesLongman-v5r 2 місяці тому

      In my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial advisor

    • @TylerJamestown
      @TylerJamestown 2 місяці тому

      Agreed, the role of advisors an only be overlooked but not denied. I was shocked that I made more money with investing than hard work, not even my CEO income. Earning ''return on investment'' fetched me millions within a space of 5 yrs.(But I still enjoy working)

    • @StocksWolf752
      @StocksWolf752 2 місяці тому

      Could you possibly recommend a CFA you've consulted with?

    • @TylerJamestown
      @TylerJamestown 2 місяці тому

      I work with Sonya Lee Mitchell as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.

    • @PennyBernadette
      @PennyBernadette 2 місяці тому

      I just checked her out on google and I have sent her an email. I hope she gets back to me soon.

  • @inquirer1016
    @inquirer1016 3 роки тому +58

    If you qualify for a ROTH IRA, then forget the regular IRA. Better to pay income taxes now than later as taxes will rise over time. And never buy penny stocks. Good video.

    • @johngill2853
      @johngill2853 2 роки тому +2

      It doesn't matter if income taxes rise but it matters if your income tax rate rises. Do you actually have any idea of how much the average American has saved in retirement accounts? The average American will not have a tax problem in retirement.
      Why wouldn't your advice big to pick the one that makes the most sense for my situation? I strongly suggest you use a tax calculator and plug in the numbers of your estimated retirement withdrawals into it

  • @Jolene_Beyond9to5
    @Jolene_Beyond9to5 3 роки тому +77

    I’m 32 , I’ve been saving for retirement for 7 years and counting

    • @UpDive8
      @UpDive8 3 роки тому +3

      Welll done!

    • @JimBobe
      @JimBobe 3 роки тому +7

      Congrats!! I started when i was 24. Im 25rn. Still trying to get the hang of things lol

    • @GrindModeJay
      @GrindModeJay 3 роки тому +3

      @@JimBobe me as well ! Congrats to everyone taking their financial security into their own hands & I wish you all well !! Keep growing and learning

    • @alexmaria2929
      @alexmaria2929 3 роки тому +4

      I know I won’t be able to even begin until I’m at least 25

    • @cathleensmith4717
      @cathleensmith4717 3 роки тому

      @@alexmaria2929 Sell everything you don't need and save everything you can until then and hopefully have a good amount to start out with. Do you have a traditional IRA with matching at work?

  • @MGallardo913
    @MGallardo913 3 роки тому +25

    I've made the #1 mistake. I'm now in my early 30s and just opened one recently. But, I guess better late than never.

    • @kashfortheking
      @kashfortheking 3 роки тому +3

      I started seriously at 40. Made mistakes in my 20s and 30s. I’m smarter than ever now.

  • @TerriLynnClark-b8d
    @TerriLynnClark-b8d 14 днів тому +431

    I'm glad you made this video it reminds me of my transformation from a nobody to good home, $89k weekly and a good daughter full of love..

    • @TerriLynnClark-b8d
      @TerriLynnClark-b8d 14 днів тому

      My advice to everyone is that saving is great but investment is the key to be successful imagine investing $15,000 and received $472,700.

    • @SusanAllen-f9f
      @SusanAllen-f9f 14 днів тому

      Hello, I'm a Doctor united states, how do you make such amount? I'm a born Christian but sometimes I feel so down of myself because of low finance but I still believe in God.

    • @TerriLynnClark-b8d
      @TerriLynnClark-b8d 14 днів тому

      Making touch with financial advisors like Amalia Bunker who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times.

    • @susan-i8v5i
      @susan-i8v5i 14 днів тому

      Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1,000000 net worth.

    • @Captainuva
      @Captainuva 14 днів тому

      Same here, I believe the Bitcoin ETFs approval will be life changing opportunity for us, with my current portfolio of $108,000 from my investments with my personal financial advisor i totally agree with you

  • @ThatGuitaristPaisa
    @ThatGuitaristPaisa 3 роки тому +42

    Opened my Roth IRA at the start of this year (confidently because of how much I've learned from this channel) and this was a great vid with a lot of helpful reminders and knowledge. Thanks so much Humphrey!

    • @humphrey
      @humphrey  3 роки тому

      Glad to help!

    • @maritasolis4776
      @maritasolis4776 3 роки тому

      @@humphrey where to start which bank o investment company is better more secure?

    • @ricecreampuff
      @ricecreampuff 2 роки тому

      Hope you had a good first year on your Roth!

  • @simpletonic
    @simpletonic 2 роки тому +4

    Great tip on the backdoor Roth! I had been using it for the past 7 years since my salary bumped past the limit. Despite this I definitely am guilty of doing speculative investments with my Roth, so defeated and withered my account away with penny stocks and options. So so stupid. Lesson learned the hard way. Starting from scratch in Roth. I am now 37, so I have 25 years before I retire. Hoping others see this and don't make my mistake especially the younger investors out there. What he says here is real and golden. Thanks for the video.

  • @kennycrump
    @kennycrump 3 роки тому +32

    Good timing, just looking into opening a Roth IRA!

    • @humphrey
      @humphrey  3 роки тому +3

      hell yea!

    • @fawdzoola9192
      @fawdzoola9192 3 роки тому

      Me too

    • @gardecg1
      @gardecg1 3 роки тому

      SAME! I'm turning 27 this year and I'm not getting any younger haha

  • @kavitharao2828
    @kavitharao2828 3 роки тому +8

    I opened my Roth IRA a couple months ago and this is solid advice for me. Thanks!

    • @humphrey
      @humphrey  3 роки тому

      Glad it was helpful!

    • @Tbrowng35
      @Tbrowng35 3 роки тому +1

      What brokeage account you use?

    • @prettylittlemissy
      @prettylittlemissy 3 роки тому

      Right, which brokerage did you use and what did you buy? Index funds? Mutual funds? ETFs?

  • @doctorlongmoney8816
    @doctorlongmoney8816 3 роки тому +5

    Roth contribution should be prioritized early on over a 401k while the investors income is lower at the beginning stages of their career (12% federal tax bracket). 401k contributions should be made to lower modified adjusted gross income and lower your federal tax bracket. When closer to the retirement age (50+) and higher income (40k+), 401k contribution is generally more desirable than Roth contributions

  • @greg8682
    @greg8682 3 роки тому +3

    Mistake 2, I would add don't forget if you sell a investment property that can easily push you out of the roth IRA income limits.. that happens to me one year. I had made the ROTH contributions in Jan then in Dec sold the property.. tax assistant helped me fix it IRT paying taxes and fees etc..

  • @treyvordowrie1723
    @treyvordowrie1723 3 роки тому +26

    One important detail that I cannot seem to find in the video is that there is a phase out for contributions before you hit your income limit. For instance, as a single tax filer you can contribute $6,000 until your adjusted gross income hits $125k. After that there is a reduced amount until you hit zero allowable contributions at $140k.

    • @alrocky
      @alrocky 3 роки тому +3

      *_Back_** **_door_* Roth IRA ($6,000) is still available for those over the income limit.

    • @loctruong9614
      @loctruong9614 3 роки тому

      @@alrocky what is income limit? Thank you

    • @alrocky
      @alrocky 3 роки тому

      @@loctruong9614 Singles making less than $129,000 MAGI may contribute $6,000 and over *$144,000* MAGI may not contribute at all. Information for MFJ and others available at IRS site.

  • @ChristopherAbelman
    @ChristopherAbelman 12 днів тому +4

    Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

    • @DaliaCohen2230
      @DaliaCohen2230 12 днів тому +3

      as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management

    • @PennyBergeron-os4ch
      @PennyBergeron-os4ch 12 днів тому +2

      Agreed the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around $300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.

    • @HildaBennet
      @HildaBennet 12 днів тому +1

      Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?

    • @HildaBennet
      @HildaBennet 12 днів тому +1

      I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her

  • @Elliot-Ivan
    @Elliot-Ivan 5 місяців тому +282

    I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

    • @GabrielAnthony-09
      @GabrielAnthony-09 5 місяців тому +8

      I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.

    • @Elliot-Ivan
      @Elliot-Ivan 5 місяців тому

      @@GabrielAnthony-09 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well

    • @GabrielAnthony-09
      @GabrielAnthony-09 5 місяців тому +1

      @@Elliot-Ivan My advisor is Victoria Carmen Santaella;

    • @GabrielAnthony-09
      @GabrielAnthony-09 5 місяців тому +1

      You can look her up online

    • @ElijahOliver-t9u
      @ElijahOliver-t9u 5 місяців тому

      @@GabrielAnthony-09 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?

  • @ISMsudent
    @ISMsudent 3 роки тому +13

    2 minutes into this and I can tell it’ll be a banger

  • @sommersalt88
    @sommersalt88 8 місяців тому +213

    They say with Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. So can i put a portion of my 5%(HYSA) in index funds? I also have 400k in an annuity. How do i maximize all this to make gains this year?

    • @Curbalnk
      @Curbalnk 8 місяців тому

      I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in over 80% profit than some of my peers who have been investing for many years.

    • @velayuthman
      @velayuthman 8 місяців тому +1

      I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

    • @GoochButta
      @GoochButta 3 місяці тому +2

      You have to wait till 59 1/2 to withdrawal ur gains. Now u can withdrawal what u put in at any time. You will get hit with penalties if u pull earnings

    • @timprescott4634
      @timprescott4634 2 місяці тому

      Spend it.

  • @Zeethesquirrel
    @Zeethesquirrel Рік тому +6

    The actual biggest mistake is putting money in a retirement account and not actually investing it in the account

  • @rmart008
    @rmart008 3 роки тому +11

    Ive been thinking of retirement since I started as a nurse. My best investment was buying NVAX at $12 bucks inside my ROTH

    • @humphrey
      @humphrey  3 роки тому +2

      Amazing

    • @ejcm55
      @ejcm55 3 роки тому

      I bought Ehang at $11.19 in my Roth. Now at $124.00

    • @loydsmith7297
      @loydsmith7297 3 роки тому +1

      @@ejcm55 now at $63

    • @ejcm55
      @ejcm55 3 роки тому

      @@loydsmith7297... And I bought more. Life is good.

    • @loydsmith7297
      @loydsmith7297 3 роки тому +2

      @@ejcm55 Yesir buy the dips, they will be worth 100+ easily long term

  • @Riggsnic_co
    @Riggsnic_co Рік тому +169

    With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.

    • @Oly_laura
      @Oly_laura Рік тому +4

      For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.

    • @martingiavarini
      @martingiavarini Рік тому +4

      Having an investment adviser is the best way to go about the stock market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly and I made over $800K within a short time

    • @hermanramos7092
      @hermanramos7092 Рік тому +3

      @@martingiavarini Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?

    • @hermanramos7092
      @hermanramos7092 Рік тому +2

      @@martingiavarini Found her online page by searching her full name, I wrote her an email and scheduled a call, hopefully she responds.

    • @ryanlowe7315
      @ryanlowe7315 Рік тому +5

      @@martingiavariniindex funds out earn over 90% of professional advisors.

  • @anthonystoll5289
    @anthonystoll5289 3 роки тому +10

    My man, your videos are simple and easy to follow. Love the structure and I look forward to future drops!

    • @bransontay.9232
      @bransontay.9232 3 роки тому

      Thanks for the review. +1 (3*-*2-1*) 2--0,0-*1-7'"4"1
      W*h*a*t*s*s*a*p,

  • @allisonbutlerj
    @allisonbutlerj 2 місяці тому +400

    I've always been fascinated by how top investors achieve millionaire status through their investments. Currently, I'm sitting on $345K from a home sale and I'm torn between investing in stocks or holding out for a better opportunity?

    • @hannahbrownnn
      @hannahbrownnn 2 місяці тому

      I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.

    • @jessieyoung-szn
      @jessieyoung-szn 2 місяці тому

      Many people underestimate the value of advisors until they've suffered financial losses due to emotional decisions. After my divorce, I sought professional guidance to save my business and found an exceptional advisor who grew my assets from $175k to $850k despite inflation.

    • @KevinEvans-mq4ob
      @KevinEvans-mq4ob 2 місяці тому

      This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation

    • @jessieyoung-szn
      @jessieyoung-szn 2 місяці тому

      NYCOLE CHRISTINA VANNATA a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

    • @JanAlston-kd6yl
      @JanAlston-kd6yl 2 місяці тому

      I just Googled her name and her website came up right away. It looks interesting so far. I sent her an email and i hope she responds soon.

  • @sanjayprashad4695
    @sanjayprashad4695 3 роки тому +55

    Saving and investing goes along side. Those who are able to identify aside key stocks are therefore likely to boost their investments this year.

    • @noelstout3056
      @noelstout3056 3 роки тому +2

      This is the time to invest more money like never before, for stock market, these are the best times.

    • @emiliobarretto9732
      @emiliobarretto9732 3 роки тому +3

      It's never too late to start investing. The best time to invest in stocks was always yesterday and the second best is always today.

    • @nicktony2293
      @nicktony2293 3 роки тому +1

      Making the decision to embark on my investing journey really set me up for greater financial independence

    • @derrickadams8416
      @derrickadams8416 3 роки тому +2

      Good for you Mike, I started my investing journey 4 month ago, it’s been one hell of a ride. The stock market has its disadvantages, or I guess I haven’t been investing right.

    • @sanjayprashad4695
      @sanjayprashad4695 3 роки тому +2

      @@derrickadams8416 To achieve higher returns in the stock market, besides doing more homework on the companies you wish to buy, it is often necessary to have an expert whose well grounded on the pros and cons of the market that can thus help you invest your assets to more profitable ventures.

  • @CelticsWin7
    @CelticsWin7 3 роки тому +6

    My biggest mistake was taking out contributions. That unfortunately, can’t be undone. I do think they should change that. I think it should be $6000 per year and increasing annually while inflation increases, but I also think that you should be able to go back and contribute to prior years which you didn’t contribute. I feel like it’s kind of dumb that they wouldn’t allow this. It’s like playing catch up.

    • @peytonlabarbera6337
      @peytonlabarbera6337 Рік тому +1

      They actually do just that, after April it will go up to 6500 a year.

    • @adaywithaleks6556
      @adaywithaleks6556 Рік тому +2

      Yes it goes up yearly but I agree that it's stupid you can't contribute to past years and how much you want..why is it anybody's business how much someone can afford to contribute?

    • @uriNATE14
      @uriNATE14 Рік тому

      @@adaywithaleks6556because of how good of a deal the Roth IRA is, they have to set limits so that it can stay that good. Without limits the whole thing could get f’d up

    • @logicalmisery3737
      @logicalmisery3737 4 місяці тому

      If you withdraw from the Roth IRA, you can put money back in within 60 days and it doesn't count toward contribution limit. Limit is once per year but it's a short term loan with no strings (if you pay back on time).

  • @Midnight-hz3ep
    @Midnight-hz3ep 3 роки тому +8

    I love using M1 Finance to invest in my long-term IRA
    Not only did I get to set up my pie with the ETFs and stocks that I want, it’s got a cash threshold to act as a pseudo-savings

    • @humphrey
      @humphrey  3 роки тому

      yeah M1 would be great for that.

    • @prettylittlemissy
      @prettylittlemissy 3 роки тому

      What did you buy? ETFs? Index funds?

  • @WatchmenOnTheWall777
    @WatchmenOnTheWall777 3 місяці тому +1

    Great advice bud. Appreciate all your videos

  • @SenorJoeBiden
    @SenorJoeBiden 3 роки тому +35

    Love your videos, Humphrey. I’m 20 and have already contributed for the last 3 years. We’re gonna be some really rich old geezers :)

    • @bransontay.9232
      @bransontay.9232 3 роки тому +1

      Thanks for the review. +1 (3*-*2-1*) 2--0,0-*1-7'"4"1
      W*h*a*t*s*s*a*p,

  • @robbinarp1193
    @robbinarp1193 3 роки тому +3

    Thanks for the great video. It was my first time watching your channel. Great information.

  • @theninjaofawesome360
    @theninjaofawesome360 3 роки тому +6

    Love the content! It’s very simple and easy to understand

  • @christianayers7883
    @christianayers7883 3 роки тому +1

    Such a great video, just opened my Roth IRA a couple months ago and have started making smart long term investments for my retirement

  • @officialgordito
    @officialgordito 3 роки тому +2

    I will be opening a Roth IRA soon, thank you so much for all the info you provide us!

  • @JoshTC2
    @JoshTC2 3 роки тому +8

    Humphrey, I predict you’ll 3-4x your sub count this year. Content is too good

  • @humphrey
    @humphrey  3 роки тому +8

    Kindly don't make the mistake of ignoring the Like button. The Like button must be HIT! Here's what's in MY Roth IRA: ua-cam.com/video/gvK0dd4lUc4/v-deo.html

  • @edp7786
    @edp7786 2 роки тому +1

    best breakdown on youtube of this topic, thanks so much. subbed

    • @humphrey
      @humphrey  2 роки тому

      Awesome, thank you!

  • @stevehalverson790
    @stevehalverson790 15 днів тому

    67 with a jacked up back. Still working. Most of my money is in a 401-k and traditional IRA. I do have a Roth IRA invested in bitcoin . Crap, just learned I earn to much to contribute.

  • @MWAWoodworks
    @MWAWoodworks 2 дні тому

    if you opt for the backdoor roth ira do you still have to obey the contribution limits of ($6000?) per year? Or can you do more?

  • @ethos9403
    @ethos9403 3 роки тому

    Thankyou for unselfishly sharing such useful info !!

  • @NgocNguyen-tk9dx
    @NgocNguyen-tk9dx 3 роки тому +3

    Thank you mr yang. Got into this cause of the meme stocks but after doing research and learning, this beats sports gambling. Will use my winnings from that and off season savings to my Roth IRA! I wish I knew about this while I was in the service. Will be watching your videos dude

  • @meaghanmcarthy7850
    @meaghanmcarthy7850 3 роки тому +2

    Really needed this video! Thank you! Love learning about retirement investing and other long term investments.

  • @Fernyg323
    @Fernyg323 3 роки тому +3

    Thank you for what you do! Definitely appreciated

    • @humphrey
      @humphrey  3 роки тому

      I appreciate that!

  • @Alex-wt7dp
    @Alex-wt7dp 3 роки тому +20

    Great content once again! I'm curious: do you have a video out nowadays along the lines of "Top 10 Financial Tips for New Graduates"? Something outlining the best/most neglected financial decisions that could greatly benefit those in the young adult population (i.e. things to know before starting out in the work force). Considering your majority demographic I feel that would be very well received, so if it doesn't exist I'd love to see something like that! :)

    • @humphrey
      @humphrey  3 роки тому +4

      That sounds like a great video topic lol 😂 might have to consider it. I appreciate that awesome comment

  • @amyrose2879
    @amyrose2879 2 роки тому +1

    I work for a catholic nursing home for the intellectually disabled that's church and state funded. They offer us 403b's which basically means if I put $1 in I get $1, they don't match it, half match it, no stocks to offer.. so thank you for this video! I need to start investing asap

  • @petecalhoun6205
    @petecalhoun6205 3 роки тому

    I made mistake #5 this year lol. I put in $5.85. I was able to correct it but talk about a miscalculation that could've cost me.... Don't over contribute. Good video.

  • @Rawrued
    @Rawrued 3 роки тому +12

    Hey Humphrey, question. I currently have a Roth 401k at work (i invest 7% of my wages towards it with a 5% being matched by my employer) and i also have a separate roth IRA and traditional IRA with vanguard. Currently contributing to my roth IRA with vanguard and i transferred money form a previous IRA account into my traditional IRA account but not currently contributing to it. What do you think of this?

    • @Rawrued
      @Rawrued 3 роки тому +2

      And also what do you think of target date funds as opposed to manually investing within the roth IRA?

    • @rickyaz8640
      @rickyaz8640 3 роки тому +8

      Roth and trad iras limited to 6k combined annually. Good to have tax diversification. The trad lowers your taxes this year, the Roth when you withdraw. Targets date funds are ok, no bonds in the Roth. Total market or an s&p 500 index funds better for the Roth. Let that puppy grow

    • @humphrey
      @humphrey  3 роки тому +2

      essentially what Ricky AZ said, you can have both for the tax diversity, and you can only contribute 6k a year (combined roth / trad). Agreew ith Ricky's points here.

    • @humphrey
      @humphrey  3 роки тому +2

      great response Ricky.

  • @kaylyncromer8320
    @kaylyncromer8320 3 роки тому

    You’re the best UA-camr I’ve seen as for things such as this. Thank you so much!

  • @stephlight123
    @stephlight123 2 роки тому

    Your videos are so helpful! Thank you so much Humphrey!

  • @kevinserrano5614
    @kevinserrano5614 3 роки тому +8

    still a senior in high school and im so glad im already thinking about retirement

    • @kevintierney5711
      @kevintierney5711 3 роки тому +2

      You can become a millionaire for 500 a month Kev. Just don’t live like one

    • @kevinserrano5614
      @kevinserrano5614 3 роки тому +1

      @@kevintierney5711 I’m living wayyyy below my means and tracking every cent, so I’m excited

  • @masiahmad3662
    @masiahmad3662 3 роки тому +5

    Such a great great like always, thank you for your all efforts.

  • @codyrienstra2366
    @codyrienstra2366 3 роки тому

    Thank you Humphrey, for the valuable info!!

  • @ericwhitwam5491
    @ericwhitwam5491 3 роки тому +1

    Love your videos, keep them coming

    • @bransontay.9232
      @bransontay.9232 3 роки тому

      Thanks for the review. +1 (3*-*2-1*) 2--0,0-*1-7'"4"1
      W*h*a*t*s*s*a*p,

  • @keefetube
    @keefetube 2 місяці тому

    Great video Humphrey Yang

  • @rickonmaui7054
    @rickonmaui7054 2 роки тому +1

    subscribed, months ago... you're so funny and yep, not gonna change my mind--at this point. lol.

  • @DavyYap
    @DavyYap 3 роки тому +1

    Great job! I just helped open a ROTH IRA for my mom.

    • @bransontay.9232
      @bransontay.9232 3 роки тому

      Thanks for the review. +1 (3*-*2-1*) 2--0,0-*1-7'"4"1
      W*h*a*t*s*s*a*p,

  • @stephenkileen1973
    @stephenkileen1973 2 місяці тому +1

    At what point does it make sense to bypass the roth ira for a pretax 403b or 457b? My wife and I are both teachers in california, so we both have access to a 403b AND 457b. Our marginal tax rate is 31.5 to almost 34%. Doesn't it make sense to take the tax savings now?

  • @heathers5329
    @heathers5329 3 роки тому +1

    No matching contributions for my 403b.. My employer should've mentioned this before introducing all these financial institutions for us to sign up for one. Now great portion of my money is in this mutual fund with high expense ratio ugh! Feels like I can save much more by investing in index funds and individual stocks in my Roth IRA and brokerage accounts. It took some years and lots of money for me to finally figure out how I want to invest for retirement. I hope I can go back to my first year of work 🙄

  • @kauigirl808
    @kauigirl808 3 роки тому +69

    I'm almost 50 and I just started 😭

    • @markpearson5730
      @markpearson5730 3 роки тому +17

      Me too. Im 49 and started a year ago. Wish I started 30 years ago. But money was hard to come by back then. I was also very nervous about investing. We did not have the apps and the internet back then. But never too late!! We still have time. Just have to stay consistent.

    • @easyroc75
      @easyroc75 3 роки тому +31

      The best time to plant a tree was 20 years ago. The next best time is today. Don't worry as long as you are doing it.

    • @markpearson5730
      @markpearson5730 3 роки тому +2

      @@easyroc75 Thank you

    • @ffnightranger
      @ffnightranger 3 роки тому +7

      Better late than never! It will be worth it.

    • @kauigirl808
      @kauigirl808 3 роки тому +3

      @Zio Oren almost 😳👀🙈

  • @misterdude206
    @misterdude206 3 роки тому +7

    I have a roth IRA. And my company also offers a roth 401k. And a pension. Im hoping I'm covered at retirement haha.

    • @humphrey
      @humphrey  3 роки тому

      I think you’ll be good as long as you consistently invest over time

  • @nats707
    @nats707 3 роки тому +1

    just subscribed. Good information.

  • @UNignorantpod
    @UNignorantpod 2 роки тому

    Great vid bro! Very informative! Thank you.

  • @adrian4657
    @adrian4657 Рік тому

    3:48 how is it free money? Why should I max my company’s 401k?

    • @alrocky
      @alrocky Рік тому +1

      Poorly written graphics. It should say contribute enough income to get maximum company 401(k) match. As written "Max out your 401(k)" implies $22,500 per year.

  • @NikBando
    @NikBando 3 роки тому

    Let's golf, Humphrey! Love the channel btw

  • @YAWPonthemic
    @YAWPonthemic 3 роки тому +27

    I'm all about that "get rich slow" 🐌

    • @UpDive8
      @UpDive8 3 роки тому +1

      Lol, keep rolling

    • @jahimuddin2306
      @jahimuddin2306 3 роки тому

      I do not mind getting rich fast but I know getting rich slow is a lot more feasible.

  • @ericdemilo2497
    @ericdemilo2497 2 роки тому

    Thank you for the advice. You are great! 😃😃😃

  • @jayk2563
    @jayk2563 3 роки тому +3

    Your videos explaining all of these complex info on retirement investing is like a well written essay.
    Very organized and well explained through and through.
    Thanks Mr.Yang!

  • @jakes5530
    @jakes5530 3 роки тому +1

    VTI or VOO on automatic deposit of $500 a month until retirement. Easy. Done.

  • @hartdav123
    @hartdav123 3 роки тому +7

    A mistake I didn't even know I was doing: I opened a Roth IRA at 18 though the bank, thinking it was the best thing I could do but I didn't know you had to actually buy investments though that account. My parents said don't let the bank manage it because of fees so when the bank said should we manage I was like "not falling for that! No thanks" and the 3k sat as cash earning less intrest than a checking account. At 20 I was like this is pointless I'll close it out and paid the penalty on the $0.48 I earned.
    8 years later I stated learning about the FIRE movement and re opened a Roth maxed it out and started maxing the 401k/ Roth401k at work. Next year I'll max everything out again and continue saving in a brokerage acount for an early retirement.

    • @ryanjaramillo8152
      @ryanjaramillo8152 3 роки тому

      I did the same thing but in my 30s haha. I let $3500 sit for close to a year before I realized I had to pick my own investments.

    • @charlieegen23
      @charlieegen23 3 роки тому

      I did the same exact thing at 18. Was not sure exactly how it worked and at 21 I realized I needed to buy stocks. So I have just kept contributing to vtsax index fund

    • @kimberlyu8080
      @kimberlyu8080 3 роки тому

      I did the same thing at 17 omg lol

    • @SantosProd
      @SantosProd 3 роки тому

      @@charlieegen23 is this managed alone?

    • @charlieegen23
      @charlieegen23 3 роки тому

      @@SantosProd Yes I manage it by myself

  • @caseycantrell-gh6fg
    @caseycantrell-gh6fg 3 місяці тому +213

    Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

    • @caseycantrell-gh6fg
      @caseycantrell-gh6fg 3 місяці тому

      @Ingridlourd02 However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.

    • @caseycantrell-gh6fg
      @caseycantrell-gh6fg 3 місяці тому

      Lookup with her name on the webpage

    • @caseycantrell-gh6fg
      @caseycantrell-gh6fg 3 місяці тому

      @Ingridlourd02 You are welcome .

  • @krakken11354
    @krakken11354 3 роки тому +1

    Lots of good info here thanks 🙏🏼

    • @humphrey
      @humphrey  3 роки тому

      Glad it was helpful!

  • @alejandrorosales2863
    @alejandrorosales2863 3 роки тому +1

    Love your videos!! They help so much :)

  • @IrvOfficial
    @IrvOfficial 3 роки тому +15

    Solid drop man

  • @MrRdiazfam1989
    @MrRdiazfam1989 3 роки тому +1

    Wow great video great advice i learned alot. You have earned a new subscriber Cheers mate 🍻

  • @onlyisai
    @onlyisai 2 роки тому +3

    I love the clarification that any form of retirement investing is a great place to be and progress is progress! This releases so much of the pressure that we need to constantly push all limits all the time. I appreciate you for that 🙌🏼

  • @davidchamlee8820
    @davidchamlee8820 3 роки тому

    Hey, thanks for your content! I'm really appreciating and benefiting from it.
    One recommendation: You recommend your three fund portfolio recommendation video. While I was able to peruse your channel and find this video, I would simply recommend linking in the description all videos you make reference to in the body of this video.
    Again, really enjoying and learning from your content.
    Thanks!

  • @amazoncouponcodes8992
    @amazoncouponcodes8992 3 роки тому +1

    can we trade in Roth IRA like normal brokerage? buying and selling stocks, buying/selling cash secure puts or covered calls?

  • @jasonmelanconjm
    @jasonmelanconjm 3 роки тому +4

    Could you follow up with the Over-contributions part? By $6,000 a year, does that mean you can only contribute a maximum of $6,000 across all of your IRA’s combined?

    • @alrocky
      @alrocky 3 роки тому

      Yes: Roth IRA contribution plus traditional IRA contributions may not exceed $6,000 per year.

    • @alcapony732
      @alcapony732 2 роки тому +1

      You can contribute 6k to your Roth and 6k to your traditional IRA. Roth gains are tax after your 59.5 years old and gains in your traditional IRA are taxed based on time the securities are held. If you hold stock in your traditional IRA for 10 years and sell it when you retire its taxed less than if you only held for one year.

    • @alrocky
      @alrocky 2 роки тому

      @@alcapony732 "You can contribute 6k to your Roth *_and_* 6k to your traditional IRA." That is incorrect since if one contributes *$6,000* to their Roth IRA they can no longer contribute any amount to their traditional IRA.

    • @alcapony732
      @alcapony732 2 роки тому

      @@alrocky since when? I max out both for me and my wife every year

    • @alrocky
      @alrocky 2 роки тому

      @@alcapony732 "For 2022, 2021, 2020 and 2019, the total contributions you make each year to *all* of your traditional IRAs and Roth IRAs can't be more than: *$6,000* ($7,000 if you're age 50 or older)" --- From IRS website.

  • @EDUAROSOLAS
    @EDUAROSOLAS 3 роки тому

    8:55. Stock values go up. There is no compounding. You don't get paid interest for investing.

    • @wastelanddan7388
      @wastelanddan7388 3 роки тому +1

      You can get dividends from dividend investing though. Idk, i havnt made it to that part of the video yet

    • @autonomouscollective2599
      @autonomouscollective2599 3 роки тому

      I own PNC stock and get dividends every quarter.

  • @BigPapiNick
    @BigPapiNick 4 місяці тому

    Your advisor is likely gonna put you in their company's funds which will more than likely underperform, cost more or both. Unless you make a lot and need tax advice. There is no need for a advisor. S&p 500 only or do a target date retirement and you'll never have to adjust your portfolio. Its a waste of like 200k over the long term because that's what it will cost you of it's not fee based

  • @hcrystalh
    @hcrystalh 3 роки тому

    Good informative video. One comment though. I don’t think the government allowing people to convert their trad iras to Roth IRAs is dumb on their part. Not sure if it’s considered a loophole. The reason they allow people to do it this way is because people typically convert big chunks at a time. The government is hoping that some of that money will be taxed at a higher rate, higher than their highest bracket. Every little bit counts to the house, even 1% adds up big time for them!

  • @Tblade_DareToBeDifferent
    @Tblade_DareToBeDifferent 5 місяців тому

    Great video!

  • @raymundomanzo8348
    @raymundomanzo8348 3 роки тому +4

    I started one back in 2019 when I was 17 but I wasn’t aware that you could invest your Roth IRA I made it with my bank and I figured it was just a fixed interest that they’d give me how does that work? Should I rollover to a brokerage or what advice would you give me?

    • @humphrey
      @humphrey  3 роки тому

      Yeah roll over to a brokerage is a good idea.

    • @raymundomanzo8348
      @raymundomanzo8348 3 роки тому +1

      @@humphrey thank you for the quick response, love your videos btw I appreciate them a lot

  • @Chinese080808
    @Chinese080808 3 роки тому +1

    Hi Humphrey! Great videos and great job! I am particularly impressed with your insight and so focused. 👍

    • @humphrey
      @humphrey  3 роки тому

      Awesome, thank you! I appreciate you watching

  • @LHA2522
    @LHA2522 3 роки тому +2

    Thanks for the info! Can you please make a video detailing real estate investment?

    • @humphrey
      @humphrey  3 роки тому

      I think I have one on my channel "Real estate vs stocks" but I can make more in the future.

  • @majedijudeh5814
    @majedijudeh5814 3 роки тому +2

    So I'm on vanguard and I now have to pick my own etfs and shares. You have any favorite etfs ?

    • @mirandamcmahon2950
      @mirandamcmahon2950 3 роки тому +3

      He did a video back in January where he showed what he had in his Roth IRA. I believe that some of the ones he included were VTI and VOO. There was an international one as well but I don’t remember the name.

    • @humphrey
      @humphrey  3 роки тому +1

      Watch the "Simple Investing Portfolio" video, i mostly have VTI, VOO, VEU, BND.

    • @humphrey
      @humphrey  3 роки тому

      thanks Miranda! Good eye.

    • @prettylittlemissy
      @prettylittlemissy 3 роки тому

      Did you end up buying any ETF? If so, how much of each did you buy?

  • @misskristinn
    @misskristinn 3 роки тому

    Loveeee these tips!

  • @kuyapatz211
    @kuyapatz211 3 роки тому

    These videos are so great. Humphrey, could you do a video on Roth Conversions? How to do it? When to do it?

  • @tomj528
    @tomj528 3 роки тому

    Third party sick pay reported in box 1 on a W-2 also make you eligible to contribute to a IRA/Roth IRA account as well.

  • @ejcm55
    @ejcm55 3 роки тому +3

    Thanks for the explanations. Now a question. I am 65 and retired. I want to withdraw a small amount from my Roth. The Roth is less then 5 years old. The funds in the Roth came from a regular IRA in the form of mutual funds and bonds. Can I withdraw tax free ?

    • @bigshoe84
      @bigshoe84 3 роки тому +1

      If you paid the taxes when you rolled them into the Roth then I would say yes

  • @kyleseverson6623
    @kyleseverson6623 3 роки тому +2

    So let's say your company offers a retirement plan such as a 401k, but you want to open up a Roth IRA. Could you end up starting both a Traditional 401k with the company you work for and start a Roth IRA? All I know for sure is the company I work for does provide a 401k plan that matches to a certain %, but I don't know if they offer as well a Roth IRA/401k plan instead of traditional. I would have to find out more information.

    • @calvarado336
      @calvarado336 3 роки тому +2

      Hey Kyle, yes you can start a traditional 401k with your company and a Roth IRA of your own. The 401k with mainly be handled by your company. They will use pre-tax money you received to invest in funds of their choice. With a Roth IRA you will be managing it yourself. Contributing after-tax money into the account and investing into various stocks, funds, etc. It is great to have both options available so you can have two separate retirement accounts to receive money from when you retire,

  • @gabrielmatas3436
    @gabrielmatas3436 Рік тому +7

    i set up a roth ira with fidelity. Thanks man

  • @Stickyickygnar
    @Stickyickygnar 3 роки тому

    So I’ve had my Roth since I was 18 maxing it every year.I’m 25 now and started my 401k 2yrs ago. Make me not so depressed about the estimated inflation. If I’m correct the estimated 1.8 mill will be equivalent to about 300k today.

  • @natedogg9999
    @natedogg9999 2 роки тому

    I really like Acorn Roth IRA. Very easy to use.

  • @33ladyRAM
    @33ladyRAM 3 роки тому

    Another great video, new subee. Thank you

  • @michaelmendoza8905
    @michaelmendoza8905 3 роки тому

    Great educational video!!!

  • @desiree9723
    @desiree9723 3 роки тому +1

    Hi! How do I choose a brokerage to open a Roth IRA with? Do you have a review of the best companies to open an IRA with?

    • @bransontay.9232
      @bransontay.9232 3 роки тому

      Thanks for the review. +1 (3*-*2-1*) 2--0,0-*1-7'"4"1
      W*h*a*t*s*s*a*p,