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.
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?
@@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?
@@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.
@@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.
1. Not using/ “skipping” a Roth IRA 2. Not understanding contribution 3. Withdrawing early 4. Speculative investments 5. Contributing too much Basically, do it.
Retirement arrives sooner than expected for many people: health reasons, layoffs, family obligations, etc. Great advice to be consistent over long period of time.
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
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.
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.
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.
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.
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.
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.
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
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!
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.
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.
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.
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.
Ayaya... I am #5, #3, and #2. In that order. In 2022 I did not know anything about this stuff when I was in school, but I was making extra money and I was recommended to create a Roth IRA account and just add $50 every check... well I was not doing anything besides studying and with minimal bills, so i began contributing more... before I realized, I had an opportunity to buy a new car and was recommended to pull it out. I had previously tried to transfer it to my 401k at my new job and that did not work. I was recommended to end the ROTH IRA account so I withdrew all, bought the new car and about 3 months later, began throwing money into it again, have not stopped. in 2025, I am finally trying to take this seriously and start investing.
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.
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
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?
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
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)
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.
@@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?
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?
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.
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?
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
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..
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.
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.
@@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?
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! :)
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
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.
@@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.
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?
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.
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
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.
@@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.
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.
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.
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
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!
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.
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.
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.
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
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.
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?
@@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
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).
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!
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?
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?
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
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.
I'm 73 yrs and retired. I with drew funds from Self Direct IRA to to reinvest in buying Treasury Bills. Didn't use it for personnel use. Just to reinvest. How to report this to the IRA so I won't be taxed at the end of the year.
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.
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
Host: You have an error at 1:24. The A in IRA does not stand for Account. It stands for Arrangment. People have IRA (Individual Retirement Arrangment) accounts not (Individual Retirement Account) accounts. The 'arrangment' stems from the tax laws that created them. You seem honest and truly want to help others prepare for a financially sound future, I commend you. To put your channel above the rest, make sure, your information is always spot on accurate. I suggest referencing accounting and legal sources, when it comes to terminology. Being strict with accuracy is the key that will open the door to the more subscribers you want, in my opinion. To be frank, as soon as I heard you say (and visualize it) IRAs are Individual Retirement Accounts, I immediately tuned out. An increased effort on the subject matter will go a long way to supplement the effort you have already shown in your setup and presentation, both of which are done really well. Good luck on the long term!
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.
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.
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
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 🙄
Thanks for the video; it is very helpful! It looks like Core position in my Traditional IRA was money market, and apparently I earned $5 in it. I have transferred $7,000 from my bank account to Traditional IRA. Should I transfer $7,000 from Traditional IRA to Roth IRA or $7,005 ? Please advise
Kinda crazy that I asked my accountant in the past year that I wanted a Roth IRA account and he said I dont qualify and didn’t know about the backdoor . I’m kinda pissed thinking about it.
I have a Roth IRA and a traditional IRA. Is the $6,000 limit for both of those combined or for each one separately? And if it’s for both combined how do I fix this mistake before the penalty hits? Thanks.
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
GREAT content. I’m just getting serious about my retirement and educating myself on all options available to me. I appreciate your authenticity. You were one of the first accounts I followed on TikTok. Don’t know why it took me so long to subscribe to your YT, but I’m here now 😆 keep up the great work!
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 ?
Opened my RothIRA today and was told I’ve overspent my account cash avail. Huh? How could this be possible when I could only buy when funds were avail, also my account has shown positive return so far on the final total investment positions and I never withdrawn $ since I started this account years ago. Maybe you could make a video or give me advice on what to do and where to report problems?
You mentioned something very interesting about making to much money and not qualifying, can you talk more about that? Right now i make around 72k before tax and yes im expecting to be Making 100k in some time , how i prepare myself for success, i wanna keep taking advantage of the RothIRA till i retire, im 29 if that matters.
Answered a few of my questions! Thank you! I did have a question tho I still work a 9 -5 job and yeah expenses to pop up. Would it better to open individual brokerage account so I can withdraw when needed or should I just stick with the ROTH and pay the penalty fee for withdrawing? I know now from a ROTH you can withdraw the contributions tax and penalty free can I re contribute that money? All this makes my head spin I need to marry a CFP
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.
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.
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
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.
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.
Can't agree more.
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?
@@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?
@@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.
@@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.
1. Not using/ “skipping” a Roth IRA
2. Not understanding contribution
3. Withdrawing early
4. Speculative investments
5. Contributing too much
Basically, do it.
Thank you
Retirement arrives sooner than expected for many people: health reasons, layoffs, family obligations, etc. Great advice to be consistent over long period of time.
Well said
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
Consider financial advisory so you don’t keep switching it up... those sound like great picks anyways, not bad for 350k
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.
This is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing
My CFA “Diana Casteel Lynch” a renowned figure in her line of work. I recommend researching her credentials further.
Found her webpage, I wrote her an email and scheduled a call. Hopefully she responds. Thank you.
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.
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.
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.
@@mikegarvey17Could you possibly recommend a CFA you've consulted with?
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.
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.
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
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!
Glad to help!
@@humphrey where to start which bank o investment company is better more secure?
Hope you had a good first year on your Roth!
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.
consider financial advisory so you don’t keep switching it up... those sound like great picks anyways, not bad for 350k
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.
this is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing
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.
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
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.
The actual biggest mistake is putting money in a retirement account and not actually investing it in the account
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.
I started seriously at 40. Made mistakes in my 20s and 30s. I’m smarter than ever now.
Good timing, just looking into opening a Roth IRA!
hell yea!
Me too
SAME! I'm turning 27 this year and I'm not getting any younger haha
Ayaya... I am #5, #3, and #2. In that order. In 2022 I did not know anything about this stuff when I was in school, but I was making extra money and I was recommended to create a Roth IRA account and just add $50 every check... well I was not doing anything besides studying and with minimal bills, so i began contributing more... before I realized, I had an opportunity to buy a new car and was recommended to pull it out. I had previously tried to transfer it to my 401k at my new job and that did not work. I was recommended to end the ROTH IRA account so I withdrew all, bought the new car and about 3 months later, began throwing money into it again, have not stopped. in 2025, I am finally trying to take this seriously and start investing.
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.
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
I opened my Roth IRA a couple months ago and this is solid advice for me. Thanks!
Glad it was helpful!
What brokeage account you use?
Right, which brokerage did you use and what did you buy? Index funds? Mutual funds? ETFs?
My man, your videos are simple and easy to follow. Love the structure and I look forward to future drops!
Thanks for the review. +1 (3*-*2-1*) 2--0,0-*1-7'"4"1
W*h*a*t*s*s*a*p,
2 minutes into this and I can tell it’ll be a banger
W.A
1==6==1==5==4==7==5==8==2==4==9
F.o.r, e.x.p.e.r.t
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?
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
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)
Could you possibly recommend a CFA you've consulted with?
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.
I just checked her out on google and I have sent her an email. I hope she gets back to me soon.
I’m 32 , I’ve been saving for retirement for 7 years and counting
Welll done!
Congrats!! I started when i was 24. Im 25rn. Still trying to get the hang of things lol
@@JimBobe me as well ! Congrats to everyone taking their financial security into their own hands & I wish you all well !! Keep growing and learning
I know I won’t be able to even begin until I’m at least 25
@@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?
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?
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.
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?
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
Spend it.
You write like a 3 yr old
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..
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 :)
Thanks for the review. +1 (3*-*2-1*) 2--0,0-*1-7'"4"1
W*h*a*t*s*s*a*p,
best breakdown on youtube of this topic, thanks so much. subbed
Awesome, thank you!
Thanks for the great video. It was my first time watching your channel. Great information.
Humphrey, I predict you’ll 3-4x your sub count this year. Content is too good
Wow I feel old when you say that 😂. I'm 45 and I have been watching for years now.
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.
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.
@@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
@@Elliot-Ivan My advisor is Victoria Carmen Santaella;
You can look her up online
@@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?
Great advice bud. Appreciate all your videos
You’re the best UA-camr I’ve seen as for things such as this. Thank you so much!
thank you Kaylyn!
I will be opening a Roth IRA soon, thank you so much for all the info you provide us!
Love the content! It’s very simple and easy to understand
Thx Peter!
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! :)
That sounds like a great video topic lol 😂 might have to consider it. I appreciate that awesome comment
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
Thankyou for unselfishly sharing such useful info !!
still a senior in high school and im so glad im already thinking about retirement
You can become a millionaire for 500 a month Kev. Just don’t live like one
@@kevintierney5711 I’m living wayyyy below my means and tracking every cent, so I’m excited
Your videos are so helpful! Thank you so much Humphrey!
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.
*_Back_** **_door_* Roth IRA ($6,000) is still available for those over the income limit.
@@alrocky what is income limit? Thank you
@@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.
Thank you for the advice. You are great! 😃😃😃
Thank you Humphrey, for the valuable info!!
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?
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
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.
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?
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
Saving and investing goes along side. Those who are able to identify aside key stocks are therefore likely to boost their investments this year.
This is the time to invest more money like never before, for stock market, these are the best times.
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.
Making the decision to embark on my investing journey really set me up for greater financial independence
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.
@@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.
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.
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.
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
@@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?
@@martingiavarini Found her online page by searching her full name, I wrote her an email and scheduled a call, hopefully she responds.
@@martingiavariniindex funds out earn over 90% of professional advisors.
subscribed, months ago... you're so funny and yep, not gonna change my mind--at this point. lol.
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!
Thank you for what you do! Definitely appreciated
I appreciate that!
Let's golf, Humphrey! Love the channel btw
Great video Humphrey Yang
Really needed this video! Thank you! Love learning about retirement investing and other long term investments.
Great job! I just helped open a ROTH IRA for my mom.
Thanks for the review. +1 (3*-*2-1*) 2--0,0-*1-7'"4"1
W*h*a*t*s*s*a*p,
Such a great video, just opened my Roth IRA a couple months ago and have started making smart long term investments for my retirement
just subscribed. Good information.
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?
Love your videos, keep them coming
Thanks for the review. +1 (3*-*2-1*) 2--0,0-*1-7'"4"1
W*h*a*t*s*s*a*p,
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..
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.
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.
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.
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.
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
Great vid bro! Very informative! Thank you.
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.
They actually do just that, after April it will go up to 6500 a year.
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?
@@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
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).
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!
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?
I'm all about that "get rich slow" 🐌
Lol, keep rolling
I do not mind getting rich fast but I know getting rich slow is a lot more feasible.
Hi Humphrey! Great videos and great job! I am particularly impressed with your insight and so focused. 👍
Awesome, thank you! I appreciate you watching
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?
And also what do you think of target date funds as opposed to manually investing within the roth IRA?
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
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.
great response Ricky.
I'm 73 yrs and retired. I with drew funds from Self Direct IRA to to reinvest in buying Treasury Bills. Didn't use it for personnel use. Just to reinvest. How to report this to the IRA so I won't be taxed at the end of the year.
i set up a roth ira with fidelity. Thanks man
I'm almost 50 and I just started 😭
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.
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.
@@easyroc75 Thank you
Better late than never! It will be worth it.
@Zio Oren almost 😳👀🙈
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
Such a great great like always, thank you for your all efforts.
Thanks again!
Host:
You have an error at 1:24.
The A in IRA does not stand for Account. It stands for Arrangment.
People have IRA (Individual Retirement Arrangment) accounts not (Individual Retirement Account) accounts.
The 'arrangment' stems from the tax laws that created them.
You seem honest and truly want to help others prepare for a financially sound future, I commend you.
To put your channel above the rest, make sure, your information is always spot on accurate. I suggest referencing accounting and legal sources, when it comes to terminology.
Being strict with accuracy is the key that will open the door to the more subscribers you want, in my opinion. To be frank, as soon as I heard you say (and visualize it) IRAs are Individual Retirement Accounts, I immediately tuned out.
An increased effort on the subject matter will go a long way to supplement the effort you have already shown in your setup and presentation, both of which are done really well. Good luck on the long term!
Ive been thinking of retirement since I started as a nurse. My best investment was buying NVAX at $12 bucks inside my ROTH
Amazing
I bought Ehang at $11.19 in my Roth. Now at $124.00
@@ejcm55 now at $63
@@loydsmith7297... And I bought more. Life is good.
@@ejcm55 Yesir buy the dips, they will be worth 100+ easily long term
Great video!
Wow great video great advice i learned alot. You have earned a new subscriber Cheers mate 🍻
Thanks for the info! Can you please make a video detailing real estate investment?
I think I have one on my channel "Real estate vs stocks" but I can make more in the future.
I really like Acorn Roth IRA. Very easy to use.
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.
Love your videos!! They help so much :)
I'm so glad!
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.
Solid drop man
Appreciate it!!
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
These videos are so great. Humphrey, could you do a video on Roth Conversions? How to do it? When to do it?
Lots of good info here thanks 🙏🏼
Glad it was helpful!
FIRE GOLFer here - and very few understand why I've decided to "not work" so early in life.
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 🙄
Thanks for the video; it is very helpful! It looks like Core position in my Traditional IRA was money market, and apparently I earned $5 in it. I have transferred $7,000 from my bank account to Traditional IRA. Should I transfer $7,000 from Traditional IRA to Roth IRA or $7,005 ? Please advise
Kinda crazy that I asked my accountant in the past year that I wanted a Roth IRA account and he said I dont qualify and didn’t know about the backdoor . I’m kinda pissed thinking about it.
I have a Roth IRA and a traditional IRA. Is the $6,000 limit for both of those combined or for each one separately? And if it’s for both combined how do I fix this mistake before the penalty hits? Thanks.
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
yeah M1 would be great for that.
What did you buy? ETFs? Index funds?
8:55. Stock values go up. There is no compounding. You don't get paid interest for investing.
You can get dividends from dividend investing though. Idk, i havnt made it to that part of the video yet
I own PNC stock and get dividends every quarter.
can we trade in Roth IRA like normal brokerage? buying and selling stocks, buying/selling cash secure puts or covered calls?
Thanks for the review. +1 (3*-*2-1*) 2--0,0-*1-7'"4"1
W*h*a*t*s*s*a*p,
Yes you can!
question. what happens if i have a roth ira but i get a job that exceeds the limit to contribute? do i lose my savings?
GREAT content. I’m just getting serious about my retirement and educating myself on all options available to me. I appreciate your authenticity. You were one of the first accounts I followed on TikTok. Don’t know why it took me so long to subscribe to your YT, but I’m here now 😆 keep up the great work!
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 ?
If you paid the taxes when you rolled them into the Roth then I would say yes
Opened my RothIRA today and was told I’ve overspent my account cash avail. Huh? How could this be possible when I could only buy when funds were avail, also my account has shown positive return so far on the final total investment positions and I never withdrawn $ since I started this account years ago. Maybe you could make a video or give me advice on what to do and where to report problems?
The earlier you start ,the easier it will be, wish l would have started earlier. The magic of compound interest.
Another great video, new subee. Thank you
You mentioned something very interesting about making to much money and not qualifying, can you talk more about that? Right now i make around 72k before tax and yes im expecting to be Making 100k in some time , how i prepare myself for success, i wanna keep taking advantage of the RothIRA till i retire, im 29 if that matters.
I have a roth IRA. And my company also offers a roth 401k. And a pension. Im hoping I'm covered at retirement haha.
I think you’ll be good as long as you consistently invest over time
Answered a few of my questions! Thank you! I did have a question tho I still work a 9 -5 job and yeah expenses to pop up. Would it better to open individual brokerage account so I can withdraw when needed or should I just stick with the ROTH and pay the penalty fee for withdrawing? I know now from a ROTH you can withdraw the contributions tax and penalty free can I re contribute that money? All this makes my head spin I need to marry a CFP
Loveeee these tips!
Great educational video!!!
So I assume Veteran disability isn’t earned income either for a Roth IRA? If not is a regular taxed stock or brokerage account my only option?
Not reported, not income.
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.
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.
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.
Do you have any recommendations? I’m looking for a CFP to help grow my retirement account.
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
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.