I started using Robinhood this year, it definitely has been working well for me. Webull just has too many hoops to jump through and seems just unnecessarily complicated. Love this video and your calculator explanations, I geek out over that stuff too
Webull is taxable. Webull can also claw back if you withdraw early, which means they charge you AFTER tax money, but your match was taxed. Therefore you could end up underwater w webull For example say Webull gives you 1k, you pay taxes so only net, say, 600. Later you withdraw early, triggering clawback, then they'll deduct 1k from your taxable acct. You're now 400 underwater
Webull sucks and isn't an American company. Obviously their 4.5 is very misleading when you read the fine print. Thanks for pointing this out to investors. Very valuable content here
2 things for me - 1. I would have liked to see a comparison with continuous contributions to the accounts and also what if we can get the 4.5% bonus from referring somebody? Does it trump the RH offer or is still something to consider? 2. IMO, the RH promotion pairs well with their credit card since you can earn 3% on all your purchases with no cap limit and have it deposited directly to your IRA.
Wouldn't the WeBull first bonus be paid out at the end of year one? Your calculator at 14:23 and the chart at 14:38 show it being paid out immediately. And the Robinhood one is the opposite, too.
Getting an upfront 6k bonus IRA match which I can earn an average of 1.5% per month compounding for 5 years, would be $8,659 ROI + 6k RH match = $14,659. And that $60 annual membership fee for 5 years comes out to be $300. RH is a choice I would take. Of course for someone with 200k to transfer, that 6k is just a loose change.
I'm going with Robinhood because of the match going in right away, with me investing it asap. In the event that Robinhood and WeBull go belly up sometime during the next 5 years then I suspect my chance of keeping the match is better by having it upfront rather than as a promise from a defunct company.
It shouldn’t be but I think for a lot of people it wouldn’t work since they would tap into the money. I have no objectively verifiable statistics for this, just my gut 🤷♂️
at around 10:00, your percentages are off by a factor of 10... you say 1%, but it's 0.1% (1/10th of a percent). All the numbers are 1/10th of what you say.... $20,000 is 0.286% of $7 Million. this is a weak bonus.
I've had my Roth IRA and Vanguard for a couple of decades or so. I won't be moving. It is out of sight and out of mind. Every payday, a prorated amount is pulled from checking to get me to the legal limit every year. My problem with putting it in an investing app is that it would be tempted to look at it often and fiddle with it. Vanguard has an antiquated UX so it discourages fiddling.
Exactly the reason i did transfer away from Vanguard. I fiddle with my IRA probably more than i should (trade individual stocks and options) and those 3 days to settle is killer. So many missed opportunities, but you probably don't follow the market on a daily basis so passive might work best for you.
To be fair with that spreadsheet comparison, we’re ignoring inflation, over those 5 years the true value of that match is lessened which is something the calculation wasn’t taking into account.
Please forgive my stupidity on this, but my brain just doesn't get it. If we have a lump sum Roth 401k for example, and we can get access to it due to the "Rule of 55" (no IRS penalty), why would we put on 5 year "handcuffs" from either of these? Why not do lump sum into 6 month CDs paying 5% +, then just roll them over every 6 months? This would provide MUCH better access with less time locked up. Seems like the compound effect would be better, but again, I feel stupid on this. Please tell me what I am missing.
Definitely not stupid! I think there’s not a perfect answer for everyone so we need not waste time snipe hunting. One potential reason to shy away from the idea of a CD ladder is that future rates likely may not be what current rates are. I get the feeling that you spend enough time and energy on this subject to sort it out though. The average person doesn’t even know that a Roth 401k exists
@@BrendanEvan Thank you for a quick response! Yes, my company had a matching 401k and back in 2015, Fidelity offered us the ability to convert that to a Roth 401k, and spread out the tax liability over 3 years, and I jumped at it. So I guess what I thought was you would get the entire 5%+ in a 6 month time span, instead of 3-3.5% over 5 years. So every 6 months, you have a higher start. Maybe I am thinking APY + compound factor would be much greater for total gain after 5 years. Even if you allow for interest rates to fluctuate, the compound time rate has a much faster turnover. You seem awesome at charts over time, could you possibly do a video to compare that? Thanks again.
Think your going to find you may have made another mistake with JEPQ. All of the covered call etfs are going to essentially be depreciating assets. Fine for current income but not great for long term investing. You can run some portfolio analyser backtests with QYLD to watch it in practice over 10/12 years. The second problem is my instinct is JEPQ is not going to pay qualified dividends, so you are going to have a much higher tax bill on that yeild. You may have found a new different yeild trap. There may be a person that a covered call etf is right for, but dont think you're it. Would really only be suited for somone who does not have the time or attention to detail to make monthly or quarterly share sales to generate current income.
@@BrendanEvan haha looks like the video playlist kept rolling as I was typing. Think my comment is going to confuse a lot of folks wanting to know about IRAs, but you get me, mentally apply that comment to today's video. Good luck on the dividend journey. And just one more JEPQ note, I decided to go check and the prospectus says it pays ordinary income which is what you would expect from the call income, but some folks seem to report getting qualified dividends as well, my gut is some brokers are just making an error on the 1099s so time will tell.
Nope! “You can withdraw your Roth IRA contributions at any time and for any reason with no tax or penalties. That's because the contributions are made using after-tax dollars, so you've already paid income taxes on that money.” www.investopedia.com/roth-ira-withdrawal-rules-4769951
In your final numbers, you didn't throw in the cost of Robinhood Gold. I think that takes Robinhood's percentage down just a bit more since you have to pay for it for at least 2 years. Great video though. I also though Robinhood's would result in a larger amount because of the 5 years compounding. Crazy to see those numbers.
@@ghrxzia7488 my opinion is neither one, but the robinhood one does give the money up front, and it can be earning interest for the 5 years it has to stay on the platform. So, in my opinion the robinhood one edges out webull.
It's a $60 membership fee. No difference from the Costco membership fee. Just sell 30 days out of 3 contracts cash secure put on Siri and you get that $60 back.
I started using Robinhood this year, it definitely has been working well for me. Webull just has too many hoops to jump through and seems just unnecessarily complicated. Love this video and your calculator explanations, I geek out over that stuff too
Webull is taxable. Webull can also claw back if you withdraw early, which means they charge you AFTER tax money, but your match was taxed. Therefore you could end up underwater w webull
For example say Webull gives you 1k, you pay taxes so only net, say, 600.
Later you withdraw early, triggering clawback, then they'll deduct 1k from your taxable acct. You're now 400 underwater
The 4.5 percent webull referee is only on FIRST transfer. Another gotcha. It's not valid on multiple transfers
Webull sucks and isn't an American company. Obviously their 4.5 is very misleading when you read the fine print. Thanks for pointing this out to investors. Very valuable content here
2 things for me -
1. I would have liked to see a comparison with continuous contributions to the accounts and also what if we can get the 4.5% bonus from referring somebody? Does it trump the RH offer or is still something to consider?
2. IMO, the RH promotion pairs well with their credit card since you can earn 3% on all your purchases with no cap limit and have it deposited directly to your IRA.
I thought you were answering my question regarding the ax, but this happened 3 months ago! 😂😂
Quality content and commentary, subbed
Wouldn't the WeBull first bonus be paid out at the end of year one? Your calculator at 14:23 and the chart at 14:38 show it being paid out immediately. And the Robinhood one is the opposite, too.
i know everyone in different situations but i don’t mind holding for five years
Agreed, I’m not withdrawing anything anywhere for retirement for at least 10-14 years and this trad IRA will be at least 25!
Robinhood. Thanks for the video
do webull and robinhood transfer the vanguard funds ( not ETF ) from IRA
I'm sure someone somewhere will transfer mutual funds (I assume that's what you're asking about) but I have yet to find them.
Getting an upfront 6k bonus IRA match which I can earn an average of 1.5% per month compounding for 5 years, would be $8,659 ROI + 6k RH match = $14,659.
And that $60 annual membership fee for 5 years comes out to be $300. RH is a choice I would take. Of course for someone with 200k to transfer, that 6k is just a loose change.
I'm going with Robinhood because of the match going in right away, with me investing it asap. In the event that Robinhood and WeBull go belly up sometime during the next 5 years then I suspect my chance of keeping the match is better by having it upfront rather than as a promise from a defunct company.
My biggest problem with Webull is that they are owned by the Chinese Communist Party. The bonus is great, but you might never see the money.
IRA accounts are FDIC insured upto 250,000.
I just thought the axe is like, “listen to me or else”.. haha but that axe is really weird.
ha!
Why is 5 years such a big deal? Do you plan on pulling out your money in your Ira before you retire? I don’t
It shouldn’t be but I think for a lot of people it wouldn’t work since they would tap into the money. I have no objectively verifiable statistics for this, just my gut 🤷♂️
@@BrendanEvan ahh gotcha. Good content thx 🙏🏻
why are you holding an axe in the intro?
Your M1 bonus analysis is way wrong. $250 is only one tenth of one percent of $250k, not one percent.. You're off by an order of magnitude.
You’re right and my mental math while filming a video was wrong. Thanks for being the number police 👮♂️ 🧮
does robinhood offer cash sweeps within the IRA? or is that only for their taxable brokerage?
Just taxable brokerage
Love the 🪓 quote.
I'm going to stick with Robinhood.
$250,000/250=0.1% not 1% for the Vanguard Bonus.
Why were you holding an Axe at the start? lol 😅😅😅
at around 10:00, your percentages are off by a factor of 10... you say 1%, but it's 0.1% (1/10th of a percent). All the numbers are 1/10th of what you say.... $20,000 is 0.286% of $7 Million. this is a weak bonus.
Doing math in my head live fails again, also someone already pointed this out. Def a weak bonus
I've had my Roth IRA and Vanguard for a couple of decades or so. I won't be moving. It is out of sight and out of mind. Every payday, a prorated amount is pulled from checking to get me to the legal limit every year. My problem with putting it in an investing app is that it would be tempted to look at it often and fiddle with it. Vanguard has an antiquated UX so it discourages fiddling.
Exactly the reason i did transfer away from Vanguard. I fiddle with my IRA probably more than i should (trade individual stocks and options) and those 3 days to settle is killer. So many missed opportunities, but you probably don't follow the market on a daily basis so passive might work best for you.
To be fair with that spreadsheet comparison, we’re ignoring inflation, over those 5 years the true value of that match is lessened which is something the calculation wasn’t taking into account.
Not saying it’s a massive difference though just something I was thinking about
Please forgive my stupidity on this, but my brain just doesn't get it. If we have a lump sum Roth 401k for example, and we can get access to it due to the "Rule of 55" (no IRS penalty), why would we put on 5 year "handcuffs" from either of these? Why not do lump sum into 6 month CDs paying 5% +, then just roll them over every 6 months? This would provide MUCH better access with less time locked up. Seems like the compound effect would be better, but again, I feel stupid on this. Please tell me what I am missing.
Definitely not stupid! I think there’s not a perfect answer for everyone so we need not waste time snipe hunting. One potential reason to shy away from the idea of a CD ladder is that future rates likely may not be what current rates are. I get the feeling that you spend enough time and energy on this subject to sort it out though. The average person doesn’t even know that a Roth 401k exists
@@BrendanEvan Thank you for a quick response! Yes, my company had a matching 401k and back in 2015, Fidelity offered us the ability to convert that to a Roth 401k, and spread out the tax liability over 3 years, and I jumped at it. So I guess what I thought was you would get the entire 5%+ in a 6 month time span, instead of 3-3.5% over 5 years. So every 6 months, you have a higher start. Maybe I am thinking APY + compound factor would be much greater for total gain after 5 years. Even if you allow for interest rates to fluctuate, the compound time rate has a much faster turnover. You seem awesome at charts over time, could you possibly do a video to compare that? Thanks again.
Think your going to find you may have made another mistake with JEPQ. All of the covered call etfs are going to essentially be depreciating assets. Fine for current income but not great for long term investing. You can run some portfolio analyser backtests with QYLD to watch it in practice over 10/12 years. The second problem is my instinct is JEPQ is not going to pay qualified dividends, so you are going to have a much higher tax bill on that yeild. You may have found a new different yeild trap. There may be a person that a covered call etf is right for, but dont think you're it. Would really only be suited for somone who does not have the time or attention to detail to make monthly or quarterly share sales to generate current income.
I suspect you may be right too but for now I’ll let it ride. In a couple months we may readdress this again 😆
@@BrendanEvan haha looks like the video playlist kept rolling as I was typing. Think my comment is going to confuse a lot of folks wanting to know about IRAs, but you get me, mentally apply that comment to today's video. Good luck on the dividend journey. And just one more JEPQ note, I decided to go check and the prospectus says it pays ordinary income which is what you would expect from the call income, but some folks seem to report getting qualified dividends as well, my gut is some brokers are just making an error on the 1099s so time will tell.
I thought that money in Roth IRA can not be taken out until 59.5years old?
Nope!
“You can withdraw your Roth IRA contributions at any time and for any reason with no tax or penalties. That's because the contributions are made using after-tax dollars, so you've already paid income taxes on that money.”
www.investopedia.com/roth-ira-withdrawal-rules-4769951
In your final numbers, you didn't throw in the cost of Robinhood Gold. I think that takes Robinhood's percentage down just a bit more since you have to pay for it for at least 2 years.
Great video though. I also though Robinhood's would result in a larger amount because of the 5 years compounding. Crazy to see those numbers.
Yeah it would draw it down a bit you're right! Thanks for pointing that out
@@BrendanEvanwhatever it is it's negligible ... i transferred my Roth IRA got $2,400 match and RH gold will cost me $120 for 2 yrs.. worth it.
does robinhood also pay interest on unvested cash inside an IRA? thanks
They haven’t with mine thus far
does robinhood also pay interest on unvested cash inside an IRA? thanks
I believe they do not
Thank you for this breakdown. I was wondering, which one was better and now I know. Thank you!
Which one is better?
@@ghrxzia7488 my opinion is neither one, but the robinhood one does give the money up front, and it can be earning interest for the 5 years it has to stay on the platform. So, in my opinion the robinhood one edges out webull.
Is the ira match also on roth accounts??
Yes
Acorns plz
But Acorns doesn't give me fat bonus for transferring.
(I see your profile pic is a Veloster, I still need to drive one, havent yet)
Audio is on point my guy!
Hey thanks!
RH also charges $5 per month for Gold membership, which adds up
It's a $60 membership fee. No difference from the Costco membership fee. Just sell 30 days out of 3 contracts cash secure put on Siri and you get that $60 back.