How does a Roth IRA work?

[jaydolf spitler]

Post above by Deuterion explained it well...

If you don't have $500 a month to invest in one, I would suggest investing in something else smaller. The Roth is easy retirement money. If you can afford it, get one now before the government ban these shyts.

I have repeating $200 deposits monthly then come end of the year I look at my accounts. If the remainder of that 6k I can contribute looks manageable I just max it out 4th quarter every year. It has been every year since I opened the account

 

[R.E.N. Spells Ren]

Random but a joint I'm talkin to is an accountant and she just texted me she's doing a couple's taxes right now. They 69 and have $4.5 million in their traditional ira, the husband has $17 million in his roth and the wife has $13 million in hers

13 and 17 million in Roths??? Plus 4.5 million in a traditional IRA???

That sounds like bullshyt. The Roth IRA wasn’t established until 1997. Given the yearly contribution limits ($6k this year, across all IRAs, not just your Roth) and the income limits (206k for married couples this year), they would have had to made INCREDIBLE investment elections in order to accumulate such high balances.

 

[jaydolf spitler]

13 and 17 million in Roths??? Plus 4.5 million in a traditional IRA???

That sounds like bullshyt. The Roth IRA wasn’t established until 1997. Given the yearly contribution limits ($6k this year, across all IRAs, not just your Roth) and the income limits (206k for married couples this year), they would have had to made INCREDIBLE investment elections in order to accumulate such high balances.

Unless they made rollover contributions?

 

[R.E.N. Spells Ren]

Unless they made rollover contributions?

Perhaps, but that’s why I highlighted the income limits as well...if you have that much money in an IRA seems likely your income would prohibit you from contributing to a Roth IRA.

It may be technically possible, but it smells like BS to me.

 

[jaydolf spitler]

Perhaps, but that’s why I highlighted the income limits as well...if you have that much money in an IRA seems likely your income would prohibit you from contributing to a Roth IRA.

It may be technically possible, but it smells like BS to me.

Yeah what u said seems to hold weight, just thinking out loud how someone might be able to finesse that

 

[L&HH]

13 and 17 million in Roths??? Plus 4.5 million in a traditional IRA???

That sounds like bullshyt. The Roth IRA wasn’t established until 1997. Given the yearly contribution limits ($6k this year, across all IRAs, not just your Roth) and the income limits (206k for married couples this year), they would have had to made INCREDIBLE investment elections in order to accumulate such high balances.

Perhaps, but that’s why I highlighted the income limits as well...if you have that much money in an IRA seems likely your income would prohibit you from contributing to a Roth IRA.

It may be technically possible, but it smells like BS to me.

I just asked her what they did and they’re retired and no W2s were a part of their taxes. But when they did work the husband was just a project manager and the wife an assistant. She thinks they just come from a wealthy family and it was given to them? Idk

 

[Ahadi]

Betterment & Ally have Roth IRAs as well.

Heard good things about both.

 

[Ezekiel 25:17]

This is why i deal with property.. Get a tenant in, and just collect rent..

That was 20 years ago though.. I'd never advise anyone to get into that shyt now..

That tenant shyt is dead. If you really wanna be safe, I think having a paid off house with cheap property tax is your best bet for surviving major ordeals. There was rich investors killing themselves after the stock market crash.

 

[NkrumahWasRight Is Wrong]

i actually am more aggressive in my roth due to tax breaks

 

[Jblaze204]

@Black Panther
@Russ
@the cac mamba
@Insensitive

@any body else that has advice

I helped my mom open up a Roth IRA with fidelity. She maxed out 2020 & 2021 so there is $14,000 in there. she's retiring in 6 years so she wants to do a low risk strategy.

I chose the following funds:

FXAIX: FIDELITY 500 INDEX FUND
FSPGX: FIDELITY LARGE CAP GROWTH INDEX FUND
FNCMX: FIDELITY NASDAQ COMPOSITE INDEX FUND
FSPTX: SELECT TECHNOLOGY PORTFOLIO

They don't have any fees and researching this board and others they seem like solid picks.

My question is how much money do i allocate for each fund? Should the fidelity 500 be the one that has the most money on it? How would ya split it up?

 

[patscorpio]

You gotta buy stocks if you wanna see movement. If not it’s just a savings account with no interest
Its for retirement so I don’t wanna do any of that volatile shyt so I stick to mutual funds for mines. Super long term growth. But don’t treat it like the rest of your portfolio and be looking at it everyday

this

 

[the cac mamba]

@Black Panther
@Russ
@the cac mamba
@Insensitive

@any body else that has advice

I helped my mom open up a Roth IRA with fidelity. She maxed out 2020 & 2021 so there is $14,000 in there. she's retiring in 6 years so she wants to do a low risk strategy.

I chose the following funds:

FXAIX: FIDELITY 500 INDEX FUND
FSPGX: FIDELITY LARGE CAP GROWTH INDEX FUND
FNCMX: FIDELITY NASDAQ COMPOSITE INDEX FUND
FSPTX: SELECT TECHNOLOGY PORTFOLIO

They don't have any fees and researching this board and others they seem like solid picks.

My question is how much money do i allocate for each fund? Should the fidelity 500 be the one that has the most money on it? How would ya split it up?

all dope picks, i own them myself. cant go wrong throwing 25 percent at each, and just set it and forget it

i wouldnt feel like you have to allocate the most to FXAIX. tech is the future, so the FNCMX and FSPTX are gonna beat it

 

[Jblaze204]

all dope picks, i own them myself. cant go wrong throwing 25 percent at each, and just set it and forget it

i wouldnt feel like you have to allocate the most to FXAIX. tech is the future, so the FNCMX and FSPTX are gonna beat it

makes sense...good looks

 

[Insensitive]

@Black Panther
@Russ
@the cac mamba
@Insensitive

@any body else that has advice

I helped my mom open up a Roth IRA with fidelity. She maxed out 2020 & 2021 so there is $14,000 in there. she's retiring in 6 years so she wants to do a low risk strategy.

I chose the following funds:

FXAIX: FIDELITY 500 INDEX FUND
FSPGX: FIDELITY LARGE CAP GROWTH INDEX FUND
FNCMX: FIDELITY NASDAQ COMPOSITE INDEX FUND
FSPTX: SELECT TECHNOLOGY PORTFOLIO

They don't have any fees and researching this board and others they seem like solid picks.

My question is how much money do i allocate for each fund? Should the fidelity 500 be the one that has the most money on it? How would ya split it up?

If it were me, I'd put it just like this:
Total market index fund. 70%
International index fund. 20%
Bonds. 10%
Simple 3-fund portfolio where you can focus on hitting your growth by capturing the total market performance.

With the assumption that you'll see roughly 10% gain every year.

Focus on simplifying your mother's investment strategy, use the low or zero fee fund index funds, and cruise to $100,000.

And as she moves near retirement rebalance the portfolio, pushing more
towards bonds and lowering the amount of pure stocks she owns.
This is supposed to be "Safer".

 

[Jblaze204]

If it were me, I'd put it just like this:
Total market index fund. 70%
International index fund. 20%
Bonds. 10%
Simple 3-fund portfolio where you can focus on hitting your growth by capturing the total market performance.

With the assumption that you'll see roughly 10% gain every year.

Focus on simplifying your mother's investment strategy, use the low or zero fee fund index funds, and cruise to $100,000.

And as she moves near retirement rebalance the portfolio, pushing more
towards bonds and lowering the amount of pure stocks she owns.
This is supposed to be "Safer".