How does a Roth IRA work?
- Thread starter Ezekiel 25:17
- Start date
Vandelay
Life is absurd. Lean into it.
This, but furthermore the thought process is, we don't know what future tax rates will be, so you're getting the tax out the way now so you don't have to worry about being taxed in the future.
Some people believe taxes will be higher in the future.
NZA
LOL
benefit is all the advantages on taxes and fees
cons are that you have to do all the work and get penalized if you touch the money too soon
people typically spread the risk over funds like index and mutual, and bonds, but people also buy companies with a long history and solid future prospects like coca cola and microsoft.
at a certain age you should probably start banking some of the money. you still leave it in the account but take it out of the market. that way if a catastrophe happens near your retirement, you wont lose everything.
cons are that you have to do all the work and get penalized if you touch the money too soon
people typically spread the risk over funds like index and mutual, and bonds, but people also buy companies with a long history and solid future prospects like coca cola and microsoft.
at a certain age you should probably start banking some of the money. you still leave it in the account but take it out of the market. that way if a catastrophe happens near your retirement, you wont lose everything.
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..
Why not do both?
That rental property is B.S.. Mfers will fck your shyt up for the hell of it.. If you can just get land, and pray that developers buy it, that's the best way now..
This is true...
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 
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That's the dreamRandom 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
Yeah no one explained the later part to me.So now I have to figure out what to invest in, and it's gotta be relatively safe, otherwise it's just gambling with savings.
Can't go wrong with putting a good deal of your money (not all) in FXAIX; that's Fidelity's S&P 500 index fund. No gambling required. The fund invests in whatever the top 500 best performing stock are at a given time.
Also invest in other Fidelity index funds like the small cap growth and foreign exchange funds.
NZA
LOL
yeah. with a deregulated market like we now have, market crashes will happen more often.
Absolut da poet ®
Jubilado
Mostly this ^ plus
- "Retirement age" being 59 1/2 yrs old & had the account (1st contribution) at least 5yrs
- If you withdraw prior to ^ that there's a 10% penalty on the total
- There are exceptions for first time home buyers, Hardships, medical expenses, natural disasters (like Covid 19 related withdrawals last year)
- if you're single filer you must make less than $140k in 2021 to contribute to the Roth
- Contribution limit is 6k unless you're over 50 then it's 7k
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jaydolf spitler
Superstar
I have one through a service called wealthfront. It's a roboadviser so you just answer some questions about your risk tolerance and they invest it for you. I've seen some really good growth since I opened it. You can contribute 6k yearly (this can vary for different people so do ur research on your contribution limit). I bought my first house last year and withdrew money from those contributions to fund the down payment. Wife and I sold the original house in her name and made a nice little come up and then i replenished the roth the next month
roth ira is one of my favorite financial instruments