Investing $100 a week into your Roth IRA will change your life (but less than 10% of Americans own one)
The Roth IRA is a great tax "loophole" that can make you a tax-free millionaire.
Do you own a Roth IRA? Here's everything you need to know:
The Roth IRA is a great tax "loophole" that can make you a tax-free millionaire.
Do you own a Roth IRA? Here's everything you need to know:
The power of maxing out a Roth IRA in an S&P 500 Index Fund:
β’ 10 Years: $118,000
β’ 20 Years: $434,000
β’ 30 Years: $1,332,000
β’ 40 Years: $3,881,000
β’ 50 Years: $11,120,000
Historically, the S&P 500 returned ~11% per year on average, over the last 96 years, since 1926
β’ 10 Years: $118,000
β’ 20 Years: $434,000
β’ 30 Years: $1,332,000
β’ 40 Years: $3,881,000
β’ 50 Years: $11,120,000
Historically, the S&P 500 returned ~11% per year on average, over the last 96 years, since 1926
Become a tax-free millionaire, the lazy way:
1) Invest $11 a day into an S&P 500 index fund
2) Wait & let compound interest do all the work
3) In 30 years you should have over $1,000,000
On average, the S&P 500's has returned 11% over the last 96 years or ~1,300,000% since 1926
1) Invest $11 a day into an S&P 500 index fund
2) Wait & let compound interest do all the work
3) In 30 years you should have over $1,000,000
On average, the S&P 500's has returned 11% over the last 96 years or ~1,300,000% since 1926
Make YOUR child a tax-free millionaire by 25:
1) Invest $150/week into an S&P 500 index fund when they're born & do nothing more
2) By the age of 25 this should grow to over $1 million due to compound interest
1) Invest $150/week into an S&P 500 index fund when they're born & do nothing more
2) By the age of 25 this should grow to over $1 million due to compound interest
1. A ROTH IRA is a retirement account that allows you to invest tax-free.
2. ROTH IRAs offer tax-free growth, which will help your investment compound and grow faster
3. With a ROTH IRA, you can withdraw your contributions at any time
2. ROTH IRAs offer tax-free growth, which will help your investment compound and grow faster
3. With a ROTH IRA, you can withdraw your contributions at any time
ROTH IRAs allow you to contribute after-tax dollars, which means you have already paid taxes on the money before it goes into an account
This is beneficial if you expect to be in a higher tax bracket in retirement, as you won't have to pay taxes on the money when you withdraw it
This is beneficial if you expect to be in a higher tax bracket in retirement, as you won't have to pay taxes on the money when you withdraw it
Popular Index Funds for a Roth IRA:
$VOO: Exposure to the S&P 500, 500 large-cap U.S. companies
$VTI: Exposure to the entire U.S. stock market, including both large and small-cap companies
$QQQ: Exposure to the NASDAQ-100, 100 large-cap and tech-focused companies
$VOO: Exposure to the S&P 500, 500 large-cap U.S. companies
$VTI: Exposure to the entire U.S. stock market, including both large and small-cap companies
$QQQ: Exposure to the NASDAQ-100, 100 large-cap and tech-focused companies
Warren Buffett recommends that the everyday person invests in an S&P 500 Index Fund instead of picking individual stocks.
You can have over $1.3 million for retirement when you are 60 if you start investing $100 a week into an S&P 500 index fund at 25.
You can have over $1.3 million for retirement when you are 60 if you start investing $100 a week into an S&P 500 index fund at 25.
4 ways to max a Roth IRA:
β’ $18 a day, or
β’ $125 a week, or
β’ $542 a month, or
β’ $6,500 a year.
The advantages of a Roth IRA:
β’ Tax-free growth
β’ Tax-free withdrawals
β’ Can be used as an emergency fund
β’ $18 a day, or
β’ $125 a week, or
β’ $542 a month, or
β’ $6,500 a year.
The advantages of a Roth IRA:
β’ Tax-free growth
β’ Tax-free withdrawals
β’ Can be used as an emergency fund
Of course, ROTH IRAs do have some limitations.
There are annual contribution limits, and there are income restrictions that may prevent some people from contributing to a ROTH IRA.
In addition, there are rules governing when and how you can withdraw money from a ROTH IRA.
There are annual contribution limits, and there are income restrictions that may prevent some people from contributing to a ROTH IRA.
In addition, there are rules governing when and how you can withdraw money from a ROTH IRA.
The Roth IRA offers tax-free withdrawals.
You can also withdraw your contributions at any time without any penalty or taxes.
If you withdraw the capital gains before 59 1/2 there may be penalties, but there are a few exceptions to avoid them:
You can also withdraw your contributions at any time without any penalty or taxes.
If you withdraw the capital gains before 59 1/2 there may be penalties, but there are a few exceptions to avoid them:
You can withdraw your gains before 59 1/2 penalty-free for:
β’ Disabilities
β’ Education expenses
β’ First-time home purchase
β’ Birth/ adoption expenses
β’ Health insurance (if unemployed)
β’ Disabilities
β’ Education expenses
β’ First-time home purchase
β’ Birth/ adoption expenses
β’ Health insurance (if unemployed)
Roth IRA income limits:
β’ Single $153,000
β’ Married filing jointly $228,000
If you make more than these amounts, you can't contribute to a Roth IRA.
You can get around these income limits by using a backdoor Roth IRA, which has no income limits.
β’ Single $153,000
β’ Married filing jointly $228,000
If you make more than these amounts, you can't contribute to a Roth IRA.
You can get around these income limits by using a backdoor Roth IRA, which has no income limits.
It doesn't matter if you've invested $100 or $1,000 or $10,000.
What's important is that you're doing something to improve your future and build generational wealth.
Investing for 20 years may be hard but being old with no money is a lot harder.
Choose your "hard".
What's important is that you're doing something to improve your future and build generational wealth.
Investing for 20 years may be hard but being old with no money is a lot harder.
Choose your "hard".
Over time, your investment portfolio will grow
β’ A $100 portfolio grows to $1,000
β’ A $1,000 portfolio grows to $10,000
β’ A $10,000 portfolio grows to $100,000
β’ A $100,000 portfolio grows to $1,000,000
The more you invest, the more compounding interest will work
β’ A $100 portfolio grows to $1,000
β’ A $1,000 portfolio grows to $10,000
β’ A $10,000 portfolio grows to $100,000
β’ A $100,000 portfolio grows to $1,000,000
The more you invest, the more compounding interest will work
It's important to start investing for retirement as early as possible to take advantage of the power of compound interest.
By investing early and consistently, you can potentially grow your savings faster and have more money available for retirement.
By investing early and consistently, you can potentially grow your savings faster and have more money available for retirement.
Compound interest is the best money hack:
Compounding interest is the process of earning interest on both the original investment and the accumulated interest over time.
By reinvesting your returns, your money grows at an exponential rate, rather than just a linear rate.
Compounding interest is the process of earning interest on both the original investment and the accumulated interest over time.
By reinvesting your returns, your money grows at an exponential rate, rather than just a linear rate.
Determine your retirement needs:
Figure out how much money you'll need to maintain your lifestyle
Consider factors such as living expenses, healthcare costs, travel, and hobbies
A common rule of thumb is to replace 70-80% of your pre-retirement income
Figure out how much money you'll need to maintain your lifestyle
Consider factors such as living expenses, healthcare costs, travel, and hobbies
A common rule of thumb is to replace 70-80% of your pre-retirement income
3 popular retirement accounts:
Investing $100 a week into your Roth IRA will change your life. These threads take time to write, so if you found this helpful:
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