Here’s EXACTLY how you can become a Tax Free Millionaire by opening up and investing within a Roth IRA in 2019 - Enjoy! Add me on Instagram: GPStephan
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A Roth IRA just stands for Individual Retirement Account. Think of it this way…just like you have a bank account where you have access to a savings and checking account, you can open up a Roth IRA account and have access to your INVESTMENTS.
And here’s how the Roth IRA works:
You’re able to open up one of these accounts and deposit up to $6000 PER YEAR if you’re under the age of 50…and if you’re over 50, you can contribute $7000 per year.
The MASSIVE advantage to doing this is that ALL the money you deposit into this account will grow entirely tax free. For example, if you contribute just $400 per month into a Roth IRA starting at the age of 18…and you average a 7% return on your money annually…you’ll have nearly $1.2 MILLION DOLLARS completely tax free at the age of 59.5…all from $400 per month.
Even more remarkable, if you contribute the maximum of $6000 per year starting at the age of 18…and you average a 7% return…you’ll have a staggering $2.1 MILLION Dollar by the age of 65. Let me say that again…$2.1 MILLION DOLLARS TAX FREE from just a $6000 investment per YEAR. And I’ll show you exactly how to do that.
The other HUGE advantage to opening up one of these accounts is that you can withdraw WHATEVER money you’ve deposited to that account, at any point, without any penalty, and without paying any additional taxes on it.
And the BEST time to start doing this is NOW when you’re young. This is because when you’re young, you have the power of COMPOUND INTEREST working on your side. This means your money makes you more money, that makes you more money, that makes you more money.
The other advantage of starting when you’re young is that, like I said, you invest with post tax money…meaning, again, your taxes have already been taken out of what’s left over. This means that when your young, chances are you’re not making much money and you’re already in a low tax bracket to begin with…meaning you have MORE of your money left over to invest.
So here’s exactly how to do this and how this works:
You can setup a Roth IRA through websites like Vanguard.com, Charles Schwab, or Fidelity to name a few…but there are dozens of options out there.
Once you open the account, you’ll then have the option to make investments WITHIN that account…remember, the Roth IRA itself isn’t the investment…it’s just an ACCOUNT for you to invest in for your money to grow tax free.
In terms of which investments to make, I PERSONALLY just chose an index fund that follows the stock market…but it’s up to you. You also have the choice to invest in stocks, as well, within a Roth IRA.
However, pay attention to this because there are FOUR very important rules you MUST abide by:
First: As of 2019, you’re limited to $6000 per year that you can contribute to this account. This is your maximum.
Second: Anytime you take money out of the account, you can’t just put it back at a later time. So once it’s out, it’s out. You’re limited to just $6000 per year that can go into that account.
Third: If you take out your PROFIT prior to the age of 59.5, you’ll have to pay a 10% penalty + pay taxes on that profit. And that defeats the entire purpose of opening up this account, if you have to pay taxes.
Fourth: If you make MORE than $120,000 per year…you’ll need to do a Backdoor Roth IRA. Just google that because I have a feeling not many people are watching this making more than $120k…and if you’re making $120k, you can just google this. It’s simple.
So basically…as long as you can follow those four rules, you could be well on your way to becoming a tax free millionaire with just a small investment each and every month!
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Favorite Credit Cards:
Chase Ink 100k Bonus Point Offer - https://www.referyourchasecard.com/21/ZVSGGIXM8U
American Express Platinum - http://refer.amex.us/GRAHASOxHd?XLINK=MYCP
MERCH NOW ON SALE! LIMITED TIME DISCOUNT: https://grahamstephanstore.myshopify.com/
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
GET $50 OFF FOR A LIMITED TIME WITH COUPON CODE: THANKYOU50
The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c
A Roth IRA just stands for Individual Retirement Account. Think of it this way…just like you have a bank account where you have access to a savings and checking account, you can open up a Roth IRA account and have access to your INVESTMENTS.
And here’s how the Roth IRA works:
You’re able to open up one of these accounts and deposit up to $6000 PER YEAR if you’re under the age of 50…and if you’re over 50, you can contribute $7000 per year.
The MASSIVE advantage to doing this is that ALL the money you deposit into this account will grow entirely tax free. For example, if you contribute just $400 per month into a Roth IRA starting at the age of 18…and you average a 7% return on your money annually…you’ll have nearly $1.2 MILLION DOLLARS completely tax free at the age of 59.5…all from $400 per month.
Even more remarkable, if you contribute the maximum of $6000 per year starting at the age of 18…and you average a 7% return…you’ll have a staggering $2.1 MILLION Dollar by the age of 65. Let me say that again…$2.1 MILLION DOLLARS TAX FREE from just a $6000 investment per YEAR. And I’ll show you exactly how to do that.
The other HUGE advantage to opening up one of these accounts is that you can withdraw WHATEVER money you’ve deposited to that account, at any point, without any penalty, and without paying any additional taxes on it.
And the BEST time to start doing this is NOW when you’re young. This is because when you’re young, you have the power of COMPOUND INTEREST working on your side. This means your money makes you more money, that makes you more money, that makes you more money.
The other advantage of starting when you’re young is that, like I said, you invest with post tax money…meaning, again, your taxes have already been taken out of what’s left over. This means that when your young, chances are you’re not making much money and you’re already in a low tax bracket to begin with…meaning you have MORE of your money left over to invest.
So here’s exactly how to do this and how this works:
You can setup a Roth IRA through websites like Vanguard.com, Charles Schwab, or Fidelity to name a few…but there are dozens of options out there.
Once you open the account, you’ll then have the option to make investments WITHIN that account…remember, the Roth IRA itself isn’t the investment…it’s just an ACCOUNT for you to invest in for your money to grow tax free.
In terms of which investments to make, I PERSONALLY just chose an index fund that follows the stock market…but it’s up to you. You also have the choice to invest in stocks, as well, within a Roth IRA.
However, pay attention to this because there are FOUR very important rules you MUST abide by:
First: As of 2019, you’re limited to $6000 per year that you can contribute to this account. This is your maximum.
Second: Anytime you take money out of the account, you can’t just put it back at a later time. So once it’s out, it’s out. You’re limited to just $6000 per year that can go into that account.
Third: If you take out your PROFIT prior to the age of 59.5, you’ll have to pay a 10% penalty + pay taxes on that profit. And that defeats the entire purpose of opening up this account, if you have to pay taxes.
Fourth: If you make MORE than $120,000 per year…you’ll need to do a Backdoor Roth IRA. Just google that because I have a feeling not many people are watching this making more than $120k…and if you’re making $120k, you can just google this. It’s simple.
So basically…as long as you can follow those four rules, you could be well on your way to becoming a tax free millionaire with just a small investment each and every month!
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Favorite Credit Cards:
Chase Ink 100k Bonus Point Offer - https://www.referyourchasecard.com/21/ZVSGGIXM8U
American Express Platinum - http://refer.amex.us/GRAHASOxHd?XLINK=MYCP
I have 35% of my capital investments in an IRA, 25% in index funds, and the balance spread across other investment accts totalling over $250k. I took a big hit in Q2, 2023. Right now i am just looking for ways to recover.
Taxation is theft.
Glad to find this out at 19
THANK YOU SO MUCH YOU REALLY JUST CHANGED MY LIFE, IM 24 AND IM A PLUMBER AND LOOKING FOR A RETIREMENT PLAN…. THANK YOU MAN NEVER WILL FORGET THIS VIDEO
Becoming a tax-free millionaire with $12 per day involves utilizing tax-advantaged investment accounts like a Roth IRA or a Health Savings Account (HSA), which offer tax-free growth and withdrawals under certain conditions. By consistently contributing to these accounts and investing in a diversified portfolio, your money can compound over time without incurring capital gains taxes. Additionally, taking advantage of tax credits, deductions, and careful tax planning can further minimize your tax liability and help you build wealth efficiently. It's essential to work with financial advisors or tax professionals to tailor strategies that align with your individual financial goals and circumstances.
I actually believe the stock market is a better and easier way to grow money than the 401(k). But it's not really by picking individual stocks, because it is an effort in futility, particularly at an uncertain time such as this. I have lost more than $140k, but my portfolio is still significant, about $320k, but I'm not confident about picking stocks anymore. Are there really no other options for me to gain from the stock market?
Bro I heard pewdiepie, someone’s a 9 year old
damn 3k minimum on those index funds.. but i guess its def worth it
The dislike and unsub hater hat had me cracking up🤣
Looked like UK ISA account have more benefits than in US ROTH account.
is this still legit in 2023??
So what’s the difference between Roth IRA investing and just investing in stocks through something like Robinhood
Just opened my first today with Robin Hood
I would suggest doing this at the age of 18 debt-free.
Do you have a Roth IRA yourself?
Just opened my first ROTH IRA with V*ngaurd. I’m excited to get started with this at a younger age. Let’s all win!
Awesome video great advice
Ok, but how much will a million dollars be worth in 30-40 years? A down payment on a small house? Lol
Should I start a regular Roth ira if I am going to be making more than 120k soon or just should I just wait to start a back door one
People who don't want to invest in the Stock Market directly can look into Fixed-Index strategies to prevent loss in the market. hmu
I saw your other video about the Roth in 2017 when I was 25 my dad told me about the Roth then I YouTubed it and came across your vid. I’ve been putting in the full amount every year I’m up to 48k now. The only thing is now I’m a home owner and it’s tempting to not put money into the Roth so I can use it now. Should I keep investing the max limit into the Roth? Also thanks for telling about how you can take the money out you put in without penalty I did not know that
No matter how many Roth IRAs you have, you're still capped at $6k?
Amazing this is never told in school. I regret so many of my decisions from when i was younger and cant imagine how much it would be now 10 years later with the money i had then.
great video graham
Can someone please explain what he means by investing $12 a day? Into a random investment or Roth ira? Or savings account? 🙂
I did not even learn about this until my 30s. This is not talked about enough.
😢great now where am I going to get 6000 $ I’m a college student, any little money I have goes directly to my living expenses.
Thx for the video, I'm just starting and I'm 27. $125 a week is a small price to pay for peace of mind. I don't want to work or be homeless when I'm too old. 🥲