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In order to understand EXACTLY what’s going on, AND how some people are able to make a LOT of money, tax free…we need to talk about one of my ALL TIME FAVORITE investment accounts, and that would be: A Roth IRA, which stands for Individual Retirement Account.
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, if you fall within the certain income brackets. The MASSIVE advantage to doing this is that ALL the money you deposit into this account will grow entirely tax free, after the age of 59.5.
In Peter Thiel's case, you’re allowed to set up what’s called a SELF DIRECTED Roth IRA…which means, YOU get to invest your money however you want. In 1999, he opened up a Self Directed Roth IRA when he was 32 years old, making very little money, and starting a brand new, tiny company that you may have heard of…called PayPal. He then invested $2000 of his own money within that Roth IRA to buy PayPal shares, valued at 1/10th of 1 cent each…and that, in turn, gave him 1.7 MILLION SHARES to grow tax free within the account. Within 2 decades, that $2000 turned into $5 Billion.
HOWEVER…once news started getting out that people were able to accumulate HUNDREDS OF MILLIONS and BILLIONS of dollars tax free…that inevitably drew criticism from congress, who’s now moving to REMOVE certain aspects, and change the way the Roth IRA is structured.
The first would “limit the total amount of money that can be saved in tax-preferred retirement accounts,” meaning - once your account reaches beyond a certain point - anything ABOVE that amount would be taxed normally.
The second proposal would PROHIBIT the purchase of privately held companies within a Roth IRA, which would eliminate the strategy that Peter Thiel used while making BILLIONS OF DOLLARS.
In fact, congress is “considering reforms, such as banning the use of IRAs to purchase nonpublic investments,” calling it “a good starting point while protecting IRAs for every day Americans to save for their retirement.
Other members of congress say that this is the very spirit of the Roth IRA…and that “Earning a return is exactly the intention of making any investment, and if you can do this in a tax-free account like a Roth IRA, that’s even better. That’s just good tax planning and all perfectly legal.”
There’s no easy “solution” around this, but - from the way I see it - these accounts are far from the norm, very few of them exist - and I’m sure FAR MORE people have done something similar and LOST MONEY, than have blown up to the level where we read about them on the cover of Forbes.
So, I would say - we should do MORE to encourage people to save and invest for their retirement, there should be more education and awareness to incentivize people to take advantage of the resources available to them, and understand that Peter Thiel’s $5 billion account balance doesn’t take away from the average American saving for retirement.
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*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
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In order to understand EXACTLY what’s going on, AND how some people are able to make a LOT of money, tax free…we need to talk about one of my ALL TIME FAVORITE investment accounts, and that would be: A Roth IRA, which stands for Individual Retirement Account.
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, if you fall within the certain income brackets. The MASSIVE advantage to doing this is that ALL the money you deposit into this account will grow entirely tax free, after the age of 59.5.
In Peter Thiel's case, you’re allowed to set up what’s called a SELF DIRECTED Roth IRA…which means, YOU get to invest your money however you want. In 1999, he opened up a Self Directed Roth IRA when he was 32 years old, making very little money, and starting a brand new, tiny company that you may have heard of…called PayPal. He then invested $2000 of his own money within that Roth IRA to buy PayPal shares, valued at 1/10th of 1 cent each…and that, in turn, gave him 1.7 MILLION SHARES to grow tax free within the account. Within 2 decades, that $2000 turned into $5 Billion.
HOWEVER…once news started getting out that people were able to accumulate HUNDREDS OF MILLIONS and BILLIONS of dollars tax free…that inevitably drew criticism from congress, who’s now moving to REMOVE certain aspects, and change the way the Roth IRA is structured.
The first would “limit the total amount of money that can be saved in tax-preferred retirement accounts,” meaning - once your account reaches beyond a certain point - anything ABOVE that amount would be taxed normally.
The second proposal would PROHIBIT the purchase of privately held companies within a Roth IRA, which would eliminate the strategy that Peter Thiel used while making BILLIONS OF DOLLARS.
In fact, congress is “considering reforms, such as banning the use of IRAs to purchase nonpublic investments,” calling it “a good starting point while protecting IRAs for every day Americans to save for their retirement.
Other members of congress say that this is the very spirit of the Roth IRA…and that “Earning a return is exactly the intention of making any investment, and if you can do this in a tax-free account like a Roth IRA, that’s even better. That’s just good tax planning and all perfectly legal.”
There’s no easy “solution” around this, but - from the way I see it - these accounts are far from the norm, very few of them exist - and I’m sure FAR MORE people have done something similar and LOST MONEY, than have blown up to the level where we read about them on the cover of Forbes.
So, I would say - we should do MORE to encourage people to save and invest for their retirement, there should be more education and awareness to incentivize people to take advantage of the resources available to them, and understand that Peter Thiel’s $5 billion account balance doesn’t take away from the average American saving for retirement.
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
What's up, graham, it's guys here! So what if i told you that there's an account that you could start up today, where all the profit you make is completely tax-free and even better. You could potentially make hundreds of millions or billions of dollars doing this without having to owe the irs a single cent. Oh, and it's also completely legal too, as long as you don't break a few very simple rules, so do i have your attention yet well? This is exactly how peter thiel was able to turn what most people would consider to be a modest roth ira available for anyone to set up with a few minutes of spare time into a 5 billion tax-free fortune with a few basic strategies that anyone could use. Today and he's not the only one, even mitt romney was able to accumulate a 100 million dollar tax-free fortune.
By doing this, one quick live back, the irs hates, but, like you would assume not everyone is celebrating. That is because the other day articles began to circulate about the potential end of the roth ira, as we know it, and instead congress would move to ban and limit contributions that would place restrictions in terms of how much you're able to save and invest for retirement. Lower the amount that's considered, tax-free and therefore close, the opportunities that stand to make some people a lot of money. So, let's not waste any time whether you're just learning about this for the first time today and you want to make tax-free millions, i mean who doesn't or you want to hear about these loopholes that were able to make some people a lot of money and why Congress wants to get rid of them.
Just hear me out, because i promise, by the end of the video you'll, either be able to set up. One of these accounts for yourself or you'll be fully aware of the benefits and be able to set yourself up on a tax-free retirement as well. But first it would mean a lot to me if you retired, that, like button for the youtube algorithm by taxing it until it turns blue, it helps out the channel a ton and best of all. If you tax the like button in the next five seconds.
I'll show you a picture of a baby hedgehog, so thank you guys so much and also big, thank you to omaze for sponsoring this video, but more on that later. Alright. So, first, in order to understand exactly what's going on and how some people are able to make a lot of money completely tax-free. We need to talk about one of my all-time favorite accounts out there that everyone should be investing in, and that would be a roth ira.
Think of it. This way, just like you have a bank account that gives you access to a checking and savings account. You could go and open up a roth ira that gives you access to your investments that can grow completely tax-free. Now.
The term roth just means that you've already paid taxes on the money you contribute to the account. So, for example, if you have a paycheck of a thousand dollars a week, chances are your taxes have already been taken out of that paycheck and what's left over, is called your post tax money or more simply put it's after tax. So with some of that jargon, out of the way, here's how a roth ira works, you're able to open up one of these accounts and deposit up to six thousand dollars a year if you're under the age of 50 or if you're over the age of 50. You could deposit up to seven thousand dollars a year as long as you fall within certain income brackets. The massive advantage to doing this is that all the money you contribute to that account can grow completely tax-free. That means, if you invest a thousand dollars in the account, then it grows to ten thousand dollars. Well, in any other scenario, you would be forced to pay taxes on that when you sell, and that would be a bad time, but in a roth ira you could have all of that profit completely tax free. As long as you wait until the age of 59 and a half, and hopefully by then we're talking about a lot of money here, completely tax-free and by the way i'll send fifty dollars to the first person who comments with how many times i've said tax-free in This video - because i realize it's probably gon na - be a lot but anyway just to show you guys how much money this could add up to over time.
If you start contributing 400 a month to a roth ira, starting at the age of 18, averaging a seven percent return on your money, that'll add up to nearly 1.2 million dollars, completely tax-free at the age of 59 and a half all from 400 a month. The other huge advantage to doing this is that you're able to withdraw whatever money you contribute to that account at any point without any penalty without paying any additional tax. So, for example, if you deposit a thousand dollars to a roth ira and it grows to two thousand dollars, you could still take out that original thousand dollar investment at any time without any penalty, even before the age of 59 and a half. Now here's the thing.
Even though this all sounds simple enough, you're, probably thinking to yourself graham 2.1 million dollars is nice. But if the contribution limit is six thousand dollars - and you can't contribute, if you make more than a hundred and thirty nine thousand dollars a year, how does somebody like peter teal use it to make five billion dollars and, most importantly, graham, can i do that too? And the answer is yes, you can do that too well kind of, let me explain: well here's where things get interesting, you're allowed to set up, what's called a self-directed roth ira, which means that you get to invest your money. However, you see fit if that includes buying 2023 gamestop call options for pennies on the dollar. Well, there you go in fact, under certain conditions, you could even invest in real estate within a roth ira and really the options just go on from here, which is where we get into the good stuff.
In peter thiel's case in 1999 he opened up a roth ira when he was 32 years old, not making a lot of money and working for a tiny little company. You may have heard of paypal. He then invested two thousand dollars of his own money to buy paypal stock at a value of one tenth of one cent, each giving him 1.7 million shares of paypal and his roth ira sure enough. Paypal became wildly successful. Its share price ballooned to the moon and he did what anyone would do. He sold some of those shares within the roth ira to invest in other companies pre-ipo including facebook and after a series of well-performing investments. He was able to turn that 2 000 initial investment into now more than 5 billion dollars within the account and as you would assume, that is now bringing a lot of attention to just how many people are doing this. Like mitt romney accumulated a hundred million dollar.
Tax-Free fortune using a roth ira and structuring his ownership as carried interest, ted weschler from berkshire hathaway was also able to grow his to 264 million dollars and the hedge fund manager randall smith's account was recently at 252 million dollars. All of this is done through the use of a self-directed roth ira, buying up shares of private non-public companies at an insanely low price and then either ipo'ing the company or growing it to the point where eventually you're a billionaire. However, once news started getting out that some people were able to accumulate hundreds of millions or even billions of dollars, tax-free that inevitably drew criticism from congress who now wants to shut down certain aspects of this account and change the way the roth ira is structured, but Before we go into that, as some of you know, i am a huge car fanatic and i am really excited to announce that i partnered with omaze who's, giving you a chance to win one of the coolest prizes. Yet, while being able to help out a great cause at the exact same time, you'll have a chance to win this insanely gorgeous completely electric eco-friendly collectible, 1968 porsche 912..
It's been modified and modernized by the team at peterson museum, so you'll get vintage racing, aesthetics and 21st century sustainability, along with performance, prestige and all-around beauty. This would be the perfect car to take on a weekend cruise drive through the canyons or take it to a car show, so others could appreciate the craftsmanship and best of all in the process. You'll help support the petersen automotive museum who explores and presents the history of automobiles and its impact on global life and culture. Your generosity could help the museum, extend its education programs, both on site and online and aid the museum in the development of new exhibitions.
Community events and preservation activities so, if you're interested and want to win a collectible electric 1968 porsche 912 while being able to help out the peterson automotive museum at the exact same time, use the link in the description or go to omaze.comgram. Stefan to enter for your chance to win, so thank you guys so much now with that said, let's get back to the video all right so now, as far as potential changes to the roth ira, multiple bills are currently being drafted by congress. That would alter exactly how it works. The first one would limit the total amount of money that could be saved in tax preferred retirement accounts, meaning once your account grows beyond a certain point. Anything beyond that threshold would be taxed as normal. Now. The second proposal would ban the purchase of privately held companies within a roth ira, which would eliminate the strategy that peter thiel used when he was making billions of dollars. The issue they say is that privately held companies have no easily discernible market value.
So it's unclear if those paypal shares were really worth one tenth of one cent each or if they were drastically undervalued. At the time you took ownership. In fact, congress is considering reforms such as banning the use of iras to purchase non-public investments, calling it a good starting point, while protecting iras for everyday americans to save for their retirement and there's also a movement that will stop iras from being exploited. Now, on the other hand, those changes become very difficult to follow through with, for example, if you just allow account balances above a certain level, then you also disincentivize risk taking, which means newer companies end up getting less investment or by disallowing investment in non-public companies.
Does that also apply to any other investment, that's only available to accredited investors or what about off-market real estate or any other alternative investments that aren't publicly traded with no clear market value? Although proponents of the current roth ira say that, contrary to all the stories about teal's massive roth ira, what he did was absolutely legal. He followed the roth ira and tax contribution rules and did nothing wrong. He just happened to have a lottery ticket investment in his roth ira. I wish that for everyone it really wouldn't be that much different from investing two thousand dollars a year in amazon stock.
Back when the roth ira was first introduced in 1997 and now having 25 million dollars from what started off as a 10 000 initial investment, other members of congress say that this is the very spirit of the roth ira and that earning a return is exactly the Intention of making any investment - and if you could do this in a tax-free account like a roth ira, that's even better, that's just good tax planning and all perfectly legal. They also argue that, because roth ira contributions are taxed up front, that leads to more immediate tax revenue because you're paying taxes now, instead of paying it later plus. It's also worth noting that these enormous roth ira accounts are the exception, and not the rule like it was found that fewer than 0.0007 of all iras had more than 25 million dollars in them, and that only 791 iras have an account balance between 10 and 25 Million dollars and the vast majority of roth iras in excess of 98 have less than 1 million dollars in them. Arguing that overall, large individual account balances have no impact whatsoever on americans ability to save for their retirement. Others even argue that peter thiel's investment could have easily gone the other way, noting that the majority of startups end up failing. It's also worth noting that his entire account is going to be subject to estate taxes when he passes away. So, even though it might be tax-free now it doesn't mean it's always going to be tax-free. So in terms of what you could do about this, the likelihood that these changes would be made by congress and how you could use this to your advantage, regardless of how much money you're making to end up earning tax-free profits.
Here's what you need to know on the surface. The easiest way to take advantage of this is to simply start a roth ira. Pretty much. Every brokerage offers a retirement account, so anything like fidelity, charles schwab or vanguard would work perfectly well.
Then, once you open the accounts, you'll have the option to make investments within the account like remember, the roth ira is not the investment itself. It is just the account that you can make investments within now in terms of which investments to make. I personally just prefer a broad index fund because historically, they return about seven percent adjusted for inflation, but there's also nothing that says you can't start up a self-directed roth ira account and throw it into call options or invest in pre-ipo startups. And then maybe you could turn that six thousand dollars into tens of millions of dollars like peter deal.
You just got ta make sure you follow a few very simple rules, the first one being as of 2021 you're limited to a contribution of six thousand dollars a year or seven thousand dollars a year if you're older than 50.. The second, even though you're able to withdraw contributions at any time without a penalty once you take the money out, it's very difficult to put it back in now. Third, if you take out any of your profit from this account before the age of 59 and a half you're gon na, have to pay a 10 penalty and end up owing taxes on that money. So just assume, if you put money in the account it's gon na stay there until 59 and a half now.
Fourth, if you make more than 140 000 a year as a single person or 199 000 as a married person, that makes you ineligible for a normal roth ira contribution. But thankfully there is something called the backdoor roth ira that you could use instead, and this is done by contributing to a traditional ira first and then immediately converting that to a roth ira instantly and then even better than that. There's something called the mega backdoor roth ira, which involves you contributing to a traditional 401k and then converting that over to a roth 401k, and by doing that, you're able to contribute up to 40 000 a year that could grow tax-free. Although, overall, in terms of how likely congress is to make changes to the roth ira, here's what i have to say technically peter thiel or anybody else using a roth ira to accumulate hundreds of millions or even billions of dollars, didn't do anything wrong. Peter thiel followed all guidelines. He invested his money in a company that very well could have gone bankrupt and it worked out well for him, since he didn't own the majority of paypal. It was considered a valid arms length transaction and he used the tax code to his advantage. Now the only part of the story that is not available to the average american is the ability to purchase private equity within a roth ira as an accredited investor, meaning you either make over 250 000 a year or you have a net worth above a million dollars That allows you the opportunity to invest in highly liquid risky startups, where most likely you're going to lose all of your money, and if you don't meet that threshold well, then you're not allowed the same opportunities as peter thiel.
Now, personally, i believe that if investors could get instant access to margin on robinhood or be able to trade options with little to no experience in a matter of minutes, then they should be able to access private equity deals without a high barrier to entry. Even though it's certainly risky would level the playing field for so many people and bring in a lot more money to new companies which might continue to grow the way, it's structured right now is inhibited to growth and, if anything needs to be changed, it should be That, but in terms of the roth ira, the only concern that i have is if peter thiel falsely and knowingly underpriced shares of paypal for the sole purpose of stuffing them. In a roth ira for tax avoidance, like i see no issue investing two thousand dollars in paypal at one tenth of one cent per share, if that's what they were actually worth. But if that was a significant and intentional discount for the sole purpose of being able to stuff it in a roth ira, then yes that's suspicious, and i don't blame congress for wanting to investigate that even further.
But even so the issue then becomes. How do you define the value of a startup with no definitive market value when it has a high likelihood of eventually failing and realistically there's, just not going to be a way to do that, especially if no other companies have come before it, not to mention, if You cap profits above a certain threshold that just disincentivizes risk and if you remove private equity investments, then that unfairly gives an advantage to publicly traded companies which get even more investment. There's really no easy solution to this, but from the way i see it. These really large accounts are far from the norm. Very few of them exist and i'm sure far more people have done something like this and lost money than have seen their accounts grow to a point where they're featured on forbes. That's why i believe that the biggest risk right now to the roth ira is most likely going to be the elimination of the backdoor roth ira contribution, which allows high income people to get around the income limitations. I really wouldn't be surprised if that were to disappear at some point which, if that happens, it makes the roth ira even more valuable to the people who do qualify. But in terms of capping the amount of money that you could make within the account or disallowing certain investments that aren't publicly traded, i just can't see that happening, so i would say we should do more to encourage people to save and invest for their retirement.
There should be more education and awareness to incentivize people to take advantage of the resources available to them and to understand that peter thiel's, 5 billion roth ira account balance, does not take away from the average american's ability to save for retirement. Now it does highlight that private equity deals are high risk high reward and they should be available to more americans, but really at the end of the day. The best thing that we could do is bring more awareness around personal finance, saving money, investing and then adding up how many times i've said tax free in this video because, like i said the first person to comment with exactly how many times they said, tax free In this, video gets 50 bucks, so uh good luck and let me know how many times i said it so with that said guys. Thank you so much for watching.
I really appreciate it as always make sure to destroy the like button subscribe button and notification bell. Also feel free to add me on instagram, i post pretty much daily. So if you want to be a part of it, there feel free to add me there. As my second channel.
The gram stefan show i post there every single day - i'm not posting here. So if you want to see a brand new video for me every single day, make sure to add yourself to that. And lastly, if you want a completely free stock, now worth all the way up to 70 use the link down below in the description and sign up for public and plus, i am posting all of my own stock trades on there. So if you want to be a part of it, the link is down below in the description and uh by the way, just to throw some people off.
Tax-Free, tax-free, tax-free, tax-free, tax-free, tax-free, so you better include all of those tax freeze in that comment, and this is ensuring that only the people who watch into the very end can actually get the right answer. So good luck and enjoy.
Yet congress cannot be punished for insider training and they continue to make millions while normal American keep being limited.
Congress is really evil but I stopped caring after I realized this wouldn't affect me cuz I ain't using the roth in that type of way
Tax-free. Don't forget to add that in too. Comments are part of the video right?
very informative video you have here , having different streams of income brings about financial confidence that's why there are several reasons why investment advisors and high net worth investors including major Banks are recognising the benefits of BTC in their strategic asset allocation . Key among them are portfolio diversification , the upside potential versus other assets , and future adoption potential with others like ETFs . ( countries like Germany are taking the lead already ) . So far my trading experience has been awesome for years with the teachings of career trader Francesca may wilson who has been my portfolio strategist , I started with over 50,000 , so far i've accumulated more than 410,000 after taxes .
Headline is misleading. They want to limit investment in IRA to $10 million. With a max contribution of $5000 per year, ira should never reach $10 million.
I really wanna see how these fuckers would handle living on a minimum wage with their housing and possessions stripped from them. Also more importantly how many of them play the rules to their hand.
since i don't know ira or have ira…so does it concern me if it tax so high ???
congress want tax the ira ….and i want that as well while you want us to ban you that what your thinking to me
Taxation is theft. When will people realize the government is all greedy liars and scumbags
They dont need to steal my money. They have a printing press.
Its not about taxes, its about keeping you from becoming a threat to them. Luckily for me, gold and silver isnt printable..
They should just put a cap on millionaires and billionaires investing in one of these.
I just opened my Roth IRA today 😭 I hope they don't do this. I come from the poverty line and learning about retirement and investing.
If they make us rely on the goverment we wont get rid of the government. Thats all it is. They wanna breastfeed the people. Otherwise, what is the point?
in australia, we have superannuation. its where when we get paid, the government sets aside money for our retirement
So boomers get SS, affordable housing/college, 401k, pension, Roth IRA. Average people these days can't even get a break or decent tax breaks.
The founding fathers SHOT THE BRITISH for far less than what these treasonous imbeciles are doing in Washington. At what point will people say we have had enough and show up in Washington? Throw out every single politician and start over. They clearly do not represent the people.
No surprise they try to keep us down. I hope this does not happen. There aren’t many choices for retirement as is. Pensions are gone for the most park most jobs do not match 401k. And interest from bank accounts give very little
So let me get this straight the “founding fathers “ dressed up as the very people they killed offed and moved to the far side of the continent just to dump tea in the water over a 4% tea tax and here we are years later getting taxed by 70% of everything we do? Am I missing something here?!
Nice video! I was able to build a big income stream during the covid-19 pandemic investing with a professional broker, Mrs Lauranetta Thomas.
Soooooo…… where does one find the actual text of these rules on what investments you can make in a self directed roth ira? I have wanted to do one for a while, but have not figured out where pr what the rules are yet. Also, are the rules different for self directed iras?
Nope. Wrong. Congress loves the tax dollars the Roth brings in, they are more likely to make every IRA a Roth to get the tax money up front
Pelosi talked about taxing IRAs years ago. Real world consequences are never considered. If you make someone's retirement investment worth less (or worthless) their response will often be to not retire. "Thought you were going to move into my job when I retired? Well, son, I decided to add two more years to your wait".
What’s the difference between a roth ira and something lime the S&P500? isn’t the sp better since you can just take it away whenever you want?
Edit: I’m 20 and dont want to wait till 65 to get my money back is the thing. Never invested, really new to this
I don't understand why people think that other people paying more in taxes are going to make their life better.
I was told by cs that I could not withdraw my contributions without a 10% tax unless under certain corcumstances
I think your argument about disincentivizing investment is hyperbolic. If Congress put a lifetime limit on the amount of money that could be withdrawn from a Roth IRA tax free, and they set it at, say, $10 million (would have to be indexed to inflation somehow), you might see a teeny-tiny dip in investments in startups like you argue. But I doubt any of these mega-rich people would say, "Welp, since I can't invest with this tax free vehicle anymore, I guess I'll just shove this money into my mattress." You showed stats that indicate that not much investment happens this way anyway — we're talking about a very limited overall amount, because the amount you can put into a Roth IRA is very limited. And it's not like any amount withdrawn over that lifetime limit would have to be taxed as normal income; it could be at long-term gains rates or even at a new, special rate that could be even lower (like 10% or some such), contributions excluded.
Congress' interest here isn't whether or not Thiel's Roth IRA detracts from ordinary Americans' ability to invest in Roth IRAs — it doesn't, as you said. Congress' interest in this is that they see an opportunity to "recoup" some tax dollars from the mega-rich. Now, notwithstanding that none of this money is Congress' to begin with, these extreme examples do not illustrate the intent behind establishing the Roth IRA as a thing. I think it's fine for Congress to fine-tune the parameters of a program to more closely match the intent of that program. And the intent of the program certainly isn't to substantially reduce the tax burden of the mega-rich.
IRA profit should not be tax free as it is a form of income and only taxable when you draw it out and only as long as there is an income tax. I do think it should have a low set tax rate however. I do believe income tax should be abollished as it was ment to be when it was created.
I think you may have gotten the intro backwards in this one unless that a thing you do now to troll people.
Not eligible for the Roth IRA because apparently I’m rich and don’t need retirement money set aside. Because SSN will be there, right? 😆
The government should just shut up and let people live Jesus Christ what's the point of becoming rich anymore?