Roth IRA: How to be a TAX FREE MILLIONAIRE with $12 PER DAY

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:

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!

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[Patriciabanks]

Why are IRA contribution limits kept so LOW ($6K/$7K)? They should be made the SAME as 401k limits so that folks without a 401K can be on equal footing! Somehow this video has helped shed light on some things but I'm aiming to create a portfolio worth not less than $2m before I turn 60.

[Reformed]

Being 27 and just starting to enroll in a Roth 401k, I wish my school taught me this instead of teaching me the mitochondria is the powerhouse of the cell.

[michaelcorwin]

I’m 18 and my dad just helped me set up my own Roth IRA and I took $5500 out of my savings and put it in the Roth 👍🏻

[DK-bmrg]

It’s just so mind boggling that they don’t teach you this in high school. I didn’t even know what a 401k was until I was 25.

[aaronjacobs]

I've watched other videos of folks trying to teach on the Roth IRA topic, and honestly this was the most clear and most helpful I've seen. Kudos

[adanv]

Goodness. High school, nor college, taught me this!
Learning so much from you!

[amazonfba]

Learning how to invest properly is never too late, whether you're 18 or 35. Still better than if you never learn to invest!

[Sovnarkom]

Imagine finding this video when you’re 59 1/2 years old.

[WillieRayPR]

For just $12 a day, you too can sponsor a young future millionaire in need of avocado toast

[bjkearns]

Wish I would have figured out all this investing stuff at age 16 instead of 26.

[tylerjohnson]

My Calculus teacher taught us about compound interest even though it wasn’t part of the curriculum because he wanted us to open a compounding account but I had no idea where to start. This is awesome!

[andrew.alonzo]

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.

[violindalola]

I'm 29 years old and a recent college grad. I am just starting to read books about investing and I have the feeling that I have missed out and wish I learned this information earlier like when I was 19 or 20. Thank you Graham so much for these videos my credit score has improved with your advice along with credit card tips from Ask Sebby. I am going to open a Roth IRA account right now lol.

[cobraken]

I just started my two sons (15 yr. & 17 yr.) into their first Roth IRA's. This is the best advice you can give a young person to give them future financial security. Thank you!

[roberthernandez]

I'm 33 just hearing about this.... but hey its ok... i can get it right for my 7 year old

[jessicar]

I opened a Roth IRA after this vid and told my mom about it (she's 55), and she didn't know you could take out your contributions penalty free whenever, which prevented her from opening one before. She has a 401k but is looking into opening a Roth, it's never too late :) Thx graham

[jdmking]

Glad I’ve been binge watching graham and Dave for two months straight, makes me feel like I have life figured out at 19!

[tecolotegto]

I’m 26 and am glad to be starting this year by opening my first Roth IRA.

[HectorSnipes]

I'm uncertain if my 401(k) and IRA will secure a stable future. I'm looking for an investment strategy that aligns with my risk tolerance and financial goals. I've set aside $1 million for this purpose. Would you recommend investing in stocks or purchasing rental property?