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Rushing Past the Roth | Series 9.3
Episode 329th August 2022 • Enjoy More 30s: Family Finance • Joseph P. Okaly
00:00:00 00:03:46

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Roth IRAs grow tax-free! A great way to build your wealth!

  • Roth retirement accounts, whether that be a Roth IRA, which would be a retirement account that you set up on your own, or a Roth 401(k), which would be a retirement account you set up through work, all grow completely tax free. (01:06)
  • The more you pay in taxes, the more it will hamper your financial situation. Perfect for avoiding the building up of wealth. (01:32)
  • While Roth IRAs always have income limits, if you make too much you are not eligible. (02:34)

Quote for the episode: "Now if you actually do want to be a millionaire and pay less in taxes on all that investment growth, a Roth account would likely be a great way to do that." (02:14)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

Transcripts

Voiceover Audio:

Welcome to the Enjoy More 30s Family Finance

Voiceover Audio:

podcast. The only podcast dedicated to making life more

Voiceover Audio:

enjoyable for young families by hitting on the financial topics

Voiceover Audio:

that tend to weigh on us, stress us out, and distract our focus

Voiceover Audio:

from simply enjoying life.

Joseph Okaly:

Hello and welcome to the Enjoy More 30s Family

Joseph Okaly:

Finance podcast. For all those people out there trying to avoid

Joseph Okaly:

being financially secure, we have our series 10 Ways to NOT

Joseph Okaly:

Be a Millionaire for you today. Now, if you actually do want to

Joseph Okaly:

be a millionaire, not to worry, this series isn't just for those

Joseph Okaly:

people who are looking for financial ruin. If you avoid

Joseph Okaly:

doing these 10 things, then you could be well on your way very

Joseph Okaly:

likely to millionaire-hood as well. Each week I'll share a

Joseph Okaly:

quick step in this how to not be a millionaire process so you

Joseph Okaly:

know what to do, or hopefully what to avoid.

Joseph Okaly:

As always before I begin, please share and like, please leave

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reviews. I'd love to reach and help as many young families out

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there just like you.

Joseph Okaly:

Today's great tip on how to not be a millionaire is Rushing Past

Joseph Okaly:

the Roth. Roth retirement accounts, whether that be a Roth

Joseph Okaly:

IRA, which would be a retirement account that you set up on your

Joseph Okaly:

own, or a Roth 401(k), which would be a retirement account

Joseph Okaly:

you set up through work, all grow completely tax free. So if

Joseph Okaly:

you see the word Roth at the beginning, that means it grows

Joseph Okaly:

tax free. Now, obviously, if you do not want to be a millionaire,

Joseph Okaly:

you wouldn't want something that grows tax free. You want to pay

Joseph Okaly:

lots of taxes! The more you pay in taxes, the more it will

Joseph Okaly:

hamper your financial situation. Perfect for avoiding the

Joseph Okaly:

building up of wealth. If you put away $500 a month into a

Joseph Okaly:

regular retirement account, at 10%, over 30 years, you would

Joseph Okaly:

have over $1.1 million. Now with a Roth, unfortunately, all of

Joseph Okaly:

that would be tax free, you wouldn't have to give any of it

Joseph Okaly:

back to the government. But luckily, if you use that

Joseph Okaly:

Traditional IRA, it would still carry a tax burden with it. So

Joseph Okaly:

if your tax bracket was 25%, that would be around $275,000 of

Joseph Okaly:

that amount would technically be earmarked for Uncle Sam. Much,

Joseph Okaly:

much better. Now if you actually do want to be a millionaire and

Joseph Okaly:

pay less in taxes on all that investment growth, a Roth

Joseph Okaly:

account would likely be a great way to do that. There's a reason

Joseph Okaly:

that a Traditional IRA contribution is always fully

Joseph Okaly:

deductible to those people that have no work retirement plans,

Joseph Okaly:

regardless of how much income they made. While Roth IRAs

Joseph Okaly:

always have income limits, if you make too much you are not

Joseph Okaly:

eligible. They can be pretty useful I guess that means that

Joseph Okaly:

building wealth. Overall, I think it is more than clear

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running past the Roth is a fantastic way to not be a

Joseph Okaly:

millionaire.

Joseph Okaly:

Thanks for tuning in today and join us for next week's episode

Joseph Okaly:

on how to not be a millionaire, Disinterested in Disability. As

Joseph Okaly:

always, please remember to review and share for others and

Joseph Okaly:

if you need any help, don't hesitate in reaching out. I

Joseph Okaly:

probably have helped someone just like you. Until next week.

Joseph Okaly:

Thanks for joining me today and I look forward to connecting

Joseph Okaly:

with you again soon.

Voiceover Audio:

The conversations on this show are

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Joe's opinions and provided for general information purposes

Voiceover Audio:

only. They do not constitute accounting, legal, tax, or other

Voiceover Audio:

professional advice for your specific situation. You should

Voiceover Audio:

always seek appropriate advice from a financial advisor,

Voiceover Audio:

accountant, lawyer, or other professional before acting upon

Voiceover Audio:

any content or information found here first. Joe is affiliated

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with New Horizons Wealth Management LLC, a branch office

Voiceover Audio:

of TFS Securities, Inc., and TFS Advisory Services an SEC

Voiceover Audio:

Registered Investment Advisor, Member FINRA/SIPC.

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