Rushing Past the Roth | Series 9.3

Voiceover Audio: 00:00:00

Welcome to the Enjoy More 30s Family Finance

Voiceover Audio: 00:00:03

podcast. The only podcast dedicated to making life more

Voiceover Audio: 00:00:06

enjoyable for young families by hitting on the financial topics

Voiceover Audio: 00:00:10

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

Voiceover Audio: 00:00:13

from simply enjoying life.

Joseph Okaly: 00:00:16

Hello and welcome to the Enjoy More 30s Family

Joseph Okaly: 00:00:19

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

Joseph Okaly: 00:00:23

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

Joseph Okaly: 00:00:27

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

Joseph Okaly: 00:00:31

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

Joseph Okaly: 00:00:35

people who are looking for financial ruin. If you avoid

Joseph Okaly: 00:00:39

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

Joseph Okaly: 00:00:42

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

Joseph Okaly: 00:00:46

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

Joseph Okaly: 00:00:49

know what to do, or hopefully what to avoid.

Joseph Okaly: 00:00:53

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

Joseph Okaly: 00:00:56

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

Joseph Okaly: 00:00:59

there just like you.

Joseph Okaly: 00:01:00

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

Joseph Okaly: 00:01:05

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

Joseph Okaly: 00:01:08

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

Joseph Okaly: 00:01:11

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

Joseph Okaly: 00:01:14

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

Joseph Okaly: 00:01:19

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

Joseph Okaly: 00:01:22

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

Joseph Okaly: 00:01:27

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

Joseph Okaly: 00:01:31

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

Joseph Okaly: 00:01:35

hamper your financial situation. Perfect for avoiding the

Joseph Okaly: 00:01:39

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

Joseph Okaly: 00:01:43

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

Joseph Okaly: 00:01:47

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

Joseph Okaly: 00:01:52

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

Joseph Okaly: 00:01:56

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

Joseph Okaly: 00:01:58

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

Joseph Okaly: 00:02:02

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

Joseph Okaly: 00:02:09

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

Joseph Okaly: 00:02:13

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

Joseph Okaly: 00:02:17

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

Joseph Okaly: 00:02:21

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

Joseph Okaly: 00:02:24

that a Traditional IRA contribution is always fully

Joseph Okaly: 00:02:28

deductible to those people that have no work retirement plans,

Joseph Okaly: 00:02:32

regardless of how much income they made. While Roth IRAs

Joseph Okaly: 00:02:35

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

Joseph Okaly: 00:02:39

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

Joseph Okaly: 00:02:42

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

Joseph Okaly: 00:02:46

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

Joseph Okaly: 00:02:51

millionaire.

Joseph Okaly: 00:02:52

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

Joseph Okaly: 00:02:54

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

Joseph Okaly: 00:03:00

always, please remember to review and share for others and

Joseph Okaly: 00:03:02

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

Joseph Okaly: 00:03:05

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

Joseph Okaly: 00:03:08

Thanks for joining me today and I look forward to connecting

Joseph Okaly: 00:03:10

with you again soon.

Voiceover Audio: 00:03:12

The conversations on this show are

Voiceover Audio: 00:03:14

Joe's opinions and provided for general information purposes

Voiceover Audio: 00:03:17

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

Voiceover Audio: 00:03:20

professional advice for your specific situation. You should

Voiceover Audio: 00:03:24

always seek appropriate advice from a financial advisor,

Voiceover Audio: 00:03:26

accountant, lawyer, or other professional before acting upon

Voiceover Audio: 00:03:30

any content or information found here first. Joe is affiliated

Voiceover Audio: 00:03:34

with New Horizons Wealth Management LLC, a branch office

Voiceover Audio: 00:03:37

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

Voiceover Audio: 00:03:41

Registered Investment Advisor, Member FINRA/SIPC.