Rushing Past the Roth | Series 9.3 - Enjoy More 30s: Family Finance

Episode 3

Rushing Past the Roth | Series 9.3

Published on: 29th August, 2022

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.

Transcript
Voiceover Audio:

Welcome to the Enjoy More 30s Family Finance

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podcast. The only podcast dedicated to making life more

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enjoyable for young families by hitting on the financial topics

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

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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.

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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

Joseph Okaly:

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

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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

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

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professional advice for your specific situation. You should

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always seek appropriate advice from a financial advisor,

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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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About the Podcast

Enjoy More 30s: Family Finance
Family Finance for Young Professionals.
Young families receive little to no personal finance help. We all grow up to have jobs and money, yet our education system focuses on Shakespeare and Algebra. Even professional advice can be hard to come by, with the majority of the industry chasing retirees and existing wealth.

Joe Okaly's podcast is aiming to change this, providing personal financial advice geared specifically to professionals with young families. This podcast is dedicated to making life more enjoyable for young families, by hitting on the financial topics that tend to weigh on us, stress us out, and distract our focus from simply enjoying life.

Joseph P Okaly is a CFP Certified Financial Advisor who fits directly in with who this podcast is focused on - a young professional with a family. With over a decade of experience as an advisor, there is passion and knowledge to make a difference.

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