A self-directed IRA gives you more investment options and lets you invest in alternative assets like real estate, crypto, and private equity. The downside is that every investment has to go through a custodian. You don’t have checkbook control. If you find something you want to invest in, you have to instruct your custodian to send the […]
Taking advantage of the mega backdoor Roth IRA can accelerate any employee’s retirement savings. However, not all employees are able to take advantage of this option. It entirely depends on how your company’s 401k plan is set up. In order for a company’s employees to be able to get a mega backdoor Roth IRA, it needs to […]
In 1999, Peter Thiel bought 1.7 million “founder’s shares” of PayPal for $1,700 with his Roth IRA. Within three years, PayPal went public and was acquired by eBay. His initial $1,700 investment turned into $28.5 million. Peter then used that money to make further investments from within his Roth IRA. He invested $500,000 into Facebook, […]
Most retirement plans require that you start taking distributions once you reach the age of 73. You must withdraw at least the minimum amount each year, until your account is emptied. A Roth IRA has no RMD rules for the account owner, and you can keep your money compounding tax-free in your account as long […]
Are you approaching retirement age and wondering how to maximize your retirement savings? If you have a tax-deferred retirement plan like a traditional IRA or 401k, you may be required to take required minimum distributions (RMDs) once you turn 73 years old. But what if you don’t need the money for living expenses and want […]
A Roth IRA provides tax-free withdrawals in retirement, no matter how large your investments have grown. Combined with tax-free compounding on your investments, a Roth IRA can be a powerful tool to build your retirement nest egg early. Anyone can open and start making contributions to a Roth IRA, at any age, as long as […]
A Roth IRA is an individual retirement account that is funded with after-tax income. Roth IRA contributions are NOT tax deductible, you receive no tax breaks for contributing to the plan. This is the trade off you make in exchange for getting tax-free withdrawals in retirement. If you’re looking for a tax deduction on your […]
While a Roth IRA is not meant for saving for college, you’re allowed to withdraw your Roth IRA funds to pay for qualified education expenses like tuition, books, supplies, equipment, and room and board. Yes, both your contributions and earnings from your Roth IRA account can used to pay for college without incurring taxes or […]
Considering getting a Roth IRA for the first time? Anyone with earned income can start contributing to a Roth IRA. Even minors can start compounding their money tax-free from an early age through a custodial Roth IRA. However, a Roth IRA is a retirement account, meaning you’re putting money in an account that ideally should […]
