Roth IRA vs Traditional IRA–How to Decide (episode 9)
Channel: Golden Financial Services
Date: 11/03/2023

Episode 9: When it comes to investment advice, it's usually NOT FREE. And implementing the right investment plan on your own can often be confusing and feel like a complicated subject. But for once, you're about to get free information from a reputable financial advisor and it's simple advice that you can act on immediately and implement on your own with ease. 

Learn this simple formula to calculate if a Roth or Traditional IRA is a better investment vehicle to help build wealth. And if you realize you've picked the wrong investment vehicle as of today, you can convert it. 

Interview with #Paul J #Paquin at Golden Financial Services / #Randy #Luebke – Independent Fiduciary Financial Advisor.
Randy Luebke shares a secret of Wall Street, including a glimpse of what's in his book – The Business Owner's Guide to Financial Freedom: What Wall Street Isn't Telling You. 

Traditional:
Invest 100% of your money, and the money grows tax-deferred, but when you take the cash out, you must pay taxes based on your tax rate when you retire. 

Roth IRA:
A Roth IRA is the complete opposite. You pay the taxes on the money when you invest it, and then you won't have to pay any additional taxes during retirement. 

Watch PAST EPISODES: 
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Episode 6: How to Make Money When Stocks Fall – Explains Randy Luebke, Top Financial Advisor
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Best "Diversified Portfolio for 2023" (Part 5: Interview with a Financial Advisor)
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Part 3: How to Avoid Running Out Of Money in Retirement
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Part 2: Double Your Money Fast (2 Proven Methods)
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 Suppose you're in the 25% tax bracket. Instead of putting 100% of your money into a Roth IRA, you would invest 75%, but it grows tax-deferred and comes out Tax-Free.

Let's say you have $100,000 in your traditional IRA today. You want to convert it to a Roth, so your $100,000 will get chopped down to $75,000, let's say it eventually doubles, so your $75,000 grows to $150,000 by the time you retire. You can then start withdrawing from it without paying any taxes on it.

If you keep that $100,000 in your traditional IRA and it doubles over time to $200,000, you'll eventually have to pay the 25% tax bringing your total down to $150,000, and you can then spend the rest. 

Conclusion; your total sum of money in retirement is the same whether you invested it into the Roth or Traditional IRA in this example. That said, the Roth math is if you feel the taxes in the future will be higher than they are today, then you should invest in the Roth because you'll get taxed at a lower percentage in the future, leaving you with more money in retirement. Conversely, if you feel the taxes will be lower in the future, you should invest in a traditional retirement account, not pay the taxes today and eventually take the money out at a lower tax rate. 


What can retirement accounts, like 401k and SEP IRAs invest in? 

You can invest in more than stocks and bonds in your retirement account, including; 

Real estate
Crypto 
Gold
Metals
Limited Partnerships 
Opportunity zones

Get the inside scoop from one of Wall Street's best financial advisors! 


Check out the book at: 
https://www.amazon.com/Business-Owners-Guide-Financial-Freedom/dp/1599186160


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#Roth #IRA #vs. #Traditional IRA #math #how #to