4 things you NEED to know before opening a Roth IRA

hey Dustin Tibbets here financial adviser with jazz wealth managers and today we're going to talk about four things that you need to know before you open a Roth IRA if you're thinking about it then stick with me you okay so at jazz wealth we specialize in managing investments and financial in advice for those that are in the growth phase or are just getting started we have lots of clients that come to us and say I'd like to get started I want to open a Roth IRA but I need advice and your YouTube channel is great but I need advice for me specifically that's what we do so the first thing I want to say before you open a Roth IRA is know the rules okay we get this mixed up a little bit here and all over the internet there's all kinds of misconceptions about how this Roth IRA works here we go once and for all first number one know the rules if you want to take out completely tax and penalty free money from your Roth IRA then you must have that account for five years and be over the age of fifty nine and a half for completely free and total withdrawal of the money no matter which portion it is now in a Roth IRA when you open it and you contribute money you're free to take that money back out right if you put a thousand dollars in two years from now you get in a car accident something happens and you just have no other source of money that money you can take out but in order to take all the money out the games right things like that then we have to meet what I just said so number one know the rules or know someone that's gonna help you understand the rules so you don't get in trouble number two if you're gonna open a Roth IRA make it worth it right don't just open it and let it sit there open it and put something in now our clients can put in ten dollars a month you can put in fifty you can put a billion I don't care whatever just don't go over fifty five hundred of course that's the limit but our clients can do whatever they want and I'm gonna help you put more money in there very very important that you max out your Roth IRA find money somewhere else to do pay your bills and do all that stuff with don't touch it max it out number three if you can't max it out then make sure you do as much as possible when you're young when you're young you don't have that high-paying job yet well most of you don't have the high paying job yet so you're in a lower tax bracket remember in a Roth IRA the money that goes into it has already been taxed wherever you got the money from at your job if you're at a job that doesn't quite pay you as much as you hope then you're in the lower tax bracket which means the money contributed is growing because it wasn't taxed as much and it's never gonna be taxed again if you wait to start contributing more when you're in your 30s 40s now you got a family you got a house you got bills you got a boat that for some reason you keep putting money into then that money is not going to have as much time to grow but you're in a higher tax bracket at that point so you're not able to contribute as much it gets harder the older you get I know these wrinkles make me look a little bit old but I'm not that old and I can tell you it gets harder so as much as you can when you're as young as you can and number four make sure you choose your investments wisely now I'm not saying pick the winning stocks I'm saying however old you are make sure you're taking enough risk I can't tell you how many clients I'm speaking to now that are finding me here on YouTube and they come to me and they say look I haven't made any money my account hasn't grown in the last three or four years that's a shame the markets are screaming higher they weren't taking enough risk so contrary to what the industry wants you to think where people are taking too much risk most people are not taking risk that's in line with what they want okay if you don't want to take risk totally cool right we can set you up with that but if you are of a certain age and you're of a certain income and I see your whole financial picture and you're able to take risk early on in your life do it who cares if the market Falls what are you gonna do you're not gonna do anything with it you're gonna invest more right you want the markets to be going higher when you retire you want them to drop while you're younger think about it okay hey if I can help you go to jazz well calm up at the top click schedule a call I'll bet you didn't know that I could be your financial adviser and you don't ever have to send me any money right so give me a call put the local time in there that you'd like to speak with me and I hope to talk to you soon you

Channel: Jazz Wealth Managers

Views: 513,966

Keywords: investing, investments, retirement, Roth IRA, roth ira tips, roth ira hacks, how to start roth ira, how does roth ira work, can I open roth ira, roth ira investing tips

Id: CzfQZMmDzmM

Length: 5min 1sec (301 seconds)

Published: Thu Oct 26 2017