How to Create a 1 Million Dollar ROTH IRA - Part 1 | Mark J. Kohler

A 1 million dollar Roth IRA. Are you kidding me? Is this legit? Absolutely, and I want to give you the techniques and strategies to get there and it's actually amazingly Simple I know that sounds weird It'll blow your mind So I want to hit the whiteboard grow through several Options and strategies and also talk about if you're 20 years old 30 years old 40 years old or even 50 years old I'm gonna give you the equation to make it work All right. Now before I tell you how much to put in the bank and how we're going to grow it I want to talk about what is a Roth IRA Some people don't know I'm gonna hit it fast simple and easy and you're gonna love this explanation Now if you out there have maybe a 401k at work We're all kind of familiar with that right you go to work They might match or you've had a job and the employers gonna put money in your 401k If you do they call it a match. Sometimes you might even put money under traditional IRA So think about a 401k or a traditional IRA. It's a vehicle what you invest with is up to you it does not have to be stocks bonds and mutual funds which I'll come to but think of it like a car driving down the road, a lot of people go Oh 401ks are a scam or for IRAs are bad know it what you put in the 401k might be bad It the 401k is literally a vehicle and you're driving it What do you want in the backseat now? Do you get a tax deduction to put money in the car? Yes, you get a tax deduction to put money in a 401k or an IRA cool. Does it grow tax-free? Yeah, we call it tax deferred you can invest it in it You don't pay any tax if you make money by Facebook stock and doubles you pay no tax by cryptocurrency buy real estate Whatever you don't pay tax, but when you pull it out in the future, you'll pay tax and typically you're gonna wait till you're 59 and a half now some of you are know already if you're young you're like Oh, I'm gonna live forever. I Never get sick. Why am I gonna put money in a 401k? I'm gonna use life insurance or I'm gonna put it in my business or I'll just put it in the bank folks. Trust me. I Meet with so many people that are in their 50s and 60s Scared to death that wish they were your age in their 20s and would have simply put away 50 bucks a month It can be that simple Its asset protected you could get into any lawsuit and no one can touch this This is for this is OJ Simpson eyes. I love it I will chapter in my book on this guy's you want to have a nest egg that you won't touch That you can't touch and if you do there's a penalty or tax. This is your get-out-of-jail-free Card when you do do turn 50 or 60, so hang with me, let's finish this So this is a 401k or IRA? But here's what a Roth is It's different when you put money in a Roth no tax deduction. Yeah, I'm so sad. I don't get a tax write-off That's okay because it truly grows tax-free you invest it make money you don't pay any tax when you pull it out No tax ever ever Do I need to quote the little boy on sandlot and there? Okay, this is beautiful. This is a Roth now wouldn't it? Be sweet to get all three a tax deduction Tax-free growth and I can pull it out tax-free. Where is this paradise of tax planning? It's called the island of the HSA the health savings account get over to one of my other videos Type in choler HSA. It'll blow your mind, but we're not going to talk about that today We're talking about the Roth and why the Roth is cool is once you turn 59 and a half or have had it for at least five years whichever is longer You can pull the money out for anything tax-free the rest of your life So I want to show you how much you have to start investing now and how you can invest it So we're going to talk about how much and how to invest it in the next piece. Okay? Now let's talk about how much this is how you get a million dollar Roth IRA the second process in this step I'm gonna say maybe some of you are twenty years old Some of you were thirty some of you are forty and some of you are fifty scared to death I've got the numbers for each one of you did my homework here. You're gonna love this now. What's our goal by age? 67 I want you to have 1 Million dollars 1 million dollars. Ok at age 67 Then we have to assume how you're going to get there with your interest rate or your return on investment now the S&P 500 Fund over the last 50 years. You should be able to get somewhere around 10 to 12 percent now there you're not gonna If you go the stock market route, and I'm gonna give you better ways in my opinion But let's just assume you can make 10 to 12 percent on that money fair enough Just work with me on these numbers If you can get better the numbers go off the chart you do a little worse You got to put a little more money in but you might get matching and other strategies to play with this So let me just deal with these assumptions age sixty seven million bucks Ten to twelve percent rate of return. I'm gonna go with twelve on my math here Okay, if you're 20 years old this is gonna freak you out. You will not believe this. Okay, all you have to do is $45 a month or twelve dollars a week or five hundred and forty dollars a year guys twelve dollars a week right now you can set up an app on your phone and say twelve dollars a week out of my bank account goes into savings into a Roth IRA you can set it up with TD Ameritrade all sorts of apps that Just puts the stock market to a sauna. I got better twists, but just doing forty five dollars a month You'll have a million dollars when you turn sixty seven Tax-free out of sight out of mind. You may be doing real estate. You're doing internet sales you're doing a day job I don't care have this out in the corner not looking at it growing forty five dollars a month. Can you believe that? Okay. Now if you're age thirty, you're like I wish I would've done it where I'm twenty but now I'm 31 45 a month That's three hundred and sixty dollars. Sorry, that's one forty five a month. Okay, thirty six dollars Okay, this is one. Oh my gosh. My handwriting here is terrible one forty-five a month Thirty-six dollars a week or seventeen forty a year Okay, that's my age thirty mix So if your age thirty one forty five a month thirty six a week doable thirty six bucks a week skip a lunch get to skip a dinner have it go out of your a Baked account into a Roth now your age forty For those in that realm and your I've been there I'm a little over than 40 now, even though I look younger. Okay 40 Man, you're scared. You're freaking out 450 a month, okay. It's a car payment It's a car payment But I want a million dollars when I turn 67 450 a month and you'll have it a million tax-free that is 115 a week or five thousand four hundred dollars a Month, that's I mean a year 5,400 a year for 50 a month 115 a week 5,400 a year this year you can put six thousand in a Roth IRA. I got a backdoor Roth IRA I got a conversion Roth IRA strategy Just Google or YouTube mark, Kohler Roth IRA And I've got two or three other videos to tell you how to put that and money in there But guys, this is crazy. Now if you're 50, I had a phone call with the client today. That's 60 and they were freaking out seven years away Now if you're in your 8h fifty and you're playing with this, let me tell you the numbers. It's sixteen fifty a month for twelve a week or nineteen thousand eight hundred a month Now a year, I keep messing this up. That's a month. This is a week That's a year nineteen thousand eight hundred a year now, some of you may say twenty thousand dollars a year Okay. Well if you're in your 50s, you might be able to cough up sixteen hundred a month to try to get there But you're in seventeen years, you'll have a million dollars tax-free Now I'm gonna show you one other way to get there and this is really important But I want to just say this in summary guys It's all about just learning to save just setting aside money Automatically out of sight out of mind getting used to that building a habit of this and I know you don't want to hear this This is not sexy and fun You want to watch some millennial? That's twenty six years old that's made You know a million dollars and I'm driving my cool Ferrari or my Tesla those videos are sexy and cool I get it, but that's not everybody's plan. This is the slow and steady plan $50 a month $50 a week do whatever you can and start getting it going in your Roth IRA now once you get this little vehicle Okay, this is your Roth IRA vehicle and you're like, okay. This is a cool little car All right, and I've got this nice little speedster and I'm gonna do that's kind of ugly. We'll see Okay got my Roth IRA. This is my Roth car Now what am I going to put in there? You're the driver of this now if you go open a Merrill Lynch Edward Jones Oppenheimer Roth IRA They're going to say you could do an ETF exchange-traded fund. You can do a mutual fund You could buy some specific stocks and you might be day trading or penny stocks. That's cool That's one of the things you can put in here stocks bonds mutual Funds you could do ETFs These are all things that are Wall Street driven Wall Street driven And you can do those and you might love it. You can have multiple Ross I raise What I like to do is I want to self-direct I want you to take control of your Roth IRA We have a trust company that would took years to set up that it's FDIC insured Managed by the Arizona banking commission your money is safe and ready to go for you directing it We're just the trust company custodian of it. It's called directed IRA. You can go over and set up a Roth IRA account today roll money in from an old 401k whatever you can set up a that's directed IRA comm you can set up a Self-directed Roth so you can take any Roth you already have and just change the color of the car. That's all you're doing There's no tax. No penalty. You're just gonna change the color from a Wall Street Roth to a self-directed Roth What can you put in that car? You can put cryptocurrency in it? You can put gold. You can put real estate you can put silver You can put a small business in that You can put an internet business in there. You can buy a restaurant You can invest in racehorses Super Bowl tickets and sell them on StubHub guys You can put a business in the backseat of your Roth. Do you think you might do better than? 8% in a mutual fund might get twelve fifteen or twenty percent now The numbers start to go off the chart Because if you can do better than 12% by self-directing you're gonna have a million dollar Roth before you know it bottom line It's doable. It's realistic and I want you to think about self-direction your Roth and investing and what you know best I know yet many of you that are young see Wall Street or these retirement accounts as a scam some things. Let's lock down They're not smart. They're not wise. Hey, they're just part of your plan. I'm aggressive I want you to have a small business. I want you to buy real estate I want you to fix and flip and do internet sales and affiliate sales and run a small business but on the side You've got a safety net You got a little Roth IRA that you're self-directing and you're buying whatever You know best and give me at least a 10 to 12 or more percent return You're gonna have a million dollars before you know it I guarantee it. I love you guys. Keep living the American dream I'm grateful to be here with you. I'm not going anywhere subscribe to my channel Get out there hit the bell whenever I shoot live or shoot another video. You'll get a ping. I'm here for you Please continue to follow these videos. You're gonna love it

Channel: Mark J Kohler

Views: 810,344

Rating: 4.8021417 out of 5

Keywords: tax, legal, entrepreneur, asset protection, wealth building, cpa, attorney, lawfirm, ROTH, ROTH IRA, Tax, Legal, IRA, Mark Kohler, Mark J Kohler, kohler, KKOS, K&E, Tax tip, Legal tip, tax and legal tip, Lawyer, IRS, LLC, Entrepreneurship, retirement, limited liability company, KKOS Lawyers, Free legal advice, legal tips, estate planning, traditional ira, Create a 1 Million Dollar, Million Dollar ROTH IRA, How to Create, roth ira explained, income tax, TAX FREE ROTH, TAX FREE ROTH IRA

Id: U06nDS1pHKc

Length: 12min 13sec (733 seconds)

Published: Fri Apr 05 2019