How to Create a 1 Million Dollar ROTH IRA - Part 2 | Mark J. Kohler | 2019

Hey mark Kohler here And I want to respond to all those comments great feedback on the part 1 of how to have a million dollar Roth IRA Now this is powerful. This is important and I'm gonna add to and even make it better than the last video first Here's some of the comments that came back and I'm gonna hit these Mark, a million dollars is even gonna be worth it when I'm 67 years old. I got it to 12% What are you nuts? No one's getting 12% third 401ks IRAs. They're a terrible investment You should be doing something else for you can't even put $20,000 into an IRA mark. You're crazy. You're on another planet Next you can't borrow it. You can't touch it Why am I putting this money here if I can't touch it? And then finally, what's this guy selling there? Was this bozo. Anyway. Alright now, I'm gonna hit all the hoes I don't want to hit him quickly and help you Find a way to get that million dollars or more into your Roth IRA First a million dollars isn't going to be worth as much as it is today 20 30 40 years from now I get it for all of you that made a comment like that. I understand that inflation the power of the dollar But what do you do? Not invest at all? Because it's not going to be worth something in the future The point of my video is to do something because a million dollars 40 years from now is better than zero dollars now I'm a CPA an attorney and I'm doing phone calls and consults with clients around the country our little law firm and accounting firm I'm not selling financial products that I'm not selling that stuff I'm just trying to help clients save and build their American Dreams start a business protect their wealth Yada yada and I talk about this topic all the time and you'd be shocked how many people I get on the phone with in These consults that are 50 or 60 year olds with nothing no savings at all and they're freaking out. I'm Making this video to help you not make that same mistake. I wish I would have saved more when I was younger now I know I look like a millennial but still I should have been saving more. That's the point next lots of comments 12% What's this guy smokin? I'm not getting 12% my ETF mutual fund S&P 500 index I agree 12% is aggressive for Wall Street Now I'm going to tell you in a minute how I you can do better than 12% But let's just go with 10 fair enough Let's do 10% The whole point of my video was just getting you saving and and you're gonna love this Let's say okay This is the same example in part one of my video How much I'm gonna save per week if I'm twenty years old twelve bucks. Thirty years old thirty-six bucks This is per week per month per year. Now. Let's say I'm only getting 10% Do you know what to get to that million dollars? You don't have to even double what you're putting down Let me tell you though. Ninety dollars a month now This one's doubled at twenty years old if I can do ninety dollars a month. I'll still get the million at ten percent Okay, not bad some you could live with ten percent. All you have to do is you're bringing us down to nine percent Just put a little more money in but check this out. I did the math This is cool. Thirty year olds if you can do two fifty a month Not even a hundred and forty five double a month You can just put in an extra hundred and fifty a month at two fifty now I can still get my 1 million 40 year olds six fifty instead of four fifty pretty cool I was actually surprised by that myself and if I'm 50 years old trying to save sixteen fifty a month And I know some you said who can save sixteen fifty a month I have a lot of people that are 60 years old starting a business trying to save as much as they can Look at this If you can do two thousand a month only three hundred and fifty dollars more a month if I can do two thousand I'll have 1 million at age 67 Going with 10% Okay a little better for some of you haters out there that thought 12% was a little aggressive now I want to tell you how to even do better I had a number of comments that said an IRA or 401k is crappy you should use life insurance or something else and and They're just a bad investment to begin with now remember an IRA or 401k is not an investment and there's a deep concept here You're gonna love especially when I get to how you can do better than 12% Hang on now Remember an IRA or a Roth is a vehicle it's not an investment what you put in the investment to get your rate of return That's what's in the Roth. The Roth itself isn't bad it's what you may put into it and a lot of people use the stocks the bonds the ETF's the mutual funds to try to get their rate or return so you might have in here something that's giving you 8% 10% 12% Well, could we get more than that? I'll show you how now Getting money into it is also a problem A lot of people are like I had comments if I can't save I don't I don't I'm too old I don't have enough money I'm a disability or this or that I've got a couple suggestions for you because remember it's getting money into the vehicle and then it's Investing it there's two issues here, and I want to repeat that How am I and how am I getting contributions into this when things are tight and I'm trying to make ends meet How am I saving and then number two? How am I investing see those are two different points that I think are so important and I want to put them in red here What am I investing and how am I saving? So your next little tip here in this situation? Acorns stash if you haven't heard about this you're missing out I just got chills saying it what's so cool and you can compare acorns and stash. They're the two main competitors out there I'm going to throw out acorns. I kind of like that What acorns is is a debit card where you round up to the next dollar whenever you buy something? That's point number one So you take this app? It's Android and Apple you get the app tie it to your debit card and whenever you buy something you round it up So if you go to Starbucks and spend 450, it rounds it up to five and then that $0.50 goes into your savings account I right before I shot this video. I went to one of my employees. I'm millennial. He's in his 20s You just he's still in college In fact, and I said which one of you got he goes? I got stashed I go really you already have stash How much did you get into it in the last three months and he goes in the last two months? I've put in about 300 bucks. This is a college student Just rounding up every time see buy something now What's cool about? Acorns too is if you go to one of their 200 partners which includes like air B&B and Starbucks in a few other places Nike even they'll throw in another five or ten and on top of what you put in What now when you say mark? I can't get eight ten or twelve percent If you're already out of sight out of mind saving on with your debit card and Then you've got people that are matching it or putting it in five or ten percent of what you put in Because you shopped at their establishment. Do you think I could get to eight ten or twelve percent a little faster? That's the point I not only want you back here Yeah I was just asking you to put ninety dollars a month or two fifty or six fifty or two thousand if you're doing it every Time you shop and rounding up. That's why I love these apps You know who told me about it my old millennial kids my kids this weekend. I was hanging out We're watching TV and the Final Four and just hanging out and they were like dad Why aren't you talking more about acorns and stash and I said well I don't know and they just got me hyped up about this I am also setting up those apps on my own phone for my Roth IRA and for my kids. I'm helping them out This is a big deal so you can even set up in with these apps Regular deposits. So not only from my regular bank account. I'm choosing $10 $20 $30 a week I'm rounding up all my transactions so that I can put more money in and then I'm getting matching maybe from your employer at your regular job and I'm getting matching from establishments. I made by or a patron patronized So this is really important to get money in. That's how I can get more money in then How do I invest it now next point better than 12% I know some you've been waiting for this now. This is huge now I I'm sure I got some of you on the bandwagon too eight nine or ten percent when you're getting matching and all this good stuff and you you're putting in more money so that the rate of return is not as important to get to that million But better than twelve, yes, I've got clients and I myself get better than twelve percent not all the time I mean there's risk out there and investing I get it With self-directing. This is a concept that has been on the books for 40 or 50 years. There's of Billions of dollars in self-directing, but Wall Street doesn't want you to know Because they don't get a commission if you self-direct they only get it if there's stocks bonds mutual funds in ETS I hate Wall Street. I love Main Street and in my law firm for the last 20 years we've been helping clients create LLC's and other Structures where your Roth or your IRA or your 401k can invest in what you know best now? I'm gonna give you three examples. I got two in my head. I'm gonna pull one out for number three number one I had a client last year that took their Roth IRA Took the Roth formed an LLC But like a couple grand in it and had a bank account of which dirty their manager of it, which is totally cool We've been setting up these LLC's for years and this little LLC had a couple thousand in it and in one situation They went out and bought four tickets to Selena Gomez come in to Staples Center. So they've got these four tickets They were about a hundred and fifty bucks cut back row floor not great But they bought him early and they were sitting on these I have clients that flip tickets on StubHub That's a business of theirs. But this client had taken their Roth formed an LLC went out and bought four tickets About $600 worth it of Selena Gomez tickets Then the week before they sold them for about 225 a piece on StubHub so they were dropping 75 times for that's about a $300 gain into their retirement account They were flipping tickets inside their LLC and all the profit when tax-free into the Roth what that my friends was a 33 percent return that was even better than Or is that a 50% the 50% return? Sorry, this is crazy. And I have clients do it all the time. I myself have Investment, I will show you number 2 option I had an LLC that's owned by my health savings account, which I talked about in video number 1. This is me myself I have a rental property that pays out cash tax-free into my LLC owned by my HSA That I can invest with because I formed an LLC to self-direct Third option. I'm okay. I've got a client this we meet with kinds every day doing this that Takes their IRA and their 401k forms an LLC and buy Mobile's home mobile homes for about ten to thirty thousand dollars Leases amount and then if an sell some of them and carries the paper Sometimes they flip them but they all they do is mobile home investing and they make a hundred 150 percent returns every year This is called self-directing That is a concept Wall Street doesn't want you to know that's how you can do better than 12% Peter Thiel that invested in in the PayPal Facebook all that Peter Thiel look at him. I've got there's articles out there. They they their estimates that he has a billion dollar Roth IRA Because he invested with his Roth MIT Romney who ran for president had a twenty five million dollar IRA He said I self-direct don't you and Wall Street was like Shh be quiet This is how the rich get richer now. I well who I'd love for this is now and I'll tell you I have a Financial interest in this I'm not gonna lie, I as an attorney CP I have to disclose that I love directed IRA com directed IRA Calm and here you can set up a Roth you can set up an IRA you can set up an HSA and you can self-directed the cat and some people oh there was other people in my the comments of my last video that said oh It's totally expensive to self-direct know it's around three to four hundred bucks a year a new account right now There's a special right now before April 15th to set up your IRA and get a contribution in for 2018 if you're watching this video after April 15th You can do this and set up an account and for three to four hundred bucks a year you invest it the way you want our law firm has been working with directed IRA for four years helping people set up their LLC's and Invest in what they know best That's the concept now one other quick comment some of the comments below on the first video said well these there's all sorts of transactional fees when you go out and self director or take your Roth or your IRA or 401k and use a custodian or trust company there are Transactional fees if you have them do the investing for you and have them handle notes and transactions and properties well We've done four years and we love it is you can create an LLC owned by multiple IRAs or 401ks or SEP simples or even your own money or your brother's your sisters? Your mom's your dad your husband your spouse your wife your kids IRAs can all be in one LLC and you can be the manager and you can run out here and run this thing and Invest in what? You know best which I love now some you say what you can't do. That's that's illegal That's a prohibited transaction there self-dealing guys as a law firm we give you a comfort letter and we set this up and We tell you how to do it and if you get audited or there's any penalties or taxes We pay the bill We've been doing this for fifteen to twenty years and we have written the books the articles in the podcast and own this time We would love to help you if you want to self-direct It does not have to be expensive and you can work around the rules legally Now finally lots of comments that people said a 401 k IRA I can't touch it It's stuck there and there's penalties or taxes if I pull it out. That's the point I just want you to start saving if you need an attorney and accountant if you want to go self-direct That's the stuff I have. That's all I'm not selling you something to buy for your investments I just want you to start saving and yes I want there to be a penalty and taxes if you pull it out because at fifty nine and a half you're gonna need this and I know it because I meet with people all the time that have not saved and they're scared to death if you're millennial watching this if you're in Your 30s if you're in your 40s If you're in your 50s just start saving you can have a Roth IRA You can have a regular IRA you can you set up a solo 401k a 401 K Roth we can help advise you to get there and help you set up the plan that's gonna help you get to Some sort of financial freedom in some sort of retirement It's scary out there, but the American Dream is real and knowledge is power and I hope this has helped you to some degree I got a great newsletter every week that's free. Lots of other videos on my channel Give it a like hit the bell and whenever I shoot a video you'll get it Thanks so much for watching and keep living your American dream

Channel: Mark J Kohler

Views: 110,465

Rating: 4.8937817 out of 5

Keywords: tax, legal, entrepreneur, asset protection, wealth building, cpa, attorney, lawfirm, ROTH, ROTH IRA, IRA, Mark Kohler, Mark J Kohler, Kohler, KKOS, K&E, Tax Tip, Legal tip, Tax and legal tip, Tax advice, legal advice, lawyers, income tax, IRS, LLC, Entrepreneurship, american dream, financial freedom, retirement, KKOS Lawyers, legal tips, tax strategies, traditional IRA, 1 million, million roth, kohler million, million dollar roth

Id: bhWhcmUrryM

Length: 15min 29sec (929 seconds)

Published: Mon Apr 08 2019