5 Reasons a Roth IRA will make you a tax-free millionaire
The Roth IRA is your secret to becoming a tax-free millionaire.
In this post, I want to clearly explain what an IRA is, and break down the benefits that will allow you to build a fortune.
The more believers who have wealth, the more money we have to push the mission of God forward. A Roth IRA is a simple way for God’s people to start building wealth.
The tomb that Jesus was buried in was a major part of the New Testament. Matthew 27 points out that this tomb was owned by a rich man who was a disciple of Jesus. Because this man had wealth, he was able to use one of his assets to further the Kingdom.
When you open an investment account with a broker, like Robinhood, TD Ameritrade, E Trade, etc, you typically open a taxable account. However, you can choose to open a Roth IRA account.
The difference is, with the Roth IRA all of your investments in the account grow tax-free, and when you eventually pull the money out you pay no taxes.
My firm can help you set up a Roth IRA just visit Greenfinancialsolutions.net to learn more.
There are a couple of important things you should know before opening a Roth IRA.
The first thing that’s important for you to know is there are income limits. If you make over a certain income, you can’t contribute to an IRA. The limit is different for people based on whether or not their single, married, or if they’re a certain age. You can do a quick Google search to see what the IRA contribution limits are right now.
The next thing that’s important for you to know is there is a limit on how much you can contribute to an IRA. Make sure you don’t contribute more than the limit, or you’ll end up paying penalties. Penalties would negate the point of putting money into an IRA in the first place.
Even with these limitations, according to Fox Business, almost 180,000 people have at least $1,000,000 in an IRA. The reason they’re able to do this is because of the benefits the Roth IRA offers.
Here are the top 5 benefits…
1. Self Directed Investing
The first benefit is that the investments in your Roth IRA are self-directed. You can pick the best stocks instead of having to invest in pre-selected mutual funds, like what’s offered in a company 401k.
I was able to invest in stocks like Solar Edge, an Israeli company that went up almost 103% in just one year, between November 1, 2018 and November 1, 2019.
2. Maximize Compounding
The second benefit is the Roth IRA allows you to maximize compounding. Taxes eat away at gains each year. This means you have less money growing each year.
If you are in the top tax bracket, you lose up to 20% of your gains to taxes, plus you’d have to pay taxes on any dividend income received.
Also, 401ks and traditional IRAs require you to start withdrawing your money at a certain age. You never have to withdraw your money with the Roth IRA, giving your money more time to compound.
3. Access To Your Money
The next benefit is that you have access to your money. If you need the money you contributed to your Roth IRA, you can withdraw the money tax and penalty-free.
So, if you run into any financial difficulty you can easily access your money.
You can’t withdraw the earnings until you’re at retirement age. But, you can at any time withdraw the money you actually contributed to the Roth IRA.
4. Use Money To Buy Property
Another major benefit of the Roth IRA is that you can use the money to buy a property.
You can withdraw up to $10,000 from your Roth IRA to buy your first property. Investing in stocks and eliminating taxes on the growth will allow you to reach your down payment goals faster.
In addition, with the Roth you can withdraw this money without paying taxes or penalties. Now, you can diversify your assets and you’re doing this all tax-free.
5. Leave Tax-Free Legacy
The final benefit I want to address in this post is that you can leave tax-free money for your heirs.
If you happen to pass away before using all of the funds in your Roth IRA, you can leave the money to your heirs, and they can withdraw the money absolutely tax-free.
This is probably the best thing about the Roth IRA. You can leave a legacy for your family, and they’re not stuck with a huge tax bill.
Pick The Best Stocks And Invest With Just $5
Now that you know why you should invest in a Roth IRA, you should also know how to pick the right investments. I’ve made a masterclass called “$5, 5-Minute Investing Plan.”
I show you how to pick the right investments, and you can start investing with as little as $5 — in just five minutes. Here is a link to start watching the free masterclass: https://financialseeds.net/5-dollar-5-minute/
Let Me Help You Develop Your Personal Investing Strategy
The Roth IRA is just one part of a good investing strategy. My firm offers an investment planning service that helps you develop a complete investing plan.
We’ll review your 401k, set up your Roth IRA, give you access to our proprietary portfolios, and help you invest in real estate.
You can visit Greenfinancialsolutions.net to learn more about our investment planning service.
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