Becoming a Millionaire: Roth IRA vs 401K (What makes the MOST PROFIT)

Becoming a Millionaire: Roth IRA vs 401K (What makes the MOST PROFIT)

Here’s a topic that’s been coming up a LOT recently, and this is an extremely confusing decision: What’s better to invest in – Roth IRA or a Traditional 401k? Here’s my thoughts, enjoy! Add me on Instagram: GPStephan

LIMITED TIME: Get 2 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1850):

Roth IRA vs 401K Calculator:

The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales:

Join the private Real Estate Facebook Group:

So lets first start with some background on the almighty Roth IRA:
First, like I just mentioned, all of the profit generated in this account is tax free after the age of 59.5. That could save you a LOT of money by the time you retire, especially if you begin investing in this early on.

Second, with a Roth IRA, you can withdraw whatever money you contribute to this account, at any time, tax free, without paying any penalties.

However, here are the downsides:
First, with a Roth IRA, you contribute POST TAX MONEY – this means the money that’s left over after you’ve already your paid taxes on it. And as we all know, the money you have left over AFTER taxes is a LOT smaller than before the taxes were taken away…this means you’ll have LESS of your money to invest upfront, all things considered.

Second, if you want to withdraw your PROFIT from this account before the age of 59.5, you’ll be subject to a 10% penalty, and you’ll have to pay normal taxes on that profit.

Third, the contribution limit for a Roth IRA is capped at $6000…so if you want to contribute more than this, well, you can’t.

But how does this all compare to the Traditional 401k?

Well, the 401k is an employer sponsored retirement account where you contribute PRE TAX money…meaning you won’t pay any taxes on the money you invest in this account. Now because you don’t have to pay taxes on the money you contribute, you have even MORE money left over to invest instead of paying it to the IRS, allowing that extra money you saved in taxes to make YOU even more money.

Pros of a Traditional 401k:
You contribute pre-tax money, meaning you don’t pay taxes on the money you put in this account, and can be a huge tax deduction.

Secondly, you can contribute up to $19,000 per year in a 401k…that’s more than 3x HIGHER than you can contribute to a Roth IRA.

Third, some employers offer a 401k employer match – which means they actually match your contribution, dollar for dollar

Downsides to the traditional 401k:

The first is that you’ll end up paying taxes on your money when you begin withdrawing it from your account after the age of 59.5. With a 401k, you’re basically saving money on taxes NOW so you have more to invest upfront.

Secondly, if you want to withdraw the money prior to the age of 59.5 for anything other than financial hardship, you’ll be subject to paying a 10% penalty on your money and you’ll owe taxes as though this money is ORDINARY INCOME.

Third, you’ll be forced to begin withdrawing your money at the age of 70 1/2…and for some people who prefer to continue saving it and letting it grow, well…you can’t.

And the right mix is – in my opinion – a slight balance between the two. I still contribute a bit to my traditional 401k just to hedge my future options, even if I have no idea if it’ll be the smart choice in the future…again, JUST IN CASE. I also go heavy on the Roth option, too, because I know it’ll be tax free in the future, and I don’t have to question what future tax rates may or may not be.

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at

My ENTIRE Camera and Recording Equipment:

A Stray Bullet

Deserted as a small child, a young male matures in an orphanage as well as later has a hard time to survive prison and also conquer difficult chances to locate God, redemption and forgiveness for a terrible blunder. “A gun adjustments everything … a bullet is for life.” – Bob Lee Swagger In these times of gun physical violence and also mental disease, this film is needed currently especially.

Trading And Demat Account Safety Guidelines In India

In the fast-growing fintech world, supply markets have grown considerably. Concerning 15,000,000 brand-new financiers have joined the stock market since March 2021.

Panaesha Capital Exchange (PCEX)

Panaesha Funding is a Singapore-based fintech company developed by a group of specialists in the area. Accepting blockchain technology and also electronic currencies, Panaesha Capital supplies financial investment opportunities beyond the round of conventional financial investments. The company aims to construct a platform that is easy, safe and secure, economical and fast, and that gives a steady methods of payment as well as exchange. Panaesha Resources Exchange or PCEX is a platform that embodies all the above top qualities; as well as a couple of added qualities.

Best ICO of 2018 – This Cryptocurrency Will Disrupt Wall Street

As we begin to see an increase in cryptocurrency trading there is a growing number of new digital possessions being built daily. The idea of this is definitely fantastic, just we have been entrusted to a substantial problem for several they will certainly discover much less and much less real top quality financial investment alternatives in the crypto market. A lot more a public as well as even more it appears that just the top 15% of cryptocurrencies will maintain any kind of considerable value over time.

Animated Film “Guru Da Banda” to Be Released Nationwide in August

Jalandhar, Punjab, Release: August 24, 2018. For Immediate Release 13 August 2018: Expert da Banda’ the story of legendary Sikh hero Banda Singh Bahadar will be quickly in theaters. ‘Expert Da Banda’ is a 3D computer animated movie and based on the tale of Baba Banda Singh Bahadar.

The Best Books on Cryptocurrency

If you’re looking for the very best books on cryptocurrency, after that it aids to begin with some background. These publications established the stage for the most significant technological jump since the dawn of the net.

3 Things To Know Before Starting Your Crowdfunding Campaign

Crowdfunding has definitely taken control of our lives, be it moneying your dream suggestion or be it funding your next-door neighbor’s procedure. As with any kind of brand-new and also creating methods to make things easier, crowdfunding includes its very own set of pre-existing problems and also context.

Crypto Market Analysis

Cryptocurrency have been around for some time currently as well as there are numerous documents as well as write-ups on essentials of Cryptocurrency. Not only have the Cryptocurrency grew yet have actually opened as a brand-new and relied on chance for investors. This post discovers cryptocurrency as an investment as well as the scope of cryptocurrency

Use Crowdfunding If You Need Capital For Your Small Business

Crowdfunding campaigns might provide a great deal of benefits to small companies. They can assist start-ups obtain access to a pool of possible capitalists as well as numerous fundraising choices. Although increasing funds is constantly the main function of these projects, you may also use these projects to acquire visibility, clients, and also success. In this short article, we are mosting likely to take a more detailed consider some of the main benefits of crowdfunding for local business. Keep reading to learn a lot more.

Raise Capital With Private Investors

If you have released your own start-up, your very first biggest difficulty is to increase capital. The good news is, you select from a great deal of choices to raise the funds your company requirements. Among all the resources, crowdfunding is just one of the finest ones as it aids redefine just how startups can take off. In this article, we are going to help you understand the benefits of increasing funding with private financiers via a crowdfunding platform. Keep reading to discover much more.

Raise $50,000 to $5,000,000 With Crowdfunding

If you are into crowdfunding, you may have a whole lot of inquiries on your mind concerning this system of increasing funds. One of the most common inquiries is connected to the amount of cash you can elevate on a crowdfunding system. In this article, we are mosting likely to address this concern. Review on to figure out a lot more.

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *