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

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

73 thoughts on “How to Create a 1 Million Dollar ROTH IRA – Part 1 | Mark J. Kohler | 2019”

  1. Glad I did a 401K with my employer as it was needed, I am 23 now been with the company 3 years, doing 5% and they match up to 5% every year and so far 2 bonuses to deposit into my account of $1500 total. They are going to stop giving pension next January so I definitely want to start a Roth. Thanks for that

  2. I can't wait till I have kids so that I can do this stuff with them after school. I'm going to teach them all of the financial advice they need that they don't learn. And btw im 18

  3. I’ve watched multiple videos on RIRA’s and they were all helpful. However this car analogy is the best I’ve heard, and makes it easy to explain to those who understand even less than I.

  4. You need a new plan! Any IRA depends of evading the IRS tax. On 30 September of this year the IRS is out of business permanently. The reason for your IRA disappears. Learn about the VAT tax starting 1 January. Banks will no longer issue your private account number. You will be issued a QFS number. (Quantum Financial System {or service} which can track your personal QFS money, recover it if any transaction you did not approve of. In implementing this system, several bankers tried to siphon some of the money to their personal account, and were immediately caught by the tracking system, and were sent to jail. Official announcement of this will be around the middle of September. Our world is about to change in unimaginable ways! All for the better.

  5. 7:50 What is the max contribution per year? Its $6,000 right? What is this guy talking about 20k a year in a Roth? He serious??

  6. Lmfao…I made the stupid mistake of thinking the way he said "oh, i'm young and i need all my money TODAY, screw investing in a 401K"…so for 10 years I missed out on the 4% match from my employer. That's a lot of money I missed out on. Just started my 401K a few months ago.

  7. It appears you are only referring to a Roth IRA and you there are contribution limits. Why do you not ever answer the questions or comments on this fact?

  8. Man this is a tough crowd.. Most of you folks bashing are totally clueless.. You make that obvious in your responses.. Plus if you had his wealth then you would not even be here… LOL…. SMH…Why all the hate for a man who is offering FREE ideas on a way for you to POSSIBLY save a little money??? If you don't agree then move on….

  9. If i have a million dollars in my Roth IRA could i pull out the money i make in intrest, so intrest being 12% annually thus i could pull out 120,000 for the rest of my life??? Can I do that or is their a problem

  10. Help! Im 30 and i want to make sure im doing this right. I Have $160 going in the Roth IRA every 2 weeks. Nothing special, the most conservative route. How am i looking by 50? Should i switch over to the S&P 500??

  11. Isn't there a limit or maximum on how much one can put into a ROTH annually. I thought that under 50, you can put in a max of $6000 annually while over 50 ppl can put in a max of $7000 annually. Please correct me if I'm wrong. Thanks.

  12. But being 30 how can you get a million before 67 how much and how often do you have to put away in Roth account, and what if you took out money before like 50 is that ok?

  13. The government implemented a "catch-up" program. Once you turn 50, the contribution limit increases from 6,000 a year to 19,500 I thought? But, could be higher. 10-12% is a little steep. lol probably closer to 6-8%

  14. What’s the point in saving if I have to wait until I’m feeble and old and near death to do anything with it?

  15. Your 12% average of the SP500 is hugely inflated. Put in something more reasonable, like 8%, and all of a sudden that $920K for a 20 year old investor is now $244k after 47 years. The reality, is that you should just toss in as much as you can into a ROTH at any age, and keep doing it for as long as you can. And I'm not putting Crypto currency into my retirement account for anything.

  16. The rich invest in assets while the poor invest in liabilities, it sounds so simple but the thing is, most people can't differentiate between an asset and a liability.

    let me break it down for you, an asset brings money to your pocket while a liability take money way from you, Yes anything, i repeat anything that doesn't add money to your pocket is a liability.

  17. I'm 32 and currently invest $2366 a month into Stocks, ETFs, REITs, Crowd Funding, high interest savings account (my emergency fund), and lastly bitcoin (just in case). My expense ratio is about 0.06% and my combined dividends between different investment accounts is over 4%. My current return is over 10%… Hence my legal last name is Overton. Namaste. Hope you all do well also.

  18. I made my first million from investing my ROTH IRA in stock, Mrs Nina Jeanne Rose is a great account manager ,she helped me through my investment so i recommend her if you look to invest wisely without losses

  19. Misleading. The avg annual return for the S&P is 7%. We have been in a bull market for 10 years. The market is much closer to a top than ever. Debt in the USA on every level is obscene.
    Let’s get to the facts. I’ve seen this rodeo 3 times now. Here is THE best way to invest in a ROTH IRA.
    CONTRIBUTE THE MAX EVERY YEAR AS SOON AS YOU ARE ABLE. If you are in your 20’s put in the max $6000/ year every year …period. None of this you only have to put in this much. PUT IN AS MUCH AS YOU CAN UNTIL
    YOU HIT THE MAX ALLOWABLE. Why not be a millionaire at 50 instead of 67??
    Sadly most of my fellow Americans have a spending/ debt problem thus most of them will stay worthless their entire lives and be forced to work at some job well into their late 70’s.
    I want to repeat again : the average annual return of the S&P 500 is 7% NOT 12%, so this video is not accurate. Bottom line: SAVE, INVEST your money and “Be rich”. Don’t spend your time trying to “Look rich” because in the end you will not be happy.

  20. A couple of risks to consider, especially if you're 20 and considering a 47 year plan.
    1. ALOT can happen in half a century, not excluding changes to legislation and tax laws. Don't assume the way things are now are the way they will always be. There's nothing to stop the government from confiscating your savings, like they already do with your social security. Consider bail outs, bail ins, or even a war. It's risky stuff.

    2. Saving fiat currency is unwise, even if your interest is outpacing the average rate of inflation, because all fiat currencies eventually die, it's inevitable, not one in history has ever survived, and if you think your local fiat currency is any different, just look up the national debt of your own country and the decline in purchasing power of your currency. NO fiat currency is immune from hyperinflation and eventual collapse, in fact the very nature of a fiat currency makes this an inevitability. It's not a matter of if, but rather when.

    As another educated commenter here pointed out; if it puts money into your pocket, it's an asset. If it takes money out of your pocket, it's a liability. If you're a wise investor you'll accucumlate assets and generate tax-free passive income/cashflow. A penny saved is not a penny earned.

  21. The mechanics are correct, but his 12% rate of return assumption is about twice as high as the 6% you SHOULD use for future stock returns.

  22. I'm 45 and do contract work. I'm assuming I need to deposit $1050 a month. (The difference between the amounts for ages 40 and 50). Business is good lately and I could handle that. But given that I do contract work I can sometimes be out of work for several months. Is there any benefit to putting a large lump sum down initially? Say 50 or even 100K? Would this bring the monthly deposit amount down significantly? Or would it be better to just put that money aside in savings to use as a supplement for the $1050 monthly contributions when work is slow?  Thank you for this video. I love that no bloat, just meat and potatoes.

  23. Isn’t the total amount up to $6000 per year? I just googled it and I couldn’t find otherwise.
    -Wouldn’t be better to have a 401k because you can have 3x more money invested and come out ahead even after you’re taxed.?

  24. Mark, great info sir. You just made my day sir. I'm not a huge money investor. However, when my child support payment came back into my pocket from my first marriage. I said to my wife I'm putting all of this in my Roth. That just made my day, out of sight out of mind. I didn't even realize how much it would be at the end. Sad thing is, who knows if it will take 1 million retire by the time I'm 67 Lol! Any way great video. God Bless!

  25. Yes, invest young people! But don’t expect an average 12% return on your money. It’s good advice to open a Roth while your income is low. It is much more expensive to fund the Roth as your income grows and you get into higher tax brackets.

  26. I became suspicious when he failed to mention inflation. At 2% inflation (which is normal), the buying power of a dollar will decrease 2% every year. Take a big number like a million and then subtract 2% over and over — once for each year you invest. You'll be surprised at the result. A million dollars is a nice sum of money now, but it won't be when you retire. He only sounds impressive if you don't know much about investing.

  27. u not gonna get 10% that s a dream,, u get 4 to 6% if u lucky 8% is the highest,, i talked to my bank advisor 5 is the average get ur numbers straight

  28. I like to put real estate in my SDIRA, then pay the tax to convert to a ROTH. That way the property and the rental income are forever tax free. Nice video Mark.

  29. I made my first million from Trading stock as a beginner, the expert who assisted me is Mrs Angela Rene Reynolds, we met at a trading conference and she accepted to trade for me, I've had no cause to regret ever since

  30. Hey I am a little late in the game and I listened to the entire video…. I have a question… how does it figure that you can put in $19800 a year to the roth when its capped at 7k per month? Is there a new law

  31. For a 20 year old, $1m in 47 years is not even close to the same thing as $1m for a 50 year old on 17 years. These should really be inflation adjusted. Still gets the point across though. Love your videos

  32. PLEASE don't trust any one person as your only source of financial advice. 1. 10-12% return is not realistic. It might not make for great youtube content, but being conservative while planning is better than too optimistic. 2. He didn't talk about annual contribution limits. 3. You'll likely need more than a million in retirement, especially when you factor in inflation. Healthcare alone in 2019 for a couple in the USA will take $250k. Just imagine what it'll be in 35 years. He addressed these items in a part 2 video after people did his job for him and pointed out the problems with this exercise's parameters. Just be wary of making this important of a life choice based on one guy's advice.

  33. As a newbie i started investing with Marilyn Su Thuyen and so far i made a total of $1million off my $500,000 investment, i never knew the financial market can be this profitable.

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