*** OFFICIAL *** ROTH IRA THREAD *** OFFICIAL ***

[sonatine]

Hello and welcome to the Roth IRA thread, my name is sonatine and its a pleasure and an honor to present the host of this thread, Krypt.

I hope youre all ready for some fantastic posting about Roth IRAs.

[ftpjesus]

They do offer definite tax advantages when ya roll over stuff into them. Bad news ya take the hit now on taxes (but that maybe a good thing the way the Dems are going trying to jack up tax rates). Good/Great news anything post rollover is tax free .

[desertrunner]

They do offer definite tax advantages when ya roll over stuff into them. Bad news ya take the hit now on taxes (but that maybe a good thing the way the Dems are going trying to jack up tax rates). Good/Great news anything post rollover is tax free .

I always figured if you pull down a good return percentage (10-15%) for the atleast 5 years, you will outpace the previous tax paid on the funds. Agree?

[Krypt]

I really don't know why sheesfaced and others were shitting on Roth IRA's. Sure, they're not the be-all and end-all of tax sheltered financial vehicles, but they can still play a very +EV in a portfolio. I'll also concede that HNW individuals/families shouldn't give a fuck about any of this minutiae because ultimately it's a waste of their time and effort. With that out of the way, I don't think anyone on these forums, including myself, is above taking tax free w/d @ 59.5. I opened my Roth IRA @ 24 and did max contributions for only two years. I literally ctrl c ctrl v the trades I make in my brokerage in my Roth account and have had stellar results buying and holding biotechs/life science companies in the rare disease space. Of course there is major volatility in this particular space (many companies are actual zeros), but I cant take an unpenalized distribution for another 30 years, so fuck it yolo.

Again, the max contribution to a Roth IRA should be made while you're young imo because that's the time you can make some of these seemingly reckless Long bets you wouldn't make when you've got a family, kids ,etc.

[Krypt]

Power of compounding and degen longs and options on ph1-ph3 binaries in the health care space over the course of six years, starting in 2017:




btw I miss TDA mobile so much; charles schwab app is ass

edit - posting from my phone

[sonatine]

shout out to peter thiel, who put all his vested pre ipo paypal into a roth ira and quickly became a billionaire without really having to pay taxes on any of it.

[Sheesfaced]

I’m a huge fan of Roth IRAs actually. I wasn’t shitting on them I was shitting on the poster who erroneously and ignorantly claimed they were the last tax shelter available when in reality for the people to where tax shelter’s actually are relevant they almost universally make too much to contribute to Roth IRAs and instead pointed out real tax shelters that are still available to them.

Anyways, Roth IRAs are great. In my 20’s post college I had a year where I went back to school and changed careers and converted my old 401k to a Roth IRA and paid the taxes at a much lower rate than I projected to have the rest of my career. So despite being unable to contribute to Roth IRAs for a long time now I still have a Roth IRA account that’s grown nicely over the years.

Another great thing about Roth IRAs is the fact they have no RMDs and are tax-free to heirs. For this reason it’s become a very popular strategy for high net worth individuals to ladder Roth conversions over many years once retired if they retire fairly early which is often the case. And with the Secure 2.0 Act pushing the RMD age back to 73 many people have the opportunity to do conversions for 10+ years thus lowering their Traditional IRA/Rollver IRA/401(k)/SEP IRA/403b balances and reducing future RMDs and taxes.

And Krypt you’d be surprised how many ultra high net worth people still care about making their $6,500/$7,500 a year contribution to a Roth IRA if eligible. Often times it’s the next generation which stand to inherit a ton of wealth but are very concerned about taking advantage of every opportunity available to them. But what I do agree with is for those ultra high net worth people trying to do a back door Roth contribution is in fact a waste of time.

Roth 401(k)s are very popular now as well, and that can be a great way to get money into the Roth bucket for people that make too much otherwise to contribute to a Roth IRA. But for some of those people if their tax rates project to be lower in retirement they may be better off reducing their income now and going with the pre-tax contributions. When people think of diversification in investing a lot of people only think of diversifying amongst different asset classes but tax bucket diversification is an important concept as well.

Anyways that’s an impressive Roth balance for someone your age. You’re absolutely right it makes sense for most to be very aggressive in a Roth when they’re young. Don’t blow it up being wreckless.

Oh and finally, Desertrunner fuck off.

[garrett]

Real Estate ftw

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[sonatine]

here dessertrunner, this is probably more appropriate to your social caste;

[gauchojake]

Make too much. PASS