How to Create a 1 Million Dollar ROTH IRA - Part 1

A $1,000,000 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, go 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 going to give you the equation and to make it work. Alright? 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 going to hit it fast, simple and easy. And you're going to 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 employer is going to put Money in your 401k. If you do, they call it a match. Sometimes you might even put money into traditional Iraq. 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 IRAs are bad. No, what you put in the 401k might be bad. 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? Do you? 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? We call it tax deferred. You can invest it and you don't pay any tax. If you make money, buy Facebook stock, it doubles. You pay no tax. Buy 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 going to wait till you're 59 and a half. Now, some of you, I know already, if you're young, you're like, oh, I'm going to live forever, I never get sick. Why am I going to put money in a 401k? I'm going to use life insurance or I'm going to 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 twenties, and would have simply put away fifty bucks a month. It can be that simple. It's asset protected. You could get into any lawsuit and no one can touch this. This is, this is O.J. simpsonized. I love it. I have a whole chapter in my book on this, guys. 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 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. 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 little boy on sandlot? Ever. 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 called the island of the hsa? The Health Savings Account. Get over to one of my other videos, type in Kohler 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 going to say maybe some of you are 20 years old, some of you are 30, some of you are 40, and some of you are 50. Scared to death. I've got the numbers for each one of you. Did my homework here. You're going to love this. Now what's our goal? By age 67, I want you to have $1 million. $1 million. Okay. At age 60, then we have to assume how you're going to get there with your interest rate or your return on investment. Now, the s and P500 type fund over the last 50 years, you should be able to get somewhere around 10 to 12%. Now that you're not going to if you go the stock market route. And I'm going to give you better ways, in my opinion. But let's just assume you can make 10 to 12% 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 67 million bucks. 10 to 12% rate of return. I'm going to go with 12 on my math here. Okay? If you're 20 years old, this is going to freak you out. You will not believe this. Okay? All you have to do is, is $45 a month or $12 a week or $540 a year, guys. $12 a week. Right now you can set up an app on your phone and say, $12 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 twist on it. I got better twists. But just doing $45 a month, you'll have a million dollars when you turn 67, 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 $45 a month. Can you believe that? Okay, now if you're age 30, you're like, oh, I wish I would have done it when I'm 20. But now I'm 31. 45amonth. That's $360. Sorry, that's 145amonth. Okay, $36. Okay, this is one. Oh, my gosh, my handwriting here is terrible. 145amonth. $36 a week. Or 17, 40 a year. Okay, that's my age 30 mix. So if you're age 31, 45amonth, 36 a week. Doable. 36 bucks a week. Skip a lunch, skip a dinner, have it go out of your bank account into a Roth. Now you're age 40 for those in that realm. And I've been there, you know, I'm a little older than 40 now, even though I look younger. Okay, 40, man, you're scared, you're freaking out. 450amonth, okay? It's a car payment. It's a car payment, but I want a million dollars when I turn 67. 450amonth and you'll have it a million tax free. That is 115 a week or $5,400 a month. That's, I mean a year. 5,400 a year. 450amonth. 115 a week, 5,400 a year. This year you can put 6,000 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 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 age 50 and you're playing with this, let me tell you the numbers. It's 1650amonth, 412 a week, or 19,800amonth. Now, year I keep messing this up. That's a month. This is a week. That's a year. 19,800 a year. Now some of you may say $20,000 a year. Okay, well if you're in your 50s, you might be able to cough up 1600amonth to try to get there. But you, in 17 years, you'll have a million dollars, tax free. Now I'm going to 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 26 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, 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, alright? And I've got this nice little speedster And I'm going to. Ooh, 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 could 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 Roth IRAs. 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 is 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.com. 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 going to 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 could put an Internet business in there. You could 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. You think you might do better than 8% in a mutual fund, might get 12, 15 or 20%. Now the numbers start to go off the chart. Because if you can do better than 12% by self directing, you're going to 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 directing your Roth and investing in what you know best. I know many of you that are young see Wall street or these retirement accounts as a scam. Something's locked 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, getting at least a 10 to 12 or more percent return. You're going to 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 going to love it.