How to Create a 1 Million Dollar ROTH IRA - Part 2

Hey, Mark Kohler here and I want to respond to all those comments. Great feedback on the part one of how to have a million dollar Roth ira. Now this is powerful, this is important and I'm going to add to and even make it better than the last video. First, here's some of the comments that came back and I'm going to hit these mark. $1 million is even going to be worth it when I'm 67 years old. I got it. 2. 12%? What are you nuts? No one's getting 12%. Third, 401ks IRAs, they're a terrible investment. You should be doing something else. 4. You can't even put $20,000 into an IRA, Mark, you're crazy. You're on another planet. Next, you can't borrow it, you can't touch it. Why am I putting this money here if I can't touch it? And then finally, what's this guy selling? Who's this bozo anyway? Alright, now I'm going to hit all those and I want to hit them quickly and help you find a way to get that million dollars or more into your Roth ira. First, a million dollars isn't going to be worth as much as it is today, 20, 30, 40 years from now. I get it for all of you that made a comment like that. I understand that inflation, the power of the dollar, but what do you do? Not invest at all because it's not going to be worth something in the future. The point of my video is to do something because a million dollars 40 years from now is better than $0. Now I'm a CPA, an attorney, and I'm doing phone calls and consults with clients around the country. Our little law firm and accounting firm. Not selling financial products. I'm not selling that stuff. I'm just trying to help clients save and build their American dream. Start a business, protect their wealth, yada yada. And I talk about this topic all the time. And you'd be shocked how many people I get on the phone with in these consults that are 50 or 60 year olds with nothing, no savings at all. And they're freaking out. I'm making this video to help you not make that same mistake. I wish I would have saved more when I was younger. No, now I know I look like a millennial, but still, I should have been saving more. That's the point. Next, lots of comments. 12%. What's this guy smoking? I'm not getting 12% in my ETF. Mutual fund s and P500 index. I agree, 12% is aggressive for Wall Street. Now I'm going to tell you in a minute how I think you can do better than 12%. But let's just go with 10. Fair enough. Let's do 10%. The whole point of my video was to just get you saving. And you're going to love this. Let's say O this is the same example in part one of my video. How much I'm going to save per week if I'm 20 years old. 12 bucks. 30 years old, 36 bucks. This is per week, Per month, Per year. Now let's say I'm only getting 10%. Do you know what to get to that million dollars? You don't have to even double what you're putting down. Let me tell you though, $90 a month. Now this one's doubled at 20 years old. If I can do $90 a month, I still get the million at 10%. Okay, not bad. Some you could live with 10%. All you have to do is you bring this down to 9%. Just put a little more money in. But check this out. I did the math. This is cool. 30 year olds, if you can do 250amonth, not even 145 double a month, you can just put in an extra 150amonth at 250. Now I can still get my 1 million 40 year olds 650 instead of 450. Pretty cool. I was actually surprised by that myself. And if I'm 50 years old trying to save 1650amonth, and I know some of you said who can save 1650amonth. I have a lot of people that are 60 years old starting a business trying to save as much as they can. Look at this. If you can do 2,000amonth, only $350 more a month. If I can do 2,000, I'll have 1 million at age 67 going with 10%. Okay, little better. For some of you haters out there that thought 12% was a little aggressive. Now I want to tell you how to even do better. I had a number of comments that said an IRA or 401k is crappy. You should use life insurance or something else. And, and they're just a bad investment to begin with. Now remember, an IRA or 401k is not an investment. And there's a deep concept here you're going to love, especially when I get to how you can do better than 12%. Hang on. Now remember an IRA or a Roth is a vehicle. It's not an investment. What you put in the investment to get your rate of return. That's what's in the Roth. The Roth itself isn't bad. It's what you may put into it. And a lot of people use the stocks, the bonds, the ETFs, the mutual funds to try to get their rate of return. So you might have in here something that's giving you 8%, 10%, 12%, 1%. Well, could we get more than that? I'll show you how. Now, getting money into it is also a problem. A lot of people are like, I had comments of, I can't save. I don't. I don't. I'm too old. I don't have enough money. I'm on disability, or this or that. I got a couple suggestions for you. Because, remember, it's getting money into the vehicle, and then it's investing it. There's two issues here, and I want to repeat that. How am I in. How am I getting contributions into this when things are tight and I'm trying to make ends meet, how am I saving? And then number two, how am I investing? See, those are two different points that I think are so important, and I want to put them in red here. What am I investing and how am I saving? So your next little tip here in this situation, Acorns, Stash. If you haven't heard about this, you're missing out. I just got chills saying it. What's so cool? And you can compare Acorns and Stash. They're the two main competitors out there. I'm going to throw out Acorns. I kind of like that. What Acorns is, is a debit card where you round up to the next dollar whenever you buy something. That's point number one. So you take this app, it's Android and Apple. You get the app, tie it to your debit card, and whenever you buy something, you round it up. So if you go to Starbucks and spend 450, it rounds it up to 5, and then that 50 cents goes into your savings account. Right before I shot this video, I went to one of my employees, a millennial. He's in his 20s. He just. He's still in college, in fact. And I said, which one have you got? And he goes, I got stash. I go, really? You already have stash? How much did you get into it in the last three months? And he goes, in the last two months, I put in about 300 bucks. This is a college student just rounding up every time he buys something. Now, what's cool about Acorns too is if you go to one of their 200 partners, which includes like Airbnb and Starbucks and a few other places, Nike even, they'll throw in another 5 or 10% on top of what you put in. What? Now when you say, mark, I can't get 8, 10 or 12%, if you're already out of sight, out of mind, saving on with your debit card and then you've got people that are matching it or putting in 5 or 10% of what you put in because you shopped at their establishment. Do you think I could get to 8, 10 or 12% a little faster? That's the point. I not only want you back here, I was just asking you to put $90 a month or 250 or 650 or 2000 if you're doing it every time you shop and rounding up. That's why I love these apps. You know who told me about it? My old millennial kids. My kids. This weekend I was hanging out, we were watching TV and the Final four and just hanging out and they were like, dad, why aren't you talking more about Acorns and Stash? And I said, well, I don't know. And they just got me hyped up about this. I am also setting up those apps on my own phone for my Roth IRA and for my kids. I'm helping them out. This is a big deal. So you can even set up in with these apps, regular deposits. So not only from my regular bank account, I'm choosing $10, $20, $30 a week, rounding up all my transactions so that I can put more money in. And then I'm getting matching maybe from your employer at your regular job. And I'm getting matching from establishments I may buy or patron patronize. So this is really important to get money in. That's how I can get more money in. Then how do I invest it? Now, next point, better than 12%. I know some of you been waiting for this. Now this is huge. Now I'm sure I got some of you on the bandwagon. 8, 9 or 10% when you're getting matching and all this good stuff and you're putting in more money so that the rate of return is not as important to get to that million, but better than 12. Yes, I've got clients and I myself get better than 12%. Not all the time. I mean, there's risk out there in investing. I get it with self directing. This is a concept that has been on the books for 40 or 50 years. There's billions of dollars in self directing. But Wall street doesn't want you to know because they don't get a commission if you self direct. They only get it if there's stocks, bonds, mutual funds and ETFs. I hate Wall Street. I love Main Street. And in my law firm for the last 20 years we've been helping clients create LLCs and other structures where your Roth or your IRA or your 401k can invest in what you know best. Now I'm going to give you three examples. I already got two in my head. I'm going to pull one out for number three. Number one, I had a client last year that took their Roth ira, took the Roth, formed an llc, put like a couple grand in it and had a bank account of which they're the manager of it, which is totally cool. We've been setting up these LLCs for years. And this little LLC had a couple thousand in it. And in one situation they went out and bought four tickets to Selena Gomez coming to Staples Center. So they bought these four tickets. They were about 150 bucks, kind of back row floor, not great. But they bought them early. And they were sitting on these. I have clients that flip tickets on StubHub, that's a business of theirs. But this client had taken their roth, formed an LLC, went out and bought four tickets, about $600 worth of Selena Gomez tickets. Then the week before they sold them for about 225 a piece on StubHub. So they were dropping 75 times 4. That's about a $300 gain into their retirement account. They were flipping tickets inside their LLC and all the profit went tax free into their Roth. What? That my friends, was a 33% return. That was even better than. Or is that a 50%, that's 50% return. Sorry, this is crazy. And I have clients do it all the time. I myself have invested. I will show you the number two option. I had an LLC that's owned by my health savings account, which I talked about in video. Number one, this is me myself. I have a rental property that pays out cash tax free into my LLC owned by my HSA that I can invest with because I formed an LLC to self direct third option. Okay, I've got a client, we meet with clients every day doing this that takes their IRA and their 401k forms an LLC and buy mobile homes for about 10 to $30,000, leases them out and then and sells some of them and carries the paper. Sometimes they flip them. But they all they do is mobile home investing and they make 100 150% returns every year. This is called self directing. That is a concept Wall street doesn't want you to know. That's how you can do better than 12%. Peter Thiel that invested in the PayPal, Facebook, all the Peter Thiel, look at him. There's articles out there, their estimates that he has a billion dollar Roth IRA because he invested with his Roth. Mitt Romney who ran for president had a $25 million IRA. He said I self direct, don't you? And Wall street was like be quiet. This is how the rich get richer. Now who I love for this is now and I'll tell you I have a financial interest in this. I'm not going as an attorney. CP I have to disclose that I love directed ira.com directed ira.com and here you can set up a Roth, you can set up an ira, you can set up an HSA and you can self direct it. And some people, oh there was other people in my the comments of my last video that said oh it's totally expensive to self direct. No, it's around three to four hundred bucks a year. A new account right now. There's a special right now before April 15th to set up your IRA and get a contribution in for 2018. If you're watching this video after April 15th you can do this and set up an account and for three to four hundred bucks a year you invest it the way you want. Our law firm has been working with directed IRA for years helping people set up their LLC and invest in what they know best. That's the concept. Now one other quick comment. Some of the comments below on the first video said, well these there's all sorts of transactional fees when you go out and self direct or take your roth or your IRA or your 401k and use a custodian or trust company. There are transactional fees. If you have them do the investing for you and have them handle notes and transactions and properties. What we've done for years and we love it is you can create an LLC owned buy multiple IRAs or 401ks or SEP simples or even your own money or your brothers, your sisters, your moms, your dad, your husband, your spouse, your wife, your kids. IRAs can all be in one LLC and you can be the manager and you can run out here and run this thing and invest in what you know best, which I love. Now some of you say well you can't do that. That's illegal. That's A prohibited transaction. They're self dealing guys. As a law firm, we give you a comfort letter and we set this up and we tell you how to do it. And if you get audited or there's any penalties or taxes, we pay the bill. We've been doing this for 15 to 20 years and we have written the books, the articles and the podcast and own this topic. We would love to help you. If you want to self direct, it does not have to be expensive and you can work around the rules legally. Now, finally, lots of comments that people said a 401k IRA, I can't touch it, it's stuck there and there's penalties or taxes if I pull it out. That's the point. I just want you to start saving. If you need an attorney, an accountant, if you want to go self direct. That's the stuff I have, that's all. I'm not selling you something to buy for your investments. I just want you to start saving. And yes, I want there to be a penalty and taxes if you pull it out. Because at 59 and a half you're going to need this. And I know it because I meet with people all the time that have not saved and they're scared to death. If you're a millennial watching this, if you're in your 30s, you're in your 40s, if you're in your 50s, just start saving. You can have a Roth IRA, you can have a regular IRA, can set up a Solo 401K, a 401K Roth. We can help advise you to get there and help you set up the plan that's going to help you get to some sort of financial freedom and some sort of retirement. It's scary out there, but the American dreams real and knowledge is power. And I hope this has helped you to some degree. I got a great newsletter every week that it's free. Lots of other videos on my channel give it a like hit the bell and whenever I shoot a video, you'll get it. Thanks so much for watching and keep living your American dream.