Added: 4 years ago
From: mymoneyblog
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  • You don't pay taxes when you buy/sell on either Traditional or the Roth. Only when contributions or withdrawals are made.

  • Thanks for this video, it really simplifies this for me. Correct me if I'm wrong though but wouldn't a Roth be better because if you bought and sold your initial investment multiple times in the traditional account (common to switch stocks over 30 years) it would be taxed multiple times. In the Roth you would be protected from being taxed multiple times as well as being protected from a potential higher tax rate when it came time to withdrawl?

  • Can you switch from a Roth to a Traditional IRA later down the line? How convertible is it?

  • Drop down your contributions on the 401K to the level that you can max out the Roth.

  • Ugh! I can't watch it b/c of the mouth sounds on the mic. I'm sure you have good information but my nerves cannot take it.

  • Not bad. But there are still so much more to it that your tax rate. So much more... You must look at the impact that each will make on all of your financials

  • What is the equivalent to a Roth IRA in the UK?

  • You pay taxes first on a traditional IRA and pay them later on a Roth IRA. You did this backwards.

  • this guy is a fucking genius and has a great blog site... gives good advice and tips, answers faq, and some interesting columns... i'm not trying to totally kiss his ass, but thanx to his columns i decided to open my first online savings account... so instead of getting .25% interest from my local bank, i'm getting 5.0% online... that's a huge difference... now, if i could only get the nerve to open my first Roth IRA account it be great to add along to my 401k... one step at a time, i guess.

  • Thanks for the explanation. I'm contributing the maximum to my 401K and was considering opening a Roth IRA, but Wikipedia says that Once MAGI hits the top of the range, no contribution is allowed at all. I would be above that range so am I not allowed to contribute to an IRA seperate from the 401K that I'm all ready contributing too?

  • Thank you for simplying this. makes me wonder why do they keep coming up with all these schemes which in the end amounts to about the same thing? Don't the government have anything better to do with their time? Also, do you know of things like trust, insurance etc, to avoid having to pay estate taxes when you finally want to pass on the money?

  • Hey! Thanks for the great info. Just got one suggestion. You might want to use a popper stopper or some kind of mesh to prevent the popping sound while you are talking on the microphone. If you don't have one, you can make one out of stockings and wire hanger. Thanks again!

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