What’s the hands-down easiest way for the 99% to build wealth? Answer: index investing in tax-advantaged retirement accounts like IRAs and 401ks. The more you can contribute into your retirement accounts, the better. The benefits are truly astounding –
Nearly all financial advisers will tell you they are trying to help you, and many even believe it themselves. But, as they say, money talks, and bullshit walks. Unfortunately, most financial advisers do not have your best interests in mind,
A Backdoor Roth is a tax loophole which people use to bypass income limits on IRA retirement account contributions. It essentially allows you to “backdoor” a contribution to a Roth IRA, even though you do not qualify to contribute to a Roth IRA.
Should you contribute this year to a Traditional or Roth IRA? The best choice is usually pretty straight-forward, depending on your age and your income level. When you are younger or in lowest tax brackets, the Roth IRA is the better choice.
As you may know, there are two different flavors of individual retirement accounts (IRAs): the traditional IRA (think: Vanilla) and the Roth IRA (um, Chocolate?). Each flavor has it’s unique benefits. By combining the advantages of each account type, you can dramatically reduce your taxes for many years.