How to use Retirement accounts like the Rich

One thing that I learned is that my teacher were wrong. They always told me cheater and copy cats get no where in life. But in reality one of the best ways to get ahead financially is to copy exactly what the rich people do. But important you have to understand why they do what they do. So in this video, I’m going to teach you something that you might need today or you might need to tomorrow. Its call the Roth Back Door and the Mega Back Door. You see the average person can only contribute up to $25,500 into their retirement but the rich have figured out a way to invest up to 60k towards retirement a year. 😎Call Me😎: https://bit.ly/30IBr0i 😎Second Channel😎: https://bit.ly/3c4sVPS 💲1 on 1 Talk + My Budget + Stock Investments💲 https://www.patreon.com/tommybryson 💰MY M1 FINANCE PORTFOLIO💰 PLUS $10 Link: https://m1.finance/fQsrul1PZcHM 1. The first thing is Back Door to invest into a Roth - This loophole is something that the irs is well aware of - But it provides them with immediate tax income - So that’s why they haven’t made any changes for this The Core idea is this: - If you make over 140k you’re not allowed to contribute into a roth ira - So these people to get around this rule, they invest into a traditional ira, and then they roll it over into a roth ira - Usually they have to pay some taxes because it was pretax money ( but now they have the benefit of a roth ira ) – and that’s basically the back door ) Why? - Because the roth lets your money grow tax free and after your 59 and half you can take out the gains fully tax free - While the traditional is going to have mandoritory withdrawals and taxes - Example of roth vs tradional with the taxes However: - If you don’t have this amazing income problem -Its important you understand it -If you ever quit your job or get laid off, you can roll over your 401k into a traditional ira and then into a roth ira ( which is also going to help you ) 2. Mega Back Door ( this allows you to invest up 57k a year or potentially more if you are50 years old and older) - This works for people that have business where they are the only employee - Which means they can get an individual 401 and mange their retirement accounts themselves Step by Step: How does it work - The irs allows you to invest up 25% of your salary ( that you pay yourself ) but no more than 57k - This means you can personally contribute $19500 into your 401k or roth 401k ( I do roth 401k its easier ) - Then you business can contribute an extra 25% of your salary into your retirement so 401k ( it has to be 401k because the business legally has to benefit from it, so then irs can benefit from it later) - Then you can roll over the 401k into traditional ira and then into roth, if you have roth 401k you can just roll that over into the roth ira no problem This Tricky: - Because the only way to maximize is to raise your salary which will then raise your taxes 3. Secret Retirment account ( HSA) high deductible Health plan - This will lower your health insurance premiums and allow you to invest additional money for retirement - For single people its around an extra $3000 ( but it is pretax ) * PRO TIP* INFORMATION IS EVERYTHING 👕Merch👕 https://teespring.com/stores/tommybryson ✅2 FREE AUDIOBOOKS✅ https://amzn.to/2Enayo8� �¬¬ 💰M1 FINANCE $10💰 Link: https://m1.finance/fQsrul1PZcHM 🎁ACORN FREE $5🎁 Link: https://acorns.com/invite/38EYSU ⚡FREE KINDLE UNLIMITED⚡ (traditional reading) Link: https://amzn.to/2VGbxt9 👨🏽‍💻DISCORD PRIVATE GROUP👨🏽‍💻 https://discord.gg/EcZEHpA My Camera Gear: https://www.amazon.com/shop/tommybryson ✔ Help Us Reach 500,000 Subscribers: https://goo.gl/0wvm6w 😎All My Social Media😎 Link: https://linktr.ee/tommybryson *Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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