Open a Traditional IRA here: [ Ссылка ]
In this video I'll explain what a Traditional IRA is, who they're for, when to contribute, and where, why, and how to open one in 2024.
// TIMESTAMPS:
00:00 - Intro
00:07 - What Is a Traditional IRA?
00:31 - Who Can Contribute To a Traditional IRA?
00:43 - How Does a Traditional IRA Work?
02:11 - Traditional IRA Investments
02:27 - When To Contribute To a Traditional IRA
02:52 - Traditional IRA Income and Contribution Limits for 2024
03:51 - Recap
04:09 - Traditional IRA Advantages
04:22 - Traditional IRA Disadvantages
04:37 - How To Open a Traditional IRA
04:57 - Outro
// SUMMARY:
A Traditional IRA is simply a U.S. retirement savings vehicle by which investors contribute pre-tax income, that money grows tax-deferred, and the withdrawals later in retirement are taxed as ordinary income.
The Traditional IRA was established in 1974 by the Employee Retirement Income Security Act. IRA stands for individual retirement account. As the name suggests, this is an account designed to help individuals save for retirement.
The main function of the Traditional IRA is that contributions are made with pre-tax dollars (in most cases they are tax-deductible), those contributions are allowed to grow tax-deferred, and withdrawals later in retirement are taxed as ordinary income. In other words, contributions to a Traditional IRA are taxed on the back end and not on the front end.
You have a wide variety of things you can invest in inside a Traditional IRA, including mutual funds, ETFs, stocks, bonds, money market funds, certificates of deposit (CDs), cryptocurrency, and more. You can even hold investment real estate in a Traditional IRA.
Advantages of the Traditional IRA include a variety of investment options, no income limit to open the account, possible current-year tax deductions for contributions, tax-deferred growth, and a good choice for those in a lower tax bracket in retirement. Disadvantages of the Traditional IRA include withdrawals being taxed as ordinary income, taxes and penalties on early withdrawals, RMD's after age 73, reduced deduction eligibility for high income earners, and a low contribution limit compared to a 401k.
Read the blog post here: [ Ссылка ]
#retirementaccounts #investing101 #retirementinvesting
// INVEST
► M1 Finance: [ Ссылка ]
► My comprehensive review of M1 Finance: [ Ссылка ]
► Get my dividend portfolio: [ Ссылка ]
► Lazy Portfolios: [ Ссылка ]
► Beginners’ reference guide (updated regularly): [ Ссылка ]
► Webull (for stock traders; get 2 free stocks): [ Ссылка ]
// SOCIAL
► Website: [ Ссылка ]
► Patreon: [ Ссылка ]
► Facebook: [ Ссылка ]
► Instagram: [ Ссылка ]
► Twitter: [ Ссылка ]
► Support my channel by shopping on Amazon (free for you): [ Ссылка ]
I appreciate all the support!
Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: [ Ссылка ]
Disclosure: Some of the links above are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this channel and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful.
