5 Simple Steps: Earn an EASY ROTH-IRA Million!!!

So, you wanna earn a million dollars, super-duper easy? How would you like the federal government to give you a big, huge tax break? Wouldn't it feel deliciously good to earn a Million Dollars of income, completely tax free? How would you like to earn a million dollars of income passively, quietly, without lifting a finger? Well, put your seatbelts on, folks, because in a brief nutshell, I'm going to introduce you to the financial vehicle that you've been looking for! Welcome to the wonderful world of investing through a ROTH IRA in 5 simple steps:1. What is a ROTH IRA?2. Which way should I go?ROTH IRA or Traditional IRA?3. When Should I start Investing in a ROTH-IRA?4. How Long Before I Earn $1,000,000 ? One Million Dollars?5.

A ChecklistBefore we proceed, A couple things to please keep in mind. A ROTH IRA, while completely simple and easy for all of us to understand, is not without complexity, and each individual is different. Laws change, so always check with your financial advisors before proceeding to take action. The information contained in this journal are solely the opinions of this writer, so be sure to seek out solid financial advice before making any important decisions. Be sure to do your own research and conduct your own financial assessments prior to changing any investments or making any new financial decisions.

While I welcome the opportunity to introduce you to the ROTH IRA in my own words, please make sure that you assess your retirement plans on your own, alongside those financial advisors that you trust and rely upon. With that said, let's proceed!1. What is a ROTH IRA?

  1. A ROTH IRA is a wonderful product that came into existence as a result of the Taxpayers Relief Act of 1997. It is a new tax-shelter for the average American, and a new opportunity to take advantage of certain benefits that were previously unavailable.
  2. A ROTH IRA, in part, reverses the process from that of a regular traditional IRA account. The down side is that there are no tax deduction benefits for your contributions.

    The plus side is that the contributions you make, are POST-TAX?In other words, you're not using the ROTH-IRA before taxes are taken out of your paycheck. You're using the ROTH-IRA from your Net proceeds of your paycheck, or after taxes are taken out. Why is this absolutely wonderful? Well, I'll get to that in a minute.

  3. Most of us can add up to $3000 (as of 2004) per individual into each account per year. Now of course, if you're married, then you can add up to $6000 per household, combined into two ROTH-IRA accounts, per year! That's enormous. Absorb that for a second.

    You and your family, can invest $6,000 additional monies, per year, in a tax-shelter, that will earn revenue TAX-FREE!

  4. After 5 years, the principal can be distributed, even though the earnings should remain in the account to avoid taxation and penalties. What this means is, that you are not restricted completely from this money. After 5 years, options become available to you. This is nice, because this means that you do not, necessarily, need to wait until retirement, to extract funds, should the need arise. Of course, early withdrawal penalties may exist as they do in many tax-shelters, however, the point is that there is added flexibility in the ROTH-IRA, that was previously unavailable.
2.

Which way should I go?ROTH IRA or Traditional IRA?...Perhaps!

  1. Now whether to go with a ROTH IRA or a traditional IRA account is really up to you and and your financial advisors. This is a subjective decision, and each persons needs and requirements are different. Here are a couple things that I keep in mind, however, when I'm examining the ROTH-IRA for my family:
  2. Do I have a 401k, and a company sponsored Savings or Pension plan, and a Bonus plan, and a variety of other tax-shelters, and retirement programs? If I do, then perhaps I don't necessarily need a traditional IRA account, because I already have investments working to my benefit, pre-tax. Perhaps if I were to sit down and do the math, I would see that all my pre-tax bases are covered. What I need now, is the next step?What I need now, is a way for my family to invest my POST-TAX dollars smartly.

    What I might need, is a ROTH IRA?Perhaps.

  3. Am I planning on extracting the EARNINGS of this fund, before I retire? Now, I'm not talking about the Contributions. This is an important distinction that was previously discussed. I'm talking only about the Earnings. Anyway, if the answer is YES, then I may want to look into a regular, typical, standard brokerage account, and forget IRAs altogether. Remember, both the ROTH-IRA and the Standard IRA are designed as tax-shelters that the average American family can use to grow their assets for retirement purposes.

    If my assets are much larger and robust, then perhaps a ROTH IRA may be small potatoes, too restrictive, and I should just go with a standard taxable account for much greater flexibility?Perhaps.

  4. Do I have very few company-sponsored retirement choices? Do my earnings place me in a higher-tax bracket, and thus, I might need to seek out the benefits of a tax-deduction? Do I already have a traditional IRA, and thus, I may need to consider whether or not a "conversion" to the ROTH-IRA is a benefit or a penalty? Is the Traditional IRA a better choice for me? Perhaps.
  5. And of course, there are so many other questions that go into this important decision. However, perhaps the above points will help you get a feel, a direction, an overall understanding, of which choice may be better for you. Personally, I think the ROTH IRA offers the most compelling benefits to the most people. It certainly does for me and my family. So, as you journey forward in examining these two tax-shelter accounts, make sure to ask the important questions, as the ones I've suggested above.
3.

When Should I start Investing in a ROTH-IRA?

  1. The ROTH-IRA is a fabulous "next step" on you journey to cleaning up your financial house, and moving from the reactive you, to the wealth-building active you. Don't start with a ROTH-IRA. Think of it as the icing on the cake.
  2. Your first steps should always be the basics. Get your finances in order.

    Pay off your debt, create a budget and develop good spending habits. Work towards exploiting all of the retirement benefits that are available through your employer or business, such as a 401k, a Pension account, company stock options and contributions, You see, the ROTH-IRA becomes important, when you've done all of these other things. Now, you are asking yourself, "What else can I do, to build wealth faster?" That's Excellent! And that's the time, when the ROTH-IRA is the best, obvious next choice!

  3. Do you own your home yet? If you don't, than might I suggest that you consider this as your most important priority, pre-ROTH-IRA. In 2003, our Real Estate in the Sacramento area, overall, appreciated 15.5%! All you have to do, to enjoy this amazing financial vehicle, is to simply own your own home. Now it may not always be as amazing as 15.5% appreciation, but overall, arguably, there is no faster, easier, and better way to get to wealth, then through home ownership.

    .

4. How Long Before I Earn $1,000,000 ? One Million Dollars?One second...Taking out my trusty calculator....
  1. Assuming 9% investment earnings
  2. Assuming a monthly investment of $500...
  3. I'm making the assumption that you're married, and you're investing into 2 ROTH IRAs, rather than one...Thus, I'm going to calculate on a per family basis...If you're only an individual, you can only calculate for one ROTH IRA, and your monthly investment would be $250.
Ready? Here we go?So it would take the average American family about 30 years to get to One Million Dollars.I hope you realize how EXCELLENT this is for you. I know 30 years sounds like a long time, but we're talking about PASSIVE wealth building, easy wealth building, painless wealth buildling, and automated wealth building for your retirement. You set this up, and all you have to do is go to work every day and live your life. The ROTH-IRA account, alongside all your other investment programs, will be building your wealth in the background, and remember I said this was icing on the cake?Well, don't forget, you should also have REAL ESTATE, your 401k, your pension, etc.

With all of this working in your favor, truthfully, you're not just talking about one million dollars, you're probably talking about working towards a retirement goal of three million dollars or more, all from passive investment programs, like the ROTH-IRA.5. The ROTH-IRA Checklist Take one step at a time my friend. Start with passive wealth generation, and then go from there. Here's a brief recap-checklist to consider:

  1. Clean up your debt.
  2. Develop a budget, and practice good spending habits.
  3. Participate and maximize your employers' 401k program.
  4. Participate in your employers' Pension, Savings, and Company Contribution programs.
  5. Own your own home.
  6. Contribute into your own ROTH-IRA account.
  7. Develop other avenues beyond passive wealth-building.
We've enjoyed providing this information to you, and we wish you the best of luck in your pursuits.

Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.Publisher's Directions: This article may be freely distributed so long as the copyright, author's information, disclaimer, and an active link (where possible) are included.Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site..

Tom Levine provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products.
His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services.
Visit Tom at:
http://www.Loan-Resources.Net/, This article is available in full format at: http://www.loan-resources.net/article-rothira.htm, Copyright 2004, Loan-Resources.Net.info@loan-resources.net

Rules of Simple IRA Your Business Needs to Know

A Savings Incentive Match Plan for Employees plan, better known as a SIMPLE plan, is an IRA-based retirement plan available to employers with fewer than 100 employees. Under a SIMPLE IRA plan, an employee can contribute a portion of his pay to his SIMPLE IRA account. An employee can make a maximum contribution of $9,000, ($10,500 if age 50 and over), to his SIMPLE IRA account for 2004. You, the employer, are required to make a contribution for every worker who receives $5,000 or more in compensation. You can match up to 3% of the salary for the employees who contribute to their SIMPLE IRA account.

You only have to match for those employees who contribute to the plan. In any 2 years out of a 5 year period, after notification to the employees, you may elect a lower matching contribution percentage but not less than 1% of salary. Your business also has the option to select a "non-elective" mandatory company match of 2% of annual salary for every employee. Under the "non-elective...

Rules of Simple IRA Your Business Needs to Know
Ira > Rules of Simple IRA Your Business Needs to Know

Cash Now and Rainmaker Announce 401(k) or IRA Rollover Assets to Finance new Cash Now Licenses and Expansions

Cash Now Corporation, (CHNW) a pioneer and continuing leader in the payday loan industry, is now offering a way for investors to use their 401(k) or IRA rollover assets to finance new Cash Now licenses and expansions and as capital for other new businesses. Cash Now can make this offer now because it has established an exclusive agreement with a U.S. tax consulting firm specializing in 401(k), 403 (b), Pension, Profit Sharing, IRA rollover or other types of retirement plans. The result is that Cash Now can help entrepreneurs and investors use their 401(k), 403 (b), pension, profit sharing, IRA rollovers or other retirement plans to finance the purchase of a franchise. Cash Now can also advise entrepreneurs and investors on how to use these assets as startup capital for other businesses or to purchase business property with no taxes, no penalties and no loan repayment.

This can be done without distributions, taxes, penalties, or the use of loans. In many cases the money can be...

Cash Now and Rainmaker Announce 401(k) or IRA Rollover Assets to Finance new Cash Now Licenses and Expansions
Ira > Cash Now and Rainmaker Announce 401(k) or IRA Rollover Assets to Finance new Cash Now Licenses and Expansions

SEP IRA - For Last Minute Tax Deductions

Virginia - February 24, 2003 - The SEP IRA is one of the few remaining methods for small business owners to cut their taxes for last year.
Employer contributions made to a Simplified Employee Pension-Individual Retirement Account, known as a SEP plan, before a company's tax filing deadline are deductible for 2002.
This holds true even if the SEP plan is set up and the contributions are made in 2003."A SEP-IRA allows small business owners and sole proprietors in a very simple manner to cut their tax liability by making retirement contributions for their eligible employees," says Daniel Lamaute, retirement plan specialist at InvestSafe.com and CEO of Lamaute Capital, Inc.The SEP-IRA has several main advantages for employers, says Lamaute.
"Employers get a tax deduction while the SEP-IRA contribution is not taxed as income to the employees.
The earnings within the SEP IRA are taxed deferred until the participant pulls money out, usually at retirement...

SEP IRA - For Last Minute Tax Deductions
Ira > SEP IRA - For Last Minute Tax Deductions

The Four Stages of an IRA

Copyright 2006 Damon Clifford

With all these different names and terms being thrown around in the financial community, it can get very confusing on what something is, and what it is not.
How many times has it happened to you?
Let me go through and explain the four stages of an IRA.

Stage 1 ? Regular IRA

Everyone knows what the traditional IRA is.
It is what most of us have our money in.
We call up Fidelity, Charles Schwab, or Merrill Lynch and give them our money.
With this IRA, they make the investment choices for you.

They charge you for this, as they are managing your money.
It could be either fee based or commission based depending on the custodian you chose.

Stage 2 ? "self directed" IRA

Stage 2 takes it a little step further.
You still have your money with Fidelity, Charles Schwab, or Merrill Lynch but they allow you to make the decisions. ...

The Four Stages of an IRA
Ira > The Four Stages of an IRA

Invest An IRA in Real Estate - Come to Austin, Texas to Learn About This Growing Trend

Austin, Texas (ContentDesk) April 29, 2006 -- Increasingly, investors are learning about this self-directed IRA option (not normally offered by financial planners, which benefit from commissions from stocks and bonds) and are using their IRAs to capitalize on the real estate market and diversify their retirement portfolios. Asset Exchange invites real estate investors who want to learn how to utilize retirement funds for real estate investments.
Talk with IRA Expert Dan Cordoba and his clients about this growing trend.WHAT: IRA Leverage Seminar - Partnering With Your IRA to Buy Real Estate: A FREE Real Estate Seminar presented by Asset Exchange Strategies, LLC and Mortgages Direct WHEN: May 3, 6:30 p.m.  9 p.m.????????????????
WHERE: Downtown Austin at The Capital Place Hotel (formerly The Crown Plaza Hotel), located at 500 Interstate Highway 35 in Austin Texas WHY: It is within IRS guidelines to purchase, real estate, private businesses and other alternative assets...

Invest An IRA in Real Estate - Come to Austin, Texas to Learn About This Growing Trend
Ira > Invest An IRA in Real Estate - Come to Austin, Texas to Learn About This Growing Trend

Could a Roth IRA be Better Than a 401(k)?

Very few people whom I know are familiar with the benefits of the Roth IRA. It was named for the late Senator William Roth of Rhode Island, who proposed it. It is similar to a traditional IRA except contributions are never tax-deductible. Contributions to traditional IRAs are sometimes deductible or partially deductible, depending on your income and whether or not you have a retirement plan like a 401(k) at work. With Roth IRAs, individuals are limited to incomes of $95,000 ($150,000 for couples) to be eligible for full contribution amounts.

However, unlike the traditional IRA, you can withdraw your contributions from a Roth IRA at any time, at any age without penalty. Earnings are not taxed if you wait until at least age 59 1/2 to begin withdrawing them and have held your Roth IRA for at least five years. With a Roth IRA, the contributions are taxed without any deferment, but they grow tax-free and the gains are never taxed (see above). With a 401(k), contributions are tax-deferred,...

Could a Roth IRA be Better Than a 401(k)?
Ira > Could a Roth IRA be Better Than a 401(k)?