hello everyone and thanks for tuning into the financial investor channel my
name is Brent and today we're going to be going over increasing my wife's Roth
IRA contributions you know for 2018 so if you are brand-new to the channel I do
make stock market personal finance and real estate investment videos every
single week so consider subscribing and let's go ahead and get into it so in
this video we're going to be increasing my wife's Roth IRA contributions for
2018 now earlier this year in January 2018 she had started our portfolio I
created it over here on m1 finance I discussed the benefits of m1 finance in
a video top right corner I'll have that link but quick summary you get free
trades the accounts completely free there's no fees you get partial shares
they're able to start a Roth IRA which is a big one you know I can just go over
to Merrill edge start a Roth IRA and invest for free you would get charged
there so I thought this would be the best platform up until she has a good
base and then she could transfer out you know somewhere else in the future but
for now this platform really works well for her so we created her portfolio
she invests on her own Roth 401k at work as well or Roth 401 be one of those so
this is just sort of another account where she was able to invest in single
stock allocations and single stocks so in the beginning of 2018 we put in
$5,500 as a base and we kind of watch the market now we had a correction in
February the market fell by 10% at that time I was going through a transition
myself I was moving more from the stock market over into real estate
now I pulled my money out of my taxable account I pulled money out of my Roth
IRA and I went ahead and funded my business for real estate I created an
LLC I went through all the paperwork to get everything set up and get you know a
checking account separated our business funds decided what we were going to you
know came up with a business plan what's our business plan what exactly I'm going
to be doing and that was my main focus going from roughly March until June I
was getting everything set up in order to go out there look for
deals and buy some real estate so during this time in the market early 2018 while
would the market was down we were still kind of I was kind of getting in our
funds together I didn't want to have too much not available to invest in my
business just in case you know some situations came up I was making offers
offers were getting declined so I wasn't contributing more than ten dollars per
week into my wife's Roth IRA now we got everything sort of situated on the
business end the business is fully funded it's in control of two properties
now it has a single family home has a duplex and those are getting rehabbed I
also have enough money within the business funds that anything were to
happen I can keep those afloat for years but now we're kind of moving back to my
Roth my wife's Roth IRA and we're gonna be going and looking at contributing
towards the remainder of 2018 to max out her contributions of $5,500 now we've
had something really good happen here recently now during the downtime here
between February and July the market or the the account portfolio was actually
down it was down 8% and then 6% and 4% then 2% and then we were positive and
then the market just started to take off and we had been positive for quite a
while we were up roughly 8% somewhere around there you can see here we just
within the last month we lost 7.62 percent of our portfolio and now we're
down 4.4 4% so this is actually great we're buying at a discount you can see
that we have a number of stocks here that are actually down Johnson &
Johnson's down Altria digital Realty Lockheed Martin JPMorgan Kimberly Clark
V AT&T Stanley Black & Decker Avery and Caterpillar those are all great
companies here that are currently down in the portfolio caterpillar being down
30% so I have changed a couple of allocations here within the portfolio
recently and what we're going to be doing is funding the portfolio now so in
order to do this we just got to go over to funding and here we can see that we
already have our weekly deposits lately I've been buying in you know during this
volatility I've been putting money into the market
putting money into the market last week I put another thousand dollars into the
market because I've been wanting to completely maxed out her IRA
contributions for 2018 her Roth IRA so what we're going to be doing is we're
gonna go ahead and open up our two calculators here and finding out how
much money we can contribute towards 2018 you know for the remainder here so
in order to do this if you head over the funding you're gonna get shown your
contributions now we already know that we contributed $5,500 for 2017 so here
we can go and take out six seven - $5,500 for 2017
so in 2018 which contribute two thousand five hundred and twenty nine dollars and
67 cents so how much money can we were you know how much money can we invest
into 2018 for the remainder so we just take fifty five hundred dollars subtract
what we've already invested into the market and this is how much we can
contribute for the remainder of 2018 in order to max the portfolio to $5,500 so
I'm gonna go ahead and just say two thousand nine hundred and seven dollars
and no change this will put me within that range that I'm not going over for
2018 and then I can always just kind of spit the extra income that I need until
they're just kind of maxed it out and not get in trouble there within the the
four I won't get in trouble by the IRA and not the IRA the IRS so how many
weeks do we have left in 2018 well if you google it how many weeks will are
left in 2018 there's nine weeks left in 2018 so I go ahead go back over here the
m1 finance I go ahead and pop up our money we go ahead and say to nine
seventy and we divide it by how many weeks are left there's three hundred
whoops there's nine weeks left in 2018 so that is roughly three hundred and
thirty dollars that we have to deposit every single week in order to max our
contributions or meet our contributions for 2018 so now we have sort of our plan
to kind of go into 2018 so down here we already have our schedule Department
deposit of ten dollars every single week going in there on Monday you can see
here our contry we've already made here I'm gonna go
ahead and cancel this one yes cancel and then from here we're
gonna go ahead and create a deposit we're gonna go ahead and select amount
three hundred and thirty dollars towards 2018 if you were if you were in between
January and April you could actually make contributions towards the previous
year so if you're looking at this video in 2019 and it's February you should
have two options here 2019 2018 so if you haven't yet invested in
2018 when you're watching this you can drop it
select 2018 and make contributions for the past year up until April when you
have to file your taxes so here we're gonna go ahead and select our transfer
of Roth IRA which is the one we're scheduling here we're gonna go ahead and
set a schedule repeat every single week on a Monday I like buying on a Monday
historically it's the best day to invest because that's the red day here if we
look at stock futures stock features are currently looking negative Nasdaq was
looking slightly positive there but it did drop down into the negative I think
it's a great time to invest everything is showing red the the portfolio itself
is red and I want to just you know buy stuff at a discount there you saw we had
a number of red stocks they're great-looking stocks that we're gonna go
ahead so here we're just gonna go ahead and select confirm and our next transfer
window is November 5th so November 5th is actually next week so this transfer
is going to go away next week so here what we're going to be doing is
depositing another thirty three hundred and thirty three dollars and this is
just going to be going in on the next training window which is this Monday so
we go ahead and hit confirm so what we have here now is tomorrow we're gonna
have a one-time deposit of three hundred and thirty dollars and then November
fifth we're gonna have which is next next Monday we're gonna have another
deposit of three hundred and thirty dollars and that's going to continue on
until I you know until I stopped it but this is going to a verge into the market
every single week that we're currently down it's gonna be able to buy I'm gonna
go ahead and leave that as it is I'm going to go ahead and buy all these
stocks that are currently down I'm going to be
and one finance automatically targets these stocks and I'm down on base on the
actual percentage to the target so here if I just go ahead and switch it to my
actual apples down at six point five equity of my target of seven percent now
if any of these other ones here you can see this is down by 0.5 this is down by
0.5 this is down by one point five so Cisco will be targeted towards my
investments here also you can see AT&T it's also down by one point six so AT&T
will get purchased here I just changed a lot of my targets here at AT&T I bumped
it back up after that reset Deb here in earnings they fell down by a good amount
they went down in at 28 $30 point which I believe is a great buying opportunity
I went ahead and put you know it's gonna automatically invest into a lot of these
I'm gonna be able to pick up some more dlr as well and a few other stocks there
so that is what you have to do if you want to go ahead and bump up your
contributions for 2018 head over the funding see how much you've actually
contributed towards 2018 towards 2017 find out what your number is that you
need to contribute for the remainder of 2018 you have nine weeks left in 2018 so
you can either go weekly or you can go monthly you have roughly two months and
some change there two months and a week in 2018 so come up with your plan if you
guys are looking to completely max out your Roth IRA for 2018 you will go ahead
and set that up now I'm not at all worried about whether the portfolio goes
up or down because this is just equity you know I'm 33 my wife's what 27 28 we
always forget each other's birthdays that's completely fine we've been
married nearly 10 years so but we have a long time until we retire at nearly 60
our for you know our to take advantage of the Roth IRA take advantage of our
Roth accounts we have you know nearly 30 years each in order to hit retirement so
this volatility in the market equity changes on a day to day basis that's
completely fine but over the long run this portfolio is gonna be paying out
dividends since 2018 with roughly 55 and dealers in there for the most part
she's made a hundred and fifty dollars so far just off dividends we're gonna be
bumping this up basically double in it by the end of 2018 and instead of
earning a hundred and fifty dollars by the end of 2000
you know 2019 she's gonna roughly make three hundred dollars in dividends by
the end of 2019 and then she's gonna make four hundred and fifty dollars or
five hundred dollars by end of 2020 that she's gonna make six hundred dollars by
the end of two thousand twenty one and those earn dividends that's just money
that's been paid out to you that's getting reinvested into the market into
these stocks that are down and bringing their shares up those partial shares
that are getting purchased or pain you dividends as well so not only to your
capital gains compound your dividends compound everything compound so it right
now it may not look like much but we're getting a great buying opportunity right
now that's allowing us to buy a lot of these stocks here that are currently
down if we look at some of these stocks I went through the stocks earlier but
we're buying a lot of these stocks here at a high yield point from where they
normally are Johnson & Johnson's you know for the most part here lately the
highest yield here is around 2.75 this is still good buy an opportunity for
Johnson & Johnson at 2.5 Altria is at a four point five three that's one of the
highest point since back in 2014 dlr not the highest yield but definitely
a good buying opportunity there we just kind of came down 8% so it's good buying
opportunity for me Lockheed Martin you can see 2.6 - there was some high points
back in 2013 time frame JP Morgan 2.4 kimberly-clark we have a 3.8 8% by Neil
that's a yield on cost so that's a good buying opportunity there avi that's over
4% I bought this one back in 2017 at a 4% yield back in July of 2017 so here
and then Abby shot up at the beginning of January sold that one off and now I'm
buying back into it at a 4.4 for yield AT&T has a yield of 6.8 8% Stanley Black
& Decker 2.31 which is one of the highest point since back in maybe 2000
early 2016 and 2014 period a bead ensign that's a high-yield as
well I don't think this is a good portion of my portfolio I think I
actually lowered that one down and then really have caterpillar you you know
between caterpillar here it's kind of interesting here that this yield I'm
gonna go ahead and put in that price let's see what happened to that price
here during that time frame so between 2016 it really peaked and Caterpillar is
going nowhere but down as of 2016 I don't think caterpillar is a high
percentage of my portfolio I think I actually knocked that one down
nuts 5% I bumped it up a little bit so it's down 30% on the portfolio it's
still a great company it's I don't believe it may or may not be a dividend
risk and we can find that out really quickly I'm sorry if this video is a
little bit too long let's go ahead and just check it out real quick okay it's
been growing dividends for eight years so I may end up changing that very
quickly but we'll see anyways the main point of this video was that I wanted to
increase the contributions going into 2018 max it out and you know how I came
up with that plan so hopefully you guys did enjoy it if
you did give it a thumbs up button below are you guys maxing your Roth IRA for
2018 well let me know in the comment section below and that is it thank you
guys for tuning in I will see you next time have a great day bye
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