The Roth IRA and the use of tax diversification can provide a tremendous lift to your financial success and retirement. To use the Roth IRA effectively, we will help you avoid the five biggest mistakes people make with their Roth IRA in this episode of Wise Money. Have a question you want to be answered on the show? Call or text 574-222-2000 or leave a comment! Want to speak with a Certified Financial Planner™? Visit or call 574-247-5898. Find more information about the Wise Money Show™ at Be sure to stay up to date by following us! Facebook - Instagram - Twitter - Want more Wise Money™? Read our blog! Listen on Podcast: Subscribe on YouTube: Kevin Korhorn, CFP® offers securities through Silver Oak Securities, Inc., Member FINRA/SIPC. Kevin offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. KFG Wealth Management, LLC dba Korhorn Financial Group and Silver Oak Securities, Inc. are not affiliated. Mike Bernard, CFP® and Joshua Gregory, CFP® offer advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results. Intro: (0:00) Segment 1: (0:11) Break 1: (10:28) Segment 2: (14:08) Break 2: (24:22) Segment 3: (26:05) Break 3: (36:22) Segment 4 (37:00) Outro: (47:13)...(read more)
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5 Biggest Roth IRA Mistakes to Avoid A Roth IRA (Individual retirement account) is an excellent investment tool that offers tax advantages for retirement savings. It allows individuals to contribute after-tax dollars, and the earnings and withdrawals are generally tax-free. While a Roth IRA can be a great way to build wealth for retirement, there are some common mistakes that individuals make that can hinder their savings goals. Here are five of the biggest mistakes to avoid when it comes to your Roth IRA: 1. Not contributing or contributing insufficiently: One of the biggest mistakes individuals make is not contributing to their Roth IRA or not contributing enough. While it may be tempting to delay contributing or only contribute a minimum amount, doing so can significantly impact your retirement savings. It's crucial to take advantage of the annual contribution limits set by the IRS and contribute as much as possible. Remember, the sooner you start contributing, the more time your investments have to grow. 2. Choosing inappropriate investments: Another significant mistake is selecting inappropriate investments within your Roth IRA. Some individuals make the mistake of being either too conservative or too aggressive with their investments. It's crucial to choose a diversified portfolio that suits your risk tolerance and long-term goals. Remember, you have several decades until retirement, so it's essential to balance risk and reward appropriately. 3. Forgetting to review and rebalance your portfolio: A common oversight is failing to review and rebalance your Roth IRA portfolio regularly. As the years go by, your investment mix may deviate from your original allocation due to market fluctuations. It's essential to assess your portfolio's performance periodically and rebalance it if necessary. Rebalancing ensures that you're not taking more risk than intended or missing out on potential gains. 4. Taking early withdrawals or missing withdrawal deadlines: While a Roth IRA offers flexibility in terms of withdrawals, taking early withdrawals or missing withdrawal deadlines can lead to additional tax penalties and impact your long-term savings goals. Remember that you should typically wait until at least age 59 ½ to withdraw your earnings without incurring taxes or penalties. Additionally, be aware of any mandatory distribution requirements associated with inherited Roths or Roth 401(k) conversions. 5. Neglecting to name beneficiaries or keep them up to date: One crucial aspect that individuals often overlook is designating beneficiaries for their Roth IRA and keeping those designations up to date. Failing to name beneficiaries or update them after significant life events, such as marriage, divorce, or the birth of a child, can lead to unintended consequences upon your passing. Naming beneficiaries ensures that your assets are distributed according to your wishes and can also provide potential tax advantages to your heirs. In conclusion, a Roth IRA can be an effective retirement savings vehicle if managed correctly. By avoiding these five mistakes – not contributing or contributing insufficiently, choosing inappropriate investments, neglecting portfolio reviews and rebalancing, taking early withdrawals or missing withdrawal deadlines, and neglecting beneficiaries – individuals can maximize the benefits of their Roth IRA and achieve their long-term financial goals. It is crucial to educate yourself on the rules and regulations surrounding the Roth IRA and seek professional advice if needed to navigate this valuable investment tool successfully. https://inflationprotection.org/top-5-mistakes-to-avoid-when-using-a-roth-ira/?feed_id=118224&_unique_id=64b51bae2e474 #Inflation #Retirement #GoldIRA #Wealth #Investing #5biggestrothiramistakes #commonrothiramistakes #financial #iramistakes #korhorn #retirementinvesting #RothIRA #RothIRAMistakes #whatisarothira #wisemoneyshow #TraditionalIRA #5biggestrothiramistakes #commonrothiramistakes #financial #iramistakes #korhorn #retirementinvesting #RothIRA #RothIRAMistakes #whatisarothira #wisemoneyshow
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