Roth IRA: Worth it or Get rid of it?

[ojimenez1617]

Hey guys!
I just joined the Fastlane forum and I'm almost done with the Millionaire Fastlane . It's an awesome book, but I was reading a part about how ROTH IRAs and 401Ks won't make you rich any time soon. Do you guys feel like it's worth it to have them? After I read that, I considered closing my ROTH IRA account (it's fairly new with only $400).

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Scot]

I had an old 401k that converted to an IRA. (I left the job that provided it and never rolled it over) I had about $4500 in it, and decided to cash it out. I was never going to add to it and I certainly wasn’t going to retire off it. I lost like, 20% of it to taxes and penalties, but it was money I could put into the business.

On the other side, I have a pretty healthy 401k from my current job. I took half of it as a 401k loan to start my business. Basically a $30k investment with little downside. I pay it back over 5 years from my paycheck and all the interest goes back into my 401k.

 

[Rawseed]

Hey @ojimenez1617

That's such a difficult question to answer without more information about your current financial situation and your future plans.

So many questions would need to be asked and answered:

• How old are you?
• Are you married?
• Do you have kids?
• How old are your kids?
• Do you have a mortgage?
• Do you have a job?
• How stable is your job?
• Do you have plans to quit soon?
• Do you have enough funds in your emergency savings account?
• Do you have all of the insurance you need?
• Do you have debt?
• Do you have high interest debt?
• Do you have a validated business idea that you plan to invest in?

And those are just the first questions that come to mind.

A Roth IRA isn't an investment. It's a vehicle that holds investments.

Whether or not you invest in one thing or another comes down to opportunity cost.

If you take the money out of the Roth, what would you do with it?

• Make it rain at the club?
• Invest it in a validated business idea?
• Buy a Lego Death Star?

There are too many questions for anybody to give you a good answer to your inquiry.

 

[ojimenez1617]

Hey @ojimenez1617

That's such a difficult question to answer without more information about your current financial situation and your future plans.

So many questions would need to be asked and answered:

• How old are you?
• Are you married?
• Do you have kids?
• How old are your kids?
• Do you have a mortgage?
• Do you have a job?
• How stable is your job?
• Do you have plans to quit soon?
• Do you have enough funds in your emergency savings account?
• Do you have all of the insurance you need?
• Do you have debt?
• Do you have high interest debt?
• Do you have a validated business idea that you plan to invest in?

And those are just the first questions that come to mind.

A Roth IRA isn't an investment. It's a vehicle that holds investments.

Whether or not you invest in one thing or another comes down to opportunity cost.

If you take the money out of the Roth, what would you do with it?

• Make it rain at the club?
• Invest it in a validated business idea?
• Buy a Lego Death Star?

There are too many questions for anybody to give you a good answer to your inquiry.

That's true so ill tell you everything
I'm 23 with no wife or kids. I live with my parents to save money and I don't have any debt. I am a college grad who recently got fired from my sales job but I'm glad they did because I hated it there and I wanted to focus full time on being an entrepreneur. My business plan is affiliate marketing and I've been at it for about 3 weeks now. I just feel like I could use that money for the business and worry about savings and ROTH IRAs when I've made it big.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.