About Roth Financial Planners

Video Transcript

"Hi, my name is Bill Rae. I'm with Alumni Financial Services out of Seminole, Florida. I've been in the business in the finance world for well over thirty years. Today, we're going to talk about Roth Financial Planners, a little bit about them. First of all, I guess to talk about a Roth Financial Planner, I don't know too many planners that strictly do Roth Financial Planning. Roth is simply another vehicle that you can use to set money away for retirement basically is what it's, it's an original designed for. In its simplest form, there's basically two types of plans that would fit in that category. One is a Roth IRA and the other is an IRA or an individual retirement account. If someone is strictly a Roth financial planner, I would have to question is he really thinking about what's best for his clients out that or is he particularly pushing or espousing a certain dogma. Now, mind you I'm a huge fan of Roth. To explain the Roth, it's all about taxation. Your regular IRA means that you generally are putting money away before taxes and the idea is that it's going to grow without taxes and then down the road the government is going to get a little of the money because you're supposedly going to be in a lower tax bracket. The best way to describe the difference is if you were a farmer you'd understand this very easy. If in my hands I have two sets of seeds, ten seeds each, do you want to pay me the tax on the ten seeds today, and whatever I grow it to, it's mine to keep; that's Roth. If the traditional way is, don't pay your tax today, grow as much as you can, and I'll tax you then, that's what the government would love. Suppose you grow these ten seeds into five thousand ears of corn, would you rather pay taxes on the five thousand ears of corn or the ten seeds. Get it. Anyway, my name is Bill Rae. I'm with Alumni Financial Services. As always, we're here to help you build true wealth."