How to Get a $1 Million Roth IRA in 2025

About this video

• Video Title: How to Get a $1 Million Roth IRA in 2025
• Channel: Mark J Kohler
• Speakers: Mark J. Kohler
• Duration: 00:08:08

Overview

This video by Mark J. Kohler explains how individuals can build a $1 million Roth IRA by age 67, or even earlier, through consistent saving, strategic investing, and understanding the benefits of a Roth IRA compared to a traditional IRA. The video emphasizes the power of tax-free growth and self-directed investments.

Key takeaways

• Roth IRA Benefits: A Roth IRA is a personal, portable retirement account that grows tax-free and withdrawals are tax-free. Contributions can be withdrawn anytime without penalty. It also offers asset protection from lawsuits.
• Contribution Limits (2025): The annual contribution limit is $7,000 for those under 50 and $8,000 for those 50 and over.
• Saving Strategy: Consistent saving is crucial. Even small amounts, like $45 a month starting at age 20, can lead to $1 million by age 67 with a 15% annual return. Maxing out contributions accelerates this growth significantly.
• Investment Strategy: Self-directing your IRA allows investment in assets you understand, such as real estate, crypto, or startups, potentially yielding higher returns (10-15% is cited as achievable).
• Long-Term Mindset: Building a $1 million Roth IRA is a long-term strategy ("get-rich slow") that requires patience, discipline, and consistent contributions through market ups and downs.
• Professional Guidance: Continued education and working with professionals, like those at Directed IRA, can help in self-directing retirement accounts and achieving financial goals.