This is Roth IRA explained in simple terms.

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Why it worked

The video uses a clear, structured visual aid (handwritten notes) to simplify a complex financial topic, making it highly accessible and shareable for viewers interested in personal finance.

Summary

The video provides a step-by-step guide on how to open, fund, invest in, and withdraw from a Roth IRA. It explains the key qualifications, contribution limits, and tax benefits of the account in simple terms.

Structure

1Introduction to Roth IRA
2Step 1: Opening an account and qualifications
3Step 2: Funding the account with after-tax money
4Step 3: Investing in stocks, bonds, and ETFs
5Step 4: Understanding withdrawal rules

Call to action

If you like this type of educational content, follow me on Market Narratives and like this video

On-screen text

Roth IRA (Explained in Simple terms) 1. Open An Account Key Qualifications: Earned Income Income Limit: Single -> Under $150K Married -> Under $236K Faves: Fidelity, Vanguard, Schwab 2. Add After-Tax $$ Tax Paid -> Paycheck -> Checking Account -> Tax-Free Limit for 2026: $7500 Starts out with $50 3. Invest The Money You can invest in: Stocks, Bonds, ETFs, Mutual Funds ETFs -> Great for beginners Faves: VOO, VTI, VXUS 4. Withdrawals Account must be open for 5 years After 59.5: Withdrawals are tax-free Before 59.5: Take out contributions Penalty Free

Original caption

The Roth IRA is so powerful that the government literally puts a yearly limit on how much you can contribute. If they cap it, maybe it’s worth paying attention to. Start early. Let compound growth do the heavy lifting. #financialfreedom #financialeducation #investment #stocks #rothira

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Transcript

This is Roth IRA explained in simple terms. And in this video, I'm going to show you why this account is so powerful that the government put a limit on how much you can contribute. A Roth IRA is just an individual retirement account. Well, how do you start one? Step one, open an account. There are some key qualifications. One, you need to have earned income such as W-2. Then you need to be below an income limit. For single, it's 150k and if you're married, it's less than 236k. My favorite brokerage to work with are Fidelity, Vanguard, and Schwab. Step two, add after-tax money. So how does this work? On payday, you get a paycheck. This paycheck, you already paid taxes on it. Once this money gets deposited into your checking account and it settles, you invest it in the stock market where it can grow tax-free over time. The limit for 2026 contributions is $7,500. The nice thing about the Roth IRA is you can only start out with $50 and you can work your way up if you would like, but you cannot contribute more than $7,500. Step three, invest the money. You can invest in things like stocks, bonds, ETF, or mutual funds. ETFs are great for beginners and my favorites are VOO, VTI, and VXUS. Four, in terms of withdrawals, to withdraw your money, the account must be open for at least five years. And then after 59 and a half, your withdrawals are tax-free. Before 59 and a half, you can take out contributions or the money that you have invested out of your pocket penalty-free. If you like this type of educational content, follow me on Market Narratives and like this video, that way you and I can retire early.