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Trading Roth IRA for Real Estate [Home Purchase] 馃彔 - YouTube
Channel: Tiffany Thomas, Your Wealth Mentor
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hey there Tiffany Thomas with
wealthy Tiffany dot com and in today's
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video I am sharing how I traded my Roth
IRA for a real estate I had so much fun
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in my last video sharing ten different
stocks that you could hold for ten years
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and the return that you could have seen
on those that I wanted to share the
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actual stocks that I invested in and
ended up selling to put that money
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toward a million dollar real estate
portfolio so that you can see how much
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money you can really make in the stock
market because I had actually done it so
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I'm sharing all of the details on how
much I cashed out of my Roth IRA and
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what I was invested in and money that I
had in my brokerage account all of the
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individual stocks that I ended up
selling to put toward a down payment on
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my fourth property and you can be the
judge on whether or not you think this
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was a good idea or a bad idea so if you
are ready to dive in hit that like
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button and we're gonna get started I
want to give you a little backstory I
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have three properties that I purchased
by using money that was in my savings
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account I had saved up for a down
payment and the closing costs for those
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three properties but with my last
property my fourth property I wanted to
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take some money out of the stock market
and put it into real estate
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my first three properties are worth
about eight hundred and thirty thousand
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dollars together and purchasing my
fourth property pushed me over the
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million dollar mark so my properties are
worth about 1.2 million dollars right
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now and yes I do have mortgages on the
properties but I will be paying off the
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mortgage on my very first property very
soon so stay tuned for that video and if
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you want more details about each of
these properties and how much I purchase
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them for how much they're worth now I do
have another video with all of the
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details about that so I will leave the
link below in the description and you
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can check that out if you would like to
alright the fourth property that I
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purchased was in 2018 and it is a
4-bedroom 3-bath single-family home and
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it is in the Salt Lake City Utah Valley
I was doing the math and I figured if I
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had at least one more property that was
positive cash flow of just a few hundred
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dollars that that would put me at a
financial freedom amount that I would be
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comfortable with so that's why I decided
to switch my investments in the stock
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market over to real estate to purchasing
another property I decided
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oh that I didn't want to wait until 65
to retire that I wanted to have the
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option to retire early and especially
with what's going on in the world right
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now I don't know why anyone would not
want to have that peace of mind to know
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that their finances are taken care of
that they don't need to have a job if
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they wanted to and they could work that
they could but they wouldn't need to do
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that so I really love the idea of having
a financial freedom at an early age so
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that you can have that peace of mind and
it gives you a lot of time freedom as
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well I had seen how well my other
properties were doing and I like making
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money through real estate so I decided
to purchase that fourth property and in
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order to do that I needed about sixty
five thousand five hundred dollars to
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put towards this down payment and
closing costs for my fourth property so
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I decided to switch that amount from the
stock market over into real estate so
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get excited I'm going to dive in with
which stocks I actually sold and the
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amounts that I sold them for and try to
give you a good idea on how much they
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were actually worth I had individual
stocks in my brokerage account which
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means that I could pull that money out
at any time I want without having a
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penalty to pay I would just need to pay
the taxes on that money
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unlike retirement accounts although I'm
going to talk about the retirement
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account that I used along with my
brokerage account to get this sixty-five
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thousand five hundred dollars in doing
the math I calculated that I wanted to
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take about forty nine thousand dollars
from my brokerage account to put toward
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the down payment and closing costs for
this property so here's the breakdown on
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which stocks I sold and for how much
okay so here are the stocks that I
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purchased and my brokerage account you
can see in the first column the date
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that I actually sold the stocks which
was the beginning of May in 2018 and
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then the second column shows the date
that I purchased these stocks the third
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column shows the actual stock I
purchased and then the fourth column
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shows how many shares I actually sold of
those stocks and then the next column
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shows the quantity that I purchased
which on some of them was a little bit
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more than what I had sold so let's talk
about the first stock which
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Steve Madden and I only bought one share
of Steve Madden and I sold that one
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share so you can see that I bought it
for $36 and 3 cents and I sold it for 48
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dollars and 40 cents and these prices do
not include the Commission fees which
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were paid and the Commission fee for
buying all of these stocks was $6.95 per
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order and for selling them it was $4.95
so you can see my overall return for
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Steve Madden was just over 34% which is
great so I made money on this particular
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stock not that much put a little bit and
then you can see on the amount received
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column that's the actual amount that I
received from my brokerage account so
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that takes into account the Commission
fee and some extra fees which were just
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a few cents on all of these so let's
move to the next stock which was Apple
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and you can see I bought that one in
October of 2014 and I bought 25 shares
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of Apple for $100 and 93 cents and I
ended up selling that for 180 $3.59 so
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you can see that is an overall return of
81% so I almost doubled my money but not
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quite
and then the next stock I purchased was
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Capital one that is COF and I purchased
that in November of 2014 and I purchased
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four shares at 81 dollars and eighty one
cents and then ended up selling that for
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$89 so that was just a small return of
just over 8% and then the next stock was
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Netflix and I actually purchased a few
shares of Netflix before this but since
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Netflix had split their stock it got
kind of confusing to explain all the
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different prices that it would have been
so I just took the amount that I
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purchased on November 14 2014 which was
for a hundred shares so this would cover
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the 90 shares that I ended up selling so
I purchased that for 99 dollars and 85
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cents and you can see that Netflix has
gone up a lot over time and it's even
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over for
dollars last time I checked but I ended
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up selling it for three hundred and
eighteen dollars and 32 cents so over a
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200 percent return on this stock and
then the next stock is Facebook and I
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purchased my first share in 2013 for $55
and 71 cents so you can see that would
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have been a 223 percent return because I
sold it for one hundred and eighty
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dollars and four cents and I also
purchased 25 more shares of Facebook in
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2014 for 72 dollars and 97 cents so that
would have been a return of one hundred
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and forty six percent so these are
really great returns and the last stock
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that I want to show you is Google so I
purchased four shares at five hundred
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and sixty-seven dollars and 36 cents in
August of 2014 and I did a calculation
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so this adjusted for the splits that
have happened to Google so in actuality
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if there were not any stock splits for
Google when I sold that share in 2018 it
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would have been at two thousand nine
hundred and thirty-five dollars and four
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cents so over a four hundred percent
return which is huge and then I bought
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five more shares for about five hundred
forty eight dollars in October of 2014
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and that would have given me a return of
over three hundred and seventy seven
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percent and I bought a few more at a
little bit higher price six hundred and
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two dollars I purchased three shares and
that was in September of 2015 and that
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would have been worth one thousand eight
hundred and eighteen dollars which would
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have given me just over a two hundred
percent return so you can see that some
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of these stocks did really well and over
on the amount received column you can
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see that I cashed out forty nine
thousand seven hundred and twenty three
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dollars and forty six cents but I ended
up only pulling out forty nine thousand
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and put the rest into something else
hopefully this gives you a funny day on
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how much stocks can really
over time some of them performed really
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well and this is just in about four or
five years so not that long of a time
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frame but these are the stocks that I
ended up pulling out and putting toward
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my down payment on my fourth property as
you can see that gave us about forty
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nine thousand dollars so I still needed
sixteen thousand five hundred more and
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that is when I went to my Roth IRA the
great thing about a Roth IRA is that you
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can pull money out that you have
contributed without a penalty at any
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time so normally you would have to
withdraw money at age 59 and a half not
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to pay a penalty but with the Roth they
let you take out money you've
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contributed so nothing that has earned
interest in your account only money you
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have put in you can take out at any time
and you've already paid taxes on that
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money so you don't need to repay taxes
so that's what I ended up doing for my
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Roth IRA I had invested in vti which is
the Vanguard total stock market ETF and
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I purchased 35 shares of this in June of
2014 for 101 dollars and 38 cents and I
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ended up purchasing another hundred and
20 shares in April of 2015 for 108
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dollars and 70 cents and I sold 146 of
these shares at 136 dollars and 45 cents
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which is just over a 34% return so not
as good as some of the stocks but still
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not a bad return and that total amount
that I received was 19 thousand nine
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hundred and twenty one dollars and
twenty four cents but I ended up only
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pulling out sixteen thousand five
hundred dollars and putting the rest of
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that into a different investment so you
can see the total amount received was
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sixty nine thousand six hundred and
forty four dollars and seventy cents but
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like I said I put some of that money
back into other investments and ended up
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pulling out just what I needed which was
sixty-five thousand five hundred dollars
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so as you can see I pulled money from my
brokerage account and for my Roth IRA
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and then I had some money in savings to
make up the difference that I would need
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for the full down payment and closing
costs on this fourth property and this
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property gives me a pause
of cash flow of a few hundred dollars
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per month which is exactly what I needed
to at create more income for myself so
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that I wouldn't have to go back to
having a full-time job if I didn't want
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to and I manage all of my properties
myself but I could hire a property
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management company to take care of them
and still be just fine but I don't mind
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doing this right now
so I'll spend a little bit of my time
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working on these properties managing
these properties and then have that
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extra cash flow coming in I can't
emphasize enough how important it is to
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invest your money and the earlier you
start the better off you're going to be
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but it is never too late to get started
so if you haven't started investing
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please do that I have plenty of videos
on how to invest simply and if you don't
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want to invest in the stock market I
have videos about how to invest in real
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estate so that could be an option for
you as well but if you are not investing
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your money you will not be able to have
the option to retire or become
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financially free whatever term you want
to use and without that you are going to
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be reliant on always having a job and as
we've seen recently you may not be able
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to find a job especially one that you
really enjoy
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so please invest your money hopefully
you guys found this video helpful and if
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I'll see you in the next video
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