Welcome to the Invest Like a Boss podcast. I'm Sam Marks and I'm Johnny FD. We're self-made entrepreneurs who invest our own money and use modern technology to invest like a boss.

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Hey everybody. Welcome back to another episode of Invest Like a Boss. This is episode five. On this

episode, Johnny is going to get on the phone with Dave Steiner and talk about Roth IRA's retirement

strategies. Johnny, as we know now, just sold his drop shipping business and got a nice paycheck.

And Dave is going to give him a little bit of advice on how to invest that and to plan for retirement. So Dave actually emailed me out of nowhere. He was a listener of the Travel, like a Boss podcast as well as a reader of my blog. And he wanted just to give me advice. He said, hey, Johnny, you know, I saw that you, you had a big exit. And here's what I would advise you to do with your 60k that you got and he had mentioned

something called a CEP IRA which I've never heard of before but basically it's a simplified

self-employment retirement fund and the benefit of it is I can put up to 25% of my earnings

from this year into it and not pay tax on it. Do you know too much,

anything about that? I don't know much about a SEP. I have a, I have a Roth IRA and a traditional

era, so I can relate on that stuff. The SEP's slightly different, but it was definitely

interesting to hear him talk about it. And you seemed at the end of the episode very, very keen to do

that. Is that something

you're still inclined to do? Yeah. I'm actually, I just failed off the application through Vanguard

today. I'm having a bit of trouble actually figuring me out. It's a little bit complicated,

to me honest. And actually, so I'm emailing both Vanguard again as well as Dave to kind of just

ask their advice on how to set it up. But it makes sense, right? I mean, so, um, Vanguard again as well as Dave to kind of just ask their advice on how to set it up. Um, but it makes sense, right? I mean, so like for your, so your Roth IRA, I have one of those two, but it only allows us to put in, what's it, $5,500 a year. Right. Yeah. What's your traditional IRA? What's that like? Well, the, the Roth is the way I understand, I always get confused on these things,

but the Roth is you get tax deferral. You pay the tax. Let's say you get income. You pay your

tax on that income and then you put it into the Roth so you can put up the $5,500. And then that

grows tax free basically for life, including when you take it out. Traditional is the reverse opposite,

where you put it in tax-free, and then when you take it out, you pay tax on it. They're interchangeable,

one of the two. I forget which one's which. Yeah, I think you're correct on that. So for your traditional

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