start with the roth ira, aside from the earned income tax credit, the roth ira is the greatest thing for the war on poverty. poverty won on points but i told you about regular ira allows you to invest and then you compound, totally tax free until you decide to withdraw that money when you retire. a roth ira works differently. with the roth, you make contributions with after-tax income. so in other words, unlike a regular ira putting money into the ira won't decrease your tax bill. on the other hand, once your money is in the roth ira you'll never pay taxes on its again. as long as your cash remains in the account, you don't pay capital gains tax and when you withdraw it which you can do after age 59 1/2, you don't pay income tax on your withdraws. in other words with the roth you pay taxes now so you don't have to pay any taxes -- income tax 30 or 40 years from now when you retire. there's one more positive point about a roth. you can withdraw the money, not the gains just the amount you have contributed and you won't get hit with a 10% penalty which is what happens when you withdraw

make subsequently yearly contributions to this new roth ira? or do i need to open a new traditional ira? >> okay. for roth ira questions, these are personal decisions that you must make in consultation with your tax advisors, which is exactly what i do. i am not going to make a broad generalization, because it's not the right thing for everybody. that's very important. personal decisions, accountants and advisors, i like them. give to caesar what belongs to caesar. you've got to pay the taxman. remember, your investment decisions don't depend on them. they depend on the companies. after the break, i'll try to make you even more money. >>> here we go. continuing the odyssey of going back over the rules and disciplines that infused the show and my thinking as a manager of money. now, there was a mistake i used to make when i first bought stocks 2009 late '70s and early '80s that i see being made all the time on twitter where i regularly comment on stock exchange or tell you to watch the darn show. i call the rule, don't buy all at once. arrogance

you can take advantage with money you intend to spend before retirement, unless you use a roth ira. in the case of a roth, your contributions are tax going in. we'll you are allowed to withdraw those contributions early without penalty, you still get hit for a penalty for withdrawing any of your profits early. if you don't feel you have enough capital by keeping two separate accounts, then a roth ira is a good way to square that circle. especially since the roth is more favorable to younger people with lower incomes than a regular ira. there is a second reason i recommend using two different portfolios, though. you are supposed to take fewer risks with your retirement money. can you tike i take more risks with your discretionary "mad money" portfolio. when you are young, there is much less difference. if are you the age of 30 you can afford to take risks with all your money because as i tell you all the time, have you your whole life ahead of you to make back any income losses. ♪ hallelujah heres the bottom line. don't think of saving money as the responsible way to make sure you hav

i'm proud of her she's maxing out roth ira. look at your budget. an investment professional. sit down with someone that does this all day, not someone that dabbles. >> what's your background? >> i'm a former banker and collector from back in the old days. i was on the other side of the desk. now i help people on the right team. >> the ramsey team. chris brown's question is for ashley from texas. where does giving fit into my budget? i'm working on paying offer my debts right now. must be is tight. >> make sure you're giving throughout your financial journey. make sure you're always doing that. don't cut with giving. our major fulfillment is adding value to people's lives. make sure time, value, energy, leadership we always add value. >> that's something you talk about a lot. >> outrageous generosity always changes the person involved and turn the -- turns you loose. >> i love the idea of running my own side business, but i don't know where to begin. where do i start? >> we see women wanting to contribute to the family income. really start small. st

>> besides the 401(k), you can have a ira or a roth ashgs ra and hopefully a roth 401(k) and not a trigs dal 401(k), because you want to take the money out later in life tax-free, and so open up a rothira as well if you qualify and invest that way. >> suzy, awesome, and we don't have time for anymore, but you can download suzy's deal and go to today.o and it is a free financial course free until friday at 5:00 p.m. eastern. and go to klg and hoda the -- k lshl klg and hoda.com and ask your questions. >> and yes. >> you are hare helping so many people, and it is a great thing people, and it is a great thing make tonight white dchicken chili night!? start with bush's white chili beans, simmered in our flavorful chili sauce. then add rotisserie chicken... punch it up with a little heat... and a few ingredients from your pantry. it's easy to make the perfect pot of chili every time. make your chili better with bush's® white chili beans. for this and more great chili recipes, visit bushbeans.com. temptations testing your willpower? with light & fit greek help shrink them away. 80 calories vs