'Roth IRAs Are For Poor People,' Says An Entrepreneur. 'I Don't Want $1.2 Million Tax-Free When I'm 65. I Want Money Now'

Adrian Volenik

Thu, August 13, 2026 at 6:45 PM GMT+3 7 min read

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Should young people focus on building retirement savings or on increasing their earning power while they're still young? That question was at the center of a debate after entrepreneur and athletic-wear brand Haus co-founder Lukas Pakter argued that Roth IRAs are the wrong priority for ambitious young adults.

In the TikTok clip, he said that "Roth IRAs are for poor people," adding that they're better suited for individuals seeking a traditional, long-term retirement strategy.

His argument wasn't that Roth IRAs don't work. Instead, he said that ambitious young people should focus on increasing their income today instead of setting aside money they won't touch until retirement.

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Why He Thinks Young People Should Focus On Earning More

"I don't want $1.2 million tax-free when I'm 65," Pakter said in the video. "I want money now."

He described Roth IRAs as a vehicle designed for people who want a safe, low-effort way to invest, and according to him, young adults can generate much larger returns by investing in education, skills, business opportunities, and personal development.

"What the f*** is the point of getting $1.2 million tax-free when you're about to die?" he asked. "By the time you're 65, according to the average lifespan in the U.S., you have about 12 or 13 years to spend that."

Pakter added that someone earning $40,000 a year might be better off spending money on learning new skills or building a business instead of contributing thousands of dollars to a retirement account. He also questioned whether accumulating wealth late in life is as valuable as increasing income and financial freedom while young.

"If you want to make money while you're young, you need to invest in your education and becoming better," he said. "Yes, you have to put in a little bit of work, but it's not supposed to be easy to make money when you're young."

Not everyone agreed.

Rich In Retirement Or Bagging Groceries?

Primerica (NYSE:PRI) Senior Regional Leader Anthony Georgescu responded with a video of his own. He argued that Pakter's advice may not reflect the reality facing most Americans.

"For 90% of people making under $300,000 a year in the U.S.," Georgescu said, retirement savings still matter.

He pointed to the fact that many Americans are already behind on retirement planning and added that the average 401(k) balance at age 65 is around $200,000.

Using a hypothetical example, Georgescu said someone who contributes the Roth IRA maximum each year and earns a 9% annual return over 35 years could accumulate roughly $2 million tax-free.

"I don't know about you guys, but I think I'd rather be $2 million richer in retirement than broke and bagging groceries," he said.

The debate highlights a larger question that many younger workers face: Should extra money go toward retirement savings or toward increasing earning potential?

See Also: The Wealthy Have Long Used Private Real Estate To Diversify Beyond Stocks. Here's One Platform Opening That Door.

For people, spending money on education, job training, or starting a business could pay off more than investing in the stock market. For others, consistently saving money in retirement accounts that come with tax breaks can help them build a solid financial cushion for the future.

Pakter argued that young people should focus on increasing their earning potential instead of relying solely on traditional retirement accounts. Many of today's biggest fortunes were built by investing early in emerging technologies, long before they became part of everyday life.

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Flippy actively works with humans to prepare food in live kitchens. It's optimized for the modern restaurant, fitting in most existing kitchens and backed by almost 30 patent filings. Join more than 40,000 people investing in Miso Robotics.

Read Next: Looking For An Alternative To A High-Yield Savings Account? See How Some Accredited Investors Are Using Short-Term Real Estate Notes.

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This article 'Roth IRAs Are For Poor People,' Says An Entrepreneur. 'I Don't Want $1.2 Million Tax-Free When I'm 65. I Want Money Now' originally appeared on Benzinga.com

'Roth IRAs Are For Poor People,' Says An Entrepreneur. 'I Don't Want $1.2 Million Tax-Free When I'm 65. I Want Money Now'

Why He Thinks Young People Should Focus On Earning More

Rich In Retirement Or Bagging Groceries?

Building Wealth Across More Than Just the Market

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