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Most people find it hard to retire comfortably amid economy crisis. Some have close to nothing going into retirement, my question is, do I pull cash from my 401k and buy a house, or spread my money in stocks for cashflow? I'd love to afford my lifestyle after retirement?

Biggest financial mistake I ever made was with my 401k. My company had a Roth 401k when my kids were in college, but I didn't actually start contributing until year 3 of the 6 years I had kids in college. Because I was helping them with expenses, I was entitled to the tax credits, so my effective tax rate was extremely low. That is the time you NEED to be in a roth! i still retired with about $250k in my 401k.

For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.

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Maxing out your 401k can help you retire earlier or achieve financial independence

1. Can you please elaborate on the best split to consider for assert allotment within 401k? 2. What is the best exit scenario if we are going to return to India for good?

Hi brother, can you just do a live session on market analysis to explain how the index funds are performing and which ones to pick while opting for HSA.

இந்த English த வரமாடிங்கு இன்ன செய்ய... Sir...

While your 401k and IRA account would likely continue to grow even after you stop contributing to it, that growth might be limited by the Market, your personal plans and also other factors. For this I see need for annuities. I still will like to know how to compound $2m and above in retirement without holding cash.

4:25 "pay additional 27% tax on contribution... $6,210...$490k " That $6,210 is incorrect as computation is not additional 27% on $23k but $23k is result after 27% tax has been removed: $23,000 / 0.73 = $31,506.85 pretax income needed to contribute $23k to Roth 401(k) so ($31,506.85 - $23,000 =) $8,506.85 tax $31,506.85 * 0.27 tax rate = $8,056.85 tax : $31,506.85 - $8,506.85 = $23,000 Roth 401(k) contribution $8,506.85 at 8% for 25 years = $671,653 not $490k

Vijay, I have a doubt. At 04:54 you say, casually give it to your kids. I believe we cant just give to kids in USA, Any money you give to your kinds, although it is post tax money, our kids have to pay tax on that. Isn't that the case? i read somewhere that we can only give our kids $17000 per year as gift. Anything over this is taxable. Correct?

The best comparison till date on the internet. Great job. Good work

Thank you for the Excel, I am adding some key points you have missed while covering that might good for Others. This Analysis is based on Families who are planning to buy a house eventualy. 1) Interest Rate is Not same for 30 years it can come down %4 to %5 in 5 years, We can refinance at lower rate. That will will save us lot of money. 2) If we Rent LIFE LONG and Invest the Extra savings in Stocks/ETF's we get more returns that's True. You have missed the "TAX" we need to pay if we want to withdraw the Gains (If we want to Buy a House in 5 or 10 Years. I believe that would be case for most of them ) on the i.e. ~%19 (State + Federal) 3) The Amount of Capital we are losing by renting for 2 years at an avg cost of $1750/Month for 2 years is $42,000. If we brought a House it would gone to Monthly Mortgage Payments 4) The Home Appreciation values is not always %3 since you have taken the AVG Across the nation. If we consider Lowest growth for some Good Communities with greater school zones it may be more then >%5 to %10 per year source from Zillow price Change for last 10 years. 5) If you have a stable job and planning to stay in USA in a same state. My strong suggestion go for a House. 6) There is No Taxation in some states if we have a capital Gains on selling the house compared to Stocks up to $500K as of 2024 filling jointly 7) We can use the below 2 Links to calculate the Tax you will end up to pay on the investment and how much return you will get if you invested in stocks at avg %4 returns. a) Taxation: smartasset.com/investing/capital-gains-tax-calculator#2kHh5UPu5a b) Investment Returns : smartasset.com/investing/investment-calculator#ixeCSfH47d 8)people say that the average Stocks return is greater then %10,this happens only when we keep it for 10 to 20 years and we should know when to Exit i.e. at Good performing Years.

Can you explain 401 k Catch up and after tax

Can you explain 401 k Catch up and after tax

Well Explained, Thank you!

As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.

I’m thinking making investing in 401k is risky, also the economy might probably be of effect to average persons

Thanks for the video! 👏

If I plan to retire in India, would it make any sense to contribute to Roth 401k or should I just do pre-tax?

What tax bracket is 105k married filing jointly in Texas? Internet is bit confusing. Roth or PreTax?

Thanks for those intense calculations. This is insightful. However, request you to consider the physical, mental and monetary stress of moving out and in every year. This is not a big factor in India, but surely is for people in US. You may also factor in the uncertainty of finding a decent place near kids schools etc considering Apartment properties change lot of things in every new contract.

Excellent explanation sir 🤩

Great video, very helpful. I believe there is a slight correction. The 6210$ total tax savings by maxing your 401k will still be taxed when you withdraw post retirement. The best case is 10%tax on it (lowest tax margin). But some of it can be taxed at 22% or higher too, depending on which tax bracket you are during post retirement withdrawals. Also a big unknown is the tax brackets 25yrs from today. Please comment on this. Thanks.

Can you please make a video on how to convert or transfer the traditional 401K money to non taxable accounts couple of year’s before retirement and the withdrawal limits on non taxable accounts

Is it make sense to invest in 401k if employer is not matching? And can you make video on the best etf/mutual funds in USA

The Roth 401k can be beneficial if you expect your tax rate to be higher in retirement than it is now. Given the uncertainty of future tax rates, it’s a good hedge against rising taxes.

Good analysis and explanation. But when you discuss savings on 550k on taxes you didn't consider that amount would be taxed on withdrawal

Where were you sir. You are like a distant uncle everyone wishes to have to guide them in the world of personal finance. And I like your direct to the point approach. Thank you!!!

With the federal debt trend will the tax increase from 22% to 40%

401k withdrawal after age of 62 or 65, it is tax free correct?

Today , IRS released new max out amount for HSA plan 2025. Could you pls share more insights about it

Vijay Anna your analysis is spot on!!!. Please keep sharing more such videos and enlighten us.

Great job on the detailed work, thank you so much for putting the effort! One question: isn’t 8% return an assumption as well? There should be a point (somewhere higher that 8% of average return) where the conclusion will change. Please correct/confirm - will be really appreciated!

Sir there is another assumption about the returns in the investment is consistent right? Is it not an assumption? Or is it possible to do that way?

Big fan of your channel sir. Please upload videos on good balance of portfolio in retirement and brokerage accounts. S and P 500, Bonds and any growth ETFs.

Amazing clarity! Thank you. Adding to this HSA of $8,300 per year, we can almost bring taxable income below 22% bracket for a 120k joint filing.

Is there a video on annunity? If not can you explain pros and cons of annunity

Annoying accent 😢😢

Nowadays, Indians (I-140 status) are buying a home in US because of coworkers/neighbour has bought it and really creating a mental pressure….. Thank you for explaining in detail 🙏.

Very useful information Sir, How about the interest rate is 3 %

Can I withdraw the HRA amount, before retirement or loan out of it? In that case, which will be profitable, HSA or 401K?

Thank you very much Sir. Great video

Dear sir I have made a terrible mistake of buying whole life insurance for me and my wife . We are paying a yearly premium of 6K USD for a meager 175K death value. We were confused and sold about cash value etc . What options we have now ? We have paid 3 yrs out of 10 yr already .

is it advisable to buy a 2nd home and let the current one on rent and move? we need to move as we feel the current home is in a community where it is more of rentals and we see people move in and out frequently and lot of nuisance to deal with. practically it will be too tight to afford this interest rate but if we don't decide now then it will be never kind of situation.

Good info

what should be the ideal fund allocation in 401k? can we adjust it once in 6 months or a year? should we have a financial advisor to guide us? or should we select fidelity assistance?

can we withdraw for college expenses? is that consider as valid withdrawal?

Can you recommend what funds we should select in the HSA? right now i have 27% large cap, 28% mid cap, 20% small cap, 25% international

Since LT Cap Gains are not taxed until >$94k, now I’m thinking if it is even worth doing after tax 401k (mega back door Roth conversion), because even in brokerage account the cap gains won’t be taxed until 94k, plus I’ll have the freedom to withdraw gains before 59.5yrs in brokerage acct unlike Roth account. You have really made me think. I would appreciate any inputs on this.