3 Retirement Accounts Better Than A 401k
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- Опубліковано 4 сер 2024
- Today we'll go over three other accounts that may benefit you more than a 401k!
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Even if the 401K match doesn't have a match-some people are more likely to contribute to that than other accounts that might not be able to be automated or deducted directly from their pay. Once you get the money in your hands or checking account, it's a lot harder to let go of.
Lucky enough to have an HSA that allows you to invest in basically anything... That can be anyone.
I opened an HSA with Fidelity and regularly put in a transfer request to move funds into it directly from the HSA account that my enployer works with as far as direct deposits (and so I get the full tax benefit on social security and FICA rather than only income tax, later when I file, that I could get back by doing my own deposits into the Fidelity account instead of using payroll). No management fee on the funds moved over to Fidelity, no minimum of $2k in cash like my "base" HSA account, and better investment options.
Good video. I've had a HSA, Roth, 403b and brokerage accounts for years and I maxed them out in that order. I do get a 4% match on the 403b, which I captured first, but then I moved on tot he Roth and HSA, and then on to the brokerage, and then finished maxing the 403b. I don't currently use my HSA at all, I save my receipts for future tax free withdrawals, but now it's just a savings vehicle which I will begin to use in retirement. I also don't expect to ever need to tap the Roth, so my plan is to leave that accnt to family.
Thanks Dustin good info
More GREAT information Thank you Thank you
Nice. Anything that you can help us with to keep the government’s hands off our retirement as much as possible is great info.
You mean like a 401k?
Then you're looking for a tax advantage account, not a tax deferred account. Tax advantage is taking tax now dollars & putting into an account that grows tax free, is accessible tax free, & transfers tax free. Happy to explain more if you like
@@fund.your.infinity to keep the govt hands off, life insurance with cash value is best
Great video
Hey Dustin, love your channel & all the great advice you provide! When i can, i love listening to the closing beat! Just want to say, although these are all great alternatives to a 401k, you did miss one tho. A tax advantage account with no income limit, no contribution limit, no penalties upon withdrawal! I already know you share the same stance about it as Dave Ramsey, but a deeper look into a PROPERLY structured & funded life insurance policy with high cash value would be a great tool to add to your shed. I admit not every agent knows how to structure it properly which in turn creates a terrible rep for all agents, but there are a few good ones out there still. Happy to show you what i mean if you like! Keep up the great content!
I agree with you. I wish I could do a do over.
I am liking my fixed index annuity.. I done well with it the last 7 years, so now I have put that money into a 5 year fixed index annuity. I am sick of the yo-yo markets..
Hi, Dustin. Can you cover SEP IRAs? (Not finding any fault with what you shared today)
Obviously, it depends...but here is my general order of accounts for someone earning the median income and below W-2 earner.
1. 401k Match
2. HSA
3. Roth IRA
4. Roth 401k
5. Traditional IRA
6. 401k
If you are in a higher tax bracket then I favor reducing taxable income more (22% +)
If you're maxing out the Roth IRA, why list the traditional?
Just to show that I generally value the Roth IRA more than the Traditional. @@stephanielcowart6867
My HSA changed over to a new company, try to get cash out of them even with a current receipt is next to impossible. I do max out my HSA.. , my Roth is a beauty of a thing.
Mine to
What, in your humble opinion, is the best broker for trading options in an IrA account? More specifically covered calls...
Gggzz i never knew that about Roth and saving it for your kids college... illhave to look in to that..
I have an HSA account from a prior employer and now I work the the state which doesn’t offer HSA my question is should I keep the account open ? And contribute if I can thru a deduction from my paycheck ? I no longer have a high deductible insurance plan
Please help
Can you do a video more in depth on HSAs? How to know if you have a HDHP, etc
theres a million out here on you tube. fyi
If "HSA" isn't in the plan name, it's probably not an HDHP.
Dustin, you confused me at about 2:30 time mark when you I heard that if you invest in ETF, you cant tax loss harvest. I must have misunderstood what you meant to say. A few months ago, I sold VEA and bought SCHF and harvested $101 in losses. My account does this all the time with ETF's.
You can't TLH if you only own a single fund (ipso facto). More importantly, there are stocks etc. within a fund that go down in value even as the fund goes up overall, but you are unable to realize those losses.
I'm not sure if the better scenario (in his eyes) is having a diverse array of funds or something more advanced like direct indexing.
I have used HSA's for several years. What I don't like is limited investment choices and high expenses.
Move it to fidelity, NO FEES! You only pay the cost of the fund you invest in. My total costs are 0.015%
@@Retiredmco They must have started that fairly recently, I will look at that.
@@billyrayband Been around for many years.
Unfortunately there always comes a price when making more money especially with investing. If you're a business owner & it costs you $5000 to hire a new employee but a fully trained employee makes you $20,000, wouldn't that be acceptable?
@@fund.your.infinity What's that got to do with the topic at hand????
What if you're over the income limit for a ROTH IRA but your company offers a ROTH 401k? Would you add the ROTH 401k to the list in this vid?
Yes, the Roth 401k is an amazing opportunity. What is your priority? Tax free in the future or tax reduction now? If you are investing the same amount regardless then go Roth. If you are going to invest the additional tax savings then consider traditional.
@@OnCashFlow Thank you
@@jadexplores2100 no problem
Can you do a video comparing the legal protections of each. I’ve heard the 401k is protected from lawsuits but don’t know the details. Thanks!
You have the right idea but don't wait on a video. Google the answer
The concept is ERISA protection, and an emplyer-sponsored (not individual) 401k has the best protection
I have a Roth 401k with no match...with about 15yrs to retirement but don't plan on needing the money until they make me take the money......I'm a client of u guys BTW..
Same here, wish I got a max, but I've been maxing out the Roth 401k for a few years, and maxing Roth IRA. Lots of tax free money in retirement!
They will never make you take the Roth money.
@@dustindodge5974 tax-free is not the important part. The important part is you pay less taxes on the money.
The goal in choosing between traditional and Roth is which one is the best as far as how much in taxes you'll pay in total (unless your plan is to leave the money to your kids)
@@johngill2853 for guys like me with a good pension, rates will be higher in retirement. Plus there are other reasons, like setting your spouse up for success when you die, between our pension and SS, when it drops to filing taxes single, that's a tax bomb!
People always forget the "widow tax"
How about a Roth 457b, no match, high fees VS taxable brokerage account?
Not enough information
1. Exactly what is your definition of high expenses
2, how long do you plan on staying with the company.
You can't get investment advice in a vacuum we need all information and this isn't the place. You have to figure it out yourself or pay a fee only advisor with a fiduciary responsibility
457 👍
Tax deferred first, the traditional Roth 2nd and third HSA with a low cost provider.
Not us, Roth 401k first up to the company match, then Roth IRA. We for years contributed to traditional 401ks before the Roth 401k was available and those accounts have done very well. When we retire we are going to have one heck of a tax problem deferring the taxes plus the RMD,s. When you put your money in Roth you pay the taxes on your contribution and it grows tax free. You don’t pay any taxes on Roth distributions if withdrawn at 59.5 or later and Roth has no RMDS.. plus in you younger years you are already getting tax breaks you might not have in retirement like mortgage interest, dependents, healthcare premiums. Traditional you pay taxes on the full withdraw the principle and the earnings and at 72 the government forces you to start withdrawals so they can get all the taxes you owe them. You better research this you may find out you will be paying more taxes in retirement than your working years. And when you pass it on to kids or whomever they will have 10 years to withdraw the money from traditional accounts and on top of already working they will be stuck with a huge tax bill when they inherit it.
@@toby7291 your 100% right
You definitely have to do the research on your situation and figure out the best account.
@@toby7291 HSA no TAXES PERIOD! Look it up.
@@Retiredmco I didn’t say you have to pay taxes on an HSA. I never mentioned the HSA but at age 65 an HSA is treated like a traditional IRA and you can spend the money on whatever you want. Qualified medical expenses are still tax free but it can also be used non qualified expenses which is taxed like a traditional IRA. HSA’s do not have RMD’s though like a traditional IRA.
@@toby7291 There is a way to avoid taxes on pre tax accounts. Use a QCD at age 70 1/2 and beyond
The best retirement account is the Roth 457, assuming it has good investments inside of it. Same limits as 401k, and never any taxes or penalties at any age for any reasons. Sadly, many of them have terrible and expensive insurance products, and of course most people don't have access to one.
The best retirement account is a Roth 457?
You do realize most people pay less taxes in retirement. Statistically most people pay less taxes and most people will better off with a traditional account.
I'm not paying 22% now by investing in a traditional account and my effective tax rate when I retire before I collect Social Security will be 8.7% and after I collect Social Security it will be 6.2%.
Why would I not invest in a traditional when I can save this money in taxes? But of course I have ROTH also after I save close to a million dollars in traditional.
Maybe you don't realize you don't have to pick one of the other but you can pick the best combination for your situation
Like 👍
low income people can't do even half of the topics you discussed, because they're income is so low, there's a limit as to how much they can contribute annually. 🤨😒😐😑
Definitely and that is why you should get a book and read about these subjects instead of being dependent on a very short video. Nothing against people making the videos but they can't tell you everything like a book can
@@johngill2853 Agreed. The good thing about the videos is they get you thinking and pointed in the right direction.