If you don't use your HSA to pay medical bills before retirement, keep reciepts of all the medical costs you have, and you can reimburse yourself at anytime. For example, you turn 65, you paid $30,000 in medical bills and have the reciepts, you can pull $30,000 from your HSA tax free and use it for anything.
James you nailed it. This was the best most well thought out explanation with the most options to fit someone's specific situation. I listened to Dave Ramsey and The Money Guys and your explanation was better because it included their options (except for maybe Dave suggesting real estate) AND other options like HSA and good old fashioned spend the money and enjoy it if you're on track or ahead!
Thanks for the video. Have you ever done a video on the cost/benefit of hiring a financial advisor? I have a hard time spending quarterly $1.8k to $2.5k or $7k to $10k annually for financial advice. I would rather put that money in some sort of investment. I understand you have to get paid but the cost seems exorbitant.
I know you're focusing on investment (and thanks for the great video!), I would also add that buying real assets can also a good use of money, especially if those assets have some cash flow potential in addition to any long-term appreciation.
I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year... Investment should always be on any creative man's heart for success in life.
For my 401k after tax (mega back door Roth), I had my plan administrator set an automatic sweep from the 401k traditional to 401k Roth to avoid any tax burden on growth without my having to remember to do anything each payday. Many employee stock purchase plans (ESPPs) include a six-month lookback, where you get the lower of the stock price at time of purchase or the start of the six months, plus whatever percentage discount. That lookback feature has made a huge difference for me a couple times when the market was moving. I agree ESPP should be near the top of the list if someone has it available. The immediate ROI is a no brainer.
I was surprised you didn’t mention an after tax contribution to an IRA, especially if you’re not eligible to contribute to a Roth IRA. Wouldn’t that be a good idea to take advantage of the tax free growth. Also, I understand it may be possible to roll it over to a 401k before retirement and then the after tax contributions could be rolled into a Roth IRA after retirement.
Question. What do I do, I am 75 years old get $4200 social security and a $600 monthly pension I have No 401K or Roth but have $750K in cash and $40K in Marcus emergency savings and $23K in my checking. Would like to make some money with mine now. At 75 its a little late to play and stock games which I know nothing about. I know just go buy Stuff at 75
8:00 so are you saying here that the $22500 limit is for pre-tax 401k contribution and there is no limit to how much one can contribute to 401 after tax?
Spending. A lot of folks forget that part and miss out on a lot. You don't have to go crazy all the time, but once in awhile have the 100 dollar steak. Have the good stuff instead of Jim Beam. Invest in a live human to copulate with. You worked hard to get where you are, might as well enjoy a few fruits of your labors along the way. Just don't go underwater.
If you don't use your HSA to pay medical bills before retirement, keep reciepts of all the medical costs you have, and you can reimburse yourself at anytime. For example, you turn 65, you paid $30,000 in medical bills and have the reciepts, you can pull $30,000 from your HSA tax free and use it for anything.
that is the very best advice for the HSA. And exactly what we are doing.
James you nailed it. This was the best most well thought out explanation with the most options to fit someone's specific situation. I listened to Dave Ramsey and The Money Guys and your explanation was better because it included their options (except for maybe Dave suggesting real estate) AND other options like HSA and good old fashioned spend the money and enjoy it if you're on track or ahead!
Thanks for the video. Have you ever done a video on the cost/benefit of hiring a financial advisor? I have a hard time spending quarterly $1.8k to $2.5k or $7k to $10k annually for financial advice. I would rather put that money in some sort of investment. I understand you have to get paid but the cost seems exorbitant.
Yes, same concern here too. Check out MONEY, Master the Game by Tony Robbins. I’m considering going to go see a fiduciary advisor.
Yes, same concern here too. Check out MONEY, Master the Game by Tony Robbins. I’m considering going to go see a fiduciary advisor.
I know you're focusing on investment (and thanks for the great video!), I would also add that buying real assets can also a good use of money, especially if those assets have some cash flow potential in addition to any long-term appreciation.
YES, diversification!!!
I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year... Investment should always be on any creative man's heart for success in life.
For my 401k after tax (mega back door Roth), I had my plan administrator set an automatic sweep from the 401k traditional to 401k Roth to avoid any tax burden on growth without my having to remember to do anything each payday.
Many employee stock purchase plans (ESPPs) include a six-month lookback, where you get the lower of the stock price at time of purchase or the start of the six months, plus whatever percentage discount. That lookback feature has made a huge difference for me a couple times when the market was moving. I agree ESPP should be near the top of the list if someone has it available. The immediate ROI is a no brainer.
When you say the after tax 401(k) contributions immediately go into the Roth 401(k) what do you mean by immediately?
I was surprised you didn’t mention an after tax contribution to an IRA, especially if you’re not eligible to contribute to a Roth IRA. Wouldn’t that be a good idea to take advantage of the tax free growth. Also, I understand it may be possible to roll it over to a 401k before retirement and then the after tax contributions could be rolled into a Roth IRA after retirement.
I would add “consider gifting money to others”.
Regarding the HSA, if my spouse is retired and is not covered by my HDHP, can they use my HSA to pay medical expenses not related to a HDHP plan?
Question. What do I do, I am 75 years old get $4200 social security and a $600 monthly pension I have No 401K or Roth but have $750K in cash and $40K in Marcus emergency savings and $23K in my checking. Would like to make some money with mine now. At 75 its a little late to play and stock games which I know nothing about. I know just go buy Stuff at 75
8:00 so are you saying here that the $22500 limit is for pre-tax 401k contribution and there is no limit to how much one can contribute to 401 after tax?
Spending. A lot of folks forget that part and miss out on a lot. You don't have to go crazy all the time, but once in awhile have the 100 dollar steak. Have the good stuff instead of Jim Beam. Invest in a live human to copulate with. You worked hard to get where you are, might as well enjoy a few fruits of your labors along the way. Just don't go underwater.
Not enough people know this !!
What do you think about ibonds?
IBonds aren’t yielding as much now. I wouldn’t invest in those right now.
Don't we need to understand this income needs upon retirement, first?
👍👍
LIRP