I enjoy your videos. One thing for people starting this journey to be aware of is that once you take out those initial contributions, you're not able to put that money back. So if you've contributed 100k and want to take that out for a big purchase, you can't re-invest that money as you earn it back, you're still constrained by the annual contribution limit.
So the Roth is very popular these days, because tax liability is zeroed when you go to take it out. However when you are in your top earning years i feel like minimizing your tax liability at all cost is a better route. When I’m old and done working i dont expect that i will be a top earner. So if i make 45k a year at retirement how much is one actually paying in taxes? Compare that to someone knocking 200k in their 30’s or 40’s
10:30 Great video! How are you determining the last column "total with Interest"? Is your money in an interest bearing account or is that number based on "dividends" ? That was the only part that wasn't clear. Is the "historical returns" column inclusive of dividends or are you selling stocks to get those returns? Again, great video and great content! Thanks!
That’s the earnings and interests. So if the stock price goes up from $10 to $15, then that’s a $5 gain, right? If you have 1000 shares of $10, that’s $10,000. Then it increases to 1000 shares of $15, or $15,000. Then it’s a $5000 earnings and interest. It’s a combination of both capital gains and dividend reinvestments. I hope that makes sense. Great question!
So I have a 401k with current employer which I contribute 15k last year 2023. I do have a traditional IRA with 33k in it but only contribute $600 per year! Do I need to transfer that 15k to Traditional IRA? Also is Roth IRA better that Traditional? Just trying to more competent in how this works!
I am already contributing to the Roth 401. I want to open a Roth IRA to get that five year rule out of the way and give me more flexibility. I am thinking of using Vanguard or Fidelity. Which one would you recommend to use?
Where is your 401k with? Mine is with fidelity so I use them for my brokerage. I’ve used both. Vanguards interface is not the best compared to fidelity
Fidelity is waaaaaaay better. I tried setting up an account with vanguard years ago and it was reallllly annoying. I went to Fidelity's website. Really easy to use. But I love Vanguard's VGT fund within the Roth XD.
I have a Solo 401K with Schwab, but I had Vanguard 401K for 5 years when I worked in the private sector. I liked Vanguard for the ease of use and their research engine, but I hated their customer service. That was 4 years ago so maybe they’re better now. I like Fidelity but I don’t like their contribution schedules. I like to have the option to transfer my money bi-weekly, but Fidelity doesn’t have that. If you go to my channel, I did a deep dive into those brokers
Fidelity 100%. I just transferred my Roth from Vanguard to Fidelity. Fidelity is far superior from the layout to fractional shares it offers way better features.
@FIREPsyChat , thank you for your quick response! I am leaning more towards Vanguard. Because I do not do active trading and I really like their super low fees. I know they have a $3000.00 minimum. But that is not a problem for me
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I enjoy your videos. One thing for people starting this journey to be aware of is that once you take out those initial contributions, you're not able to put that money back. So if you've contributed 100k and want to take that out for a big purchase, you can't re-invest that money as you earn it back, you're still constrained by the annual contribution limit.
Thanks as always for your content.
So the Roth is very popular these days, because tax liability is zeroed when you go to take it out. However when you are in your top earning years i feel like minimizing your tax liability at all cost is a better route. When I’m old and done working i dont expect that i will be a top earner. So if i make 45k a year at retirement how much is one actually paying in taxes? Compare that to someone knocking 200k in their 30’s or 40’s
Q1 $45k is 12% federal tax bracket so tax likely under $4k
@@alrocky Boom! there ya go.
10:30 Great video! How are you determining the last column "total with Interest"? Is your money in an interest bearing account or is that number based on "dividends" ? That was the only part that wasn't clear. Is the "historical returns" column inclusive of dividends or are you selling stocks to get those returns?
Again, great video and great content! Thanks!
That’s the earnings and interests. So if the stock price goes up from $10 to $15, then that’s a $5 gain, right? If you have 1000 shares of $10, that’s $10,000. Then it increases to 1000 shares of $15, or $15,000. Then it’s a $5000 earnings and interest. It’s a combination of both capital gains and dividend reinvestments. I hope that makes sense. Great question!
@@FIREPsyChat great! thanks for clarifying :)
What about moving an IRA to a Roth and no longer [putting in money since we are retired.
What if you have a pension, no 401k or matching?
So I have a 401k with current employer which I contribute 15k last year 2023. I do have a traditional IRA with 33k in it but only contribute $600 per year! Do I need to transfer that 15k to Traditional IRA? Also is Roth IRA better that Traditional? Just trying to more competent in how this works!
Q1 No. Why do you think you might need to transfer the $15k 401(k) to t-IRA?
Q2 Neither is inherently better.
How do I access the calculator?
Sound good
I am already contributing to the Roth 401. I want to open a Roth IRA to get that five year rule out of the way and give me more flexibility. I am thinking of using Vanguard or Fidelity. Which one would you recommend to use?
Where is your 401k with? Mine is with fidelity so I use them for my brokerage. I’ve used both. Vanguards interface is not the best compared to fidelity
Fidelity is waaaaaaay better. I tried setting up an account with vanguard years ago and it was reallllly annoying. I went to Fidelity's website. Really easy to use. But I love Vanguard's VGT fund within the Roth XD.
I have a Solo 401K with Schwab, but I had Vanguard 401K for 5 years when I worked in the private sector. I liked Vanguard for the ease of use and their research engine, but I hated their customer service. That was 4 years ago so maybe they’re better now. I like Fidelity but I don’t like their contribution schedules. I like to have the option to transfer my money bi-weekly, but Fidelity doesn’t have that. If you go to my channel, I did a deep dive into those brokers
Fidelity 100%. I just transferred my Roth from Vanguard to Fidelity. Fidelity is far superior from the layout to fractional shares it offers way better features.
@FIREPsyChat , thank you for your quick response! I am leaning more towards Vanguard. Because I do not do active trading and I really like their super low fees. I know they have a $3000.00 minimum. But that is not a problem for me
Great video, can you give me your skin care products 😂
Drink water 😂
Mega back door Roth🤦🏾♀️