Follow these 7 Steps to Build Generational Wealth…

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  • Опубліковано 22 тра 2024
  • Yes, you CAN retire as a Multi-Millionaire. I’m going to break down my 7-step retirement playbook so that you can retire richer than you could have ever imagined.
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    Ramit Sethi is the host of Netflix’s “How To Get Rich” and New York Times bestselling author of “I Will Teach You To Be Rich”
    Find Ramit on Instagram: / ramit
    Subscribe so you don’t miss any of Ramit’s videos: / ramitsethi

КОМЕНТАРІ • 409

  • @landonbrown9943
    @landonbrown9943 Місяць тому +91

    A paid off house, no debt, & a couple million in the bank you should be living good 👍🏾

    • @slunajr
      @slunajr Місяць тому +2

      The goal!

    • @anupamar426
      @anupamar426 Місяць тому

      Goals 💯

    • @jamesclancy
      @jamesclancy Місяць тому +4

      No shit Sherlock

    • @rhondavigil795
      @rhondavigil795 Місяць тому

      Yes!!!!!!! bs7
      A goal without work is called a wish.
      Put in the work.

    • @paws315
      @paws315 Місяць тому +5

      Except for property taxes. An ugly reality in the US which undermines the concept of ownership

  • @yhckelly
    @yhckelly Місяць тому +36

    This is a great video. The number one issue for financial stability is to have a plan- any reasonable plan at all. It's mind-blowing the amount of people who wing it, leading to failure and resentment most of the time.

  • @prashantgulati9574
    @prashantgulati9574 Місяць тому +76

    Finance UA-cam is amazing. Say the exact same thing to people, over and over again, with a slightly different script. And you've got yourself endless hours of content that people will gobble up. Gotta love it :p

    • @arh1234
      @arh1234 Місяць тому +50

      It takes some of us a few iterations from different perspectives to really "get" it. Plus, repetition is helpful to stay the course!

    • @Bantallas
      @Bantallas Місяць тому +31

      And every time there will be somebody who sees it for the first time.

    • @xaldath4265
      @xaldath4265 29 днів тому +8

      The irony is people still fail to grasp how simple the process of generating wealth is. Easy, even...once you truly get it.

    • @s10case
      @s10case 28 днів тому

      That's me right now!

    • @mchristian5217
      @mchristian5217 27 днів тому +6

      Funny thing is most still won’t do it.

  • @lindatwinkie
    @lindatwinkie Місяць тому +264

    Bought AMS120X at 1$, I will keep it until 2025 when it reach 250$

    • @elmateo77
      @elmateo77 Місяць тому +9

      Good luck with that...

  • @lizRomrell
    @lizRomrell Місяць тому +10

    The graphics!!!! Thank you, Ramit and team! You have done simliar videos in the past and Ioose interest because it’s difficult to follow with the advice and numbers without a visual graphic. This was great!

  • @ednameadow38
    @ednameadow38 Місяць тому +329

    What do you think sets AMS120X apart from other projects? It seems to be dominating discussions lately

    • @elmateo77
      @elmateo77 Місяць тому

      It's just the latest scamcoin, will probably be dead in 3 months.

  • @stevestory8483
    @stevestory8483 Місяць тому +8

    This is one of the best thorough investment/savings video I've ever seen

  • @valmac1234
    @valmac1234 Місяць тому +45

    Just a side note, if you retire to somewhere like Portugal for a lower cost of living and free health insurance, they don't recognize the ROTH and will tax you on your withdrawals unless you can prove you put in tax free contributions. Keep your paperwork!

    • @AdmanToronto
      @AdmanToronto Місяць тому +3

      Many countries have tax treaties to prevent double taxation.

    • @patienceisalpha
      @patienceisalpha Місяць тому

      ​@@AdmanTorontoonly a few countries recognize Roth as tax free. Classic future expat tax trap

    • @andresgarciacastro1783
      @andresgarciacastro1783 Місяць тому

      So... Let's go live off other people's society.. Stay in your third world country please....

    • @hollyc3838
      @hollyc3838 Місяць тому +3

      What kind of paperwork will prove that? I do a transfer from my after tax money in my checking account into my Roth IRA. How do you prove it when you do your taxes for Portugal?

  • @Momomomomomomo1
    @Momomomomomomo1 Місяць тому +4

    Hey Ramit, I found myself enjoy these videos of you talking more than the calls with people. Thank you for making them!

  • @hojoylyn
    @hojoylyn Місяць тому +318

    Can anyone explain AMS120X?

    • @elmateo77
      @elmateo77 Місяць тому +13

      It's a scam, you send them bitcoin and they give you some of their new coin which claims to be affiliated with Amazon but isn't and will probably never have any actual application.

    • @chetanjilhewar1669
      @chetanjilhewar1669 29 днів тому +3

      It is a scam.

  • @saralimas4180
    @saralimas4180 Місяць тому +10

    Almost being 39 I have never thought through how much I want to retire with but have been thinking more and more about this so this video is good timing! My company allows me to contribute to a Roth 401K and they match up to 11% !

  • @GenTankman
    @GenTankman Місяць тому +4

    what i always reccommend to people is to do the following:
    401k match
    1 month emergency fund
    payoff high interest debt
    3, 6, or 12 month emergency fund
    Max out Roth IRA (or traditional if you do not qualify for Roth) If eligible for HSA then split the investment between the two.
    Max out HSA (if eligible)
    Max out 401k
    Remainder into taxable account
    I also always tell people to invest at a minimum 15% and to save at a minimum of 10% of their income. Personally I invest 15% (5% into 401k, 5% into Roth IRA, and 5% into HSA), and my employer matches 5% but also gives an additional 3% a year since we do not have a pension anymore, and have 6 months of an emergency fund.

  • @Szechieh1986
    @Szechieh1986 Місяць тому +1

    Ramit!!Super love your videos and I look forward to them every week! Love your response especially when people come up with ideas that do not make any sense at all - It always make be roar out laughing out loud.

  • @Agi2u
    @Agi2u Місяць тому +6

    With regards to HSAs, I don't know how many employers do this but my employer matches my contribution to an HSA of up to $1k. It's actually insane if you're in a company that will match money you put into an HSA.

    • @jessymadsen2699
      @jessymadsen2699 Місяць тому +1

      My husband’s company matches $1400. It’s awesome! We’ve made so much $$$ in our HSA by maxing it out and investing it. Even using it for medical expenses and even for kids’ braces.

    • @chetanjilhewar1669
      @chetanjilhewar1669 29 днів тому +1

      But you would need to keep an eye on the max on the money you put it. For example, let says your company put in $1000, you would need to put in the left over money I.e 3000 if the maximum is 4000 for the year. If believe it is 4150 for 2024, I could be wrong.

  • @delijahanderson
    @delijahanderson Місяць тому +11

    Ramit, I’m a huge fan and I appreciate all of the knowledge you share with the world! I’d love to have a job like yours. Thanks for what you do!

    • @lowlowseesee
      @lowlowseesee Місяць тому +1

      you can definitely have a job like his. I do what he does right now but with all my coworkers using his methods lol. I do it for free but its a lot of fun improving peoples situation. I have a meeting with a coworker tomorrow and I also have had meetings teaching the owners of the business I work for on how to manage their money lol. Im a college drop out who has never cared about money and i have none. i only now have savings at 43 thanks to ramit. so I know if I can teach people for free, you could for sure do it and make money. get some george blackman youtube writing skills and you are set. but yeah you could for sure make a living as a financial person. ESPECIALLY if you joined his Earnable program and or put in the work. the community in his programs are even more supportive than I am being right now lol

    • @delijahanderson
      @delijahanderson Місяць тому

      @@lowlowseesee I’ve thought about making it a career or at least a side hustle. I know I’m passionate about personal finance bc I help family and friends for free too. It’s hard for me to charge people when I’m trying to help them get their financial situation together lol

  • @razwanahmed5758
    @razwanahmed5758 Місяць тому +4

    Such a great video for starters!

  • @vgmijpn8ball
    @vgmijpn8ball Місяць тому +19

    Thanks! I hope you can make a video about a financially healthy couple on your podcast sometime. We've seen over 100 couples who aren't on the same page, but what are we aiming for?

    • @mchristian5217
      @mchristian5217 27 днів тому +2

      I would like to see that too. Someone to model doing it right. Especially someone in retirement using the 4% rule with no worries.

  • @roqonu
    @roqonu Місяць тому +2

    This is a great video in all aspects.

  • @trackee2024
    @trackee2024 Місяць тому +3

    18:37 Our deductible is $4k for a family but the min to get an HSA is $3.6k; however we didn’t qualify because our individual deductible is $1k and the min is $1.6k.

  • @christospsarrakis1990
    @christospsarrakis1990 Місяць тому +1

    Great content as always. Greetings from Europe

  • @charletfoster8917
    @charletfoster8917 Місяць тому +5

    Great lesson on how to invest for our future🙏🏿😊💰

  • @Kgomotso_DivineDiva
    @Kgomotso_DivineDiva Місяць тому +4

    Thank you 4 info ..we hv different acc in Afrika but your guidelines helped me a lot .Im pushing Tfsa Growing my RA ,Got rid of debts also bought properties im about to settle 2homeloans. The other 2 houses r on airb&b
    Im building my richlife

  • @NRV44
    @NRV44 25 днів тому

    Great advice. I will follow.

  • @adnesavchen1549
    @adnesavchen1549 Місяць тому

    always learning thing with you. I was investing more so now I will pay my debt 1st I am always missing something. Thank you for all you advice. Could you plz have one episode for the Canadian way of doing thing. I am a huge fan of your and also sharing with my friend and matter of fact some is hearing about you for the 1st time. I also find it very great gift to my friends and relatives. I just hope they learn all those knowledge early not like me I whish II knew about that 20 years or even 10 years before. That would make a huge difference in my life. Thank you

  • @poojaghosh7783
    @poojaghosh7783 Місяць тому +4

    You teach so well! 👏🏽

    • @chetanjilhewar1669
      @chetanjilhewar1669 29 днів тому

      To bad, he could do teach well at high school or college level classes. I would if he could teach finance to kids in elementary schools.

    • @peggyyu9752
      @peggyyu9752 2 дні тому

      Maybe it is better to teach online so his message can reach more ppl 😊 plus .. teenager never really listen anyways 😅

  • @desireedindal8160
    @desireedindal8160 Місяць тому +1

    Great Vid !! I love the simplicity of your advice. I would have included Real Estate as part of Step #7.

  • @randombandit362
    @randombandit362 Місяць тому +15

    I think your expenses can reduce drastically if you pay off your house and have no debt. Do that by 55 at the latest and then you’ll have 7-10 years to determine your annual expenses at retirement, and save a ton too

    • @rjaymanguino2760
      @rjaymanguino2760 Місяць тому

      What if instead of aggressively paying down your house you aggressively invest instead? 😳

    • @strongheartfitness
      @strongheartfitness Місяць тому +2

      At 51, my mortgage is all that’s left. I should have that paid off in the next 3 years all while investing simultaneously. Maybe then will I buy a New To Me suv. Thank you Ramit!

    • @lowlowseesee
      @lowlowseesee Місяць тому +1

      thats a great idea. only problem with that is are two...one...people who can afford to pay off their house usually over save and don't enjoy themselves and they are miserable. thats not a rich life. two...most people dont run the real numbers on home ownership so most people have fixed cost so high that they can barely afford to pay their mortgage let alone pay off their house in a good time limit. most folks wont have their homes paid off until they are too old to really enjoy their money. guilt free spending now not when you turn 70 lol

    • @yandirn2478
      @yandirn2478 Місяць тому

      This is exactly my plan!

  • @beyondthesunpodcast
    @beyondthesunpodcast Місяць тому +1

    Excellent content

    • @economicdevelopmentplannin8715
      @economicdevelopmentplannin8715 29 днів тому

      Focus on getting more income and living off gifts. Only buy assets, long-term, regular brokerage accounts, no retirement accounts.
      Marriage to someone similar. ❤

  • @JulieLaursen1
    @JulieLaursen1 21 день тому +1

    After paying almost 40k AFTER insurance in medical bills because of one company's large out of pocket max over 3 years, when I joined another company I chose the insurance with the lowest max out of pocket. I may not have an HSA, but I don't have any medical debt and I have more peace of mind.

  • @Rigs_1980
    @Rigs_1980 Місяць тому +2

    Yes agreed on maximizing 401k. But be careful because if you max it on month 9. The company you work for will not add money the additional months left in the year. It’s crucial to read the benefits. I was not aware of this until maybe 5 years ago.

    • @michelletucker2842
      @michelletucker2842 24 дні тому

      Yep definitely need to make sure to spread your contributions across all pay periods in order to maximize the match (at most employers)

  • @cortez9978
    @cortez9978 Місяць тому

    great video

  • @RM-cq1ny
    @RM-cq1ny Місяць тому

    My strategy is three buckets: S&P fund, tech fund, and target date for my Roth IRA until I hit the max. Thanks for the tips.

  • @vanbeek62
    @vanbeek62 Місяць тому +2

    Unpopular Opinion: If you're eligible for an HSA and will utilize it maximally with investing the contributions and keeping receipts to reimburse with gains in the future, I would place it before the Roth IRA just for the tax deduction benefit alone.

  • @marioschuster
    @marioschuster Місяць тому +56

    Sadly, as an European, I understand only like 25-33% of this video. Most things don’t exist here.

    • @reaccionapuertorico
      @reaccionapuertorico Місяць тому +1

      Why not? If not available, see if you can start a movement and get something similar passed.

    • @11Voltage
      @11Voltage Місяць тому +24

      Hello from the UK. Each country should have their own versions, it's good to make note and then go and find your countries version of the same (we have pension account not 401ks and ISAs instead of Roth IRAs)

    • @michaellongobardi91
      @michaellongobardi91 Місяць тому +22

      As a european:
      In uk- take the employer match on auto enrolment contribution. Plus, max your stocks and shares isa (no cash isa. Waste of tome)
      In europe :
      Put as much as legally possible towards your private pension fund, choose the cheapest pension funds like vanguard, choose equity like s&p 500 , and take the government deductions for putting money in private pension.

    • @ramitsethi
      @ramitsethi  Місяць тому +54

      Loving the comments showing how to adapt this material to your location. I also have a UK edition of my book, which is adapted to the local market.

    • @joefirth7428
      @joefirth7428 Місяць тому +6

      ​@@ramitsethi I'm from the UK. Have both editions of the book and they're great.

  • @lori.imhoff
    @lori.imhoff Місяць тому +1

    I pay 12% into state retirement as a teacher every month. I also have a Roth IRA that my parents started when I graduated. They put in some money for my birthday every year but I'm not really adding to it since I'm already putting so much into state retirement.

  • @cyanoswag
    @cyanoswag Місяць тому +3

    Do you have any suggestions for adapting this plan for other (not USA) countries?

  • @VibesOfLifeWithTJ
    @VibesOfLifeWithTJ Місяць тому +1

    Can you make video on DCPP AND RRSP differences? Thanks!

  • @grissom.
    @grissom. Місяць тому

    Excuse my ignorance if I missed this in the video, but say I have already maxed out my match in my 401(k) (5%) and also contributing $250 a month to my Roth IRA ( target 270).. Which one should I increase first? Should I contribute 10% to my 401(k)? And only receive the 5% match or start contributing more to my Roth ? Thanks for the guidance. I am 20 with no debt trying to make sure I set myself up for the future.
    Edit - I see that you recommend to max out the Roth first. Also I wanted to add I love your philosophy, I’ve listened to a bunch of people on the Internet in the Dave Ramsey, Robert Kawasaki, etc etc and I love the way your mindset… I’ve been following you for quite some time and using your conscious spending plan, I can’t take financial advice from anyone besides you. My parents do not have a great relationship with money they live paycheck to paycheck.. that’s all thanks

  • @melissaryan1613
    @melissaryan1613 Місяць тому

    Hi Ramit, not to get into the weeds but are there different regulations in the state of CA that negatively affect the triple advantage of the HSA? I heard there were two states (or something like that), where the triple advantage does not apply. I do believe there is still a great advantage to an HSA, however I was curious if there were differences for CA. Thanks! Absolutely loved the video and will be changing up my strategy a bit :)

  • @gaganb1159
    @gaganb1159 Місяць тому

    Sat shri akaal sethi sahib, very good info but can i access target funds as I live in NZ

  • @lilianaflores6257
    @lilianaflores6257 2 дні тому

    This is great stuff

  • @Muralath
    @Muralath Місяць тому

    In Thailand we have an RMF for retirement, and it’s tax-free both ways. Tax deductions now and tax free for withdrawal.

  • @cutepinksocks
    @cutepinksocks Місяць тому

    This video is very helpful and I’m proud to be on the right track with these steps. But I am still hesitant about investing because I don’t understand the TAX implications on the investments,, especially the taxable brokerage. Could you explain more on that?

  • @joelargueta9191
    @joelargueta9191 Місяць тому +23

    Are Roth 401k’s not common? I always see the 401k vs Roth IRA discussions without mentioning Roth 401ks? Everywhere I worked has offered a Roth 401k.

    • @smilesnluvd6526
      @smilesnluvd6526 Місяць тому +2

      I think the comparison there is to look at the fees. Most 401k's fees are higher than IRA's. So you'd only max out the 401k first if it's both Roth and has a low fee (somewhere around 0.06%).

    • @saulmarquez8989
      @saulmarquez8989 Місяць тому

      @@smilesnluvd6526 most 401ks offer higher fees because of target date funds …..but they still have a option for a blue chip fund or similar S&P 500 fund that offers super low fees

    • @jerrystauffer2351
      @jerrystauffer2351 Місяць тому +2

      It's fairly new. I can do a mix of regular and Roth 401K

    • @Ry22futbol
      @Ry22futbol Місяць тому

      For questions like this, it’s probably better to watch The Money Guys. They are certified financial advisors, and they are better for people who are interested in going beyond this kind of advice

    • @jdp486
      @jdp486 Місяць тому +1

      Yes. I hate when financial people compare Roth IRAs and 401ks... It automatically strikes me as outdated information. Just compare traditional and Roth!

  • @curleenr4317
    @curleenr4317 29 днів тому +1

    Can you teach us about rollover IRA? Thank you 🙏🏾

  • @stephenwebb9882
    @stephenwebb9882 Місяць тому +1

    A note on HSAs: a lot of employers will have an HSA provider and deduct directly from your paycheck for you, but you can roll over an HSA just like a 401(k) to a preferred HSA provider when you leave the employer.

    • @bgoode652
      @bgoode652 Місяць тому +1

      My company's HSA provider is crap but the payroll deductions need to go there. So be it for the SS savings. I transfer the majority of the balance a few times a year to a Fidelity HSA I setup so there is never much in the company's provider.

  • @mchristian5217
    @mchristian5217 27 днів тому +1

    @ramit any chance if a second season of your show on Netflix?

  • @daniellefaith47
    @daniellefaith47 Місяць тому +3

    Could you do a similar video for a situation where someone is paying into a pension plan and has the option for deferred compensation? My retirement contribution to the pension is set and I'm not sure if/how to split additional money I want to set aside for retirement between a roth and deferred comp 🤔 I appreciate you and your content Ramit!

    • @lilifey729
      @lilifey729 Місяць тому

      I have a pension plan of monthly salary divided by (2% times number of years worked) for life after age 55. I still contribute to 401k and just started Roth IRA. It's better to save more than less🤔

  • @vitor.marutani
    @vitor.marutani Місяць тому

    yo dawg, great content!
    could you make a comparison table with these finance products (ROTH IRA, 401k and such) for other countries?
    i know there will be a lot of caveats, but similar products with an asterisk, eheh
    do brazil first ahah

    • @lowlowseesee
      @lowlowseesee Місяць тому

      dawg? yea you are my age lol

  • @AdrienneMcheapo
    @AdrienneMcheapo Місяць тому +1

    You can only use HSA money tax free if used for specific medical expenses. After 65, you can use HSA money for anything, but if you use it for non-medical expenses, you have to pay taxes.

  • @tibouthine6409
    @tibouthine6409 Місяць тому

    Hey can you make a video for young people , like which risky place to invest for a divers portfolio ?
    thanks that a great video

  • @sijodevasia2034
    @sijodevasia2034 Місяць тому +1

    @ramitsethi Can you make a video for types of investment tactics for those of us who are 1099 workers? I work without benefits and it seems my main two options from this video are to pay off my somewhat reasonable student loan rate of 4-7% across 7 loans and then max out my Roth IRA? Are HSA's applicable to me?
    Big time fan! Read your book right after graduating college but only now am I realizing how to manage my money/budget.

    • @arh1234
      @arh1234 Місяць тому

      1. If you're 1099, start a solo 401k. Fidelity and Schwab are popular spots.
      2. You can open an HSA if your health insurance qualifies. You can filter healthcare.gov plans for HSA eligibility
      3. Definitely continue with your IRA

  • @amansawhney3318
    @amansawhney3318 Місяць тому

    If you assume your tax rate will not change then contributing to your Roth vs 401k after the match doesnt yield more money. For most retirees I think the tax rate is lower in retirement so that would make 401k contributions more effective than Roth. However, you have additional flexibility with a Roth. Namely you can pull from a Roth without penalties for qualified events and for your contributions at any time. That’s a massive benefit

  • @hamidoudembele5323
    @hamidoudembele5323 9 днів тому

    Hello Ramit,
    Thank you for everything since I follow your podcasts and your documentary on netflix where I discovered you.
    I have one question. Please, could think that it will be interesting for me to buy your book wince I live in France.
    I ask you that because I don't master the USA market.
    Thank you again

  • @KA-NV
    @KA-NV Місяць тому

    If I am investing in a 401k and a roth would you suggest to do pre tax in the 401k or is it better to invest after tax money in it?

  • @AlyssaWolverton
    @AlyssaWolverton Місяць тому +1

    You dont need a lot of money to be wealthy. We are military family with no debt. Currently 30 and contribute $1000 a month to retirement. We make 66k a year if you count our housing allowance.

  • @lanniehernandez5078
    @lanniehernandez5078 14 днів тому +1

    Make a video for 40 to 50 yrs old beginner millionaire PLEASEEEE!

  • @moemoeforyou
    @moemoeforyou Місяць тому

    I recently read your book and it said to invest in the 401k instead of a roth 401k (if your employers both) because you will have more money to compound over time. There wasn't any mention of the potential of higher taxes when we to withdraw in the book. Do you still recommend we put all the money in the 401k? I have heard other financial folks say the roth 401k is better because we don't know what the tax situation will be like in 20, 30, or 40 years.

  • @TheseWhiteNights
    @TheseWhiteNights 22 дні тому

    Question. What is the difference between a target date fund and the robo advisor for vanguard? They seem to have the same strategy of moving funds from stocks to bonds

  • @user-lf5qd7pv1t
    @user-lf5qd7pv1t Місяць тому +2

    Ramit, do a video for us europeans! I appreciate all the help and knowledge!

  • @Larryjazzy271
    @Larryjazzy271 Місяць тому

    What are your thoughts on investing in property @Ramit?

  • @zapit001
    @zapit001 Місяць тому

    I'm self-employed and just picked up your book. Love your book and just getting started. Any content or advice you would suggest beyond your book? I'm currently looking into starting a SEP IRA. Any advice you or content would suggest would be much appreciated!! Thank you.

    • @rachelgabbert3705
      @rachelgabbert3705 Місяць тому

      I'm self employed too. Recently became LLC. I heard the LLC can match 401k contributions which means self employed LLC owners can realllyyyy maximize their 401ks. Ramit, make a video about that?!(:

    • @arh1234
      @arh1234 Місяць тому +2

      Consider a solo 401k instead of a SEP IRA. You can put more money in it at lower income levels.

  • @jthomas274
    @jthomas274 Місяць тому +3

    Do you have a section in your book for high income earners? Maybe I overlooked it. At what step you would incorporate the back door Roth, before or after maximizing 401k yearly contributions?

    • @arh1234
      @arh1234 Місяць тому

      If you earn enough to need to do backdoor Roth IRA, you should probably max your IRA and 401k.
      Either way, his suggestion to max IRA before filling up the 401k max still likely applies.

  • @taylorapolonio
    @taylorapolonio Місяць тому +2

    I'm curious if you can talk about how to adjust retirement planning if you want to retire before the traditional age

    • @Kornheiser10
      @Kornheiser10 8 днів тому

      He's not a fan of FIRE. Bigger Pockets youtube is good for that topic

  • @RupertMDoc
    @RupertMDoc Місяць тому +7

    Ramit, I won a math contest in college. I work as a statistician. I understand compound growth and the time value of money. Traditional tax deferred accounts BEAT Roth accounts for most people. This is due to not paying your highest marginal tax rate when you contribute. But when you withdraw, its taxed across the rate spectrum. Still, I like the flexibility of Roth can provide if you have major expenses that pop up. Investing about 75% in traditional and 25% in Roth should work for most. Also, being taxed later means having less to invest now, meaning less later.

    • @roqonu
      @roqonu Місяць тому +1

      Is your last line correct? Did you mean to write...being taxed later means having MORE to invest now? If not, pls explain.

    • @RupertMDoc
      @RupertMDoc Місяць тому +2

      @@roqonu Yes, the math goes like this. Invest $10,000 in Roth, well, you invested $10,000, good job! However, invest $10,000 in traditional pre-tax, then that is $10,000 you don't pay income tax on yet. Lets assume a simple 25% marginal tax rate. By putting $10,000 in pre-tax, you will have at least $2,500 then by at least the time you get your tax refund, but probably sooner if not through work withholding. You can turn around and put that $2,500 back into your traditional account... and save another $625 in taxes to invest. So, right now our traditional has $13,125 invested, plus a little extra in your bank account versus $10,000 in a Roth. That extra money means you will have more to withdraw from... but you will pay income tax on it then, but it probably won't all be at 25%.

    • @ebelen1
      @ebelen1 Місяць тому +2

      @@RupertMDoc the issue is most don’t do what you’re saying and invest the tax savings. You might but most don’t so always tell the young folks in my life to do Roth as long as you can.

    • @bgoode652
      @bgoode652 Місяць тому +1

      @@ebelen1 Young people are also often not past the 12% bracket right now. It's most likely the right move for a lot of young people. Now, trying to convince someone young that isn't making much money to put some aside for 2065 is the challenge.

    • @ebelen1
      @ebelen1 Місяць тому

      @@bgoode652 exactly. Had my son start at 22 and every time he asks, I say go Roth. Too many things later in life to worry about like RMD’s and taxes. Put it in early and often and don’t look back.

  • @RonWilliams1914
    @RonWilliams1914 Місяць тому

    Ramit, what if you have a company that only offers a 401b with no match, should you still invest in it or invest in the taxable investment fund with no restrictions?

  • @jdp486
    @jdp486 Місяць тому +1

    Much like compounding interest, most people have no idea how quickly 3% inflation each year can increase costs. Costs of $73k this year will be $177k in 30 years.

    • @arh1234
      @arh1234 Місяць тому

      4% rule includes increasing your draw for inflation each year

  •  Місяць тому

    is there same video by him about Europe?🙈 I would love it

  • @lowlowseesee
    @lowlowseesee Місяць тому

    Ramit and team are bulletproof. been waiting on this one thanks!

  • @mendezcreative
    @mendezcreative Місяць тому +1

    That Robert Kiyosaki burn 😂😂

  • @imlibratheone8644
    @imlibratheone8644 Місяць тому +1

    I max out myself HSA and IRA before going back to add more to my 401k.
    If it's triple tax advantage, I feel like its the better move. Am I missing something ?

  • @danielad.927
    @danielad.927 Місяць тому +1

    Wow! The Roth IRA sounds amazing. We don‘t have something like that in Germany. We pay taxes like crazy…

  • @deliamak
    @deliamak Місяць тому

    I might have missed what you said. Where can we open a Roth IRA account, and a HSA account? Is it through your bank or something else?

  • @garbopr8613
    @garbopr8613 Місяць тому

    Are hysa a good idea?

  • @azski80
    @azski80 20 днів тому

    What is your take on Traditional IRAs? How to decide between traditional vs. roth IRAs?

  • @worldwideachievers1234
    @worldwideachievers1234 21 день тому

    Many are not aware of ROTH IRAs. 401k plans yes but not ROTH. Everyone should understand ROTHs and fund them annually. After tax money going in but tax free coming out.
    Having no debt is more important than anything as you near retirement. If you’re debt free then you know.

  • @pnic4540
    @pnic4540 26 днів тому

    IWT Team,
    Why did we not discuss the Roth 401(k) option?

  • @ankitsethiya1626
    @ankitsethiya1626 Місяць тому

    Some employers even add a match for HSA!
    Do you have an advise on how much to put in HSA or max that out as well? Wondering, what would I do with so much money sitting for medical expenses!

  • @RobertDamanii
    @RobertDamanii Місяць тому +4

    I’d be retiring or working less in 8 years, and considering this financial recession, I’m deciding to begin taking up skilled trades. I’m curious to know best how people spilt their pay, how much of it goes into savings, spendings or investments, I earn about $140k per year but nothing to show for it yet.

    • @AmyGimsby
      @AmyGimsby Місяць тому +1

      You should contribute to your retirement diligently, or better still look into financial planning don’t come to UA-cam for advise, consult a financial firm about your situation

  • @sarahbarrett6704
    @sarahbarrett6704 28 днів тому

    What about a Roth 401 k work offers both? How much should I be putting into it? Sh🎉I put more in my Roth 401k or a Roth IRA? Or just max out my regular 401k?

  • @glasshalffull2930
    @glasshalffull2930 17 днів тому

    Target date funds ‘typically’ are way too conservative. The fund through my employer has you almost 30% in government securities/bonds 15 years out from retirement. Huge drag on building your nest egg and could easily put you $500K behind what the S&P 500 might have provided.

  • @CruisingwithLocstar
    @CruisingwithLocstar 28 днів тому

    Hsa should be before Roth. Not only the triple tax savings but at 65 you can use like a regular 401k no penalties. I love Roth but hsa has better tax advantages not to mention some employers will contribute as well.

  • @Hiiiii123-v3e
    @Hiiiii123-v3e Місяць тому

    Does paying off a 403b loan count for step 3 paying off debt before investing more?

  • @lukecoburn3070
    @lukecoburn3070 Місяць тому

    Where did you get your shirt from? (hoping it's not £8000 though lol)

  • @busa4250
    @busa4250 Місяць тому

    Can someone please answer why last week the Dow and Gold & Silver were at their highest prices at the same time? Thank you :-)

  • @mf3746
    @mf3746 10 годин тому

    That kiyosaki joke was very funny

  • @Brian-3000
    @Brian-3000 Місяць тому +1

    Weird I thought you’d talk about the mega backdoor Roth in plan conversion with your employer as the last step!

    • @bgoode652
      @bgoode652 Місяць тому

      That one confuses a lot of people for some reason and isn't available to everyone also. I'm guessing he just wanted to keep it simple.

  • @lailatov957
    @lailatov957 22 дні тому

    How much should be contributing in Roth IRA on low income?

  • @IrisP989
    @IrisP989 7 днів тому

    Can you explain why it’s best to be taxed at a 24-% tax bracket when I assume that my husband and I will pull out less than 6 figures a year for retirement and therefore should be taxed less?

  • @irisflower9030
    @irisflower9030 24 дні тому

    My goal is to die with more money than I retired with. Most will go to my 2 kids and a lot will be donated to charities. I max out my 401k (I split between pre-tax and Roth), and max out my family HSA, which is invested into an age-targeted fund with close to no fees (8% annualized return since 2020). I’ve also recently paid off my mortgage and opened an after tax brokerage account to stash that excess cash flow. I’m also saving for college into 529 plans. Now I just want to travel as much as my job would allow me.

  • @duneme
    @duneme 10 днів тому

    We have the first steps done but, instead of a Non-Qualified Account have Real Estate!
    I like the Diversity of getting out of the stock market and Love the monthly income of our Rentals too!

  • @annelynsanchez7246
    @annelynsanchez7246 3 дні тому

    This is why I am biased to rentals. The cashflow goes up with inflamation. Cost of living in 40 years will be WAY more.

  • @juliart9479
    @juliart9479 Місяць тому +1

    Question: what is the advantage to maxing out your 401(k) after the employer match has been maxed? Wouldn’t you earn more on the rest of your money with a regular brokerage account investing in an S&P 500 index since there are lower management fees? (If I’m mistaken, please, let me know!)

    • @arh1234
      @arh1234 Місяць тому +2

      Many 401ks have fairly reasonable fees. The advantage is tax-free growth, and the tax break on contribution (traditional) or withdrawal (Roth)

    • @jessymadsen2699
      @jessymadsen2699 Місяць тому +2

      Depends on your plan! My 401k is through Fidelity so it’s awesome and I have access to a Roth 401k as well so we can do both and have great tax savings!

  • @hanksung
    @hanksung 8 днів тому

    Okay... so, what if I wanna move to another country, and I'm NOT American?
    Like I wanna go to working holidays in mutiple different countries before I turn 31 to decide which country that I wanna move to, The Netherlands, or Canada, MAYBE Austria, and I'm sure that I'm pretty sure that I'll go to Australia to working holiday for 3 years to earn more money, so that I can go to a country where I wanna move to to study Pop music, which is a feild that I wanna be in, to be a singer/producer
    (Even though I haven't studied anything about music yet. But I'm REALLY PASSIONATE about music, ESPECIALLY early 2010's American Pop/EDM Pop/Electro Pop music. And I love some of the 2000's Pop Rock/Pop Punk/Emo singles too. And I know more of those things than most people who are NOT musicians.), to get a working visa after that. And The Netherlands is the country that I'm leaning towards the most NOW.
    So... what do I do before I'm sure which country that I wanna move to before I ACTUALLY more there? And when that happen, I'll probably be 35 to 40? And I JUST turn 22 3 weeks ago. (And... I don't have a job now, and I probably won't have money to invest LITERALLY before I start working holiday before I turn 25. So what do I do between when I'm 25 to 35 or 40?)
    Hopefully you'll see this question and answer it? Because I really need some guidance about this 🙏

  • @EcomCarl
    @EcomCarl Місяць тому +1

    It's important that you need to start early with diversified retirement accounts like a 401k and Roth IRA to maximize the power of compounding and ensure a financially secure future. 💰

  • @penguingobrrbrr353
    @penguingobrrbrr353 Місяць тому +6

    As European i dont see myself having 1.5-2M in retirement 😂. Its just not the same as in US. If US citizens move to EU with 1-2M in Europe it feels like 4-5M literally.

    • @LarisaC.
      @LarisaC. Місяць тому +1

      True. Many expenses are just much lower here, notably health insurance, food and also mobile phone plans. I’m always surprised to see the prices of that in the US. Also, and I don’t understand why, mortgage rates are much lower in EU than in US or Canada.

    • @tomaszp2027
      @tomaszp2027 Місяць тому

      The formula still stands. Just multiply your yearly expenses by 25 (or monthly by 300) and you'll end up with a number that you should be aiming for.
      You can do an estimate of your social security in most of the countries, but I'd divide it by 2 as we're not getting more people on the old continent any time soon.

    • @penguingobrrbrr353
      @penguingobrrbrr353 Місяць тому

      @@LarisaC. mortagages are low in EU because people do not want to be in debt and esentually life here is just more peaceful in way of helping EVERYONE EU is not 100% capitalist country like US. Most folks here just want to live their lives without worrying
      In US ur constantly in battle for profit and fight crazy prices and debt its just too much for EU people

    • @penguingobrrbrr353
      @penguingobrrbrr353 Місяць тому

      @@tomaszp2027 yes its the same but its not easy like in US. Because on average EU folks make from 600-5000euro a month. The lowest is the balkans and the highest can be Germany and France. But overall average salaries are like 1000-2000euro a month and it can work with that. But investments helps its just that its not so easy and a business. US folks are 330M. Eu is like 140M but most countries are 5-30M population so the market is not so good and people dont consume like US folks do spent. I did managed to have investments in EU its better imo for US folks with 1M to more because if you make 50-80k a year from ur investments and you work a job for like 20-30k euro you esentually top 0.1% in EU lol

    • @excitedaboutlearning1639
      @excitedaboutlearning1639 Місяць тому +1

      ​@@penguingobrrbrr353Mortgages are not necessarily low in Europe. There's a lot of variation between countries and within countries.
      In Finland, the standard length of a mortgage is 20-25 years. Luckily, it's that rather than 30 years.
      Right now, there are a lot of new housing being built. So, that helps reduce the cost of new houses and apartments, but the price is already very steep in big cities.

  • @andrewpatterson4043
    @andrewpatterson4043 Місяць тому

    Ramit, why the hate towards Kiyosaki? For many of us who are actually doing well, Rich Dad Poor Dad was quite impactful.

  • @Ali-et9oz
    @Ali-et9oz Місяць тому +1

    The 4% rule is pretty dumb when broken down. The idea should be to just take your annual amount and multiply it by the amount of years you plan to retire. Dividing any amount by .04 is the same as multiplying it by 25 therefore planning on 25 years of retirement money. Crazy

    • @arh1234
      @arh1234 Місяць тому

      The concept is that it will grow somewhat. 4% rule is designed to cover a 30 year retirement.

  • @gustavoroldan3491
    @gustavoroldan3491 Місяць тому

    What target date funds do you recommend or options for choosing please

    • @LarisaC.
      @LarisaC. Місяць тому

      He mentioned Vanguard.

    • @arh1234
      @arh1234 Місяць тому

      Vanguard, Fidelity, E-Trade, and Charles Schwab and generally well regarded and low cost.

    • @avedurham
      @avedurham Місяць тому

      Vanguard, Charles Schwab, and Fidelity aren't target date funds in and of themselves--think of them like online banks where you can hold special investment accounts. You will still need to choose a fund to purchase. If you decide, for example, to buy into a target date fund with Vanguard, you can google "Vanguard target date fund [YEAR]" and your option(s) will pop up. Then when you're inside your account, choose to trade using the funds you transferred into that account, and choose the correct ticker to purchase. I usually opt for S&P 500 index funds and I like Fidelity's ZERO Total Market Index Fund, so I enter the ticker for that, which is FZROX. You'll have to find the ticker for the target date fund you're interested in.
      If you wanted Vanguard's target date fund for 2060, for example, that ticker is VTTSX when I Google search for "Vanguard retirement date fund 2060."

  • @amyhudson1016
    @amyhudson1016 26 днів тому

    So I should invest rather than pay extra on my home mortgage?