Awesome video! Glad you mentioned the route of actually retiring early! All money sitting in a 401k and you at 30ish already counting the clock to retirement so you can finally get the fruits of your labor… is a looong wait. Factor in the energy you have while you’re young and what you can do with that money is very different from when you’re 60 or 70+. If you even live that long. But also, consider that people usually make their lifelong relationships while they are young (teens, 20s). So balance it well. Sacrificing possible connections by socializing too little in your 20s might mean a lonely rich life. Plan for the future, but don’t forget to live in the moment.
Solid video sir! Love how you brought up how flexible taxable brokerage accounts are. I have yet to touch mine this year. I want to max my Roth IRA out first and then I'll starting dumping some dollars into my taxable.
Most people don't realize this but making 10 in dividends a day will take forever but once you pass that 10 a day or 300 per month dividends after that it will increase by 10 times so i think in this video you've started with invest as much as possible until your making a minimum of 10 a day then you slow down and put the rest in a high yield savings account and and let the money come in without doing much
Robinhood seems to have adopted the model acorns uses on the investing, and with the 1% matching IRA (3% with the membership), would it be smarter to switch to robinhood?
Thanks for the Robin book recommendation, it's one I havent read yet. The rest I have and a couple others I have really enjoyed are Bogle's book and The Millionaire next door.
It sucks learning about investing as you go. Unfortunately I’m still learning. I doubt my investment strategy will change that much because I’ve learned so much over the last few years, but I still have blind spots I’m sure. I think that is why target date funds exist. They aren’t optimal for everyone but are better than blindly picking funds that have the word “growth” in them, which is what I used to do.
I'm struggling with this particular section of investing in my future. I spend money on the things that I need. That would be food, parts for the car and for my bills, I haven't gone out on a date with my lovely girl in a few months. I work 80 hours a week at shy of 22 an hour, that brings me about 31 to 3200 twice a month s. But my bills are quite high due to a divorce. The rest can be assumed. I rolled my 401K over into an investment broker. Honestly couldn't tell you what that is currently, but watching you talk is bringing new light to my attention. I work so much that I oftentimes go home and crave down time away from work. I'm 34, working in a warehouse, oftentimes feel exhausted, when I get out of work I feel a spike of energy, then just want to enjoy them few moments of me time, to recoup within myself. This has caused me to not want to leave the house, don't even care to go out to eat. Too exhausted. Currently I'm not even taking out insurance or 401k from my current job. 80 hours a week is exhausting
This is Soo true because I just started investing 4 years ago when I turned 30 and got the covid checks. I've grown a lot since then but am still a baby in terms of knowledge about investing and taxes. I have a baby now that was born earlier this year and extra time and money I have had been drastically depleted. I hope to take this knowledge and make so I can retire at 55 but it would be fantastic if my son can retire at 40 with 2 mill! That would make me 74 by that time lol.
Do you have a video or advice for a senior that is looking to invest for the first time? So smaller investment (under 10k) with a little more risk and faster return.
Great video... the only thing that I would suggest is starting out on your savings journey, even as you get your match and after you max your Roth IRA, when investing in your 401k, you really should look to see if your 401k has a Roth option. If your income is lower as you're starting out, if your initial contributions could be Roth to get the match, make them Roth contributions. And since you're starting out, after you max the match and after you max your Roth, I would go back and still max the Roth 401k out. There's PLENTY of time to switch to a brokerage account later if need be, but you REALLY REALLY want those early contributions to grow tax free as long as they possibly can so they can grow as much as possible. If your 401k program doesn't have a Roth option, it's debatable, and I definitely see why you might wanna go taxable brokerage instead of maxing your 401k out.
Yeah my wife has a Roth 401k! It’s a nice option. At first I was going to circle back to the 401k too but it’s pretty limiting so for my plan, taxable brokerage it is. (I maxed out my 401k for a couple years so I like them too)
Target date funds and certain mutual funds will have a large amount of stock or bond turnover thus generating taxable income (or losses) every year - ETFs and certain things like bond Funds which buy funds with fixed maturities and hold til maturity avoid this churn.
Any tips on how to consolidate 401K’s? I only have a Roth IRA and I’m not able to transfer over my 401K unless I convert to a traditional IRA. Is there anyway to get around this? Other option I was hoping for was to maybe add my old 401K balance to my current 401K
I’d talk to your HR person specifically and/or someone at the financial firm who hosts the 401k to make sure you know your options well. I rolled an old 401k into a Roth IRA once in the past so it’s doable but you’ll pay taxes on that money now so be ready for that. It doesn’t necessarily help you to roll the old one into the new one unless the new one offers lower fees or better investment options. Typically rolling it into an IRA opens up your options.
I'm new to investing and am dollar-cost averaging on a monthly basis into various growth, dividend and broad-based ETFs, but also some tech sector ETFs, too, such as SMH, AIQ, etc. I'm wondering if, at least while I'm building up my portfolio, I should invest more into the higher growth areas (I'm particularly high on SMH) before they go too high? Basically, my reasoning is SMH and QQQM, for example, are likely to outperform the S&P 500 and the various Dividend ETFS like SCHD, so I'm thinking to buy as much of the growth now and then can jump into the slower growing assets in a couple years. Thoughts?
thank you for all these videos, I'm trying to check as many of your videos as possible. In the mean time, do you recommend Smart Shift in the ROTH IRA account for fidelity? (we’ll regularly evaluate your investment strategy to make sure you’re in the appropriate one for your goal. And when we think a strategy other than the one you’re in is a better fit, we’ll automatically shift it for you.) and, what strategy do you recommend for ROTH IRA? 70% vs 85% growth, stocks, bonds and short term. Do you have a video were you talk about this ? Thank you so much
I think you’ve got to pick what you like and feel good about. Putting your money where someone else tells you to won’t help you sleep at night. Listening to your gut likely will
I’ve not gotten 9% every year. It’s more like 4% one year then 20% another. Bouncing around. But we’ve largely been in either total stock market index funds or target date 2050 funds since we started in 2009ish. From 2010 to today VTI has gotten a 12.3% return
Do you work for a small company? You would just get a salery reduction. My employer used to do 12% (automatic without any employee contribution) when they changed it to 6%, we all got a 6% salary increase.
You forget that all the money you've put into a taxable brokerage account was ALREADY taxed. :D That makes a big difference over a lifetime of investing!
Awesome video! Glad you mentioned the route of actually retiring early! All money sitting in a 401k and you at 30ish already counting the clock to retirement so you can finally get the fruits of your labor… is a looong wait. Factor in the energy you have while you’re young and what you can do with that money is very different from when you’re 60 or 70+. If you even live that long. But also, consider that people usually make their lifelong relationships while they are young (teens, 20s). So balance it well. Sacrificing possible connections by socializing too little in your 20s might mean a lonely rich life. Plan for the future, but don’t forget to live in the moment.
Solid video sir! Love how you brought up how flexible taxable brokerage accounts are. I have yet to touch mine this year. I want to max my Roth IRA out first and then I'll starting dumping some dollars into my taxable.
Most people don't realize this but making 10 in dividends a day will take forever but once you pass that 10 a day or 300 per month dividends after that it will increase by 10 times so i think in this video you've started with invest as much as possible until your making a minimum of 10 a day then you slow down and put the rest in a high yield savings account and and let the money come in without doing much
You have blown my mind, I never knew about the investment for HSA.
Very helpful! Thanks for taking the time to share your experience!
This mountain was great. Thanks
This is really well put together, and I'm usually very skeptical of finance youtubers. Great work!
Hey thanks!
Love your content!! What mic do you use
Robinhood seems to have adopted the model acorns uses on the investing, and with the 1% matching IRA (3% with the membership), would it be smarter to switch to robinhood?
And also considering that I don't know if robin hoods Roth IRA will adjust by age like Acorns does
great advice, we're similar in age and im way behind in the numbers by comparison but can agree with most of your recommendations
Thanks for the Robin book recommendation, it's one I havent read yet. The rest I have and a couple others I have really enjoyed are Bogle's book and The Millionaire next door.
It sucks learning about investing as you go. Unfortunately I’m still learning. I doubt my investment strategy will change that much because I’ve learned so much over the last few years, but I still have blind spots I’m sure. I think that is why target date funds exist. They aren’t optimal for everyone but are better than blindly picking funds that have the word “growth” in them, which is what I used to do.
I'm struggling with this particular section of investing in my future. I spend money on the things that I need. That would be food, parts for the car and for my bills, I haven't gone out on a date with my lovely girl in a few months. I work 80 hours a week at shy of 22 an hour, that brings me about 31 to 3200 twice a month s. But my bills are quite high due to a divorce. The rest can be assumed.
I rolled my 401K over into an investment broker. Honestly couldn't tell you what that is currently, but watching you talk is bringing new light to my attention. I work so much that I oftentimes go home and crave down time away from work. I'm 34, working in a warehouse, oftentimes feel exhausted, when I get out of work I feel a spike of energy, then just want to enjoy them few moments of me time, to recoup within myself. This has caused me to not want to leave the house, don't even care to go out to eat. Too exhausted. Currently I'm not even taking out insurance or 401k from my current job. 80 hours a week is exhausting
Another great video!! Thank you man, keep the videos coming!! Enjoy all the different brokerage breakdowns. It's very interesting
Thanks! Will do!
This is Soo true because I just started investing 4 years ago when I turned 30 and got the covid checks. I've grown a lot since then but am still a baby in terms of knowledge about investing and taxes. I have a baby now that was born earlier this year and extra time and money I have had been drastically depleted. I hope to take this knowledge and make so I can retire at 55 but it would be fantastic if my son can retire at 40 with 2 mill! That would make me 74 by that time lol.
Do you have a video or advice for a senior that is looking to invest for the first time? So smaller investment (under 10k) with a little more risk and faster return.
Great video... the only thing that I would suggest is starting out on your savings journey, even as you get your match and after you max your Roth IRA, when investing in your 401k, you really should look to see if your 401k has a Roth option. If your income is lower as you're starting out, if your initial contributions could be Roth to get the match, make them Roth contributions. And since you're starting out, after you max the match and after you max your Roth, I would go back and still max the Roth 401k out. There's PLENTY of time to switch to a brokerage account later if need be, but you REALLY REALLY want those early contributions to grow tax free as long as they possibly can so they can grow as much as possible. If your 401k program doesn't have a Roth option, it's debatable, and I definitely see why you might wanna go taxable brokerage instead of maxing your 401k out.
Yeah my wife has a Roth 401k! It’s a nice option. At first I was going to circle back to the 401k too but it’s pretty limiting so for my plan, taxable brokerage it is.
(I maxed out my 401k for a couple years so I like them too)
Target date funds and certain mutual funds will have a large amount of stock or bond turnover thus generating taxable income (or losses) every year - ETFs and certain things like bond Funds which buy funds with fixed maturities and hold til maturity avoid this churn.
Any tips on how to consolidate 401K’s? I only have a Roth IRA and I’m not able to transfer over my 401K unless I convert to a traditional IRA. Is there anyway to get around this? Other option I was hoping for was to maybe add my old 401K balance to my current 401K
I’d talk to your HR person specifically and/or someone at the financial firm who hosts the 401k to make sure you know your options well. I rolled an old 401k into a Roth IRA once in the past so it’s doable but you’ll pay taxes on that money now so be ready for that.
It doesn’t necessarily help you to roll the old one into the new one unless the new one offers lower fees or better investment options. Typically rolling it into an IRA opens up your options.
The safe to withdraw section.... do you just sell your stock little by little every month?
I'm new to investing and am dollar-cost averaging on a monthly basis into various growth, dividend and broad-based ETFs, but also some tech sector ETFs, too, such as SMH, AIQ, etc. I'm wondering if, at least while I'm building up my portfolio, I should invest more into the higher growth areas (I'm particularly high on SMH) before they go too high? Basically, my reasoning is SMH and QQQM, for example, are likely to outperform the S&P 500 and the various Dividend ETFS like SCHD, so I'm thinking to buy as much of the growth now and then can jump into the slower growing assets in a couple years. Thoughts?
thank you for all these videos, I'm trying to check as many of your videos as possible. In the mean time, do you recommend Smart Shift in the ROTH IRA account for fidelity? (we’ll regularly evaluate your investment strategy to make sure you’re in the appropriate one for your goal. And when we think a strategy other than the one you’re in is a better fit, we’ll automatically shift it for you.) and, what strategy do you recommend for ROTH IRA? 70% vs 85% growth, stocks, bonds and short term. Do you have a video were you talk about this ? Thank you so much
I think you’ve got to pick what you like and feel good about. Putting your money where someone else tells you to won’t help you sleep at night. Listening to your gut likely will
Great vid!
With the first two steps…
Is there a way to have your 6% company match 401k flow into the robinhood Roth IRA?
Nope! But some companies do offer a Roth 401k so that’s as close as you could get
I believe once you leave that company, you can roll the 401k over to a Roth IRA, I may be wrong though.
I just sent an email to my employer for my retirement account 🙌
It's easy to plug in 9% as the APY... but that does not represent REALITY. What are you investing in that gives you a reliable 9% annual return??
I’ve not gotten 9% every year. It’s more like 4% one year then 20% another. Bouncing around. But we’ve largely been in either total stock market index funds or target date 2050 funds since we started in 2009ish. From 2010 to today VTI has gotten a 12.3% return
Mountain 👏
I hate that my job doesn't match at all. There should be a law that all employers do a 5% or 6% match
southwest does up to 9% match
@davidb6722 WHAT….sign me up
@@davidb6722airlines??
Do you work for a small company?
You would just get a salery reduction.
My employer used to do 12% (automatic without any employee contribution) when they changed it to 6%, we all got a 6% salary increase.
@mandypdx nah southwest is one of the biggest us airlines
What’s with you and axes?😂
Rocky Mountain high
You forget that all the money you've put into a taxable brokerage account was ALREADY taxed. :D That makes a big difference over a lifetime of investing!
Burritos and race cars, done
Mountain 🫡
🙌🏔️
Acorns will be coming with a 10% ira match starting in July with $9 membership can't wait and 1% for $3 membership
10%!?!? I need to see this
Big cap lol
Mountain
Mountain😅
As a 34yr old I wish I would of did money things differently now. Now I live paycheck to paycheck
34 is still pretty young, you have time
Mountain ⛰️
Mountain ⛰