Roth IRA vs 401K - How to Retire Faster
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- Опубліковано 16 жов 2024
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It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time. I retired with about $650k in my 401k.
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
@@sommersalt88 I completely agree; I am 66 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, i didn't achieve all this on my own, i did it with the help of a Financial advisor. Just do your due diligence to identify a fiduciary one and the rest is history.
@@CynthiaByrd648 This is exactly how i wish to get my finances coordinated ahead or retirement. Can you recommend the financial advisor you used to get ahead?
Do your due diligence, and be on the lookout for one with strategies to help your portfolio maintain an unwavering and progressive growth. "Jill Marie Carroll" is responsible for my portfolio success, and I believe she has the qualifications & expertise to meet your goals.
@@CynthiaByrd648 This is useful information; I copied her full name and pasted it into my browser; her website popped up immediately and her qualifications are excellent; thanks for sharing.
This serves as an eye opener for a lot of people who have no retirement plan for themselves. Having worked for so long it is only normal to have financial freedom at retirement, splendid job there.
There seems to be some underlying conditions to each of the plans, and I think one needs to know the implications and earnings involved.
One would've almost thought 401k was the best but for the taxes involved. Still I think it's better as long as the amount you invest duplicates.
There are ways to simply retire early and earn better but all it takes is to pay attention to platforms that can grow your profit with proper hints. But where you can't have these procedures you are bound to make wrong investments.
So how would you know the safest to invest in with minimum flop but better earning?
I have always wanted to invest my earnings for more gains but it's been difficult to know how to go about it, I must say that with these comparisons, i need my own account.
The thought of retirement makes me cry. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings to fall back on.
@@farn-4u I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?
@@farn-4u Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
When you get close to retirement you change to less risky investment options. Lower risk-lower reward but you won’t lose money
Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. Retirement choices determine a lot of things. Currently working overseas but will return to my home country in the near future. I'm a landlord. I invested in property at the age of 22. Value has soared and renting out. Will live on the rental income I receive and live with my aging parents for the time being. At 60 I can withdraw from my superannuation (401(k)) worth about $1.7m.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 5 million dollars
Please can you leave the info of your investment advisor here? I’m in dire need for one.
Looked up her name and her website popped up immediately, interesting stuff so far, about to schedule a session with her.
That’s correct if it’s a traditional 401k. If your employer offers a Roth 401k then take advantage of both.
Wow,you have a good paying job.
Long term capital gains tax is 10% vs income tax is 20% rather go pre tax and pay 10% later
The 401k is good, because retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million. So it really does.
My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. Haha.
Having an investment advisor is the best way to go about the market right now, especially for near retirees, I've been in touch with an advisor for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $520K during this dip, that made it clear there's more to the market that we average joes don't know
@@esther.74 wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
The thing is that I really don't like making such recommendations. But there are many freelance investment advisors you could check out. I have been working with “Elise Marie Terry” for about four years now, and she's made decent returns. If she meets your discretion, then you could go ahead.
@@esther.74 Thank you for this tip. it was easy to find your coach. Did my due diligence on her before engaging her services. She seems proficient considering her résumé.
I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?
Given the current market situation and the precarious state of the economy, I would recommend refraining from investing in stocks for a while or, alternatively, seeking guidance from a financial advisor. However, keeping a portion of your wealth in gold remains a wise choice.
@@tatianastarcic I find your situation fascinating.
Would you be willing to suggest a trusted advisor you've worked with?
@@maiadazz I would find a local advisor in your area. It’s always nice to see them in person
There are actually a lot of ways to make high yields in a crisis, but such trades are best done under the supervision of Financial advisor.
I've just retired recently and I must say I found this video informative and great to review. These psychological concepts are much more useful for individuals attempting to avoid mistakes than I realized when I was first introduced to them. This is probably why Warren Buffett talks so much about temperament being crucial to his investing success.
Developing a solid financial portfolio is more difficult, therefore I suggest you seek expert assistance. The ideas you receive after that can be tailored to your long-term goals and financial desires.
Personally, I would say have a mentor. Not sure where you will get an experience one, but if your knowledge of the market is limited, it seems like a good bet.
The issue is this! Most often, those with little to no experience in the stock market attempt to buy on their own. It previously occurred to me, but I learned from it and contacted "Colleen Janie Towe” a finance expert with offices in the US, and everything changed. I earned $370k so far in the first quarter of this year.
@@joshbarney114Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate a way to reach Colleen.
@@harwellron1289You can quickly do a web check where you can connect with her, and do your research with her full names mentioned..
When choosing between these types of funds, it's important to consider your invest-ment goals, and the fees associated with each type of fund. its important to carefully consider the potential risks and drawbacks associated with each type of investment fund before making decisions. I’ve seen of people losing over $650k to the volatile market
For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.
When I first started hunting for a steady passive income, I had my share of ups and downs, so I hired an experienced advisor for help, and following her advice, I poured $100k in value stocks and digital assets, and I am up $800k so far.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
My consultant is “Sharon Louise Count”, She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision. I basically follow her trade pattern and haven’t regretted doing so
Her website immediately showed once I copied and pasted her complete name into my browser; her credentials are outstanding; thanks for sharing.
We experienced the peak of our era, and now it is gone. Recession is tanking everything including 401K. My retirement equities portfolio of $750K is in the reds. I keep losing because of inflation. This world will fall to the corrupt rulers in the same way that Rome did. I'm sorry if you're thinking about retiring and you're worried that your pension won't be enough to meet the rising cost of living. Horrible foreign policies everywhere, bad regulatory policy, bad fiscal policy, and bad energy policy.
For retirees and those close to retirement, I believe it's particularly challenging. All those years of labor only to lose it all to a problem you weren't responsible for, my regrets to everyone retiring during this time.
I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
After the pandemic, things became extremely difficult, which is precisely when I sought a consultant's counsel. I've been investing on my own for nearly 3 years and have built up a stagnant reserve of $280K to $570K in just over 24 months.
@@hermanramos7092 I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?
@@hermanramos7092 Thanks for sharing this. I did my own little research, and your advisor looks advanced and experienced. I wrote her and dialed her twice but she didn't pick up so I scheduled a phone call.
My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in the US.
As with any big financial decision, it’s important to keep your guard up for economic risks. However, smart planning, time management and seeking advice from a financial adviser can help keep you and your money safe.
@@BillAdamson-bp9ff I agree with you. I ventured into stock with less than $100K, and now I'm about 17K short of half a million dollars. Credits to Jennifer Puckett Hunter. She's verifiable.
@@RickMckee-nq4ni Fantastic! can u share more details?
As I near retirement, securing the stability of my 401k after the tumultuous year of 2022 is of utmost importance. I've heard stories of investors achieving up to $270k in ROI during this ongoing market downturn. Any guidance on how to improve my ROI before retirement would be greatly appreciated.
For near retirees, having an investment advisor is the way to go. I've been with one because I lack the expertise and emotional fortitude for market ups and downs. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks realise.
Could you kindly share the contact information for your financial advisor here? I'm in urgent need of one.
Hello! Stacey Lee Decker is my advis0r. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online.
I’m so happy I made productive decisions about my finances that changed my life forever. I’m a single mother living in Melbourne Australia, bought my second house in September and hoping to retire next year at 50 if things keep going smoothly for me.
@@alexanderfinlay9639 Sorry for late reply sweetie, I used the FIRE movement to put my finances in order. Then lnvested in stocks, though the assistance of an lnvestment Pro who helped me make it this big....
@@alexanderfinlay9639 @Donna Di Lanni> my guide?.......she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the guru online, on the off chance that you're interested. I made no regrets about substantially adhering to her exchange strategy.
@Jake Farmers she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the
50?! You look 30.
@jakefarmers2900 fake
That's pretty good info. I didn't know about the hybrid Roth 401K. I learned something new.
The 401k is good, because retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million. So it really does. It's also a very quick way for people who are close to retirement but with little money accrued. I wish more people knew about things like this.
@Margaret I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
@@freedomisEexpensive-08 Having a counselor is essential for portfolio diversification. My advisor is NICOLE DESIREE SIMON who is easily searchable and has extensive knowledge of the financial markets.
Almost 45. Graduated college and then ended up taking care of my mother till last year when she passed (rural area so my degree was useless). Working as a line chef this entire time. Basically earning 30k a year poor. Now that she has passed and I am able to have extra money on hand I am looking into figuring out the retirement options. 401k are pretty much rare in my area, and especially in my occupation. Going to try to max out a Roth IRA for the next decade and a half and hope for growth. Being poor sucks.
3 books to read:
1-Total Money Makeover by Dave Ramsey
2- The Richest Man In Babylon by George C. Clason ( foreword by Dave Ramsey)
3- The Intelligent Investor by Benjamin Graham
You will soon after be on your way to being better off
I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k. Somehow this video has helped shed light on some things, but I'm confused about the current market volatility, I'm a newbie and I'm open to ideas.
Investing in stocks can be a wise decision, especially if you have a reliable trading system that can lead you to fruitful days of success.
Awesome! today I learned about Roth 401k. I hope when you talk about the Roth IRA back door, some how you mention SEP IRA's too. Have a good day Brian!
Your no nonsense delivery and content has skyrocketed you to one of my favorite channels now. You are doing fantastic work, sir!
I’ve watched many videos trying to understand this, and this is BY FAR the best one, thank you !!
Thank you so much for describing the difference in Roth and regular 401k. I needed this ❤
Hello i don’t respond to all my subscribers comments accordingly let’s takeout the opportunity and talk on this topic now.
I like that you added diagrams but also still made the video audio listener friendly still
in my 3rd year of business school to become a CPA. you are a true inspiration
Clear and concise. Learned more in 10 minutes then school ever taught me in regards to retirement . THANK YOU AGAIN BRIAN, and happy holidays!
How much tax on 401k?
So glad you covered the matching of the employer at the end. Absolutely take advantage of that. I'm contributing to both. I'm doing the matching my company does to my 401k and then contribute to a Roth Ira via direct deposit every pay check.
I have both 401k and Roth IRA. I will be opening a Spousal Roth IRA for my wife at the beginning of 2023. Thanks for the info.
We have a 401k and a Roth through my husband’s employer. We also decided to switch to an HSA in 2023. I will be more diligent in tax deductions in general this next year and definitely live smarter in the tax sense because I’m realizing we aren’t getting any younger and retiring is looking bleak for many people. I dont want to be one of those people 😢
HSA 👍
@@edenterra870 yes, never really looking into it til this year. I know we are late to the game but better late than never!
There is more than one type of a Roth: an employer sponsored version (Roth 401k) *and* an individual Roth IRA (that you would open yourself at a brokerage like Vanguard).
If you and your husband are able, both of you can open an individual Roth, separate from his employer Roth 401k.
We have a Roth 401K, 401K , HSA and pension. We also contribute to our kids 529 plans.
If you want to do a balance approach, always contribute to a 401(k) at least to the match limit. Also, try to contribute to a Roth all (or as much as possible) at the beginning of the year to have as much time as possible to grow.
I agree
Not quite the best approach if the market is on the way down. For most people, who aren't expert market analysts, the safest bet is to spread out Roth contributions over the entire year.
Dollar cost averaging is better
Hands down the best channel on financial advice! Have subed and shared with friends and family because of how practical and helpful you are
probably one of the best channels explainnig things ppl actually need to know in terms they understand without BS.. thank you!
In 1998 I changed my new contributions to the new Roth IRA. Now that I am retired, and over 72, I am so happy with my decision. My IRA is smallish, making the RMD also smallish. When I could I did do some Roth conversions too. Uncle Sam is not a partner in my Roth.
Basically, I think it’s recommended that you receive your companies full match, try and max out Roth IRA and based on your calcs for maxing out the Roth, put that excess back in your companies 401k.
Very good basic breakdown. Company match on Roth 401k also considered pre-tax contribution. Something to consider
My company’s match on the Roth 401k didnt go into the Roth side but the non-Roth side.
Good one! I used to do 401k and Roth IRA but ever since my company offered the Roth 401k 2 years ago, I have been maxing out both ROTH 401k and Roth IRA. My goal is to have 50/50 pre/post tax when I retire. Just waiting for your future videos on when to invest additional savings for retirement when the market is bottoming out. Its a rush to the finish line for me within the next few years. Good luck everyone.
I like the 50/50 idea (or a mix in general) which is why I don't mind leaving my company's match in the pre-tax bucket while I make Roth contributions in my 401k... did you notice any major differences (paycheck, yearly taxes, etc) when you switched from Traditional to Roth contributions?
@Tommy Abernethy Yes depending on the portion of your salary contribution. For example, you will notice a bigger paycheck difference between 6% of 50,000 vs 6% of 100,000. Keep in mind that this may reduce or disqualify you from your ROTH IRA contribution depending on how much you make as traditional 401k method reduces overall MAGI, and ROTH 401k does not.
I got a second Roth when I was fired from my office job and went full time with my side gig. If you are able to get your own side business up and running that can mean an additional 20-26K/year into a second Roth IRA. Loaded up my Solo401K Roth with TSLA and PLTR as they are on sale right now. Always watch Brian and consult a local pro for advice kids, Good Luck and happy investing in 2023!
Bro Tsla is never going back to where it was
Contribution limit for solo Roth 401k is $66,000 if you include the employer contribution, and since you are self employed it’s basically the same as your own contribution.
@@bradyjames6666 It'll go beyond Bro.
@@bradyjames6666 Okay clown
I have both!! Job 401k, with a match! Roth IRA with Fidelity holding dividend stocks, and ETFs!!!
Do NOT underestimate the impact that a company match has on a 401k... This adds up BIG TIME, as that additional money will be compounding from the get-go! Great video Brian, thanks & keep it up. Happy Holidays to you & your family!
Rip ..my company only matches up to 5 percent
Its interesting to hear some people not value a company match, an example of not understanding the big picture.
@@destinationskyline07 better than nothing. Sure some companies match up to 10-12% but they're rare. I think most match 5-8%
not if you don't plan on staying for 3 years at a company with a 3 year cliff
Or true, it depends on the company. My prior company required 5 years to be vested for the company match. My current company lets you on day one be vested for the match.
Thank you for your videos, this is my new favorite finance channel
This should be rudimentary advice our parents should have given us. Mine never did but I’ll definitely be teaching my kids.
We tried! They didn’t all listen! 😆🤦♂️🙄
I totally agree with you.
It's not possible for your parents to teach you this because in your parent's day there was no 401K they had something much better. They had a company paid for pension.
They can't teach you new rules that didn't even exist back then.
By time yours kids are adults the rules may change again.
@@marshalepage5330 except many pensions and companies went belly up and many people have 0. Only good pension is a government backed pension.
This is great advice. If I can teach my kids one thing it will be to max out a Roth IRA every year. I wish I would have.
You made a video about this a couple years ago. Don't remember exactly when but I went with a Roth 401k and Roth IRA on the side. Don't mind paying for taxes upfront more worth it for me.
I am doing the same thing as of 2 years ago. Roth 401k maxed and separate Roth IRAs maxed. Since wife and I are now in the "catch-up" age bracket, that makes for $45k we can get into Roth each year. Also have a pot of traditional IRA dollars, so it will be nice to have both pots available to adjust tax brackets in retirement.
Being able to roll the roth 401k into a roth and eventually buy real stocks is key
401k plans are also protected from lawsuits and bankruptcy under the Employee Retirement Income Security Act. ERISA laws establish the rules and protections for retirement accounts. Under ERISA, 100 percent of your 401k plan is exempt from creditor collections.
If you change companies, then strongly consider rolling over your 401k into a traditional IRA instead of the new company’s 401k. Like Brian said, you get much more investment freedom in an IRA. It’s basically a tax free brokerage account if you like to create your own portfolio, make trades, options, and you can grab any ETF you want like SPX or QQQ or XLE. And you can contribute $6000 per year.
Great info!
It's too late for me, but I'm sending this to my son. Thanks again.
Great vid. I’m an estate planning attorney (also in Chicago!), and there is another massive benefit to a Roth inre succession/gifting at death. Inherited Roth beneficiaries won’t have income taxes to pay unlike an inherited 401k. Can’t understate how much simpler that makes estate administrations let alone planning
Its obvious why because the Roth has already been taxed while the non-roth 401K hasn't been taxed yet. The beneficiaries need to pay tax on any inherited non-roth IRA accounts also. The person owning the Roth didn't have RMDs, but the beneficiaries are required to withdraw from the account. The bigger advantage is not in the Roth or the 401K system. If the person who died have a portfolio of stocks, those stocks can be transferred to the beneficiaries and the cost basis can be reset to the current value. That is a HUGE advantage that even the Roth or 401K system doesn't allow. All the capital gains which would have been taxed will not be taxed due to the cost basis reset. However, there is still a limit due to inheritance laws. Fun stuff.
My wife and I both contribute to our 401s and also have a back door Roth IRA. Great video!
I think I love this man. This man drop jewels everytime. Every single time
Excellent information. It's very kind of you to share this for free. Like you said most CPAs will charge you a consultation fee for this golden information.
The limits shouldn’t matter in this decision since you can max out you Roth then contribute to a 401K to invents to total same amount regardless of which you choose.
I'd say contribute up to your match % on 401k then max out your Roth and if you want to contribute anymore do so into your 401k. In that sense you 1) lower your taxable income / put money into the 401k / reap the most benefits up to the match % and 2) then reap the benfits of tax-free into roth and 3) then going into 401k after is just for lower taxable income yet again.
Can't do that if you make to much money to contribute to a Roth IRA.
@josefarias111 Roth IRA is based on Modified adjustment growth income so even with the any tax deductions to get under the 153k threshold it wouldn’t help you in that instance but yes it’s still beneficial to get the tax reduction in general. I do agree that contributing up to your employer match is the way to go first if they offer it. Overall though I think the Roth 401k would be the best of both worlds if your company offers it I guess the only downside for that would be your investment options would be limited like the regular 401k.
I put 15% in my roth 401k and my company does a 5% match.
I have a rollover roth IRA and a rollover standard IRA when I rolled over 401k and roth 401k from a previous employer.
If I ever leave THIS job I can roll over my new funds into those too being as they are already set up.
I also have an individual investment account through Charles schwabb. Across all those at 37 I've got about 68k. I have 10k emergency fund.
Not terrible for my age, but I've also only got 65k left on my 15 year mortgage. I can up my game a bit as my wages increase and my home gets paid off and I'm 100% debt free.
I wish everyone the best of luck with their retirement goals.
i always get scared w these videos bc i’m intimidated by all the new info, but i actually learned so much!! thank u for making this so accessible 😊
Didn't see it mentioned but look out for vesting because if you don't plan to be with your employer after the vesting period, you won't get the match. Also, check when you get the match. My last employer gave the match for the previous year when the new year started so that meant if you left in say November, no match.
agree... very important. given the up and coming market conditions you can pretty much expect reduced benefits with for profit companies. many will keep stringing you along just to cut you out at the last minute.
My previous employer had a 6 year vesting period, earning a fraction each year. Now my new employer offers 0% vest until year 3 is completed - for them it looks like they're offering me a couple percent match but in reality I'll almost certainly be gone before then since they're a temp service.
Omg I am so grateful for this video I've been wanting some clarifying regarding the differences and benefits of these two
Happy Wednesday Brian 😊 wishing you & yours a blessed holiday season ❤️🎄⛄️
THank you Freebird, it's always so wonderful to see you!
I'm so glad and grateful I found your channel and subscribed. Thank you for this video.
Another very simple and easy to understand educational video that every single person can benefit from. This free content is so valuable. Thanks again, Brian.
Mr. Kim you're the best in giving advice. Thanks for spreading wealthy advice.
I have challenged myself to put away 50% of my monthly income into dividend stocks which is quite easy since I live frugal without debt. I work as an account executive, and make over $20000. $10000 goes into dividends, and the other $10000 covers my my food plus living expenses. I am seeing improvements in my portfolio, dividends look certain, but I have to attribute this to only to guidance of a licensed fund manager who allocates funds to a plethora of assets. I have to stay disciplined, and remember that I’m in it for the long term. Good luck to everyone and thanks for the great video.
I have seen a lot of investing channels but still can’t wrap my head around it. I need an impartial investment advisor. I know they are there I don’t just know a legit sourced. How can I reach the broker you were assigned?
@@Laurendon1With the help of a pro financial advisor, Herman W Jonas, I’ve gotten into stocks and fx, splitting my funds in different assets that have brought me huge roi. I just reinvest and grow my portfolio. Here,
Hermanw jonas (a g mal
comm
@@Ferocious923I don’t make that much, but I sure do make enough. However, it will not be a bad idea to hear from a professional. I hope he replies my mail.
@Maisy KirstyI have made over $47,000 in profits, more so because I am reinvesting every two weeks. His strategies cuts across major financial markets which cuts across major markets which I found to generate more profit.
This was extremely helpful. Thanks for breaking this down.
Hello i don’t respond to all my subscribers comments accordingly let’s takeout the opportunity and talk on this topic now.
Interested in learning more about the backdoor Roth IRA. Love the Roth 401k account, wish my employer offered that.
Thank you for this comparison. I’ve been following you for a few years now daily!
Definitely a no brainer in taking the company match. My nest grew to almost 6 figures within 6-7 years.
How'd it doing.know ?
@@cultleader3572 for the year, I'm still up +4%. I was up above 15%. Sold a few stuff on the highs like AAPL at $170 and a few others to build a cash position so I can load up on other divies that I'm buying. I think maybe Kevin can talk about how to DCA into stocks and build a dividends portfolio.
I am assuming you make really good money then, cause anyone under 100k is not building even half of that in that time frame on standard 3-5% company matches.
You are so amazing. Your explanations are easy to digest and make financials enjoyable to watch. You add no fluff and get straight to the point. You are changing lives as we speak
Hello i don’t respond to all my subscribers comments accordingly let’s takeout the opportunity and talk on this topic now.
great video 👍🏼 i work for the post office now, and we have TSP, Thrift Savings Plan for federal employees just like a 401k and a roth as well. just been doing 5% for 401k currently
Several years ago, I had to withdraw from my 401K at a former employer. I feel like I'm STILL paying for it, even though I haven't worked at that company in over 17 years.
Thank you for this information.
Damn how much did you withdraw?
ty for this. Not gonna lie, been working for 17 years and I never bothered to learn all the differences until now.
Great Video Brian!
I started in my mid twenties and maxed out 12 years in both, now I just max out Roth.
I do want my last check to bounce.
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Thanks my job offers matching 401K I’m gonna sign up next month!
Why wait?
Excellent video, advice n education. As always, thank you. I put my money in Roth 401k. And Roth IRA
Brian, thank you for a year full of calm advice and financial interpretation! I hope you have terrific holidays and a bountiful 2023!!
Love the way you explain things simple and informative
Can you do a video on a Roth IRA Conversion from a 401K? I am curious about the tax implications. I have done this, this year, because my 401K has tanked in the past couple years. I figured I will only have to pay taxes on the value at the time of conversion to a ROTH IRA. So I will have to include that amount in this years AGI. I also, did not know there was a ROTH 401K ! Thanks for that insight.
Since i watched your first videos… I’m with you…
One of my biggest regrets was not opening up a Roth IRA at a younger age.
Very clear and concise 👍🏻
Another extremely important subject is how to withdraw in retirement; especially regarding annuity options.
I would go the balanced approach as you mentioned. In the early years of one's career, where income is lower than later in life, I would go all-in in the Roth. As you start to make more money in later years, I would then transition to the 401k for the tax deductions and matchings.
Thank you so much for this information.
Last year I was able to max out my Roth IRA while also contributing 20% to my 401k (17% from me and 3% from my company). Gonna try to max out the Roth again this year!
I think the better comparison would be ira vs 401k and traditional vs Roth retirement account options
Instructive. Thank you !
Please make more videos like this. Thanks for the education!!!
Thanks Brian! I will share this with people I know too.
Retirement for some people becomes their bondage in poverty because they failed to invest with the little they have on their active years of working, this is an error we need to start working on now, I’ll advise that while you still can work and earn also take some money aside and invest in your future after retirement so this classification won’t have to be yours
The thought of retirement has given me the opportunity to sort out another source of earning
I started paying more attention to stock and learning more about online trades
Trading became interesting when I met Shanita online and she gradually exposed me to the whole trade market and how to earn massively from it
I was introduced to forex with the guidance of Mrs Creswell and there isn’t a single trade I have loosed
I know I am blessed because if not I wouldn't have met someone who is as spectacular as expert Mrs Shanita
Excellent information; solving a problem that just occurred...
Perfect video Brian! Thank you!
Great info, very nicely explained. Thank you
Hello i don’t respond to all my subscribers comments accordingly let’s takeout the opportunity and talk on this topic now_
Glad I subscribe to your channel and get the notifications on you new uploads, again home run on this one.. Thanks for the update. One question with the Roth IRA are your earning taxable once you draw on your account after the retirement age?
Roth 401Ks and Roth IRAs are tax free when you draw down during retirement.
@@DeuceDeadly74 Does that include your profits as well?
@@ronchildres2451 yes. The appreciation (profit) can be taken down tax free at retirement.
@@DeuceDeadly74 appreciate your assistance
Legit channel is so legit!
In all the tike I've watched and learned from this channel, I don't think I've ever seen graphics!
Hello Brian, thanks for this video. I am a frequent watcher of your videos and really find them helpful. I just want to understand one thing, as you mentioned that Roth 401k is very similar to Roth IRA so does that mean we don’t get penalized if we withdraw just the contribution from a Roth 401k account?
If I am correct, you still get penalized for it but you can confirm this with your plan administrator. To me both 401k/ROTH 401k have the same rules except one is pretax and another after tax. Also there is a difference between post tax 401k and ROTH 401k so make sure it has the word "ROTH". You will owe taxes on your earnings from your post tax 401k contributions but not your ROTH 401k.
Interesting. I was under the impression that you can take out contributions tax free before 59 1/2 (like a normal Roth IRA). But I just looked it up and any withdrawals are prorated between contributions and earnings. Thus, if you put in 90,000 and made 10,000 interest...a withdrawal of 10,000 would be 9,000 contributions and 1,000 earnings...thus you would have to pay penalty on the 1,000. Kind of disappointed they can't allow you to withdraw just contributions like the IRA does. This may affect some of my planning. Glad I looked it up!
best content on youtube, right here
Great info as usual thank you
I contribute both. I max to get the 8% match from my company and then contribute to my Roth IRA for the max contribution for my age. By the way, my company 401k defaults to traditional but I converted it to a Roth. It is with Fidelity.
I love your videos bro!!!!!!🔥🔥🔥🔥🔥🔥🔥
Thank you for your time and service may you and your family have a Blessed Holiday.
I like to think of the employer match as the raise I never had to ask for. This is really great vid!
I want to personally thank you for this information!
Thanks for the info!. HSA is also another great tax benefit . I have been maxing out traditional 401k and Roth IRA as well as HSA for 8 years now. I wish I could have done this eariler. I am now 42. Hopefully I will be able to retire early.
Same exact thing for me plus a brokerage account and I Bonds this year.
You still can’t take penalty free money from 401k and IRA until 59.5. And 65 for HSA.
@@VashtheStampede007 yes, thats why you need to also build up a regular brokerage account to bridge the gap.
@@VashtheStampede007 72(t) plan allows early access to fundd