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A Financial Planner told me Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. How can take advantage of compound interest and potentially grow your retirement savings overtime?

So committed with XAI20H and a bit of XRP, too much potential

If you want to be successful, you must take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life

I worked in a retirement plan call center after college and the most common call was from people wanting to take a loan or withdraw from their 401k! So I dare say that if the average person only invests in a 401k despite the fees and limited investment options, they are doing better than most people who keep trying to take the money out of it.

I have had my 401K 38 years. Best financial vehicle ever. .002% fee from Fidelity.

Don't leave matching on the table.

If you work in New York, California, or a high tax state the Traditional is worth considering. You can leave your state when you retire (or at least change your permanent address).

Do a Roth conversion later in life when your earnings are less. Using a Roth in your higher earning years means you paid higher taxes up front. Having both is a savvy investing option. Everyone needs to give Jespreet a thumbs up to push the signal. 😉

Roth or traditional doesn't really matter, as long as you max out your contribution and invest aggressively, you will end up with substantial balance when retire. At the end of the day, all we are looking for is a comfortable retirement after paying tax.

It’s amazing how many people have these retirement accounts and have NO IDEA what they are or how they work. The most basic plans. It’s a shame really!

The current Roth 401K provider at my place of employment is quite limited on investment options, which is why I only contribute up to what the company matches. I have an independent ROTH IRA outside of work which affords many more investment options that I max out every year.

Also, in Roth 401k, if the balance goes down, you don't get your taxes back. Something to think about with conversions.

Most people fail to mention that when you retire means stops working, you will be lower tax bracket than current even if Tax rate increases- deduction increases too. Also most states has very high amount of deductions for retirement income as well. So 401k is better for most people.. Also the tax you save in 401k earlier in life , use that money for other investments such as rent home etc will substantially generate more money..

*Amazing content, You are still the best! It's been a year since I found ways to improve my finances and by working with a recognized professional, I was able to achieve financial independence, I have to say this; "As long as you have determination and work hard, you can achieve anything you set your mind to.❤"*

Great advice. One thing a person needs to check is if the company is actually putting funds in the 401k. Had a company go bankrupt on my 401k. Found out they hadn’t put the money from my check to the investment firm for months. So the statements were actually a credit to the company and the money wasn’t there.

On top of the Roth 401k, I think it’s important to also contribute to a taxable brokerage to focus on your early retirement fund and not have to wait until you’re in the 60’s

My 401k options suck. The fees are insane. I had to create a self directed IRA connected to my 401k account to get some low fee ETFs.

I'll say this a million times... If your employer does not match your 401k contributions, then there is no point! You're better off opening your own investment account.

Most people don’t care about the expense ratio because the fees are already factored in. They see what they see and a gain is a gain and they’re happy with it, not realizing that they could’ve gotten more.

My company lets u control up to 90% of your 401k if u choose to u can have a seperate brokerage acct and buy your own stocks.but like he said this is an option in my 401k plan.

I have both the Roth and Pre-taxed 401(k). Thanks for the video.

This is so important to be educated about and fully understand. I went the Roth route.

I think the biggest thing to consider is that this money can potentially run out. No one knows how long they will live. The best investment is to pay all of your debts off, especially your mortgage BEFORE you retire.

I have a Roth 401k and the employer match goes into traditional and I do roth conversions on some of it each year.

Thanks Jaspreet. Self education is KING🎉🎉🎉🎉

this guy is right unless your money is in a roth you pay taxes, state and federal

Thanks for the great content at 4:30AM, sir.

When I was younger and finally came to realize that everything thing in my 401k would be taxed at the full rate ( not capital gains rate), and that taxes only go up (never down), I started putting most in my Roth and regular brokerage account. I am very happy to have a small 401k. Also I had no company match.

Great video. I always try to avoid fees, whenever I can and this is very useful 😊

Theres a difference between working at Walmart as a senior greeter cause you want to or cause you have too, save early and now and you won't have too. P.s. stop with the hardship withdraws and loan's, leave your retirement account alone, its not your checking or savings account, stop it.

Great video Jaspreet! Very informative, and also thank you....All of your content has motivated me to be wise with my money!

It’s not just the expense ratio, which is the cost of each mutual fund / ETF in your 401k, there is also a financial advisory fee, whether you ever see an advisor or not. These two need to be added together to get the true cost in fees you are paying.

This is why I took my money and paid off my mortgage twice. No debt is better than needed money to pay debt.

My philosophy has always been to contribute to your 401k as much as it takes to get the full benefit of your company match if you’re employer does that, Then maximize your Roth IRA, then if you have any money left over do some Roth 401(k) after tax contributions as much as you can afford. When you leave your job, roll over your Roth 401k into your Roth IRA. Leave your regular 401(k) money where it is or move it to the next company and rinse and repeat. Nothing wrong with doing additional 401(k) contributions but if you don’t have these things done with your money first, then you are missing out on some great tax advantages for the future. Also, if your company allows for annual bonus money to be contributed to your 401(k), then there is likely to be the corporate matching policy applying to that as well… free money baby.

Great video. The 12(b)1 fee is the reason I’ve switched jobs on an average of every 30 months. I roll the 401(k) to an IRA. The only downside is getting pestered by financial advisors who work for the brokerage house; it’s a small price to pay.

If you’re a real hustler, there’s no such thing as a 401k

I only use my 401k because of my employer matching. I don't believe it is the best retirement vehicle. But free money is free money. I look at my 401k like social security. And my Roth and other investments as my real retirement money. Also planning on living in a lower cost of living area is going to help me retire early.

I believe that every 401K has to have at least one low-cost fund in it, which will typically be an index fund. My company has an index fund with a an expense ratio of 0.01%, which is really good, with another random fund I picked at 0.44%, or 44x as much.

401k having limited investment options is a good thing because the majority of people aren’t investing savvy and could potentially lose all their money trying to beat the market….

Roth is the BEST! Because you don’t know the tax rates will be 20-40 years from now, you are assuming everything will stay the same for 20-40 years, and with the record deficits happening as we speak, the Government will need to tap those income streams in the future.

Do your employer match for the 401k and maximize your roth. Keep them in an index fund like vanguard. If you do that, your doing alright. The rest of your money is living expenses/ play money provided you are on track to hit savings goals.

this might be true if you still working at higher tax bracket but when you're retired, you dont have job to be tax that high so I still think 401k is the best vehicle for your investment with its matching. I would say the suck thing about 401k is that someone else manage and take some fee. I rather rollover once retired and manage this my own.

Absolutely great basic explanation for understanding 401(K)s!

I base my future retirement on a three legged stool: 401k/IRA, Social security and personal investments. The shortness or length of stool legs will combine for the hole.

I manage my own..in a converted IRA…NO FEES doing that.

Thankfully, my employer plan offers a Roth option, which they match with just like a normal 401. So I have been putting my money into that for most of my career.

It all depends on your plan administrator honestly. If you just want to set and forget a certain percentage (usually at least the company match), and it has index funds, then its a pretty good idea.

Roth conversion ladder could be a part of one's retirement strategy too. It's not dire - just do your research.

You pay taxes and if you pull it before you 59 you pay a penalty

Your point No.3 is wrong. 401k investments are not limited to a few funds which the provider gives. You shall open a brokerage account and link it up with your 401k account and invest in any individual stock you want.

My employer offers traditional 401k and Roth 401k with a 5% match.

Regarding finances and investments, I know very little. I am good with money at spending it judiciously and saving. I woulike to say that I hope you are a beautiful soul inwardly as you are a beautiful man outwardly Many blessings to you and yours

I have a Roth 401k, but my companies match is traditional.

As defined pension plans becoming obsolete, Congress needs to fix 401k investment limitations issues.. the investment vehicles are so limited its really suppressing your growth- ETFs is not a bad place to start - they're the closest thing to a mutual fund while giving you better upside

ROTH IS KING. TAX FREE

There's a statistic which stats, the best performing accounts where those about which people forgot about, it that sense 401k is the best combine that employer match, no other individual account or ira can beat that.

So wise to have multiple investments. Some tax sheltered pre tax, some ROTH IRA , trad IRA, and then brokerage funds , perhaps some with dividends and others just value funds that will grow over time. With just the barest of planning, you can have great income in retirement without paying any federal taxes. Or pay a little in tax, it's not the end of the world. Most people are going to be in the lowest brackets they have been in since they started working once they retire, so not a big deal unless you are going to be pulling 100K+ in retirement.

Company pays monthly fee while employed.

We in India have a far superior product called PPF (Public Provident Fund). It has a lock-in period of 16 years, but works under the EEE (Exempt, Exempt, Exempt) tax regime. So, it is completely tax free in the period of contribution every year, in the period when it earns interest every year and finally when you withdraw the entire corpus, that amount is also tax free.

My 401k was looking nice...then 2020 hit and I think I'm just now back up to where I was before 2020

You can opt out of money managers and target funds, and do a Self-direct trading account in your 401K. I asked for that set up at both firms.

I have a Roth, a Traditional, and invest in stocks. So far, the stocks have had the best growth.

I came from MindValley because education never ends so I came to support you here too and learn more

I'm comfortable and not trying to die with lots of money left on the table for ppl that didn't sweat for it or deserve it... that just me !

Roth 401k is best for the peace of mind, no guessing about the future. Also max fees should be 0.1% or less otherwise pass on that option.

There’s way more ways to limit your taxable income in retirement so you pay lower taxes when you pull money out of a traditional 401/IRA. If you’re not in real estate you’re missing out on huge tax advantages. But the decision to do Roth/Trad is personal and there’s no one right answer and no one knows the future of taxes just like no one knows what the market will do. But we all assume it’ll grow and be worth more later.

I am contributing 100% to a Roth 401K. Because my current effective tax rate is 19% , that is for the state and federal combined. I also do In plan Roth rollovers in small amounts. which allows me to convert traditional money into roth withing the same plan. I am very aware of the fees that is associated with my account and always keep a close eye on it. Great video! Can you please do a video about Secure Act 2.0 and focus on the Roth 401K , like no more RMDs and company match now being able to go to Roth. Thanks

You still have to pay taxes unless you live in a state with no sales tax.

You cant 100% avoid tax but with proper planning you can pay significantly less.

The money going into a Roth 401K is a specific dollar amount or percentage of pay. Since it’s taxed prior to going in, it just reduces your net pay. When it goes into a traditional, it is like your gross income is reduced because the money goes into the 401k untaxed.

From the Millionaire Next Door survey, I believe that 90ish percent of millionaires used a retirement account and it had a considerable, or majority of their net worth.

You're talking about the old, expired financial system. The world is transitioning into aa entirely new system that is totally different. Traditional investments that Financial Investors only know about will be going down the tube. People invested in stocks/bonds/401's/etc will lose everything. Dollar is now in the exponential phase of inflation and it will take out the dollar IMO.

Brah, I think the biggest question is, what will the returns be in the future? Could there be negative % returns? No one mentions that, just the positive %s.... It's not automagic....😮🤔🤔🤔

How can i determine my 401k fee that i am paying?

Paying taxes when withdraw

Jaspreet, what will stop the government from double taxing Roth IRAs in the future? Heck they will probably double tax trad iras too.

I'm in Nvidia,cmg,SQQQ for dividends,pltr,sofi and tesla on 401k.😮😮😮

Don't forget that they change the rules in the middle of the game.

These points are moot for people working for companies supporting a 401K plan.

Jaspreet do you get your shirts tailored? They fit well. When I buy off the rack they never look great on me

🔥 loving the content

HOW DOSE IT WORK WHEN YOU HAVE A ROUTH 401K With A MACHHOW IS THE MACH TAXED?

Can you do a series on trusts?????????

The whole thing is a nightmare that is designed to entrap you.

My biggest concern with Roth because of what you mentioned about the debt and taxes. If things start to get really bad, then they’ll come for the Roth and call all of us “the rich who need to pay their fair share”.

Today pagg is on point.

When you say 401k is not really a limited investment option for most people... are you talking about people who hold a stable 9-5 jobs, instead of entrepreneurs (cause the latter takes more risk and needs diversification to reduce it)?

Dear Jaspreet, I really enjoy both your videos and Market Briefs. One thing no one points out when deciding between a traditional and Roth 401k is the amount of money subject to compounding. Let's say I invest $100/wk in my 401K. In a traditional account, all $100 dollars is subject to compounding. In a Roth 401k, since I'm paying taxes on it, only $78 (or so) is subject to compounding. So over the course of 30 years or so, the gross amount in my traditional 401k will be much higher than it would be in a Roth 401K. Am I making a worthwhile point here?

Thank you for the content.

My company has 40k and 457 Plan B, now they offer ROTH options too on these. I want to invest 46K on these four options. Kindly let me know which way is it better to invest for Max returns. I am 40, and I want to retire in 10 years and still be able to access some of these Money. Kindly advise and thank you!

my 401K has a 1% match and a 1.79% in fees with out counting the Mutual fund management fees... It's a IRA for me.

Didn't have VladTV making it onto a Minority Mindset video on my Bingo card. This is a strange world I live in now.

I see benefits of both. But definitely consider rolling your 401k into a Roth as you move into your 50s. This is what a FA told me as I plan for generational wealth. I won’t really need my 401k, so it’s best my future children inherited a Roth with no RMD vice iRA which must be cashed out in 10 yrs

Can You Provide a U-tube video of Government Bonds and any other secure investments ❓❓❓❓

BUT ... one major problem ... according to the laws of mathematics ... which no human in the history of earth existing has ever broken ... it's 100% impossible to save in a 401k while being in debt. What does this mean? Can't save for retirement while having a mortgage; car payments; student loan debt, etc. People in debt .... aka Debt Slaves ... CANNOT save for retirement and/or taxes.

Jaspreet can you please talk about 529 in detail? I’m most interested if I can open one for myself right now & in anticipation passing it along to my child, at some point in the (unplanned) future.

damn bro, i come back years later and the bots are still at it

13' 21" time well spent. Thank you!

The federal government doesn’t “need your taxes” to pay debt. That isn’t a reason taxes would go up in the future. The money starts at the government when they print it.