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

Finance KZfaq 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

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.

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!

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

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% !

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

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

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.

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!

Can anyone explain AMS120X?

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.

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.

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?

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

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!

Such a great video for starters!

This is a great video in all aspects.

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.

Great content as always. Greetings from Europe

You teach so well! 👏🏽

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

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

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

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

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.

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.

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.

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.

Great advice. I will follow.

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

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

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 :)

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

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.

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?

Excellent content

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

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!

@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.

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

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

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

great video

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?

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

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

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.

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

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.

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

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.

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?

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 ?

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.

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

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?

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

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?

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

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.

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

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

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.

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.

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.

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!

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

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

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

What are your thoughts on investing in property @Ramit?

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

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?

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!)

Is an HSA useful if you have high medical costs that aren't covered by insurance? I don't think there'd be anything left to invest

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

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

Should I open a 403(b) even if I don't get a match or should I just fund the individual taxable account?

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

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?

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.

Shot myself jn the foot for employer match due to declining. Active duty member but choose to keep higher retirement pay after 20 years for 50% base pay vs 40% and 5% TSP match of base pay. 7 years active duty now. Any recommendations to make up especially if starting to invest for myself and family’s future?

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.

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.

I have a Roth IRA & a separate Vanguard Target Date Retirement account. Is there a way to transfer my target date account into my IRA?

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

Hi Ramit what do you do at 63yo no investment..no 401k a small salary...????

Im a fairly new reader/listener of Ramit. This video has some shots thrown at Rich Dad Poor Dad and I got curious. What does he think about the book or the author in general?

Are hysa a good idea?

Do you still advise contributing to Roth IRA even if your annual income is greater than 146k?

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

If you’re a married couple filing jointly and you make too much to contribute to a Roth, is there any way to use one? If not, I’m assuming you just skip that step and move onto the next. If you have children can you do anything better than a 529 plan? My husband and I are federal employees and I was wondering if you could do a video for federal employees taking pension into account for retirement.

Isn't it worth mentioning the restrictions on what you can spend on from an HSA account? It's only health items I thought

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 🙏

I have a question if anyone can help me, I recently lost my job but I have 10k in savings that I would like to invest in a low cost Index fund, is that something I can do? Without a job and w/out being able to put more each month? Any help would be appreciated

Question about debt: as Americans we supposedly need a mix of various types of debt (credit card, mortgage, car loan, etc.). Is that true?

can I make all these accounts with the same brokerage or should I split them?

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

This is only applicable in USA, in Portugal we don't have 401K, or Roth IRA. We only have PPR that is the most similar to Roth IRA i think.

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