Using a 401(k) or IRA is a profitable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfOlio management

Opting for an asset manager is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfOlio has surged by 45% since Q2.

Market behavior can be confusing and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?

Due to the significant dips, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?

Go with Sonya lee Mitchell. She is the licensed manager I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

They're Not 'Friends'. They're 'Users'.

Wish I were you.

@@thisisshauna6986 Get to work💯

Movement Exotics exactly! Wish gets you -ish.

@@nobody_special012 Wish in one hand as my father used to say 😂

exactly. and give a cushion of about 5k just to make sure

Can you explain this a little more please?

You realize they’re also making 200k a year on pensions. That’s their cash on hand unless they blow it all

Yes, agreed. But, middle class trying to get out of debts and making ends meat, I couldnt understand anything else, but to pay off debts.

Nutshell: 401k takes your money out before it is taxed so when you go to pull it out you are going to be income taxed on it. ROTH 401k means the money that goes into your 401k has already been taxed therefore when you retire, you dont pay taxes again on what it has grown into.

@_ David _ When using a ROTH, in general means after tax dollars. IRA is a tax sheltered account that stands for Individual Retirement Account. If it is ROTH then it would mean putting money in that account is after tax, if it isn't then its before tax which means you pay taxes when pulling money out. It also means it lowers your potential tax bracket while putting money into it. There are advantages to both.

@@hurt1704 I think you mean only those who jump _off_ the roller coaster get hurt. As Dave says elsewhere, if you pull your money out of an account after suffering a loss, then all you're doing is locking in your loss.

And that is a great time to make your conversion. you will not be jumping off of the rollercoaster either. I.E. If you have a mutual fund in abcde fund and convert it to a roth you are not jumping off of the rollercoaster, Just paying tax on the amount you move.

Yeah, he does it so effortless! LoL 🤣

Above all else, this show is entertainment. The guy's been running a radio show for over 25 years. He knows when he wants to listen to people talk and when he wants to listen to himself talk.

that's the funniest one I've seen thus far.

Oscar: I have the flu and need help with my IRA. Dave: Have a great long weekend. Oscar: I'll probably just be sleep... (Dave hits button)

You just need to say ‘AF’

Veerendra Jadhav They are both retired and making 200k? Wow. How does she not know how much they have in savings? Maybe I'm misunderstanding something....

Veerendra Jadhav & how does she not have more saved if they make that much?

Veerendra Jadhav some rich people are horrible with finances.

That's 200k in pension income for the couple. What pensions pay that? Illinois school administrators probably.

200k sounds like alot if you live where cost of living is cheaper. There are places in the united states where making that much only qualifies you as middle class.

How does making more than 120K per year factor into this?

@@Hotobu in 2020, making 139,000 a year and filling as single will limit your Roth IRA contributions. anything below that and you should maximize your ROTH IRA. ROTH IRA is how the government shot themselves in the foot by collecting less taxes than they would like

😂😂😂😂😂😂😂😂😂😂😂😂

WHERE'S HUNTER?

@@HighCountryRambler he’s getting that %10 from Burisma

.....and exactly how stupid do you have to be, to attain that level of rudeness?

Because pensions and companies that hold them can be bought and legacy costs (pensions) can be shed in the sale. Under a new name, pensions may not be required to be honored. Meaning, the new company may be profitable right away by telling older pension holders to scram. This is something you should have learned in 2008 by watching GM. This is why you always hold gold and other investments as a percentage of your portfolio. Trust no one leg of the stool.

What silly statement ! Thats like saying that I have a Physical ever year so I’m not worried about my health

don't you get taxed on what you earn, so if they are retired they are only earning their pension, that can't be any more than a 38% which is what most middle class people earn anyway.

They could be looking at it as a legacy plan i.e. what's the most tax efficient way to leave money behind to children, churches, and charities.

Yet, here you are listening lol

I was about to comment the same thing haha@@simplyme3684

You're the BEST!

yeye

He explained it well but it’s incorrect. Roth is after tax meaning you inherently have less up front investing power than with traditional. The math is in tax brackets when investing compared to when retired.

If your tax rate remains equal, there is no difference in end value between roth and traditional (you must factor in opportunity cost)

who wants to turn all of their wealth over to their kids? Mine got a Roth IRA in their name with $ 10000 in the S&P 500 index fund at birth which should easily grow to a few Million until they retire. Or they can take everything out to buy a car and waste it, then be broke. That's plenty nice on my part, I think.

@@ventilator2999 More people than you know. My step-mothers father invested year after year - never spending a penny. It was all transferred to his daughter in several financial advisor directed accounts. She's wealthy beyond my comprehension.

The Roth is not necessarily a better vehicle if one makes over 125k or so. By deferring my income and having such features as deductible mortgage interest and property taxes this brought my taxable income to below 100k for many tax years. The effective tax rate is lower. Even if I didn’t go below 100k in taxable income this year or future years when I retire…so long as I take out less than the next level effective tax rate then I’ll be ahead. The good news too is that in 10 years with the way inflation is going the new “100k” may be “120k”. The only way to play this game is having cash on hand and also having a Roth IRA. For anybody making less than 100k right now or even slightly over because the standard deduction is 12k or so for single then it seems best just to go with a Roth 401k. Not sure if I’m missing anything.

@@ventilator2999 how did you open a Roth for 10000, limit is 6000? And since a new born has no earned income? How did you do this?

@@ventilator2999 I do

They’ll be a lot higher when you go to take it out later on...

You do not have to pay them upfront. You can wait until you do your annual taxes. Doing this allows the entire amount to start growing tax free right away.

You will only be taxed from your income bracket!!

@@greatriffishere if he transfers it all at once though he'll be taxed as if he was in the same bracket as someone making $200k+ per year.

You don't have to roll it over all at once. I'm going to roll mine over to Roth IRA 60k a year when I retire until I get it all in there. You can take it out anytime you want to and no Required Minimum Distribution when you reach 70.5. Regular IRA and traditional 401k have RMDs.

You shouldnt regret it. How he explained it is nor accurate. Tax brackets make or break the plan for Roth. If you are a higher wage earner while working, you have less investing power after taxes therefore a traditional is more beneficial. Roth is more helpful for those workers in lower tax brackets that have relatively more investing power after taxes.

ajtheown He did address it. You need to cash it out, pay 33% tax then you can move it into the Roth.

moving it is easy, just tell the holder of your TIRA to move how much to a RIRA. Not hard at all, just have to pay the taxes, and he did explain that.

That's is the key. If you make more now than you will later, traditional is king

Do you know what a pension is? She is retired

You're wise.

inflation, better rebalance retirement accounts.

I was utterly shocked when she said 200k given her lack of financial understanding. I highly suspect that figure is inaccurate!

ZzHasbrozZ withdrawals are taxed as ordinary income

Technicalities no. But the info about the costs associated with moving definitely helped people understand more. If you needed step by step instructions Google has that.

but, you're also losing less than you would holding cash

well he did say it was an example not guranteed

Over lifetime it's definetly possible. She doesn't have that much time left in case we crash to recover. Now just this year she would have made 25% but that's not normal.

E Rodriguez ,,,, numbers don’t lie,,,,,invest on the history percentage of returns,for the last 10, years....a lot of people invest on the name of mutual fund...example.....a return on a mutual fund in 2000, was 10 %, in 2010 was 15%, now in 2018 is 17%,,,, where do you think is going to be in 2020.....???20%?,,,,,17%,,,,,or 15%,,,,,where ever it go it goes is better than 10 %.......go to vanguard..com...

@@patandbrandi Over the lifetime that is incredibly unlikely, unless of course you could predict the future and only buy on the low crashes and sell at peak.

For the age 50 and up especially at 60 it grows way faster , check out the Roth IRA calculator and you will notice ..

And then pay taxes on all the growth of that 30k too...

@@davidhochstetler4068 Heh, yeah, Nicholas needs to listen to the segment again!

You cannot currently convert your traditional Thrift Savings Plan to a Roth Thrift Savings Plan. You'd most likely be better off just contributing to your Roth TSP account.

Tax no penalty.

He will tell you when you are at the baby step 4 (invest 15% of your income) to do it in Roth accounts. Lots of employers offer Roth 401ks, now. Their match has to go into a Traditional 401k, though.

Well it will be counted as income for the year you move it.

Al Rocky I’ve always wondered this myself. Maybe he has to be more vague for legal reasons?

@@jaZzyjeff818 A part of his business model is charging his 'local providers' for the referrals (he's upfront about this, it's not a secret). You don't need a 'local provider' to go online and buy low-fee index funds.

Your tax break is not having to pay taxes on your income when you retire. That outweighs the annual tax breaks you're thinking of.

One thing to consider is are you going to be in a lower tax bracket when you retire? Unless you're in a high tax bracket you're not actually getting a break. On top of that, you don't know what tax bracket you'll actually be in when you retire since they change income tax brackets every decade. Its a "pay me now" vs "pay me an unknown amount later" game.

I'm 23 and the ROTH doubles as an emergency savings for me. I only have a few thousand in there and haven't had to dip in yet but I know that if some kind of emergency comes up I can pull my money out to cover it which is great for piece of mind.

@@jordanneedscoffee with a penalty right?

@@transistor281 No so long as you don't take more out than you have put in.

Good problem to have

I have the same problem. I didn't educate myself on how a 401k works. Now I'm trying to figure out the best way to move it to a Roth IRA. You can't fault us for not knowing what we don't know. But when we know we try to do better.

I assume that's the case for a huge percentage of the population.

Yesssss. Boomers are fascinating creatures!

It's not a crime, there are people who are $200000 or more in debt but are considered intelligent because they have papers on the wall that suggests that

Assuming you make too much to just open a roth IRA - sounds like being a hot mess mom is working out well for you :P …yes having a backdoor ira is a great tax advantage regardless of whether you currently have a traditional or roth. Your current traditional/ roth status doesnt really change anything. Def worth backdooring

Definitely don’t take a check. Call the brokerage that has your trad IRA and they will facilitate the conversion, which can also be in-house, unless you wanted the Roth to be with a different brokerage. They will also explain the tax consequences but will probably advice you to seek further guidance from a tax pro (but tbh you can do the research yourself).

If you can open a Roth account where your assets are currently at, that is easiest. Tell them you want to open a Roth account and convert your assets over. You PROBABLY need to make an estimated tax payment via IRS Form ES1040. If you wait until tax time, if the payment is too large, you will pay a penalty on top of the taxes due. I don't know what the calculation or amount is. Schwab and ETrade and Fidelity and Vanguard (and others) all are eager to host your money, so you can open a Roth with any of them and they will be ready, willing and able to walk you through the process of converting an account over to your Roth. I will say that ETrade does not do a good job explaining their process. I had cash ready to pay the estimated tax as part of the conversion, but it wasn't in the right place (it needs to be in the Traditional IRA account), and after futzing around, I just converted the assets and dealt with the tax at tax time. One year that triggered a penalty and another year it didn't. If you take a check, that becomes a taxable event and gets added to your income for the year. Bad idea. When I rolled a 401k into an IRA, there was a check involved, but it was not written out to me, and I just forwarded it on to my account.

More than double even with inflation. Inflation is typically around 2-3%. If we did receive 12% returns minus inflation take the higher to be conservative (12-3=9%)- using the rule of 72 we would expect money to double in about 8 years. But the bigger wrong assumption is continuously getting 12%.

@@JustinFromMD You are correct sir! Market average going back to 1929 is 8% but in his example you are easily beating the market every year and why wouldn't everyone put their money in these mutual funds?

Roth IRAs are not taxed at retirement.

You will not be taxed on it at retirement. Your contribution has already been taxed with your earned income from your paycheck.

You want to contribute to a Roth IRA when in a relatively low tax bracket and in a traditional IRA when in a relatively high tax bracket. The money in the Roth sits and grows for 40 years and then when you withdraw from the Roth IRA and it will not be taxed.

Paolo Lenzi yes. As long as your income is under $193,000

most companies allow you to do both as long as the limit falls under the 401(k) total limit. Always contribute enough to get the employee match, and then put how much you can afford into the Roth 401(k). Then if you switch jobs you can move them over to IRAs and it doesn't count toward your IRA limits.

The Lead Quote just out of curiosity, why would you prefer not rolling it to an Roth and starting adding new money?

The Lead Quote if they are making $200k, they are nor eligible to open a Roth with new money. They can convert a traditional 401k though

The S&P does about 11% on average

@@cullenmayes3370what’s your point? So if one invests $100,000 in an S&P 500 index fund on 1-1-2024, it will be worth $111,000 on 12-31-2024? Past performance is no guarantee of future results.

Survivalist Nomad Not an expert, but as far as the Roth is concerned, I would transfer the sum to a Charles Schwab Investor Checking Account (whose debit card has no foreign transaction or ATM fees), and I’m honestly not informed enough to know why to do with the 457B. The idea would be that if you choose to bank with someone else in that foreign country, Schwab would make it easy since their customer support is top notch, or you could just leave it there since you won’t get dinged for foreign transactions or ATM withdrawals. Make sure to opt out of margin trading if you do decide to open the checking account or else it’ll ding your credit with a hard inquiry. Watch Ask Sebby or Credit Shifu’s video’s for more info on that specific account. Signed, Not an expert, but someone who cares.

Yes. The biggest mistake is to wait and do nothing.

A 401k can include mutual funds it just depends on what you pick I suggest going with S&P 500 Index that'll give you a wide variety and will spread it out so on average you'll be getting around 7 to 9% interest... Save as much as u can I'm 30 and I wish I was your age again to start saving sooner ... save it automatically out of your check with a direct deposit.. you won't miss it and you'll thank yourself later good luck

A 401k will have mutual funds for you to choose from!! Vanguard is a excellent place to open a 401 k!!

@@greatriffishere that's where I've got mine

A 401k is a financial vehicle for buying stocks/ bonds, you can't open one on your own, you have to have one through an employer. What types of funds are available depends on what your employer chooses to offer.

Like Scarlet night said think of Roth IRA, 401k, Traditional IRA as different vehicles... Van, pickup, car... Your investment is the people inside the vehicles. The investments inside the vehicles can be stocks, mutual funds, index funds... Etc. That said everyone has access to Roth or Traditional IRA. You only have access to 401k through an employer. The IRAs allow you to contribute a Max of $5,500 per year. Most 401ks allow you to contribute around $15k max. The company I work for is very small and we have a Simple IRA. It's like a 401k (employer sponsored) for a small company. It only has a Max contribution of $12k per year. For someone young like yourself look into opening up a Roth IRA through a company like Fidelity (what I use), T. Rowe Price, Vanguard... I chose Fidelity because they have a ton of mutual funds to pick from and also some decent index funds. The Roth IRA is best because you are investing pre-tax dollars which means that when you retire when you withdraw this money you won't have to pay income tax on this money. Tax shielding yourself in retirement is the key to successful retirement.

Taxes will have to increase with the debt load being carried by the government

yet they have ZERO in the bank

I speak Polish and it didnt help :')

It boils down to this. Converting from a traditional to a Roth IRA means you will pay taxes now rather than pay them later. Why would you want to do that? Because more than likely this is as low as taxes will ever be. Taxes are going to go up in the future. So now is a great time to look into making the switch. Talk to a financial advisor and a CPA to see if it's right for you.

Q1 If that $3,000 were invested in a traditional IRA you would owe zero taxes. Q2 If you or your spouse is working you can invest *$7,000* into a traditional or Roth IRA. *"Should"* cannot be properly answered without more information.

The GivingBulbasaur If you're 28 you should be 100% in stocks.

Or if you want some bonds short term and ladder individual bonds.

Honestly I’d go half and half. I do 250 a month in Roth and 250 in a traditional 401K. That money would be going to something stupid, the peace of mind I have for looking into the future and making tons of money off my money is the reason I do it. Whether you have a bad day or a good day, you can always look back at how much you are/have invested and it will always boost your mood a little bit. I plan on cashing out my Roth in my 50’s. I save the 401K for the old age years.

If you're not at least making enough to be into the second tax bracket (38,700 if single and 77,400 if married filing jointly) roth wins since you'll likely never be in a lower tax bracket. Not to mention the standard deduction, the roth usually wins.

Nah, this lady sound like she was picking it up. I'll give her that

"He's never going to figure this out coach." Waterboy (movie)

why would you do that knowing you have 100k income and invested in that much stock. move it to a traditional ira or take it out. its just $7k

L i s t e n to the video.

She started to say she didn’t know how much they make, then said $200k with a question Mark ... my guess if they both have a pension, than it’s half that. (I’m a 2-pension household)