Roth IRA vs 401K - How to Retire Faster

Рет қаралды 662,171

Жыл бұрын

Join our Exclusive Investing Community here: ClearValueInvesting.com
GET 3 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax
The best way to support our channel is to share this video on your social media to spread awareness. We appreciate the support!
Investing Mistakes to Avoid: • Investing Mistakes - W...
Investing Tips for Beginners: • Investing Tips for Beg...
Understanding Stocks and Investing: • Understanding Stocks a...
Taxes on Stocks Explained: • Taxes on Stocks Explai...
Common Stock Terms: • How to Read Stocks for...
Dividend Stocks Explained: • Dividend Stocks Explai...
How to Bet Against Stocks: • How to Short Stocks - ...
How to Use Call Options To Make You Passive Income: • Covered Call Option St...
This is our TurboTax Link for your tax preparation needs:
www.anrdoezrs.net/click-10015...
ClearValue Tax and affiliates and related parties do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
This post may contain affiliate links that at no additional cost to you, I may earn a small commission. Thank you for your support!
Legal Disclosure: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!

Пікірлер: 1 700

@clearvaluetax9382 7 ай бұрын

Join our Exclusive Investing Community here: ClearValueInvesting.com GET 3 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax

@HarrisWalker-ob4ip 3 ай бұрын

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.

@BaileyWright-cd6jz 3 ай бұрын

There seems to be some underlying conditions to each of the plans, and I think one needs to know the implications and earnings involved.

@OliviaJones-ky8fi 3 ай бұрын

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.

@MichaelWeston-wl2no 3 ай бұрын

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.

@BrianSmith-zxx 3 ай бұрын

So how would you know the safest to invest in with minimum flop but better earning?

@DavisMiller-yh6bc 3 ай бұрын

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.

@MIchaelGuzman737 Жыл бұрын

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.

@sommersalt88 Жыл бұрын

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.

@CynthiaByrd648 Жыл бұрын

@@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.

@Americanpatriot723 Жыл бұрын

@@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?

@CynthiaByrd648 Жыл бұрын

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.

@Americanpatriot723 Жыл бұрын

@@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.

@richardspenard2663 Жыл бұрын

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.

@JerrellHulme-kn8ue Жыл бұрын

@@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?

@JerrellHulme-kn8ue Жыл бұрын

@@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.

@gs300rich4 10 ай бұрын

When you get close to retirement you change to less risky investment options. Lower risk-lower reward but you won’t lose money

@talented009 Жыл бұрын

@ThomasHeintz Жыл бұрын

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.

@esther.74 Жыл бұрын

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

@DarleneMurphy774 Жыл бұрын

@@esther.74 wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.

@esther.74 Жыл бұрын

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.

@JohnMoore1641 Жыл бұрын

@@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.

@mohican-jx6fx Жыл бұрын

@ericmendels Жыл бұрын

Please can you leave the info of your investment advisor here? I’m in dire need for one.

@ericmendels Жыл бұрын

Looked up her name and her website popped up immediately, interesting stuff so far, about to schedule a session with her.

@CrayonEater94 Жыл бұрын

That’s correct if it’s a traditional 401k. If your employer offers a Roth 401k then take advantage of both.

@maiwurld2578 Жыл бұрын

Wow,you have a good paying job.

@dank9139 Жыл бұрын

Long term capital gains tax is 10% vs income tax is 20% rather go pre tax and pay 10% later

@velayuthman Жыл бұрын

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.

@stevensmiddlemass2072 Жыл бұрын

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.

@TeresaBrickle Жыл бұрын

@@stevensmiddlemass2072 It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $51k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great advisors will always make returns.

@DanLeahfort Жыл бұрын

@@TeresaBrickle think this is something I should do, but I've been stalling for a long time now and i don't wanna caught unawares by retirement. I don't really know which advisor to work with; I feel they are all the same.

@TeresaBrickle Жыл бұрын

I definitely share your sentiment about these advisors. When I was starting out, I checked out a couple of freelance advisors online, so you could do the same. I personally work with “Stacie Kristal Weber”, and she's really good.

@DanLeahfort Жыл бұрын

@@TeresaBrickle I might have heard this name somewhere, but can't really recall. I'll be following her up. Thank you. Do you know if she manages family fund too?

@Riggsnic_co Жыл бұрын

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.

@Oly_laura Жыл бұрын

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.

@martingiavarini Жыл бұрын

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?

@hermanramos7092 Жыл бұрын

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.

@Oly_laura Жыл бұрын

@@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?

@Oly_laura Жыл бұрын

@@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.

@darnellcapriccioso Жыл бұрын

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?

@richardhudson1243 Жыл бұрын

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.

@maiadazz Жыл бұрын

@@tatianastarcic I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?

@vox207 Жыл бұрын

@@maiadazz I would find a local advisor in your area. It’s always nice to see them in person

@Greggsberdard Жыл бұрын

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.

@antonnohr 10 ай бұрын

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.

@Jason9o669 10 ай бұрын

There are strategies capable of delivering consistent gains irrespective of economic or market conditions, but these are typically implemented by seasoned investment experts or advisors.

@ClementRusso2 10 ай бұрын

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.

@VickyAlvy 10 ай бұрын

Could you kindly share the contact information for your financial advisor here? I'm in urgent need of one.

@ClementRusso2 10 ай бұрын

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.

@Rodxmirixm 10 ай бұрын

She seems highly educated and informed. I looked up her name on Google and found her website. Thanks for sharing.

@GillerHeston Жыл бұрын

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.

@eloign7147 Жыл бұрын

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.

@rogerwheelers4322 Жыл бұрын

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.

@joshbarney114 Жыл бұрын

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.

@harwellron1289 Жыл бұрын

@@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.

@joshbarney114 Жыл бұрын

@@harwellron1289You can quickly do a web check where you can connect with her, and do your research with her full names mentioned..

@Powerz00 Жыл бұрын

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

@MerrickBonaparte Жыл бұрын

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.

@HoraceWatres Жыл бұрын

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.

@gregorywhem Жыл бұрын

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?

@HoraceWatres Жыл бұрын

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

@gregorywhem Жыл бұрын

Her website immediately showed once I copied and pasted her complete name into my browser; her credentials are outstanding; thanks for sharing.

@VitaliiSych Жыл бұрын

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.

@BillAdamson-bp9ff Жыл бұрын

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.

@RickMckee-nq4ni Жыл бұрын

@@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.

@user-uz2mo8tk1e Жыл бұрын

@@RickMckee-nq4ni Fantastic! can u share more details?

@LarsBergstrom-uh2eu Жыл бұрын

@@RickMckee-nq4ni 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

@peggyturner2431 Жыл бұрын

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.

@peggyturner2431 Жыл бұрын

@@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....

@peggyturner2431 Жыл бұрын

@@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.

@peggyturner2431 Жыл бұрын

@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

@julianboyd8719 Жыл бұрын

50?! You look 30.

@symms Жыл бұрын

@jakefarmers2900 fake

@kanuegwu Жыл бұрын

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.

@mathebulamkhize876 Жыл бұрын

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.

@teknerd Жыл бұрын

That's pretty good info. I didn't know about the hybrid Roth 401K. I learned something new.

@Martin-jk2ng Жыл бұрын

Your no nonsense delivery and content has skyrocketed you to one of my favorite channels now. You are doing fantastic work, sir!

@hgjg5206 Жыл бұрын

probably one of the best channels explainnig things ppl actually need to know in terms they understand without BS.. thank you!

@tha073926 Жыл бұрын

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.

@sherryie2 Жыл бұрын

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.

@kkybaggy Жыл бұрын

@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.

@kkybaggy Жыл бұрын

@@c.t.u.o 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.

@za-jm8wf Жыл бұрын

Hands down the best channel on financial advice! Have subed and shared with friends and family because of how practical and helpful you are

@Reda-sl8hx Жыл бұрын

I’ve watched many videos trying to understand this, and this is BY FAR the best one, thank you !!

@Farinhir Жыл бұрын

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.

@jbferrer3 Жыл бұрын

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

@fR_eN Жыл бұрын

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!

@miked1307 Жыл бұрын

Please make more videos like this. Thanks for the education!!!

@alwayslearning4 Жыл бұрын

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.

@mrchills23 Жыл бұрын

Clear and concise. Learned more in 10 minutes then school ever taught me in regards to retirement . THANK YOU AGAIN BRIAN, and happy holidays!

@couldbe8348 Жыл бұрын

How much tax on 401k?

@lovelyasian938 Жыл бұрын

Thank you so much for describing the difference in Roth and regular 401k. I needed this ❤

@ClearValue.Tax.. Жыл бұрын

Hello i don’t respond to all my subscribers comments accordingly let’s takeout the opportunity and talk on this topic now.

@beardedbubba7628 Жыл бұрын

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.

@grayanderson9800 Жыл бұрын

First person to talk to simply on the Roth 401k company option! Thank you!

@iiivesa99 Жыл бұрын

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 😊

@patriciabeller64 Жыл бұрын

Brian, thank you for a year full of calm advice and financial interpretation! I hope you have terrific holidays and a bountiful 2023!!

@daveschmarder-1950 Жыл бұрын

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.

@Kevinw4040 Жыл бұрын

My wife and I both contribute to our 401s and also have a back door Roth IRA. Great video!

@THINKGOODKARMA Жыл бұрын

Thank you for this comparison. I’ve been following you for a few years now daily!

@DavidJ245 Жыл бұрын

This should be rudimentary advice our parents should have given us. Mine never did but I’ll definitely be teaching my kids.

@maryksnyder1155 Жыл бұрын

We tried! They didn’t all listen! 😆🤦‍♂️🙄

@renardfox328 Жыл бұрын

I totally agree with you.

@marshalepage5330 Жыл бұрын

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.

@marshalepage5330 Жыл бұрын

By time yours kids are adults the rules may change again.

@mattclark2655 Жыл бұрын

@@marshalepage5330 except many pensions and companies went belly up and many people have 0. Only good pension is a government backed pension.

@123412346992 Жыл бұрын

I like that you added diagrams but also still made the video audio listener friendly still

@AlsaadUthman1063 Жыл бұрын

@shellyh8739 Жыл бұрын

I'm so glad and grateful I found your channel and subscribed. Thank you for this video.

@jacobb554 Жыл бұрын

Thank you for your videos, this is my new favorite finance channel

@compoundalchemistget1monan591 Жыл бұрын

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!

@destinationskyline07 Жыл бұрын

Rip ..my company only matches up to 5 percent

@stopandthinkaboutit8636 Жыл бұрын

Its interesting to hear some people not value a company match, an example of not understanding the big picture.

@fire_fux Жыл бұрын

@@destinationskyline07 better than nothing. Sure some companies match up to 10-12% but they're rare. I think most match 5-8%

@omgn88 Жыл бұрын

not if you don't plan on staying for 3 years at a company with a 3 year cliff

@truthlove1114 Жыл бұрын

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.

@nicholasshook7513 Жыл бұрын

in my 3rd year of business school to become a CPA. you are a true inspiration

@richlandzee8686 Жыл бұрын

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.

@tommyabernethy6982 Жыл бұрын

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?

@richlandzee8686 Жыл бұрын

@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.

@CrankyGrinch Жыл бұрын

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.

@fah232 Жыл бұрын

Thank you so much for this information.

@nenigma1 Жыл бұрын

You're Awesome! Thank You!

@roberto.llagas Жыл бұрын

thanks for all your videos and always appreciate all your contents. It would be nice to have video on more details on 401k such as traditional vs roth and how taxes are applied and which direction is bettter based person's situation.

@JazzyMB7 Жыл бұрын

Omg I am so grateful for this video I've been wanting some clarifying regarding the differences and benefits of these two

@rpmen Жыл бұрын

Very good basic breakdown. Company match on Roth 401k also considered pre-tax contribution. Something to consider

@catpaladin1 Жыл бұрын

My company’s match on the Roth 401k didnt go into the Roth side but the non-Roth side.

@MunchkinsMotivation Жыл бұрын

Thanks as always!

@yuki-manthonee0101 Жыл бұрын

You are awesome and thank you for the education! Your content has helped me to understand more important aspects.

@armihoffman6131 Жыл бұрын

Hi Brian! Thank you for your generosity of knowledge helping people who need this kind of information. May you have more blessings of all sorts!

@edwinhargrave679 Жыл бұрын

Great job of teaching sir great job many thanks.

@glenng9111WoodbridgeSwing Жыл бұрын

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.

@iamsam8446 Жыл бұрын

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.

@iampicasso1811 Жыл бұрын

I agree

@sarscov9854 9 ай бұрын

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.

@JCTVPRO Жыл бұрын

Thank You for all the help. I liked the video and I subscribed long time ago

@URSAPRIME813 Жыл бұрын

Great video, and I love the Roth IRA and Roth 401k! Please note that employer contributions to Roths (401K, TSP, etc...) are different. The contributions from your employer and any resulting investment earnings are taxed as income in the year that the money is withdrawn.

@edenterra870 Жыл бұрын

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.

@Kosovo_549 Жыл бұрын

Great information. Thank you .

@GJR30 Жыл бұрын

Thank you for creating this video. I learned something new going to think about this and go for which one that suits me.

@rafaelrivera5007 Жыл бұрын

Thank you for sharing this important information, lots of blessings to you and your close ones 🙏🏽

@HarvickOne Жыл бұрын

I also use a spreadsheet to model the year to year income and tax expenses between 401K and Roth IRA from start of employment to end of life expectancy, quite useful for people who want to compare the numbers

@lilyusi Жыл бұрын

Can you share the spreadsheet?

@dapperd5008 Жыл бұрын

Perfect video Brian! Thank you!

@MrSlm1982 Жыл бұрын

Thanks Brian! I will share this with people I know too.

@christopherfanara2593 Жыл бұрын

Thank you for your time and service may you and your family have a Blessed Holiday.

@jeffp1377 Жыл бұрын

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

@ahndeux Жыл бұрын

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.

@kerriweiss9900 Жыл бұрын

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 😢

@edenterra870 Жыл бұрын

HSA 👍

@kerriweiss9900 Жыл бұрын

@@edenterra870 yes, never really looking into it til this year. I know we are late to the game but better late than never!

@FreeToBe_Me Жыл бұрын

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.

@mocheen4837 Жыл бұрын

We have a Roth 401K, 401K , HSA and pension. We also contribute to our kids 529 plans.

@albolvo Жыл бұрын

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.

@LegendaryVideoVlogs Жыл бұрын

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

@NeoSpacian1237 Жыл бұрын

Thanks my job offers matching 401K I’m gonna sign up next month!

@darthbane2669 Жыл бұрын

Why wait?

@Mdqvideo Жыл бұрын

Great info as usual thank you

@jensiecast Жыл бұрын

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

@ClearValue.Tax.. Жыл бұрын

Hello i don’t respond to all my subscribers comments accordingly let’s takeout the opportunity and talk on this topic now.

@jkadisak Жыл бұрын

Thanks for this Brian! I would love to see a video on the backdoor Roth IRA conversion for high income earners. I am 50 years old and trying to catch up on retirement funds. I max my company Roth 401K (and just started maxing the catchup contribution too) and max my HSA contributions. I opened an IRA and a Roth IRA with the intention to do the conversion (both a balance of zero right now), but I am still studying to make sure I don't mess it up. Given our national debt and my income bracket, I want as much as I can to be in tax free/protected accounts (taxes going up!). I am fortunate in that my income is too high to be able to contribute to a Roth IRA directly. Thanks for your honest and on point advice.

@alrocky Жыл бұрын

If you wish to back door Roth IRA for year 2022, suggest you do it now before year's end: contribute $7,000 to your 2022 traditional IRA and promptly convert that $7,000 t-IRA to $7,000 Roth IRA. Assuming you have no traditional IRA balance from prior years, you will save yourself from *pro-rata* tax rule.

@capestreasuresPtown Жыл бұрын

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!

@bradyjames6666 Жыл бұрын

Bro Tsla is never going back to where it was

@Blztrls Жыл бұрын

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.

@capestreasuresPtown Жыл бұрын

@@bradyjames6666 It'll go beyond Bro.

@SzymczykProductions Жыл бұрын

@@bradyjames6666 Okay clown

@EasyRecipes19773 Жыл бұрын

Interested in learning more about the backdoor Roth IRA. Love the Roth 401k account, wish my employer offered that.

@Ranto86 Жыл бұрын

An amazing video would be looking at certain options you can invest in inside of a 401k and weighing the companies inside of them. It would be a large undertaking and probably a long video. Thanks for the info Brian!

@damondiehl5637 Жыл бұрын

That will vary a lot from one employer to the next. Some have really good plans, others not so much.

@andersonfg1 Жыл бұрын

Great video! Glad you talked about the 401k Roth. My employer got rid of the "penison plan" and now they contruibute a percentage. In addition, they do a match on your contrubution up to 4% of salary. I put my contrubtion in for 401k Roth but my emplore matches only go in 401K. So I have a light hybrid strat going on.

@jonrios1389 Жыл бұрын

One of my biggest regrets was not opening up a Roth IRA at a younger age.

@ronchildres2451 Жыл бұрын

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?

@DeuceDeadly74 Жыл бұрын

Roth 401Ks and Roth IRAs are tax free when you draw down during retirement.

@ronchildres2451 Жыл бұрын

@@DeuceDeadly74 Does that include your profits as well?

@DeuceDeadly74 Жыл бұрын

@@ronchildres2451 yes. The appreciation (profit) can be taken down tax free at retirement.

@ronchildres2451 Жыл бұрын

@@DeuceDeadly74 appreciate your assistance

@proxy6986 Жыл бұрын

Very helpful, ty!

@Alvin_1914 Жыл бұрын

Great Video Brian!

@StarInfinite00 Жыл бұрын

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.

@circusfreakRob Жыл бұрын

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.

@mikei6895 Жыл бұрын

Being able to roll the roth 401k into a roth and eventually buy real stocks is key

@buzzlightyearg3580 Жыл бұрын

This feels like life changing information really enjoyed this don’t remember ever hearing it an it stick this easy thanks simple to understand

@2-old-Forthischet Жыл бұрын

Great info! It's too late for me, but I'm sending this to my son. Thanks again.

@freebird5064 Жыл бұрын

Happy Wednesday Brian 😊 wishing you & yours a blessed holiday season ❤️🎄⛄️

@clearvaluetax9382 Жыл бұрын

THank you Freebird, it's always so wonderful to see you!

@jimenezmf9115 Жыл бұрын

I triple clicked the like 🤘🏼 you rock Brian!

@clearvaluetax9382 Жыл бұрын

You rock Jimenezmf911!

@JuNiOrWaDeNmIaMi Жыл бұрын

Thanks for ALL you do Brian!!!!

@ChrisG-cy2om Жыл бұрын

Clear and concise. Thank you for your time and expertise!

@kevin1153 Жыл бұрын

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.

@josefarias111 Жыл бұрын

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.

@scottmagruder6907 Жыл бұрын

Can't do that if you make to much money to contribute to a Roth IRA.

@mattk2643 Жыл бұрын

@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.

@BatmanBoss Жыл бұрын

Thanks Brian

@erimendoza21 Жыл бұрын

Very informative thank you kind sir!

@AXE914 Жыл бұрын

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.

@ClearValue.Tax.. Жыл бұрын

Hello i don’t respond to all my subscribers comments accordingly let’s takeout the opportunity and talk on this topic now_

@LL-rn2xp Жыл бұрын

Great video as always.

@ryans.6722 Жыл бұрын

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.