I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.

My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.

If I may ask, as in withdrew all of the money from the 401K and IRA programs? If so, what was your strategy behind that decision? Thank you.

I learned about govt actions from cfp in ny by name ‘’Aileen Gertrude Tippy’’ . Ms. Aileen explained the benefits of long-term Treasuries and alternative investments, which the govt doesn't disclose.

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.

Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.

Sharon Lee Peoples is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.

It is the US government war on we the people. Trust no banks.

*yep!* *they want you to work, a 9 to 5 matrix job your whole life, then they want you to retire when you’re about to die…?* *hell nawww, I’ll pass!*

​@user-qm6mo9ct5g You probably have more options than you think. Did you ever find help with this?

Right big Gov cuz gambled it all away on stock market

For retirees and those close to retirement, I believe it's particularly challenging. All those years of labor only to lose it all to a problem you weren't responsible for, my regrets to everyone retiring during this time.

I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?

After the pandemic, things became extremely difficult, which is precisely when I sought a consultant's counsel. I've been investing on my own for nearly 3 years and have built up a stagnant reserve of $280K to $570K in just over 24 months.

I agree, that's the more reason I prefer my day to day invt decisions being guided by a init-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a init-coach for over 2years+ and I've netted over 2.8million.

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?

Are you contributing to a Roth or Roth 401(k) now?

@@davidmcknight8201 no nothing

Sorry for your loss! .If your wife was no longer working she could have done a rollover to an IRA, where you get to choose how much money is withheld for taxes and penalties only come into effect when you file taxes and it may have been possible to use an exception for the penalty for unpaid medical bills.

My god that’s awful. Makes your blood boil hearing stuff like this. fucking organized crime is all it is. The government always gets their cut. A

@@josephkingsley8708 she was a teacher in the IU Department she worked for the psers. 22 years in Pennsylvania

Thanks Joseph!

This guy is lying. Why doesn't he show the video of Dave saying these things? Because Dave didn't say them.

@rachealhubert74 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. Alice Marie Coraggio, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.

@rachealhubert74 Alice Marie Coraggio

Lookup with her name on the webpage

@rachealhubert74 Alice Marie Coraggio her trading strategies is working for me for more than a year now and I’m making good profit from the stock market and she's 100% honest, reputable and trustworthy

Sorry about your mum. The 401k works for a lot of people, but not everyone, particularly when they hope to retire right around a market crash.a

within a year of the 2008 crash my 401k came screaming back, i never lost a dime .I don't understand is why the company going bankrupt would affect her 401k( outside of maybe not making a match anymore)..

She probably had 100% in company stock😢😢😅😅😅.

This was a Democrat in 2008 .. they will continue to this to make sure they do not pay million dollars payouts. Because the money you have given to 401k had already been spent. It's like given your money to a buddy to hold for a year, see what you have in a year from your buddy.. probably nothing.

@@Mrttansamman1000 Sorry, who was a Democrat in 2008? Dave Ramsey?

You can still do a Roth 401k and get the match. This is something I totally recommend.

If you don't have a Roth 401(k), but want to invest 15% of your income (Baby Step 4), then what you could do is contribute just enough to get the employer match, then the remainder into a Roth IRA (without going over the limit of course). So if you have to contribute 6% of your income to get the employer match, but have no Roth 401(k) available, you could consider contributing 6% into the traditional 401(k) and 9% into a Roth IRA.

@@np5246 it’s ok to have some money in the 401k. You can offset that income in retirement with your standard deduction.

If you feel this strong about Dave Ramsey's ways you should go on his show for a debate or have him on your show. I actually owe him alot as I owe no one and have a good grasp on my money situation.

@@miked8730 I’d love to.

That’s pretty much the stock market for you. Glad you hung in there.

Please explain Bidennomics.

I stopped looking at my 401k when Lehman Brothers shut down (9/2008). I got laid off six months later, and continued to not look at my 401k until late in the summer of 2009. At that point, I was down about 10% from the last time I looked (9/08-8/09). But the history section of Vanguard showed me how things had been going, and I had been down 40% the same week I'd been laid off. So I'm glad I didn't look. Imagine losing your job and finding out your retirement account had lost half its value at the same time! Anyway, I stopped contributing to my 401k (since I wasn't working there anymore) and despite not putting anything into it for 15 years, it's more than tripled in value. And my subsequent IRAs & 401k's are worth about the same, because I kept contributing to my various retirement accounts over the last 15 years. I'm up about 35% over the last year, so if that's Bidenomics, I'm all for it!.

Yes, very important to include discussion about utilizing the standard deduction.

@Anikaparvati1 What is the name of your broker and how do i connect with him or her ?

@Christina-Gisela Wow that was easy, i found her website and left a message for her . i hope she reply me. thanks.

Any investment with Roth in the title would work great.

Stay tuned right here!

Just fill out the intake form at Davidmcknight.com and we’d be happy to chat with you.

Good idea to have some in traditional because of the standard deduction in retirement.

Your match can now go into the Roth portion of your 401(k).

Indeed.

The market hasn't been good this year, but it is important you find stocks with market-beating yields and shares that at least keep pace with the market long term. You don't have the luxury of long term advantage, so I suggest seek guidance from a broker or financial advisor.

I agree. I diversified my $400K portfolio across various market with the aid of an investment advisor, and I have been able to generate 113% of the gross capital in net profit across high dividend yield stocks, ETF and bonds, in a short time.

That's impressive! I could really use the expertise of your advisor. Could you recommend who you work with, please?

*Sharon Louise Count* serves as my advisor, bringing extensive qualifications and experience in the financial market. Her deep understanding of portfolio diversity positions her as an industry expert. You could look her up yourself.

Thank you for this. I'm gonna check her out and try to reach her. I hope she gets back to me soon.

You can put the same amount into a Roth 401k and if taxes are higher down the road you’ll take out more money.

He sure did. He likes the Roth 401(k), but that's totally different than the traditional 401(k) that 95% of people contribute to.

@@davidmcknight8201 yeah but you never once showed where he suggested you stop contributing to a 401k or where he suggested you take your money out of your 401k. He merely pointed out the tax burden of when you make withdrawals.

@@TheWealthyIdiots you’re really straining at gnats here. He explained the implications of the 401k and then recommended the Roth 401k and Roth IRA instead.

@@DavidMcKnight yeah I might say that a Roth IRA has more benefits than a taxable brokerage account but I’m not telling to stop investing after 6.5k a year. Saying that there are vehicles that may be better than a 401k isn’t even close to saying you shouldn’t have one, or should pull your money out of one.

@@TheWealthyIdiots I’m happy you came away with that conclusion. Most didn’t. From his website: We’re big fans of the Roth 401(k). In fact, in a showdown between a Roth 401(k) versus a traditional 401(k), we’d go with Roth every single time!

As I say in the video, Dave Ramsey recommends the Roth 401k so feel free to keep getting the free money but consider allocating your savings to the Roth side instead.

Well take solace in knowing that it's also something I'm telling you to do. ;)

Not true.

@@DavidMcKnight what’s not true about that?

@@chief5981 he has recently opened up an entire section on his website addressing tax-deferred vs tax-free. This is a recent development.

Dave has been around longer than the Roth, so that can't be true.

The only time I’ve heard him say to go tax deferred is when it’s time sensitive.. like for older people.. grow as much as you can now, pay taxes on the backside

Your math is correct. The question rides on what tax rates will be when you take the money out. Most gurus (including Ramsey, Orman, etc) believe taxes will be higher so recommend the Roth 401(k).

"What would the difference be if we put $10 a week tax defered in a 401k or put $7 a week tax free because we paid the $3 tax already." That's 30% tax at contribution. At retirement if the entire balance were taxed at 30% at withdrawal then traditional vs Roth would be a wash as you'd have identical spending income.

@@alrocky that is correct. So it all comes down to where you think taxes will be when you retire. If higher then Roth makes the most sense.

So don’t do a 401k and don’t take the company match?

Talk to your HR contact.

If you don’t think your effective tax rate down the road will be greater than your effective tax rate today than you should probably hold off. All my data shows that taxes will have to double by 2030 to avoid calamity.

This may make sense if you believe, contrary to expert opinion, that taxes won’t be rising dramatically in the future.

How come?

It really shouldn’t be based on this premise because in either scenario you’re losing the same amount of money from your lifestyle. If you go pre-tax you’d lose $10,000 from your lifestyle, if you did after-tax, you’d lose say $2,500 to tax and put the remaining $7,500 into your Roth 401(k). Either way you’re out $10k.

@DavidMcKnight I disagree. You are only looking at the total over a life time. But when you need the money now to feed your family, the money is more valuable to satisfy a basic need.

@@TheHavocdogSorry I guess I’m not quite following. In either scenario you’re out the $10k today. If you need that $10k to pay for food instead, I get it.

I’m not sure when he started to exclusively recommend Roth, but the article I saw about it was recent. And you’re right, a lot of his listeners shouldn’t be doing PLI but his advice is rather categorical. Anyone who has a PLI should surrender it immediately. He puts no qualifiers on it.

@@DavidMcKnight He has encouraged Roth for the 5+ years I have been exposed to his content. Do you listen to him, or just read the website? I don't like Dave's categorical responses on anything, especially with totally cashing out a policy with few details. That said, we also see the majority of IUL agents categorically slamming traditional retirement accounts, as well. I am against those statements in all cases.

You may be right on the inflation but I still think it’s a long shot they’ll tax the Roth when 95% of all retirement accounts are pre-tax. They’ll just raise the taxes on those accounts instead of double taxing the Roth.

He doesn’t like it as a stock market alternative and neither do I. It is however a superior bond and LTC alternative and an excellent volatility buffer in retirement.

Good comments. Thanks for chiming in.

You don’t have a Roth 401(k) available to you?

Because it’s a pretty fool-proof formula to turn yourself into a multi-millionaire. And if you do it in the Roth 401(k), you shield yourself from the impact of higher taxes down the road.

Ok, and what is the average 401k balance in the US upon retirement? A million dollars? I don't think so. My scenario would only require a third of that.

@@creeper2054 people don’t follow the formula so they don’t get the result. If your formula works well for you, good on you!

Is it a 401k formula or fantasy? I welcome others to chime in if what I stated is way off.

@@creeper2054 the formula is not the Roth 401k. The formula is save 20-30% of your income into tax-free accounts over a long period of time and let the market do the rest.

Roth IRAs aren’t going anywhere because the government loves them. Gives them more revenue today.

@@DavidMcKnight The government is corrupt.

Well, they’ve honored it over the last 25 years but there are no guarantees for the future.

Not the end of the world. At retirement you can take distributions and have the income offset by your standard deduction.

This makes sense if your country isn’t marching into a future where experts generally agree that taxes have to rise dramatically to pay for $239 trillion of unfunded entitlement obligations.

You wouldn’t have to give up the match if you did a Roth 401(k).

@@DavidMcKnight how does that work?

@@michaelott310 you can direct your match to either traditional or Roth and same with your contribution. Check with your HR.

@@DavidMcKnight ok. Thanx

@@michaelott310 you’re welcome.

Thanks for your comment.

LOL.

Would love a source!

Dramatically is a strong word. Further most experts believe that tax rates are likely to rise, perhaps even double, in the next 10-15 years. Research David Walker.

@@DavidMcKnight Is a 75% decrease in year one and 90% in year 2 (while we live off of savings) dramatic enough for you? Even after social security kicks in, we’re talking 70% decrease from last few working years income. What say you now?

@@brianmccorry9186sorry, i misread your previous comment. Thought you said that spending would decrease dramatically for all retirees. I can see how that could be the case in your personal situation.

@@DavidMcKnight Okay, thanks. I just wanted to see if I was missing something. I do intend to convert $ to Roth IRAs &/or take distributions at 10-12% tax rates next few years as well as reduce RMDs.

You’re exactly right. Roth is better for a multitude of reasons.

Obama Care (ACA) is not available after the age of 65,... that is when medicare takes over.

Sorry I’m not sure I understand your comment.

@@DavidMcKnight if u have like 400k if it's time to withdraw your 401 k , should you withdraw the whole amont? or spread it like in 4-5 years.

@@tadrod2323 you should only withdraw it as needed. Unless you’re doing a Roth conversion in which case you should probably stretch it over a 5-8 year period depending on your situation.

@@DavidMcKnight thanks David i thought of that as well

But they still pay your match into the deferred portion, right?

Lmfao. How is unconstitutional? You guys are hilarious.

@@randallmadison9910 . . . the US Income tax code is unconstitutional. It's legalized theft. There is no constitutional right to confiscate peoples income. There are no government services used for income. And if there are any they are funded by local, state, or other means. And NO I'm not making the argument that no taxes should be paid. But there is no reasoning behind our income tax code. It's plain manipulation and theft.

It’s a relatively recent phenomenon that financial gurus have started endorsing tax-free accounts over tax-deferred accounts.

And with inflation there needed to be more making. Comes out even if your/ people, are lucky

Yeah but the Roth 401jk allows you to contribute so much more. And if you’re over MAGI limits then just do a back door Roth.

If you are making 153k from your job do you really think you will be in a higher tax bracket when retired?. I think not.

Thanks for your comment.

1st world problems when theirs literally people dying of starvation.

Why not fully fund your Roth 401(k) if you’re able?

Thanks for your comment.

But it was never going to compound to your benefit anyway. You were only ever going to grow the IRS’s portion of your account.

Perfect.

Twenty?!

Hope for your sake you’re right!

How so? And which advisor?

$150 M may just do him in...

I’m inclined to agree.

Do you ever use the word traditional when describing your 401(k)?

Yes. Lower income, lots of deductions, etc. Great time to pay tax on retirement contributions.

But how many people save more latter in life When I started at 27, my first year was just $500 in contributions. Last year at 52, invested $30,000

Sorry not following you. This feels like a non sequitur.

Could be a smart move.

Hah!!

What do you mean?

Good strategy so long as you get all the conversions done before tte predicted increase in taxes takes effect.

You don’t think stocks can do better than 5% over time?

@@DavidMcKnight once upon a time I was able to double my stock holdings. The last few years have proven a loss in some "good" stocks. I am stuck holding a lot for years now in hopes of a good return. But the opposite has happened. Makes me sad. Once upon a time I preached 401k to my 3 grown kids and they look so dejected to see their balances shrink consistently.

I am personally over the income limits. And, I live in Puerto Rico where I pay no capital gains taxes.

I would say it’s your tax bracket not your income.

That’s the point of my video. 👍

Can you do both?

Dave’s larger point is to do the Roth 401(k) instead of the traditional 401(k). In either scenario you have the potential of receiving a match.

Agreed.

I'd much rather end up with the most after taxes. That is the goal you are supposed to be looking at

I’m not selling anything in this video other than the reality that Dave Ramsey, for very good reasons, is pushing the Roth 401(k) over traditional accounts.

Are you saying you'd never invest in a Roth account because you think they'll become taxable down the road? You do realize that Roths represent only 5% of all retirement accounts, right? In fact, the federal government loves Roth IRAs. The real target is on tax-deferred vehicles where they can change the tax rate at any point.

@@davidmcknight8201 Read my comment, I did not say never Roth, I said never to not 401k;) I do not see a win in not using 401K! IRS does not target tax-deferred accounts, they tax income where it comes from. I can delay Social Security and Pension to take $100K from 401k at a tax burden of $8,500 (8.5%), why would I pay 24% to 32% today? Don't follow your comment, 5% Roth - why do I care what others do? I have not seen a model that shows crazy Dave R's works.

@@davidmcknight8201 I now know where you are coming from, you think that taxes need to double or the US will go broke! Saying we need to raise taxes or we will go broke highlights a fundamental misunderstanding of our money system. Taxes do not pay for spending, taxes basically control the money supply. Spending is just a bill by Congress that allows the treasury to type credits into designated accounts, the spending is never constrained by tax receipts - we never borrow to spend. Treasures are just savings account that pays interest, it's to drive demand for currency but primarily a psychological operation put into law to discipline government spending. When the wheels come of the system it won't matter whether your money is pre or post-tax.

Yes I like contributing up to the match unless it’s a Roth 401k in which case fully fund if possible.

Even with no match you are still getting tax deferred or tax free compounding so the 401k may be worth doing.

Yes, fully fund the Roth and the Roth 401(k) to the extent you can.

Thanks for your comment.

The government wants their. Penh now so they prefer Roth.

Hopefully you didn’t needlessly incur a big surrender charge.

@@DavidMcKnight I did unfortunately, but like you said, better now than in retirement.

If you cash all in is no need, just roll it over to another retirement account

Ouch!

Penalty free.

Paying taxes isn’t the question. It’s when you’re choosing to pay those taxes-now or later. My point, and Dave Ramsey agrees with me, is that taxes down the road are likely to be higher than they are today, therefore the math justification behind the Roth 401k makes more sense.

@@DavidMcKnight can't they change the law and make all or part of a Roth taxable in the future also.

Davidmcknight.com

Do you not understand my question?

@@michaelkohut7601I think you’re trying to ask “who do you think you are?” But I’m not really interested in engaging in that level.

Well, David. For you to say “Dave Ramsey shows once again that he (or his knowledge) is straight off the reservation” is a fairly ugly and racially insensitive expression isn’t it? I’m not here to shame you but it struck me as surprising coming from a “professional” no doubt seeking to gain favor with potential clients. So, you clearly have no problem calling out Dave Ramsey. His name garners your channel attention and you are quick to denounce him which is of course your prerogative. Frankly, your points are well-taken but they often feel just as arrogant as Mr. Ramsey’s rhetoric can sometimes be. Just maybe your channel’s commentary then becomes equally vulnerable to the same criticism levied at Mr. Ramsey? For me, however, the issue here isn’t the accuracy of your content. I am simply here to learn. I guess it would be great to know you recognize the inappropriateness of that expression and, having considered the nature of what you said, regret saying it. Hell, I certainly am not perfect, but certainly trying to live to be better every day. Peace, have a great day, and keep up the great work of helping others, David.

@@michaelkohut7601”Strayed off the reservation” is a colloquialism that means to act in a disruptive manner outside the bounds of normal behavior. If this is racially charged I apologize but I’m not aware that it is. For the record I did not say “straight” off the reservation which would have a different implication.

How long have you been doing it?

@@DavidMcKnight a long time ago I had one with a company and it sure hasn’t done well

@@mem1701movies sorry to hear that.

So how are you going to save for retirement?

Roths only represent 5% of all accounts. Why not just raise taxes on the accounts that haven’t been taxed yet like 401k’s and IRAs? That’s where the real money is.

Because they won’t like the fact you are making money without paying taxes. They’ll raise taxes on everything else as well.

He used to be a 401(k) guy, now he's a Roth 401(k) guy here. Starting to wonder if you folks watched the video.

He consistently was a match is better than Roth, Roth is better than traditional guy,@@davidmcknight8201. I'm starting to wonder why you think people should watch your videos.

What is the median retirement savings in the US? Most people pay very little tax in retirement. Don't think general statements and actually do the math to what combination is best for you.

@johngill2853 I don't know. I'm building my own investment portfolio. I'm building it, so taking SS is an option, not a necessity. And I won't do a 401(k).

It's true, I pay small amount of taxes in retirement and have more money in high end stocks because of the differ taxes plus I get money back from paying health insurance, real estate taxes, and everything else that is taxable plus I can sell and buy stocks all on my own and do not paid no one to watch my portfolio, so I 'm in control of my money

@@markmyjak7739 I love the 401k, it gets me out of the 22% tax bracket. I can't stand to give the government anything more than I have to

Yes

It's still a 401k.

Is it a half truth that Dave Ramsey no longer recommends 401(k)s and exclusively recommends Roth 401(k)s because taxes in the future are likely to be much higher than they are today. That was the point of this video.

@@DavidMcKnight who cares what he thinks?

@@paulturner4419 apparently about 30 million Americans.