What Do I Invest In After Maxing Out My 401(k)?
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- Опубликовано: 12 авг 2021
- What Do I Invest In After Maxing Out My 401(k)?
Listen to how ordinary people built extraordinary wealth-and how you can too. You’ll learn how millionaires live on less than they make, avoid debt, invest, are disciplined and responsible! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, Christy Wright, Rachel Cruze, Anthony ONeal and John Delony.
Chasing financial freedom is a worthy goal.
I use the S&P 500….small but constant
Dave probably maxes out a
1) Roth 401(K)
2) HSA
3) Roth IRA
4) SEP
5) Buying up all the land in Tennessee
lol there are income restrictions for Roth
@@WhoDoesntHateMiley There are not income restrictions for a Roth 401(K) and he can do a backdoor Roth IRA
Basically. Best comment on RUclips
@@wreckingopossum Sometimes there are, depends on the company. Highly compensated employees contribution limits are based on the average contribution rates of the non-highly compensated employees.
Your rich!!
Buy low cost index funds and stop paying for the mutual fund mangers Porsche. Actively managed funds underperformed the s&p index 80% of the time.
Employ any diversification strategy and keep going. Most people pay more attention to the shiniest positions on the graph over a proper diversification. Diversify your funds or get a pro help. After my portfolio performance smashed over $180k returns from the last quarter, I have learned why experienced traders make enormous returns from the seemingly unknown markets.
That's impressive man. I am curious as to what kind of investment you make now that yields that kind of profit for you. I also find myself in need of a good investment plan currently. My 401k is always maxed, no Roth for now. I've got $500k+ in a savings account.
@@robertpowell7172 it's the trending algorithmic trading. I simply mirror trades from Susan Lynn Hoyt, a US registered advisor who you might have heard about or seen in the CNBC news. She's a genius in portfolio management and diversification.
@@washingtondc3075 Do you give out funds or the money stay in your account? And what does Susan Hoyt charge for her services?
@@robertpowell7172 I don't give my money to anybody. My account only mirrors her trades in real time. That's the ideal for this system. The lady I just recommended is a renowned advisor and knows what the heck she's doing. Check her out and get in touch if you'd need help. Charges 10% of profit.
Just found her official website, I'll drop a mail right away. Thanks
ETFs effectively have no turnover, so you only pay for dividends...usually qualified dividends, too, so you pay long-term capital gains tax rates. Those are better for taxable accounts than mutual funds (except Vanguard mutual funds, which do some patented wizardry to avoid taxable events when selling assets within).
It depends on the ETF. What if you have an ETF that invests in companies with a yield between 3% and 5%? Every year, some stocks might drop off and others added.
@@gmc9753 Ah, true enough. I meant to say ETF equivalents of mutual funds (e.g. VTI vs VTSAX, or even just any S&P 500 ETF versus mutual fund).
1:25 Very important. This is what Dave does after tax deferred accounts are maxed out, using low/no load mutual funds with low turnover ratio within that mutual fund.
Hope whoever is reading this accomplishes financial FREEDOM, wealth, and is blessed with true happiness!
Right back atcha!!! TY 🙏🏾🙏🏾🙏🏾
Don't overlook your HSA as well. Immediate tax relief, sets money aside for healthcare, and can be used for non health care costs at a certain point.
Not really worth the HSA route if you absolutely plan to leave/retire outside the USA.
And what is the point?
I like ETFs and stocks over mutual funds in a non-retirement account, but to each their own. Can't wait to one day be in the same boat as Nathaniel!
So where would i make a non retirement account?
@@k-mart7475 A common non-retirement account is a brokerage account which can be opened almost anywhere. Some people like going with Fidelity or Vanguard since they have a lot of low cost ETFs that you can invest in and their resources and customer service are known to be incredible.
There's also more "app based" brokerage accounts like Public where you download the app, deposit money with an ACH transfer from your bank, and then start investing!
@@kavonjonesmba Oh I love retirement accounts! I’ve maxed out my Roth IRA contributions for the past 3 years and I plan to max my 401k this year as well. I meant that if you’re investing outside of a retirement account (that isn’t tax advantaged), then I personally prefer to buy individual stocks or ETFs.
I'm a big fan of the bogle 3 fund portfolio
I'm currently in baby step 6 and am on pace to be in baby step 7 in a few months. At which time, I will be in a similar position to the caller. I will have 2 choices - max out the 401k or "max out" the taxable account. (Note: I will still max out the Roth IRA and contribute the minimum in the 401k to obtain the full company match in either scenario). The reason I'm considering the taxable account is so that I will have the option of retiring earlier than 59 and a half. If you plan on retiring after that, then I agree 100% with Dave's recommendation.
Doing the same thing now Michael. I paid off my mortgage 5 months ago (at 36 years old) and I have been dropping that extra money into my brokerage account every month. I want to have options when it comes to retirement and hanging it up early. 😄
Learn what compound interest is and don't waste your dollars earning potential paying off low interest mortgage debt. You're throwing away valuable time paying off sub 3% mortgage.
@@aaront936 What makes you think that's what I'm doing?
Well a 401k is just the thing that holds the investments, so generally whatever you've invested in inside the 401k you can do the same outside it
Not necessarily. Inside a 401k, you probably want a target year fund (for me it’s Vanguard 2060).
Outside, you might use investments that you’d want to pull from earlier
@@bassman9261995 No, you don't want a high fee low return targeted fund. That is one of the worst investments.
@@scmsean I have a return rate of 13% year-to-date. I think it’s working out just fine.
@@scmsean the fees are $20, which become $0 if you pass 50k. Outside of a 401k, it’s a bad idea because the fees get crazy and you might actually need it before the target retirement date
@@bassman9261995 You think 13% with the stock market going nuts is good? My year to date is over 20%, and that is with a low cost index fund.
I’m 💯 debt free.. Only God… I’m so Thankful to God , and Dave for his show… I’m in Canada.. Net worth over a million, no debt paid off $570000.00USD mortgage. By living fugal..
I believe it...as I'm in same boat. If you have a good income live well below means and invest you will do well.
Tell him to see if hid company allows the steps required to do a MEGA backdoor Roth... you can put another ~$30,000/yr into your roth ira with it!
Dave should've mentioned this.
Index funds I'm putting more in that as I want to retire In possibly early 50s and don't want an extra 10% penalty.
This doesn't make any sense. I assume what you are saying is you aren't putting money into IRA or 401K. If you are doing that then you are in for a world of hurt.
@@scmsean I'm doing some In 401k and more for index funds...near a million now at age 42.
@@markg999 401K and index funds are 2 completely things. My 401K is 100% index funds.
I'm sorry with your knowledge of investing you are either not telling the truth or someone gave you a bunch of money. You don't even seem to understand the basics.
@@scmsean I know they are two different things I'm doing both..all our own money...500k in 401ks with company and near 500k in index funds of our own...and 80k in cryptos. Was near 200k in cryptos before big correction. And paid off house. Got live below your means to get ahead and invest like crazy..
What I'm saying is if you only do a 401k you'll have 10% penalty if you want to withdrawal before age 55.
Wish this video would have been longer. No millionaire interview??
I am 14 years away from retirement (God willing). I stopped maxing my 401k. I do max my Roth IRA. I only fill it up half way and and am now building my cash bucket. Not having a cash position in retirement can be a real inconvenience. Hoping to save 3-4 years in cash.
In my opinion, that’s too much cash. Think of how much you are losing in the next 14 years due to just inflation. Definitely have some cash. But I wouldn’t save that much personally.
@@taylorgreen8297 Well I would be growing it and saving it in a taxable account but once I retire I would shift it to something safer. Cash is important for Roth conversions or when the market is down and you don’t want to touch your investments.
@@taylorgreen8297 Nothing wrong with people wanting to have cash, just in case.
Just use an etf. No tax implementations until sell
Until the new tax plan goes through :(
@@harrychufan what is it?
So if you want no more in your 401K(403B) than the required minimum distribution equaling the standard deduction (currently $26,000 at 70). Am I understanding correctly that you want no more than $700,000 in your 401K(403B) at retirement and the rest in a Roth IRA? Help.
at most companies you'll have the option of making either pretax 401(k)/403(b) contributions or Roth 401(k)/403(b) contributions. There are pros and cons to doing roth or pretax but you want to have a mix of both when you retire to strategically pull money from different buckets to be most tax efficient.
Index and EFT's.
If its after tax money I invest in ETF index Vanguard Funds.
But Dave doesn't receive a commission when you buy index funds, so be a good boy and buy some load mutual funds that people used to buy back in the 80s
Dave's assuming we want to be landlords by buying real estate which comes with it's own set of headaches and drama (= your time). Stick w mutual funds, ETFs and good individual stocks to boost returns unless you want to be changing out toilets every weekend or paying someone else to. No thanks.
Exactly. I don’t want the headaches either that come with unruly tenants, repairs, evictions, liability if someone gets injured on the property, etc. I’ve done just fine with stock market investments.
@@speakingtruths4215 Yeah - I'm not sure why he is fascinated with real estate vs the stock market unless he's flipping properties for a profit. You do not want to be a landlord on a rental property.
Index funds!!!
Invest in yourself!
You should never buy mutual funds in a regular brokerage account, buy ETF’s way more tax efficient.
So I've been a bit confused, are you not allowed to have multiple 401(k), IRA, etc? Just one each?
You can have multiple but there's an overall limit for how much you can put in your 401k's in aggregate and there's generally a separate limit of what you can put in your IRAs in aggregate
So if your under 50 ther limit is $6,000 per year and let's say one has 2 IRAs... you can't now put $6,000 into both for a total of $12,000. You'd have to split the $6,000 between the 2 accounts
That's what I was afraid of. So best option then is to max out what my wife can have as well. They really like to put the hurt on the people who are trying to get ahead in life like that.
@@Ratkill9000 The limit prevents the very rich from tax sheltering and abusing IRA's.
@@JackLy777 Didn't stop Peter Thiel. He found a loop hole. 5 Billion in a IRA
@@jordanbramlett347 no, he didn’t find a loop hole, he found a great investment and took more risk and got a higher return with PayPal. He only put 2k into PayPal with his ROTH IRA.
Real estate!
Paying taxes in kind of wrong. If the fund drops stocks, you would still have to pay taxes on it. Even if you didn't sell.
Say you has 500GRAND in an s@p index fund, it averages about 10% a year dosent it? If you could just take out that 50k a year and live off that you'd always have that principle amount of 500GRAND.
Live off the eggs not kill the golden goose that lays them
Eh, not that simple, if it loses 50% one year you can’t take 10% out that year or you’ll take forever to recover. There are some years you can take out 15% and be fine, but if it does nothing for 10 years like the Great Depression, that 10% per year will kill you.
@@harrychufan Has the s@p fallen 50% before? 🤔
Dave's 10% withdrawal rate is not a safe withdrawal rate. Please don't plan your retirement around it.
@@aaront936 what would you suggest?
VTI
Buy some gold
GME is due for a rebound soon. To the moon 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
Dave. Just say Index Funds in a Brokerage account
He pretty much did, which is surprising since he usually doesn't.
Stocks. You can take more risk for much higher returns
And how many people this Dave guy seriously thinks can save enough and buy real estate with CASH which he keeps repeating on and on about. 99% of the people won't have enough left to save after maxing out 401k and IRA and even if they do if will take a good amount of years to be able to save that much outside to actually buy real estate cash. It's not something for 100 bucks you buy at Walmart. 🤦♂️. And for the caller - don't run after money. Real Estate is fine but ask if you really want the extra hassle. Just save in a mutual fund separately and enjoy when the time comes. You will surely have enough to have a comfortable retirement.
Crypto
Mildly bland discussion in this one 🥱
+FundRise
Publicly traded REITS are much cheaper and much better
Bitcoin and ethereum
Bitcoin
Bitcoin.
Invest in cryptocurrency.. Invest in REITs.