This video really was very helpful. I started investing about a year and half ago. I definitely have way to much money in my brokerage account compared to my ROTH IRA. Thank you for the order you put the potential investments in. And I am 52 years old at the moment. All the best to you.
Agree with wasting my 20s having to put in a regular savings account that only ever reached .02% after 10+ years...but switched to HYSA that started at the time of openong at .1% and jumped to 4.35% after a 1+ year. But i also have another HYSA with a different company currently at 4.75% and just got $4.76 this last cycle from the initial start at $.51. Don't regret it at all.
This is my first time coming across your video. I really appreciate the financial education, I wonder why I didn’t come across this earlier. Is there any hope for those close to retirement yet with nothing to show for it, sad isn’t?😢
I have a 401k and a roth 401k option at work. I am just in the 35% tax bracket. Do I keep investing in a tax deferred 401k or do I move to the roth 401k or does it make sense to maybe split it between the two
I opened High Yield Savings after I watched your video. We also need to have Tax free retirement account. I pay one more payment this year total 5 payments, I will no longer fund it. I can withdraw income 10 years later.
Great video, thank you. I would have liked a quick breakdown of what credit cards you recommend. In a video of yours you mentioned how its smarter to pay for day to day expenses with a credit card, or something like that, I don’t remember exactly how you explained it. Is that a suitable option to use that would make reliance on a checking account less important?
As a self employed HENRY (High Earner, Not Rich Yet) - I've been maxing my i401k contributions but with no company to match, I need the tax advantage. Is there still a way to invest in my Roth or SEP on top, or rather, should I split the contribution between them - while still benefiting overall. Alternatively, is there a break over point point for a backdoor contribution, perhaps on lower earning years? Just looking for the right questions to ask my CPA. Thanks!
Only caveat to your comments regarding the 401(k) match, if you have a federal government job/are in the military you should try to exceed the match and max out your Roth TSP.
Thank you Steve for this great info! What are the options for retirement savings if I am not eligible for Roth IRA? (not meet income limits (my husband has high salary but I as an educator not). We file taxes together. What would you advise me? Thanks a lot!
What happens once my husband and I start making more than $240,000 the Roth IRA limit. You can’t contribute to the Roth IRA account after you make more than $240,000. Does the money we contributed just sit there until retirement even though we can’t contribute anymore? I just opened a Roth IRA but I know within the next couple years we will be making more than $250,000. That’s not much here in CA
If I have a tradition IRA account and thinking to change it to Roth IRA. What's the best way to do? convert it to Roth IRA and paying back the tax, or open a new Roth IRA account and stop putting money in the tradition IRA , just leave it there?
Is it bad to have more than 3-6 months in a high yield savings account? I’ll have to look into the TBA account. Maybe I’ll move some of my money around to that type of account.
With the cost of everything today, realistically what advice is there for people who don't have an extra 200 or 583 to put into a Roth, and do not have spare money to have 3-6 months worth of income in savings or even 1 extra month in checking. This advice seems to be for people who already have extra money. ☹
I personally didn’t like my 403(b) when I was a teacher because of all the fees and limited options on what I could invest in. You can look into opening up a Roth IRA.
I would still open a 403b account or as other govt agencies call it a deferred compensation account, because it helps to lower your taxable income. investment options might be limited, but you can select a few index funds or mutual funds that would mimic the S&P, large cap, or small cap. It's not that bad. Then you can also open a Roth IRA account.
Yep! You can withdraw your initial contributions. I didn’t want to get into that since this was a beginners video and didn’t want to give the idea to people that they should take their money out before retirement. It’s better to keep it in as long as possible for compound growth.
If I understand your question about a fiduciary... A fiduciary is a professional that has no ulterior motives to advise your investments - unlike some brokers or financial advisors (not all) their advice is in YOUR best interest rather than their employer's. Often there is a fee, but in the case of a CPA, financial advisor, or even attorney, it's included with tax prep or investment purchases, or services. Just ask them about their fiduciary duty :)
Great video but too much work! Personally I do my 401k, one checking to pay bills, another checking for spending money and a savings account at 4.6%. All with the same bank
It takes some time to set up. However, in my opinion, this is my favorite way to set up my accounts to make sure I have liquid savings and prioritize tax-savings with my retirement accounts.
This video really was very helpful. I started investing about a year and half ago. I definitely have way to much money in my brokerage account compared to my ROTH IRA. Thank you for the order you put the potential investments in. And I am 52 years old at the moment.
All the best to you.
Agree with wasting my 20s having to put in a regular savings account that only ever reached .02% after 10+ years...but switched to HYSA that started at the time of openong at .1% and jumped to 4.35% after a 1+ year. But i also have another HYSA with a different company currently at 4.75% and just got $4.76 this last cycle from the initial start at $.51. Don't regret it at all.
Hi Steve, should I stop my 401k and start contribute to Roth IRA instead?
Glad a saw this from shorts to a full video. Appreciate the information.
Glad it was helpful!
This is my first time coming across your video. I really appreciate the financial education, I wonder why I didn’t come across this earlier. Is there any hope for those close to retirement yet with nothing to show for it, sad isn’t?😢
There’s still time! You can start today. Baby steps!
if you are close to retirement, there are some accounts with high bonus 25-30% and 8-10% rollup rate up to 10 years could help
I have a 401k and a roth 401k option at work. I am just in the 35% tax bracket. Do I keep investing in a tax deferred 401k or do I move to the roth 401k or does it make sense to maybe split it between the two
Is it better to open each account with the same company like Fidelity. Or Schwab? Open an IRA with Fidelity and a HBA with Schwab?
Do you give individual financial advice?
What do you think about CD's? Do you know if you can pull the interest on a CD?
I opened High Yield Savings after I watched your video. We also need to have Tax free retirement account. I pay one more payment this year total 5 payments, I will no longer fund it. I can withdraw income 10 years later.
Great video, thank you. I would have liked a quick breakdown of what credit cards you recommend. In a video of yours you mentioned how its smarter to pay for day to day expenses with a credit card, or something like that, I don’t remember exactly how you explained it. Is that a suitable option to use that would make reliance on a checking account less important?
My favorites are the AMEX Gold and Venture X. I personally use those the most.
Would you still do a 401k if you are a business owner with no company match? Or do you have a video for business owners?
Good outline/schedule video! What were the subject(s) you taught when in your teaching career days?
Math! Not so surprising though right haha 😏
Steve, can you make a recommendation for a business checking account?
Hi. How about if you are 61. Is it recomendable to open a Roth ira ?
As a self employed HENRY (High Earner, Not Rich Yet) - I've been maxing my i401k contributions but with no company to match, I need the tax advantage. Is there still a way to invest in my Roth or SEP on top, or rather, should I split the contribution between them - while still benefiting overall. Alternatively, is there a break over point point for a backdoor contribution, perhaps on lower earning years? Just looking for the right questions to ask my CPA. Thanks!
Only caveat to your comments regarding the 401(k) match, if you have a federal government job/are in the military you should try to exceed the match and max out your Roth TSP.
CAN I put 10k into ROTH IRA and just eave it there.? Or i have to invest into it??
Thank you Steve for this great info! What are the options for retirement savings if I am not eligible for Roth IRA? (not meet income limits (my husband has high salary but I as an educator not). We file taxes together. What would you advise me? Thanks a lot!
You can look into using a Backdoor Roth IRA and talk to your accountant about it
What happens once my husband and I start making more than $240,000 the Roth IRA limit. You can’t contribute to the Roth IRA account after you make more than $240,000. Does the money we contributed just sit there until retirement even though we can’t contribute anymore? I just opened a Roth IRA but I know within the next couple years we will be making more than $250,000. That’s not much here in CA
By the way, it's a very helpful video. I love it.
If I have a tradition IRA account and thinking to change it to Roth IRA. What's the best way to do? convert it to Roth IRA and paying back the tax, or open a new Roth IRA account and stop putting money in the tradition IRA , just leave it there?
You can talk to your tax advisor and ask them about the pro-rata rules.
Have you heard of UBF Secure savings and if so do you have any thoughts on them?
Is it bad to have more than 3-6 months in a high yield savings account? I’ll have to look into the TBA account. Maybe I’ll move some of my money around to that type of account.
You can always have more. 3-6 months is the general guideline for most people.
What if your company match is only 1% is it worth it
Hey Steve! The link to the cheat sheet doesn't work for me🤔
Can you try it again? If not, it’s on my website!
If you use DRIP method with your Roth IRA.. does that count towards your yearly contribution limit?
Hi Andy. I'm not sure I understand. Can you clarify? DRIP and the annual contribution limits don't have much to do with each other.
@CalltoLeap If I wanted to get a financial advisor, should I go thru my bank,someone local or thru one of fidelity locations?
No, drip is not considered a contribution :)
With the cost of everything today, realistically what advice is there for people who don't have an extra 200 or 583 to put into a Roth, and do not have spare money to have 3-6 months worth of income in savings or even 1 extra month in checking. This advice seems to be for people who already have extra money. ☹
Exactly. Also not everyone qualifies for a Roth IRA.
Great job.
Thank you! Cheers!
Hello Steve, would you advise to open 403b plan (education field) if the employer does not provide any match? I am 46 & need to catch up asap. Thanks!
I personally didn’t like my 403(b) when I was a teacher because of all the fees and limited options on what I could invest in. You can look into opening up a Roth IRA.
I would still open a 403b account or as other govt agencies call it a deferred compensation account, because it helps to lower your taxable income. investment options might be limited, but you can select a few index funds or mutual funds that would mimic the S&P, large cap, or small cap. It's not that bad. Then you can also open a Roth IRA account.
For Roth account i thought u can withdraw ur initial contribution money but you can’t withdraw the earnings on ur contribution??
Yep! You can withdraw your initial contributions. I didn’t want to get into that since this was a beginners video and didn’t want to give the idea to people that they should take their money out before retirement. It’s better to keep it in as long as possible for compound growth.
Love it.
Thank you 🙏🏻
Im self employed and my tax person told me I couldn't open a roth ira becase of my husband. What can I do to save for my retirement. I am 53
You’re supposed to already be retired at that age 💀
You can skip to the fifth account or look into a backdoor Roth IRA
Can you get a Roth Ira without a job and deposit money in a lumpsum also what is a fiduciary and is their a fee
No, u need an earned income to deposit money in a Roth IRA.
If I understand your question about a fiduciary... A fiduciary is a professional that has no ulterior motives to advise your investments - unlike some brokers or financial advisors (not all) their advice is in YOUR best interest rather than their employer's. Often there is a fee, but in the case of a CPA, financial advisor, or even attorney, it's included with tax prep or investment purchases, or services. Just ask them about their fiduciary duty :)
Great video but too much work! Personally I do my 401k, one checking to pay bills, another checking for spending money and a savings account at 4.6%.
All with the same bank
It takes some time to set up. However, in my opinion, this is my favorite way to set up my accounts to make sure I have liquid savings and prioritize tax-savings with my retirement accounts.
The link to the cheat sheet doesn't work.
Hmm I tried it and it works for me? Can you try it again?
A Traditional IRA packs a secondary motivation of reducing your taxes.
Is there a 7000 limit yearly?
@@__83rd____no limit or very high limit the Roth IRA is the one with a $7000 limit
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