Follow these 7 Steps to Build Generational Wealth…
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- Опубликовано: 21 сен 2024
- Yes, you CAN retire as a Multi-Millionaire. I’m going to break down my 7-step retirement playbook so that you can retire richer than you could have ever imagined.
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Ramit Sethi is the host of Netflix’s “How To Get Rich” and New York Times bestselling author of “I Will Teach You To Be Rich”
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A paid off house, no debt, & a couple million in the bank you should be living good 👍🏾
The goal!
Goals 💯
No shit Sherlock
Yes!!!!!!! bs7
A goal without work is called a wish.
Put in the work.
Except for property taxes. An ugly reality in the US which undermines the concept of ownership
what i always reccommend to people is to do the following:
401k match
1 month emergency fund
payoff high interest debt
3, 6, or 12 month emergency fund
Max out Roth IRA (or traditional if you do not qualify for Roth) If eligible for HSA then split the investment between the two.
Max out HSA (if eligible)
Max out 401k
Remainder into taxable account
I also always tell people to invest at a minimum 15% and to save at a minimum of 10% of their income. Personally I invest 15% (5% into 401k, 5% into Roth IRA, and 5% into HSA), and my employer matches 5% but also gives an additional 3% a year since we do not have a pension anymore, and have 6 months of an emergency fund.
This is a great video. The number one issue for financial stability is to have a plan- any reasonable plan at all. It's mind-blowing the amount of people who wing it, leading to failure and resentment most of the time.
…or put off planning
Finance RUclips is amazing. Say the exact same thing to people, over and over again, with a slightly different script. And you've got yourself endless hours of content that people will gobble up. Gotta love it :p
It takes some of us a few iterations from different perspectives to really "get" it. Plus, repetition is helpful to stay the course!
And every time there will be somebody who sees it for the first time.
The irony is people still fail to grasp how simple the process of generating wealth is. Easy, even...once you truly get it.
That's me right now!
Funny thing is most still won’t do it.
Almost being 39 I have never thought through how much I want to retire with but have been thinking more and more about this so this video is good timing! My company allows me to contribute to a Roth 401K and they match up to 11% !
Which company
This is one of the best thorough investment/savings video I've ever seen
The graphics!!!! Thank you, Ramit and team! You have done simliar videos in the past and Ioose interest because it’s difficult to follow with the advice and numbers without a visual graphic. This was great!
Just a side note, if you retire to somewhere like Portugal for a lower cost of living and free health insurance, they don't recognize the ROTH and will tax you on your withdrawals unless you can prove you put in tax free contributions. Keep your paperwork!
Many countries have tax treaties to prevent double taxation.
@@Adman-p4jonly a few countries recognize Roth as tax free. Classic future expat tax trap
So... Let's go live off other people's society.. Stay in your third world country please....
What kind of paperwork will prove that? I do a transfer from my after tax money in my checking account into my Roth IRA. How do you prove it when you do your taxes for Portugal?
Maybe just slow travel for a month or two at a time per country to avoid the situation.
Make a video for 40 to 50 yrs old beginner millionaire PLEASEEEE!
From what I’ve seen, the videos are made more for 20 and 30 yr olds. I am looking for the same information as you! Just commenting as well to see if there are updates on your question.
@@Artbynbru Agreed!!!! Help us 40's ppl out.
I believe it works the same, it doesn't matter when you start but the sooner the better@@akierramissick6918
From what I've watched on yt the only difference is you'll have to invest much more than us 20yr olds
With regards to HSAs, I don't know how many employers do this but my employer matches my contribution to an HSA of up to $1k. It's actually insane if you're in a company that will match money you put into an HSA.
My husband’s company matches $1400. It’s awesome! We’ve made so much $$$ in our HSA by maxing it out and investing it. Even using it for medical expenses and even for kids’ braces.
But you would need to keep an eye on the max on the money you put it. For example, let says your company put in $1000, you would need to put in the left over money I.e 3000 if the maximum is 4000 for the year. If believe it is 4150 for 2024, I could be wrong.
Hey Ramit, I found myself enjoy these videos of you talking more than the calls with people. Thank you for making them!
Amen! I feel his interviews with couples are too long and get us mired in the therapeutics of bad money decisions and interpersonal issues between married couples! Dave Ramsey like short videos and calls are more my style! This format is better for Ramit!
Thanks! I hope you can make a video about a financially healthy couple on your podcast sometime. We've seen over 100 couples who aren't on the same page, but what are we aiming for?
I would like to see that too. Someone to model doing it right. Especially someone in retirement using the 4% rule with no worries.
After paying almost 40k AFTER insurance in medical bills because of one company's large out of pocket max over 3 years, when I joined another company I chose the insurance with the lowest max out of pocket. I may not have an HSA, but I don't have any medical debt and I have more peace of mind.
My strategy is three buckets: S&P fund, tech fund, and target date for my Roth IRA until I hit the max. Thanks for the tips.
Ramit, I’m a huge fan and I appreciate all of the knowledge you share with the world! I’d love to have a job like yours. Thanks for what you do!
you can definitely have a job like his. I do what he does right now but with all my coworkers using his methods lol. I do it for free but its a lot of fun improving peoples situation. I have a meeting with a coworker tomorrow and I also have had meetings teaching the owners of the business I work for on how to manage their money lol. Im a college drop out who has never cared about money and i have none. i only now have savings at 43 thanks to ramit. so I know if I can teach people for free, you could for sure do it and make money. get some george blackman youtube writing skills and you are set. but yeah you could for sure make a living as a financial person. ESPECIALLY if you joined his Earnable program and or put in the work. the community in his programs are even more supportive than I am being right now lol
@@lowlowseesee I’ve thought about making it a career or at least a side hustle. I know I’m passionate about personal finance bc I help family and friends for free too. It’s hard for me to charge people when I’m trying to help them get their financial situation together lol
What a great video this is! Top quality advice wrapped up in a top quality video production. Between Ramit, Ramsey, and JL Collins there is no reason why anyone should have issues wrapping their head around the core principles required to reach financial goals! Thanks Ramit!
I think your expenses can reduce drastically if you pay off your house and have no debt. Do that by 55 at the latest and then you’ll have 7-10 years to determine your annual expenses at retirement, and save a ton too
What if instead of aggressively paying down your house you aggressively invest instead? 😳
At 51, my mortgage is all that’s left. I should have that paid off in the next 3 years all while investing simultaneously. Maybe then will I buy a New To Me suv. Thank you Ramit!
thats a great idea. only problem with that is are two...one...people who can afford to pay off their house usually over save and don't enjoy themselves and they are miserable. thats not a rich life. two...most people dont run the real numbers on home ownership so most people have fixed cost so high that they can barely afford to pay their mortgage let alone pay off their house in a good time limit. most folks wont have their homes paid off until they are too old to really enjoy their money. guilt free spending now not when you turn 70 lol
This is exactly my plan!
18:37 Our deductible is $4k for a family but the min to get an HSA is $3.6k; however we didn’t qualify because our individual deductible is $1k and the min is $1.6k.
You’re leaving out one main thing… we get these returns assuming we won’t die before. Nothing is promised. I was in a serious car accident 9 months ago I could have lost my life , but instead I couldn’t work for some time since I was handicapped (broke 5 bones). My goal is to have cash flow now so I don’t have to work for my whole life because what if you can’t physically work?? I’m not putting my money in Roth ira yes I have a retirement plan since I am a teacher in California but I putting money aside to purchase real estate so eventually I can move out and rent all the rooms. I will have 1000$ cash flow each month and they are paying for my rent. I bought in January and I’m glad I did had I waited 5 months my house is now worth 50k more. I agree you should have a retirement plan but not to max out all your money to put into it. Diversify your money.
Thank you 4 info ..we hv different acc in Afrika but your guidelines helped me a lot .Im pushing Tfsa Growing my RA ,Got rid of debts also bought properties im about to settle 2homeloans. The other 2 houses r on airb&b
Im building my richlife
Yes agreed on maximizing 401k. But be careful because if you max it on month 9. The company you work for will not add money the additional months left in the year. It’s crucial to read the benefits. I was not aware of this until maybe 5 years ago.
Yep definitely need to make sure to spread your contributions across all pay periods in order to maximize the match (at most employers)
You can only use HSA money tax free if used for specific medical expenses. After 65, you can use HSA money for anything, but if you use it for non-medical expenses, you have to pay taxes.
Are Roth 401k’s not common? I always see the 401k vs Roth IRA discussions without mentioning Roth 401ks? Everywhere I worked has offered a Roth 401k.
I think the comparison there is to look at the fees. Most 401k's fees are higher than IRA's. So you'd only max out the 401k first if it's both Roth and has a low fee (somewhere around 0.06%).
@@smilesnluvd6526 most 401ks offer higher fees because of target date funds …..but they still have a option for a blue chip fund or similar S&P 500 fund that offers super low fees
It's fairly new. I can do a mix of regular and Roth 401K
For questions like this, it’s probably better to watch The Money Guys. They are certified financial advisors, and they are better for people who are interested in going beyond this kind of advice
Yes. I hate when financial people compare Roth IRAs and 401ks... It automatically strikes me as outdated information. Just compare traditional and Roth!
Ramit, I won a math contest in college. I work as a statistician. I understand compound growth and the time value of money. Traditional tax deferred accounts BEAT Roth accounts for most people. This is due to not paying your highest marginal tax rate when you contribute. But when you withdraw, its taxed across the rate spectrum. Still, I like the flexibility of Roth can provide if you have major expenses that pop up. Investing about 75% in traditional and 25% in Roth should work for most. Also, being taxed later means having less to invest now, meaning less later.
Is your last line correct? Did you mean to write...being taxed later means having MORE to invest now? If not, pls explain.
@@roqonu Yes, the math goes like this. Invest $10,000 in Roth, well, you invested $10,000, good job! However, invest $10,000 in traditional pre-tax, then that is $10,000 you don't pay income tax on yet. Lets assume a simple 25% marginal tax rate. By putting $10,000 in pre-tax, you will have at least $2,500 then by at least the time you get your tax refund, but probably sooner if not through work withholding. You can turn around and put that $2,500 back into your traditional account... and save another $625 in taxes to invest. So, right now our traditional has $13,125 invested, plus a little extra in your bank account versus $10,000 in a Roth. That extra money means you will have more to withdraw from... but you will pay income tax on it then, but it probably won't all be at 25%.
@@RupertMDoc the issue is most don’t do what you’re saying and invest the tax savings. You might but most don’t so always tell the young folks in my life to do Roth as long as you can.
@@ebelen1 Young people are also often not past the 12% bracket right now. It's most likely the right move for a lot of young people. Now, trying to convince someone young that isn't making much money to put some aside for 2065 is the challenge.
@@bgoode652 exactly. Had my son start at 22 and every time he asks, I say go Roth. Too many things later in life to worry about like RMD’s and taxes. Put it in early and often and don’t look back.
You dont need a lot of money to be wealthy. We are military family with no debt. Currently 30 and contribute $1000 a month to retirement. We make 66k a year if you count our housing allowance.
My company offers both 401k and Roth 401k. Company matches for both. Do you treat the Roth 401k as a 401k? Should I contribute on both to get full match? Or should I also open a Roth IRA in addition?
Unpopular Opinion: If you're eligible for an HSA and will utilize it maximally with investing the contributions and keeping receipts to reimburse with gains in the future, I would place it before the Roth IRA just for the tax deduction benefit alone.
Can you teach us about rollover IRA? Thank you 🙏🏾
Great lesson on how to invest for our future🙏🏿😊💰
A note on HSAs: a lot of employers will have an HSA provider and deduct directly from your paycheck for you, but you can roll over an HSA just like a 401(k) to a preferred HSA provider when you leave the employer.
My company's HSA provider is crap but the payroll deductions need to go there. So be it for the SS savings. I transfer the majority of the balance a few times a year to a Fidelity HSA I setup so there is never much in the company's provider.
Many are not aware of ROTH IRAs. 401k plans yes but not ROTH. Everyone should understand ROTHs and fund them annually. After tax money going in but tax free coming out.
Having no debt is more important than anything as you near retirement. If you’re debt free then you know.
I pay 12% into state retirement as a teacher every month. I also have a Roth IRA that my parents started when I graduated. They put in some money for my birthday every year but I'm not really adding to it since I'm already putting so much into state retirement.
Ramit!!Super love your videos and I look forward to them every week! Love your response especially when people come up with ideas that do not make any sense at all - It always make be roar out laughing out loud.
Great Vid !! I love the simplicity of your advice. I would have included Real Estate as part of Step #7.
You teach so well! 👏🏽
To bad, he could do teach well at high school or college level classes. I would if he could teach finance to kids in elementary schools.
Maybe it is better to teach online so his message can reach more ppl 😊 plus .. teenager never really listen anyways 😅
Much like compounding interest, most people have no idea how quickly 3% inflation each year can increase costs. Costs of $73k this year will be $177k in 30 years.
4% rule includes increasing your draw for inflation each year
I’d be retiring or working less in 8 years, and considering this financial recession, I’m deciding to begin taking up skilled trades. I’m curious to know best how people spilt their pay, how much of it goes into savings, spendings or investments, I earn about $140k per year but nothing to show for it yet.
You should contribute to your retirement diligently, or better still look into financial planning don’t come to RUclips for advise, consult a financial firm about your situation
I moved to the States 4 years ago, I loved this video but I do not understand something: if I achieved the first step “maximize the 401k with match of my employer” then “I paid off debt” then I maximized the Roth IRA: why should I go to maximize the 401k up to the limit of $23,000 (it has higher cost) and not go to a low cost index fund (vanguard S&P with a cost of 0.04). I really do not understand, and I have the idea that I am missing something. Thank you!
THANK YOU FOR BREAKING THAT DOWN!!!!
Great content as always. Greetings from Europe
Do you have a section in your book for high income earners? Maybe I overlooked it. At what step you would incorporate the back door Roth, before or after maximizing 401k yearly contributions?
If you earn enough to need to do backdoor Roth IRA, you should probably max your IRA and 401k.
Either way, his suggestion to max IRA before filling up the 401k max still likely applies.
If you assume your tax rate will not change then contributing to your Roth vs 401k after the match doesnt yield more money. For most retirees I think the tax rate is lower in retirement so that would make 401k contributions more effective than Roth. However, you have additional flexibility with a Roth. Namely you can pull from a Roth without penalties for qualified events and for your contributions at any time. That’s a massive benefit
The only problem with figuring out your retirement number 20 and 30 years from today is you must factor in inflation. I would do 3% to be safe. So the 1.8 million figure to live on 73,000 may really be closer to 2.5 million to live on $73,000 due to inflation. Not to mention you will have 20 to 30 years of inflation when you are actually in retirement.
What happens if your employer offers a Roth 401k? Should one do the reverse? Roth 401k and Traditional IRA? And what about a SERP? Should it all go in there?
I'm curious if you can talk about how to adjust retirement planning if you want to retire before the traditional age
He's not a fan of FIRE. Bigger Pockets youtube is good for that topic
Pensions are a great way of saving. I currently put £1,000 per month into my pension - my employer contributes £433 and I contribute £567. However because it’s done via salary sacrifice it’s done at a net pay reduction to me of about £450. So for a £450 reduction in my wage I’m getting £1,000 per month added to my pension….id say that’s a pretty good deal.
@ramitsethi Can you make a video for types of investment tactics for those of us who are 1099 workers? I work without benefits and it seems my main two options from this video are to pay off my somewhat reasonable student loan rate of 4-7% across 7 loans and then max out my Roth IRA? Are HSA's applicable to me?
Big time fan! Read your book right after graduating college but only now am I realizing how to manage my money/budget.
1. If you're 1099, start a solo 401k. Fidelity and Schwab are popular spots.
2. You can open an HSA if your health insurance qualifies. You can filter healthcare.gov plans for HSA eligibility
3. Definitely continue with your IRA
This is a great video in all aspects.
It's important that you need to start early with diversified retirement accounts like a 401k and Roth IRA to maximize the power of compounding and ensure a financially secure future. 💰
High deductible health plans are a waste of money, either ditch the insurance or get a big boy copay plan. I've saved thousands this year by going with the copay plan over the high deductible.
In Thailand we have an RMF for retirement, and it’s tax-free both ways. Tax deductions now and tax free for withdrawal.
Hey can you make a video for young people , like which risky place to invest for a divers portfolio ?
thanks that a great video
Do you have any suggestions for adapting this plan for other (not USA) countries?
As European i dont see myself having 1.5-2M in retirement 😂. Its just not the same as in US. If US citizens move to EU with 1-2M in Europe it feels like 4-5M literally.
The formula still stands. Just multiply your yearly expenses by 25 (or monthly by 300) and you'll end up with a number that you should be aiming for.
You can do an estimate of your social security in most of the countries, but I'd divide it by 2 as we're not getting more people on the old continent any time soon.
@@LarisaC. mortagages are low in EU because people do not want to be in debt and esentually life here is just more peaceful in way of helping EVERYONE EU is not 100% capitalist country like US. Most folks here just want to live their lives without worrying
In US ur constantly in battle for profit and fight crazy prices and debt its just too much for EU people
@@tomaszp2027 yes its the same but its not easy like in US. Because on average EU folks make from 600-5000euro a month. The lowest is the balkans and the highest can be Germany and France. But overall average salaries are like 1000-2000euro a month and it can work with that. But investments helps its just that its not so easy and a business. US folks are 330M. Eu is like 140M but most countries are 5-30M population so the market is not so good and people dont consume like US folks do spent. I did managed to have investments in EU its better imo for US folks with 1M to more because if you make 50-80k a year from ur investments and you work a job for like 20-30k euro you esentually top 0.1% in EU lol
@@penguingobrrbrr353Mortgages are not necessarily low in Europe. There's a lot of variation between countries and within countries.
In Finland, the standard length of a mortgage is 20-25 years. Luckily, it's that rather than 30 years.
Right now, there are a lot of new housing being built. So, that helps reduce the cost of new houses and apartments, but the price is already very steep in big cities.
@@excitedaboutlearning1639 prices wont go down just because people built houses or apartments. People do not like selling below what they paid for unlucky thing is this. They would rather keep it and wait than sell ir
Target date funds ‘typically’ are way too conservative. The fund through my employer has you almost 30% in government securities/bonds 15 years out from retirement. Huge drag on building your nest egg and could easily put you $500K behind what the S&P 500 might have provided.
Good info, but odd to not consider social security or pension when estimating retirement income needs.
always learning thing with you. I was investing more so now I will pay my debt 1st I am always missing something. Thank you for all you advice. Could you plz have one episode for the Canadian way of doing thing. I am a huge fan of your and also sharing with my friend and matter of fact some is hearing about you for the 1st time. I also find it very great gift to my friends and relatives. I just hope they learn all those knowledge early not like me I whish II knew about that 20 years or even 10 years before. That would make a huge difference in my life. Thank you
Excuse my ignorance if I missed this in the video, but say I have already maxed out my match in my 401(k) (5%) and also contributing $250 a month to my Roth IRA ( target 270).. Which one should I increase first? Should I contribute 10% to my 401(k)? And only receive the 5% match or start contributing more to my Roth ? Thanks for the guidance. I am 20 with no debt trying to make sure I set myself up for the future.
Edit - I see that you recommend to max out the Roth first. Also I wanted to add I love your philosophy, I’ve listened to a bunch of people on the Internet in the Dave Ramsey, Robert Kawasaki, etc etc and I love the way your mindset… I’ve been following you for quite some time and using your conscious spending plan, I can’t take financial advice from anyone besides you. My parents do not have a great relationship with money they live paycheck to paycheck.. that’s all thanks
Ramit, do a video for us europeans! I appreciate all the help and knowledge!
Wow! The Roth IRA sounds amazing. We don‘t have something like that in Germany. We pay taxes like crazy…
You left out when your Roth and 401 are maxed you may be able to put in after tax into your 401 my company allows 10% then you can back door that into your Roth for the future tax free growth
This is why I am biased to rentals. The cashflow goes up with inflamation. Cost of living in 40 years will be WAY more.
Just a small note for step 7: don't use target retirement funds in taxable accounts. When they adjust the holdings it's a large sum of money you are being 'paid'.
What do you mean by this?
@@MarissaFranklin-ym1cq The structure of target date funds allows large capital gains bills from internal restructuring. This happened at Vanguard maybe 2 years ago. It's a rare occurence.
@@MarissaFranklin-ym1cq a couple years ago my 2050 target account moved around some assets internally. So I was given a rather large one time payment worth like 5% of the investment. This then just bought more shares which all went down 5% in value (because it was paid out to me). The bet value of the fund didn't change. If that money was in a brokerage account instead of an IRA account it would have had severe tax implications.
An index fund almost never shifts around money like this which is what makes it better suited for accounts without tax advantages.
I max out myself HSA and IRA before going back to add more to my 401k.
If it's triple tax advantage, I feel like its the better move. Am I missing something ?
That kiyosaki joke was very funny
Ramit, why the hate towards Kiyosaki? For many of us who are actually doing well, Rich Dad Poor Dad was quite impactful.
Sadly, as an European, I understand only like 25-33% of this video. Most things don’t exist here.
Hello from the UK. Each country should have their own versions, it's good to make note and then go and find your countries version of the same (we have pension account not 401ks and ISAs instead of Roth IRAs)
As a european:
In uk- take the employer match on auto enrolment contribution. Plus, max your stocks and shares isa (no cash isa. Waste of tome)
In europe :
Put as much as legally possible towards your private pension fund, choose the cheapest pension funds like vanguard, choose equity like s&p 500 , and take the government deductions for putting money in private pension.
Loving the comments showing how to adapt this material to your location. I also have a UK edition of my book, which is adapted to the local market.
@@ramitsethi I'm from the UK. Have both editions of the book and they're great.
@@11Voltage yes, and here in Canada we have the RRSP that's for retirement nd the TFSA which is a tax free investment account. We also have other accounts to for investing.
If a company decreases its 401K Match, and you are vested, should you take the difference and pay off High Interesr CC, then use those funds for the next step or add above the 401K match (if you started late and need to catch up)????
Why not this order, Ramit?
1) 401k match
2) HSA
3) Roth IRA
4) 401k max
5) 529 ?
6) Post tax account?
We have the first steps done but, instead of a Non-Qualified Account have Real Estate!
I like the Diversity of getting out of the stock market and Love the monthly income of our Rentals too!
Could you do a similar video for a situation where someone is paying into a pension plan and has the option for deferred compensation? My retirement contribution to the pension is set and I'm not sure if/how to split additional money I want to set aside for retirement between a roth and deferred comp 🤔 I appreciate you and your content Ramit!
I have a pension plan of monthly salary divided by (2% times number of years worked) for life after age 55. I still contribute to 401k and just started Roth IRA. It's better to save more than less🤔
@ramit any chance if a second season of your show on Netflix?
Would you recommend that someone with a TSP (government retirement account) use a Roth IRA as well? The expense ratios are low and you can do either traditional or Roth contributions. I'm asking because my husband puts all his retirement investments into his TSP and am curious if he should put some of it in Roth IRA instead.
In South Africa we have either a provident fund or pension fund instead of a 401K; my employer will pay this on your behalf which is 15% to 27.5% of base salary meaning no cash burden to me (non taxable fringe benefit). Should I match this by taking 15%-27.5% of my salary too?
Is the real challenge to have all the productions possible by the end of the series?
Why would you max out your 401K before maxing out the HSA? I would think you get the match in the 401K, max out the IRA and HSA would be next.
I'm 56, plan on retiring in 9 years (or less) with $450K in retirement. With 9 years left, I'm unlikely to hit $2M in retirement. Ideas on best options for my situation?
This video is very helpful and I’m proud to be on the right track with these steps. But I am still hesitant about investing because I don’t understand the TAX implications on the investments,, especially the taxable brokerage. Could you explain more on that?
The 4% rule is pretty dumb when broken down. The idea should be to just take your annual amount and multiply it by the amount of years you plan to retire. Dividing any amount by .04 is the same as multiplying it by 25 therefore planning on 25 years of retirement money. Crazy
The concept is that it will grow somewhat. 4% rule is designed to cover a 30 year retirement.
Ramit and team are bulletproof. been waiting on this one thanks!
Finally someone who thinks like me!!!
That Robert Kiyosaki burn 😂😂
Okay... so, what if I wanna move to another country, and I'm NOT American?
Like I wanna go to working holidays in mutiple different countries before I turn 31 to decide which country that I wanna move to, The Netherlands, or Canada, MAYBE Austria, and I'm sure that I'm pretty sure that I'll go to Australia to working holiday for 3 years to earn more money, so that I can go to a country where I wanna move to to study Pop music, which is a feild that I wanna be in, to be a singer/producer
(Even though I haven't studied anything about music yet. But I'm REALLY PASSIONATE about music, ESPECIALLY early 2010's American Pop/EDM Pop/Electro Pop music. And I love some of the 2000's Pop Rock/Pop Punk/Emo singles too. And I know more of those things than most people who are NOT musicians.), to get a working visa after that. And The Netherlands is the country that I'm leaning towards the most NOW.
So... what do I do before I'm sure which country that I wanna move to before I ACTUALLY more there? And when that happen, I'll probably be 35 to 40? And I JUST turn 22 3 weeks ago. (And... I don't have a job now, and I probably won't have money to invest LITERALLY before I start working holiday before I turn 25. So what do I do between when I'm 25 to 35 or 40?)
Hopefully you'll see this question and answer it? Because I really need some guidance about this 🙏
If you plan to retire early and live more than 30 years you can use 3% rule instead of 4%. Don't forget to include dividends from stocks/ETFs. Good luck to all!
Curious as to where Traditional IRA and Roth 401k accounts fall into this ladder?
Check out the Money Guy show. Ramit isn't a financial advisor - he's a mindset guy. More strategy and big picture than tiny rules and tactics
Question. What is the difference between a target date fund and the robo advisor for vanguard? They seem to have the same strategy of moving funds from stocks to bonds
Can you explain why it’s best to be taxed at a 24-% tax bracket when I assume that my husband and I will pull out less than 6 figures a year for retirement and therefore should be taxed less?
I have been trying to understand all this investment stuff. If you make over $240,000 as a married couple can you put money into a Roth IRA?
Hello Ramit, I've been doing everthing you suggested. Unfortunately I do not have a 401k but, I do have a 403b. So, should I do the same with my 403b as you recommended for a 401k? Please help.
My goal is to die with more money than I retired with. Most will go to my 2 kids and a lot will be donated to charities. I max out my 401k (I split between pre-tax and Roth), and max out my family HSA, which is invested into an age-targeted fund with close to no fees (8% annualized return since 2020). I’ve also recently paid off my mortgage and opened an after tax brokerage account to stash that excess cash flow. I’m also saving for college into 529 plans. Now I just want to travel as much as my job would allow me.
Great advice. I will follow.
What is your take on Traditional IRAs? How to decide between traditional vs. roth IRAs?
Hello Ramit,
Thank you for everything since I follow your podcasts and your documentary on netflix where I discovered you.
I have one question. Please, could think that it will be interesting for me to buy your book wince I live in France.
I ask you that because I don't master the USA market.
Thank you again
This is all great. But the Dave Ramsey approach. If you want to finally have enough money to live when you’re in your late 60’s this is the way to go. He snubbed kiyosaki, but honestly I read rich dad poor dad when I was 24 bought first house same year, rented a unit, lived there for free and made additional income for 4 years, and then sold for over 100k profit after 4 yrs. I did not put any money down. This is the true path to wealth.
If you’re a married couple filing jointly and you make too much to contribute to a Roth, is there any way to use one? If not, I’m assuming you just skip that step and move onto the next. If you have children can you do anything better than a 529 plan?
My husband and I are federal employees and I was wondering if you could do a video for federal employees taking pension into account for retirement.
Yup, backdoor Roth. Google it, basically contribute to an individual IRA (you cant have any other funds in an IRA) and then you can covert it over. They might get rid of it in the future. So use it now!
Look into a back door Roth IRA.
Roth TSP doesn't have income limits. Same tax benefits as a Roth IRA.
@@123Mack08 I thought that I watched a video once about the pros and cons of TSP vs Roth TSP and remember leaving the video with the feeling that for our situation it was better to stay in the TSP. I’ll have to revisit.
Australia is so much simpler
Employers must contribute 15% to retirement each paycheque on top of wages.
Individuals can contribute 28k p.a as a tax dedication.
We then simply buy ETFs.
So much simple then all this.
Is this good for everyone plan or just Americans?
Weird I thought you’d talk about the mega backdoor Roth in plan conversion with your employer as the last step!
That one confuses a lot of people for some reason and isn't available to everyone also. I'm guessing he just wanted to keep it simple.
This is only applicable in USA, in Portugal we don't have 401K, or Roth IRA. We only have PPR that is the most similar to Roth IRA i think.
EU is getting pretty aligned on some of the retirement products - see new PEPP concept.
I'm not in Portugal though, so no idea if you already have it.
Also some of the member countries have multiple equivalents of what Ramit mentioned (pre/post tax accounts with or without employer's matching) on top of social security.
@@tomaszp2027 will looking for it. But I’m pretty sure in Portugal is only PPR products.
he has a u.k edition of his book
@@lowlowseesee I'm not in UK, in Portugal we have their book too.
6:30 Roth IRA
15:50 HSA Investments