Do you have all of these? If not what’s stopping you from adding additional financial stability to your life? These 5 will cover your basic needs: - Health and medical costs - Credit score building - Retirement plans - Day to day use You don’t need more than this as you can keep your money in investments such as: - Gold - Land - Crypto - Stocks - Real estate - Businesses Follow me if you liked this video and want to see more in the future. 🏡 How to Set Up A $2,500/mo Airbnb in 84 Days. 🔗Link on home page.
One Huge huge ask. Please speak slower and clearer. I watched many vids and love the info but have to translate often. If ur needing views ur doing a good job. This might be a tactic 😅
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement in 3 years.
Agreed, I'm in line with having an advisor oversee my day-to-day investing cos, my job doesn't permit me the time to analyze stocks myself. Thankfully, my portfolio has 5X in barely 4 years, summing up nearly $1m as of today.
I take guidance from an advisor Annette Marie Holt To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
1. HSA with Fidelity 2. Checking account with local credit union 3. High yield savings with Wealth front 4. Roth IRA Fidelity 5. Individual Brokerage account Vanguard
@@rosemarietolentino3218 Honestly, I have no idea. Random little "follow my financial advice" videos pop up in my list, and I watch some of them. I usually don't let them go on longer than 30 seconds. Most of them are terrible, i.e. "This is how I did it, so you should do it that way too!", when their situation was very unique. My comment was that this guy is just laying down simple advice that anyone can do. It's what my brother and I have both done; we're in our early 50's and will retire comfortably at 60. We didn't do anything special, just what the guy in the video is describing. (And we both started about 10 years ago, when we were in our early 40's.)
@@rosemarietolentino3218dave ramsey is Good. Alot of the real estate guys advice is basically outdated just in the last few years because of how insane the market has been under a certain administration… Anyway, what were we talking about? 😂
@@rosemarietolentino3218 I don't really watch anyone. I've never looked to YT for financial advice. I was fortunate to get started with financial literacy when I was a teenager and made a point to educate myself as much as possible. I was working in taxes before I graduated high school (my dad had his own tax accounting office), and that helped a lot in seeing a wide variety of clients' finances and how their taxes were affected. I wrote my post above because I have most of the accounts he mentions in this video. I don't have an HSA because I don't need one (my employer provided health ins covers 100% of my medical expenses; but for anyone that doesn't have this kind of coverage, an HSA is a huge benefit.) I have the other four accounts that he mentioned, in addition to a few other kinds, and part of my financial strategy is exactly what he talks about. It has worked well for me; I plan to retire in a few years, at age 60, with a very comfortable sustained income and it is mostly due to the kind of strategy he suggests. It's simple and it works.
Keep in mind that there are eligibility requirements for an HSA. You must have qualifying high-deductible health insurance and meet some other requirements.
To get any benefit from an HSA bank account you need to have an HSA qualifying medical insurance plan. You can’t just open one up & think you get the tax benefits of it.
Well most people know they are going to have medical expenses during the year so why pay for that post tax when you can save a decent amount of money using a tax free account as long as it qualifies you're golden
@@deonb2331because HSAs are not the best option for those who go to the doctor or use their insurance a lot. PPOs you pay more per month but the deductible is lower For young healthy people, HSA for the win. For those who need to go to the doctor more, PPO
An HSA does not need to be tied to a health insurance plan, most HSA's these days load the funds directly onto a debit card and you just use the debit card to cover your out of pocket expenses.
@@devingeary455 That is not correct! To open an HSA bank account you need to have an HSA or HDHP medical plan as a prerequisite. I am an insurance broker and I do health insuranace for a living.
Technically withdrawals are free in a Roth IRA…but there are stipulations…you have to have the account for 5 years AND any profits you make in the account will be subject to tax. You are NOT taxed the money going in AFTER 5 years…
Problem with credit unions are their portfolios are lacking. “Many”(not all) do not offer 24/7 support. Irksome traveling and have an issue out of timezone. Additionally every time I needed a loan … denied. But somehow , somehow Citi or chase approved. So I’d say your miles may vary.
Hi there, registered financial advisor here. An HSA account can be a big help to a lot of people. BUT you have to have the right kind of health insurance plan in order to qualify. If you have Medicare or Medicaid you cannot open an HSA. If you have any health plan other than a High Deductible Health Plan you cannot open one of these accounts without paying a tax penalty.
I have all 5. Six actually (IRA). I can no longer contribute to the HSA because I no longer have high-deductible health insurance. Consequently I've stopped pulling funds from it as I've decided to invest what's in there to save/grow it for later use.
4 out of 5 are great advice but my ex as a recent retiree is that a conventional IRA can beat a Roth IRA if 1) you have paid off your mortgage by the time you retired so that you do not need as much income in retirement as you did while working. This means you are in a lower top federal tax bracket when retired (12 % vs. 24% in my case). In my state (GA) up to about 65,000/yr of yor retirement income (SS, pension, IRA withdrawals) if you are 65 or older. This means that income that avoid a top fed + state marginal rate of 30% via a traditional 401k contribution now has a marginal tax rate of only 12% now that I am retired.
In Canada and if I can remember correctly high savings accounts are tired accounts in some banks. There are high savings tax-free accounts. But most of the higher saving account you need a lot off money in it
Personally, I would choose a financial institution like Vanguard or Fidelity or T Rowe Price, and leave the “ATM banks” - especially Bank of America - out of my financial planning.
Credit unions are fine unless you travel and have an issue. The big banks have branches everywhere and 24/7 customer service. If your credit union is in FL, and you lose your debit card in CA, you're screwed. Happened to my sister, it's a real issue. if you need a car loan or a mortgage, definitely agree on CU. For personal banking? Not so much.
Credit union for local banking is fine. IMO you should use a credit card for purchases anyway so that thieves and skimmers don’t have access to your actual money. Then pay off the ENTIRE balance. I pay off my CC every week. Never hold a balance and never pay interest.
False. Most CU's have 24/7 customer service lines. Also, most credit unions have agreements with other credit unions that allow you to use any participating CU branches you're not a member of as your own. I lived in LA for 2 years but stuck with my GA credit union and did all my banking through local credit union branches in LA. Never opened any accounts with them. Could they have cut me a new debit card same-day. Probably not. But they did everything else you'd need a branch to do. Using a CC is always smarter than using Debit anyways and worst case scenario you can still pull out cash fee free.
Not sure what you mean about banking is better at the local level? Often times their technology is slower than bigger banks, and mostly you just need to have a direct deposit to avoid monthly maintenance fees. Also, service levels are usually better both online and over the phone, and lastly if you have fraud you need a bank that fronts you the money while they investigate so you can pay your bills and right after the fraud happens rather then be out of money when it wasn’t your fault .
The entire fdic fund cant cover 10% of standard accounts under 250k, that 8 million in coverage might be there for 0.5% of those accounts, and only for those who are the fastest.
An HSA you need to participate in a HDHP.... If you don't have one and the alternative is a PPO, An FSA which you will need to calculate What you spend in 1 year under your Health Insurance.It's a lose it or use it policy.... Roth IRA In order to directly contribute to them, you need to earn up to the max contribution but also earn under the MAGI limit for your tax situation set by the IRS For that year. The value is a financial professional or qualified tax person can analyze your situation if you And above the threshold there is a process called conversion where money moves from a traditional to a roth IRA with taxes due... It has to be done in a very specific way or the I r s can assess a penalty.
FDIC coverage is $250k per person, per ownership category (individual, joint, trust, etc), AND per institution. The example he shows says $8 million through partner banks. There is a company that allows you to essentially spread funds out to achieve much more than normal.
Start young no matter how small the savings/investing!! When I was in my 20-40’s kept saying I'll do this later. Now I'm in my 50’s and really having to scramble save/invest a lot with retirement coming soon.
NEVER keep any more money in the bank than you need for check to check expenses, high yields or not. Try and keep at least 3 months worth of cash in your possession that covers ALL expenses. In this day and age, no IRAs. Simply open an account (which are no cost) and select the top stocks invest portfolios buy. Most people do not know that you do not own the stocks or even money in your accounts. You "loan" that money to the investment entity who then loan and invest against your deposits and stocks up to 100 times or more. To preserve your savings buy silver and gold. Invest only that which you can afford to lose. FDIC insurance is a joke. There is 1.3 penny for every dollar in the banking system! If the government had not illegally covered Silicon valley bank, the FDIC would have run out of money. They saved millionaires from losing money.
you need a qualifying medical insurance plan to have an HSA. you cant just go open one up and start putting money into it, second. It doesnt grown at all, ZERO interest BUT it helps IF you dont have the money to pay for the medical expenses at that moment. it doesnt give you THAT much benefits because you are allowed a certain amount PER YEAR to deposit as an individual. you cant deposit whatever you cant in there.
Taxable if you didn’t already pay the taxes to the traditional IRA contribution. You only have to pay any gains that you’re taking from the back door roll over.
I bank with Ally. Credit unions are not as good as people say, I use Schwab for Roth IRA and brokerage, HYSA is Ally. HSA requires a health policy that lets u do one
the only problem here is that you have to have money when you open these accounts. you may have to skip this if youre living paycheck to paycheck like most people i know.
An HSA account is also a good retirement account because any money you don't use your can rollover to an IRA after age 65. I don't believe any accounts are government insured for $8 milllion.
FDIC insurance does not go up to $8 million. What the bank does is place your money at various other banks up to $250M which is the FDIC maximum. You could do all of that or just go to Wells Fargo and ask them for a high yield savings account. If one of those other smaller lenders fail, you’re gonna have a fun time getting your money back. Just stay with the big banks they’re not going out of business.
From what I understand, Wealthfront isn't a bank. They're a brokerage that can sweep your money into their partnering FDIC insured banks so that each bank your money is swept to has about the same 250k limit. This spread means higher FDIC insurance. 🤔
HYSA accounts are stupid when you can get a brokerage account at fidelity whose core is SPAXX. Get a treasury direct account and buy Tbills with a higher interest rate and is not state taxed.
I wish I had been more diligent in doing this when I was younger but I've come out ok. However, we are in for some very difficult days ahead on many fronts as our politicians have kicked the can down the road. Sooner or later you have to pay the piper.
Why would you have an HSA and a roth IRA with fidelity and then an individual brokerage with vanguard? Why dont you use fidelity for the brokerage too?
You know what’s crazy and absolutely insane. Having all your money at the discretion of the markets. You should diversify your investments. To have your risk managed.
I've looked into HSAs multiple times and they just seem like a waste. I will admit I'm not the most money savvy person but taking your money and throwing it into an account that you can't use for anything else and then still having to pay for Insurance ontop of said account and the only way it becomes useful is if you NEVER touch that money until retirement? Meaning in the interim if I do end up having a health expense I pay out of pocket rather than the HSA? Never heard someone make it make sense to me.
No one has ever been able to explain a Roth IRA to me where it doesn’t sound pointless. ROTH IRAs are POST TAX, and the government waives penalties if you withdraw before a certain age. 59.5 I believe. So it’s just a savings account WITH MORE RULES?! The only benefit I could fathom is that the FDIC calculates them separately when insuring your deposits.
The money you put into a Roth IRA is Post Tax, so when you draw from that account during retirement, you don't have to pay any tax since the government already got their bite of it before you put the money in. 401K doesn't get taxed when you put into it, but when you draw from it in retirement, you have to pay taxes then. in short: pulling 100k from your roth IRA is 100K in your pocket, pulling 100k from 401k is 70K in your pocket and 30K in dear old Uncle Sam's pocket. generally speaking Roth IRA is better than 401K unless you have an employer match.
@@jonasbaine3538 what does that matter the Econ is F'd. I live in South Subs of Chicago and you have to make 60,000 to be considered middle class 90% of people I know don't make that much as you have to be in a treat out here to do so. If you have a 20-25 dollar an hour job you are still living paycheck to paycheck it is. If I was make the same amount that I am 15 years ago I would be would have been way better off. They need to do something as they are getting rid of the middle class and no one sees it.
Why have a Roth IRA and an HSA at Fidelity and then have a brokerage at vanguard when you can buy that same fund at Fidelity and have one place to log in to view and manage everything?
If you follow good financial practices, you won't be poor. For example, spending $100/week on lottery tickets, which is common among the poorest people, guarantees continued poverty.
@@deonb2331 30 days... I'm new to them so not entirely familiar but I highly recommend doing some research... From what I've heard is Banks buy treasury bills to make high interest off clients funds while paying the client only a tiny portion of a percent in interest, which the client is taxed at federal, state whereas the t-bills are only taxed by feds (no state or local taxes).
I sometimes have a couple of dollars left at the end of the month. Provably can save about 30 dollars a year if nothing goes wrong, how much do these things cost?
@JustBustedd I sleep 6 hours a night and work 3 jobs. I have over 9,000 dollars to shell out every month just for mortgage, insurance, and taxes. It was half that just a few years ago.
I do all the above. Except for the IRA since I’m over the limit to contribute. Another good Vangaurd index fund is VTSAX and VFIAX. Minimum of 3k is needed to start. Made 25% in 23. Stock market broke new records. So is the home values, lowest unemployment and highest jobs growth. Thanks President Biden. I’m voting Biden 24 all the way. Trump really messed things up back then and worse now, since he’s crying about everything, and his party is so split and fighting each other.
Roth IRA withdraws are not “tax free” no matter the circumstances. You pay taxes on them as you contribute. So when you retire, the taxes are already taken care of. 401k’s are the opposite, you don’t pay taxes on them until you withdraw at retirement.
@@Kyle17206 yes. Essentially you are just betting that the tax rate today will be lower than the tax rate at your retirement age. And the growth of your portfolio is yours to keep.
@@kylelawson9420 no, you pay tax on what you contribute only. Any growth is not taxed. By the time you retire your growth will heavily outweigh what you contributed
When doing weekly into VTI, are there fees associated with each deposit? Would you recommend doing this on a little less frequent ie biweekly or monthly to have lower overall fees and therefore better returns?
You’re not all that smart Mr! An IRA is not a good place to stick your money for so many reasons the other savings accounts you gotta have a lot to put in there over 10,000 to to get the high yield or more and I don’t think I want to tell you what the best place cause you won’t believe it. But it’s out there.😮
Do you have all of these?
If not what’s stopping you from adding additional financial stability to your life?
These 5 will cover your basic needs:
- Health and medical costs
- Credit score building
- Retirement plans
- Day to day use
You don’t need more than this as you can keep your money in investments such as:
- Gold
- Land
- Crypto
- Stocks
- Real estate
- Businesses
Follow me if you liked this video and want to see more in the future.
🏡 How to Set Up A $2,500/mo Airbnb in 84 Days.
🔗Link on home page.
You need to rewatch this. There isn't a #4.
So bro what was no. 4?
One Huge huge ask. Please speak slower and clearer. I watched many vids and love the info but have to translate often. If ur needing views ur doing a good job. This might be a tactic 😅
What is VTI?
Not everyone qualifies for an HSA
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement in 3 years.
consider financial advisory so you don’t keep switching it up... those sound like great picks anyways, not bad for $350k.
Agreed, I'm in line with having an advisor oversee my day-to-day investing cos, my job doesn't permit me the time to analyze stocks myself. Thankfully, my portfolio has 5X in barely 4 years, summing up nearly $1m as of today.
@@hasede-lg9hj this is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing
this is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing
I take guidance from an advisor Annette Marie Holt To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
1. HSA with Fidelity
2. Checking account with local credit union
3. High yield savings with Wealth front
4. Roth IRA Fidelity
5. Individual Brokerage account Vanguard
Gracias
Merci
Bonus: Open a brokerage account, last comment is the 5th account.
Thank you
If I have a 401k, do I need a Roth Ira?
Honest, straight to the point, no overselling, real advice. You've earned a follow
Credit union teller here, this is rock solid advice
For real... I have a small town credit union in Wisconsin and have been still using it after moving to Alaska, the internet rules!
Bless your heart, young lady. I’ve been in banking for over 20 years and we hire tellers off the street.
@@user-ns4sp8jz3v 20 years? that's it?
@user-ns4sp8jz3v Well, yeah. Where else? I'm setting up my new office this week as an officer. Show your tellers that you care and they'll excel.
@MLFortes426 Giant differences. Be extra nice to your teller this week.
This is solid, simple advice. Much better than nearly all the financial advice I've seen on YT.
Who are you watching?
@@rosemarietolentino3218 Honestly, I have no idea. Random little "follow my financial advice" videos pop up in my list, and I watch some of them. I usually don't let them go on longer than 30 seconds. Most of them are terrible, i.e. "This is how I did it, so you should do it that way too!", when their situation was very unique.
My comment was that this guy is just laying down simple advice that anyone can do. It's what my brother and I have both done; we're in our early 50's and will retire comfortably at 60. We didn't do anything special, just what the guy in the video is describing. (And we both started about 10 years ago, when we were in our early 40's.)
@@rosemarietolentino3218dave ramsey is
Good. Alot of the real estate guys advice is basically outdated just in the last few years because of how insane the market has been under a certain administration…
Anyway, what were we talking about? 😂
@@rosemarietolentino3218 I don't really watch anyone. I've never looked to YT for financial advice. I was fortunate to get started with financial literacy when I was a teenager and made a point to educate myself as much as possible. I was working in taxes before I graduated high school (my dad had his own tax accounting office), and that helped a lot in seeing a wide variety of clients' finances and how their taxes were affected.
I wrote my post above because I have most of the accounts he mentions in this video. I don't have an HSA because I don't need one (my employer provided health ins covers 100% of my medical expenses; but for anyone that doesn't have this kind of coverage, an HSA is a huge benefit.) I have the other four accounts that he mentioned, in addition to a few other kinds, and part of my financial strategy is exactly what he talks about. It has worked well for me; I plan to retire in a few years, at age 60, with a very comfortable sustained income and it is mostly due to the kind of strategy he suggests. It's simple and it works.
Keep in mind that there are eligibility requirements for an HSA. You must have qualifying high-deductible health insurance and meet some other requirements.
To get any benefit from an HSA bank account you need to have an HSA qualifying medical insurance plan. You can’t just open one up & think you get the tax benefits of it.
Well most people know they are going to have medical expenses during the year so why pay for that post tax when you can save a decent amount of money using a tax free account as long as it qualifies you're golden
@@deonb2331because HSAs are not the best option for those who go to the doctor or use their insurance a lot. PPOs you pay more per month but the deductible is lower
For young healthy people, HSA for the win. For those who need to go to the doctor more, PPO
An HSA does not need to be tied to a health insurance plan, most HSA's these days load the funds directly onto a debit card and you just use the debit card to cover your out of pocket expenses.
@@devingeary455 That is not correct! To open an HSA bank account you need to have an HSA or HDHP medical plan as a prerequisite. I am an insurance broker and I do health insuranace for a living.
@@devingeary455
Which Ones Does That, & Who Has The Better One's 🙄⁉️
Lowkey thought this was the “$1 or mystery gift?” Guy 😂😭
They’re brothers
😭😭😭😭
😭 No wonder he didnt save his mustache or theyd look alike
@@ratis8289 they look like brothers 😂
Yes. I am a 75 year old lady. I agree with all the suggestions, especially opening a Roth IRA. MUCH BETTER IN THE LONG RUN THAN A 401k.
@@howiekim1400 I was only commenting on the types of investments. I don't know anything about the presenter.
I like credit unions too. Plus you can go to other credit unions to pull out money without having to pay an extra fee👍
WOW! You are the first person offering genuinely smart and honest products! You are going to hit mega viral soon!!
Technically withdrawals are free in a Roth IRA…but there are stipulations…you have to have the account for 5 years AND any profits you make in the account will be subject to tax. You are NOT taxed the money going in AFTER 5 years…
Problem with credit unions are their portfolios are lacking. “Many”(not all) do not offer 24/7 support. Irksome traveling and have an issue out of timezone. Additionally every time I needed a loan … denied. But somehow , somehow Citi or chase approved. So I’d say your miles may vary.
Hi there, registered financial advisor here. An HSA account can be a big help to a lot of people. BUT you have to have the right kind of health insurance plan in order to qualify. If you have Medicare or Medicaid you cannot open an HSA. If you have any health plan other than a High Deductible Health Plan you cannot open one of these accounts without paying a tax penalty.
Excellent advice! My Mom got me started on Roths in the late 90’s . Just turned 59 1/2. Have anoy$200,00 I can draw out tax free a gain of over 100 %!
Rule #1: have money to invest
Get a job
The more you make, the more you spend
Not when ur young. You can get roommates and live in a nice apartment and save money. Mindset goals.
True. Until a roommate fails to make payments and then you are stuck with more than half if not all of the rent
@@miguelg7609 Stop letting the fear of unlikely worse case scenarios from letting you try at all.
He forgot to say at the end, Drake please collab
I was like why does this guy look soo familiar
I have all 5. Six actually (IRA). I can no longer contribute to the HSA because I no longer have high-deductible health insurance. Consequently I've stopped pulling funds from it as I've decided to invest what's in there to save/grow it for later use.
4 out of 5 are great advice but my ex as a recent retiree is that a conventional IRA can beat a Roth IRA if 1) you have paid off your mortgage by the time you retired so that you do not need as much income in retirement as you did while working. This means you are in a lower top federal tax bracket when retired (12 % vs. 24% in my case). In my state (GA) up to about 65,000/yr of yor retirement income (SS, pension, IRA withdrawals) if you are 65 or older. This means that income that avoid a top fed + state marginal rate of 30% via a traditional 401k contribution now has a marginal tax rate of only 12% now that I am retired.
In Canada and if I can remember correctly high savings accounts are tired accounts in some banks. There are high savings tax-free accounts. But most of the higher saving account you need a lot off money in it
Personally, I would choose a financial institution like Vanguard or Fidelity or T Rowe Price, and leave the “ATM banks” - especially Bank of America - out of my financial planning.
Your list went 123, then 5. I guess your bonus for the brokerage account can be number 5. Thanks for your work.
Credit unions are fine unless you travel and have an issue. The big banks have branches everywhere and 24/7 customer service. If your credit union is in FL, and you lose your debit card in CA, you're screwed. Happened to my sister, it's a real issue. if you need a car loan or a mortgage, definitely agree on CU. For personal banking? Not so much.
Credit union for local banking is fine. IMO you should use a credit card for purchases anyway so that thieves and skimmers don’t have access to your actual money. Then pay off the ENTIRE balance.
I pay off my CC every week. Never hold a balance and never pay interest.
False. Most CU's have 24/7 customer service lines. Also, most credit unions have agreements with other credit unions that allow you to use any participating CU branches you're not a member of as your own. I lived in LA for 2 years but stuck with my GA credit union and did all my banking through local credit union branches in LA. Never opened any accounts with them. Could they have cut me a new debit card same-day. Probably not. But they did everything else you'd need a branch to do. Using a CC is always smarter than using Debit anyways and worst case scenario you can still pull out cash fee free.
I travel and have never had an issue with my credit union.
Not sure what you mean about banking is better at the local level? Often times their technology is slower than bigger banks, and mostly you just need to have a direct deposit to avoid monthly maintenance fees. Also, service levels are usually better both online and over the phone, and lastly if you have fraud you need a bank that fronts you the money while they investigate so you can pay your bills and right after the fraud happens rather then be out of money when it wasn’t your fault .
Thank you for this-especially the “Bonus”….. just last night my daughter asked what to do with her money. Apple isn’t listening at all. 👀🤣
Roth only benefits those who don’t have write offs, are not in their prime years. Traditional helps lower your prime earning years AGI.
The entire fdic fund cant cover 10% of standard accounts under 250k, that 8 million in coverage might be there for 0.5% of those accounts, and only for those who are the fastest.
Solid advice. I would open up a money market account over a savings though.
An HSA you need to participate in a HDHP.... If you don't have one and the alternative is a PPO,
An FSA which you will need to calculate What you spend in 1 year under your Health Insurance.It's a lose it or use it policy.... Roth IRA In order to directly contribute to them, you need to earn up to the max contribution but also earn under the MAGI limit for your tax situation set by the IRS For that year. The value is a financial professional or qualified tax person can analyze your situation if you And above the threshold there is a process called conversion where money moves from a traditional to a roth IRA with taxes due... It has to be done in a very specific way or the I r s can assess a penalty.
A short for finance guy…giving real and legitimately good advice? Sub immediately
Im pretty sure FDIC only insures up to 250k
It does lmao anywhere claiming 8 million is a huge red flag
I believe the way investment companies make this work is by having multiple program banks so if you have >250k they scatter your insured assets.
FDIC coverage is $250k per person, per ownership category (individual, joint, trust, etc), AND per institution. The example he shows says $8 million through partner banks. There is a company that allows you to essentially spread funds out to achieve much more than normal.
def do #3 yall!! im gettin 200 a month just storing my money. it started at 80 but the more i add to it the more interest accrues.
Withdrawals when you almost dying is tax free 😂
Compound interest will be an easy hundreds of thousands for little to no work
@@javierreyes786yeah you have to add money every month until you’re 50 years old
When u 65 and can’t physically work, u will need money.
U probably gonna be that old man still working lol
Vanguard is a great option.
I have an index fund through USAA that does really well, but as far as i know not everyone has access to that
Step 1: Have 100k to play with
I.e. skip Starbucks
@@epbrown01 let me guess, step 2 is stop buying avocado on toast? leave the chat, boomer
@@adhizzle9985 How the heck do you know the avocado toast comeback yet not get the joke?
You don't need $100k
I've got family members doing similar things with less than $50/month.
Slow progress is better than no progress
Start young no matter how small the savings/investing!! When I was in my 20-40’s kept saying I'll do this later. Now I'm in my 50’s and really having to scramble save/invest a lot with retirement coming soon.
25 you can put $5 a month in a Mutual Fund and you will have the same amount as a 55 year old putting $500 a month till thy are 65.
I am over simplifying it.
Credit unions can limit business growth. Great for personal banking and raising personal credit.
HYSA only pay when the Fed rates go up.
NEVER keep any more money in the bank than you need for check to check expenses, high yields or not. Try and keep at least 3 months worth of cash in your possession that covers ALL expenses. In this day and age, no IRAs. Simply open an account (which are no cost) and select the top stocks invest portfolios buy. Most people do not know that you do not own the stocks or even money in your accounts. You "loan" that money to the investment entity who then loan and invest against your deposits and stocks up to 100 times or more. To preserve your savings buy silver and gold. Invest only that which you can afford to lose. FDIC insurance is a joke. There is 1.3 penny for every dollar in the banking system! If the government had not illegally covered Silicon valley bank, the FDIC would have run out of money. They saved millionaires from losing money.
HSA is great until they start making you prove every visit is eligible for payment.
you need a qualifying medical insurance plan to have an HSA. you cant just go open one up and start putting money into it, second. It doesnt grown at all, ZERO interest BUT it helps IF you dont have the money to pay for the medical expenses at that moment. it doesnt give you THAT much benefits because you are allowed a certain amount PER YEAR to deposit as an individual. you cant deposit whatever you cant in there.
Roths have income limits although you can do a conversion, but that is a taxable event.
Taxable if you didn’t already pay the taxes to the traditional IRA contribution. You only have to pay any gains that you’re taking from the back door roll over.
I skipped the high yield savings and buy 1 month treasury bills split up for a buy every week.
Second I’m 18 I’m going to the bank then opening these 5 things, keep up the content you’ve given people a lot of motivation and ideas
Thanks for the comment! Best of lucks 🤝🏼🙌🏻
You can do most all this at a brokerage (Schwab) save $$ no fees. Yes checking too
I bank with Ally. Credit unions are not as good as people say, I use Schwab for Roth IRA and brokerage, HYSA is Ally. HSA requires a health policy that lets u do one
Great advice, unfortunately not everyone can open an HSA though, gotta have a high deductible health care plan.
the only problem here is that you have to have money when you open these accounts. you may have to skip this if youre living paycheck to paycheck like most people i know.
An HSA account is also a good retirement account because any money you don't use your can rollover to an IRA after age 65. I don't believe any accounts are government insured for $8 milllion.
FDIC insurance does not go up to $8 million. What the bank does is place your money at various other banks up to $250M which is the FDIC maximum. You could do all of that or just go to Wells Fargo and ask them for a high yield savings account. If one of those other smaller lenders fail, you’re gonna have a fun time getting your money back. Just stay with the big banks they’re not going out of business.
Wealthfront uses a network of 32 FDIC insured banks.
Savings accounts a few years ago were paying .1% in interest
Keep it simple: open all of these in Fidelity + Local bank. Why bother with multiple logins?
Step 1: Make enough money that you can afford to put money into 5 separate accounts.
My guy skipped #4 and wants to give people financial advice 😂
Good catch, start your own channel 🎉
@@oscarblend Hard pass, I have a productive life and contribute to society.
Productive picking up people mistakes on shorts?
@@tubeo94you didn't catch it so obviously you didn't listen
Productive people don't write cavil comments.
I wish I had some money to put in a account 😮😮😮😮
I agree with you on some of the parts, but anyone who immigrated to the US will most likely not invest unless they believe
I was under the impression that FDIC only insures up to 250K per account
They do in regular banks .
From what I understand, Wealthfront isn't a bank. They're a brokerage that can sweep your money into their partnering FDIC insured banks so that each bank your money is swept to has about the same 250k limit. This spread means higher FDIC insurance. 🤔
Still is kinda
HSA is a hassle to use and if you buy from the store everything is overpriced and they don’t have actual health essentials.
Finally! Somebody with good financial advice
Why not a treasury bill versus a high yield savings account?
And then go to a coin shop and buy some yellow coins. Some silver ones too. Use dollar cost averaging to add to your stack.
HYSA accounts are stupid when you can get a brokerage account at fidelity whose core is SPAXX. Get a treasury direct account and buy Tbills with a higher interest rate and is not state taxed.
There are many who cannot open an HSA because of the rules. First you have to have a high deductible health insurance plan
Could you make the same video but for canadians ? 😅
I wish I had been more diligent in doing this when I was younger but I've come out ok. However, we are in for some very difficult days ahead on many fronts as our politicians have kicked the can down the road. Sooner or later you have to pay the piper.
Why would you have an HSA and a roth IRA with fidelity and then an individual brokerage with vanguard? Why dont you use fidelity for the brokerage too?
You know what’s crazy and absolutely insane. Having all your money at the discretion of the markets. You should diversify your investments. To have your risk managed.
I've looked into HSAs multiple times and they just seem like a waste. I will admit I'm not the most money savvy person but taking your money and throwing it into an account that you can't use for anything else and then still having to pay for Insurance ontop of said account and the only way it becomes useful is if you NEVER touch that money until retirement? Meaning in the interim if I do end up having a health expense I pay out of pocket rather than the HSA? Never heard someone make it make sense to me.
No one has ever been able to explain a Roth IRA to me where it doesn’t sound pointless. ROTH IRAs are POST TAX, and the government waives penalties if you withdraw before a certain age. 59.5 I believe. So it’s just a savings account WITH MORE RULES?! The only benefit I could fathom is that the FDIC calculates them separately when insuring your deposits.
The money you put into a Roth IRA is Post Tax, so when you draw from that account during retirement, you don't have to pay any tax since the government already got their bite of it before you put the money in. 401K doesn't get taxed when you put into it, but when you draw from it in retirement, you have to pay taxes then. in short: pulling 100k from your roth IRA is 100K in your pocket, pulling 100k from 401k is 70K in your pocket and 30K in dear old Uncle Sam's pocket. generally speaking Roth IRA is better than 401K unless you have an employer match.
That's exactly what it is. I just opened up a Roth CD w a high yield % u can contribute the max 7k. It's not all bad
The Goal is to buy assets that will grow your money I. Roth IRA. Def works..
a lot easier said then done when we don't even make enough to be considered middle class when I work 40 hours a week.
annual income??
@@jonasbaine3538 what does that matter the Econ is F'd. I live in South Subs of Chicago and you have to make 60,000 to be considered middle class 90% of people I know don't make that much as you have to be in a treat out here to do so. If you have a 20-25 dollar an hour job you are still living paycheck to paycheck it is. If I was make the same amount that I am 15 years ago I would be would have been way better off. They need to do something as they are getting rid of the middle class and no one sees it.
Agree with the rest, especially the roth, but screw vanguard. Wouldn't piss on them to put them out if they were on fire.
Why have a Roth IRA and an HSA at Fidelity and then have a brokerage at vanguard when you can buy that same fund at Fidelity and have one place to log in to view and manage everything?
Rule #1: Don't be poor.
If you follow good financial practices, you won't be poor. For example, spending $100/week on lottery tickets, which is common among the poorest people, guarantees continued poverty.
Can you record a video and talking about how to manage all these accounts please?
Super underrated!! You should get one...
This is actually very solid advice..
Federal Treasury Bills are performing better than HYSA's. ~5.5% every 30 days and no state or local taxes.
Wait so I'm kinda new to all this but you can put 100k into a t bill and in 30 days you can get 5k back no tax?
Or is 5 percent annualized?
@@deonb2331 30 days... I'm new to them so not entirely familiar but I highly recommend doing some research... From what I've heard is Banks buy treasury bills to make high interest off clients funds while paying the client only a tiny portion of a percent in interest, which the client is taxed at federal, state whereas the t-bills are only taxed by feds (no state or local taxes).
@@deonb2331annual
I got’em all! But no money to put in them for a few years now.😢
Literally dropped a whole course in a youtube short. 🔥🔥
I sometimes have a couple of dollars left at the end of the month.
Provably can save about 30 dollars a year if nothing goes wrong, how much do these things cost?
@JustBustedd I sleep 6 hours a night and work 3 jobs.
I have over 9,000 dollars to shell out every month just for mortgage, insurance, and taxes.
It was half that just a few years ago.
For that bonus, nothing says saving money like funding ESG and DEI.
@@howiekim1400 No shit lol.
I do all the above. Except for the IRA since I’m over the limit to contribute.
Another good Vangaurd index fund is VTSAX and VFIAX. Minimum of 3k is needed to start. Made 25% in 23. Stock market broke new records. So is the home values, lowest unemployment and highest jobs growth. Thanks President Biden. I’m voting Biden 24 all the way. Trump really messed things up back then and worse now, since he’s crying about everything, and his party is so split and fighting each other.
Roth IRA withdraws are not “tax free” no matter the circumstances. You pay taxes on them as you contribute. So when you retire, the taxes are already taken care of. 401k’s are the opposite, you don’t pay taxes on them until you withdraw at retirement.
Tax free growth
@@Kyle17206 yes. Essentially you are just betting that the tax rate today will be lower than the tax rate at your retirement age. And the growth of your portfolio is yours to keep.
@@kylelawson9420 no, you pay tax on what you contribute only. Any growth is not taxed. By the time you retire your growth will heavily outweigh what you contributed
U can take out ur initial investments from roth i think..idk about 401s though
having over millions.. i have NONE OF THESES SOMEONE IS BLOOD CLOT CRAZY!
Watched this expecting it to be bait or GRQ but very solid advice.
Don’t help vanguard keep ruining the housing market by buying FULL housing subdivisions to rent out driving costs sky high.
Very appreciated definitely helps people...
Now if I just had the money to put into those accounts.
A lot of times you can’t get the higher tier medical insurance with an Hsa only fsa
I bet he did 1, 2, 3, 5, bonus to increase engagement.
I’m doing the same set of services in my area. Thanks for articulating this
When doing weekly into VTI, are there fees associated with each deposit? Would you recommend doing this on a little less frequent ie biweekly or monthly to have lower overall fees and therefore better returns?
Not everyone can contribute to a Roth IRA or a regular IRA. There are income limits
Problem with Roth IRA is that I will most likely not be alive by the time I retire, if I even can retire
Then you won’t have to worry…but if you do live……..that’s the scary part.
@@griggs3d damned if you do, damned if you don't!
My suggestion, figure out a way to increase your income! Somehow, someway.
@@mikewilliams5948 ooooh dang why didn't I think of that! Silly me! 😞
Roth IRA has some pretty restrictive income limits unless you are doing back door Roths, which are getting harder. All the other items are sound
Backdoor Roth is very easy to do.
You’re not all that smart Mr! An IRA is not a good place to stick your money for so many reasons the other savings accounts you gotta have a lot to put in there over 10,000 to to get the high yield or more and I don’t think I want to tell you what the best place cause you won’t believe it. But it’s out there.😮
As a licensed health advisor in 21 states. There are a lot better options then hsa
Counterpoint, fuck Black Rock and all the stupid investments they make into real estate driving prices up. The rest is good advice though
Dude I’m pretty sure it’s only fdic insured for all bank members for that amount of money
How can Wealthfront get up to $8M FDIC Insurance when all other actual major banks only get up to 250K? Please advise.