FINANCIAL ADVISOR Explains: Retirement Plans for Beginners (401k, IRA, Roth 401k/IRA, 403b) 2024
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- Опубликовано: 31 май 2024
- In this video I go over an overview of retirement plans including the 401k, the IRA, the Roth versions (Roth 401k and IRA), as well as the SEP IRA, the 403b, and 457b plans. We also talk about the frequently asked questions many people have when it comes to investing in these retirement accounts. This is an updated video for 2023/2024.
Roth IRA/IRA Information: www.fidelity.com/learning-cen...
Timestamps:
0:00 - Start Here
0:43 - Traditional 401k
4:26 - Traditional IRA
5:52 - Roth 401k
7:44 - Roth IRA
9:57 - Self Employed IRA (SEP)
10:38 - 403b
11:34 - 457b
12:25 - Frequently Asked Questions
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Hi all thanks for watching! The 401k contribution limit in 2024 is $23,000. I verbally said it however we made a typo when editing. Just wanted to bring that to your attention! 🙏
Is it possible for you to make a video comparing the TSP (thrift Savings Plan) I had in the military to an IRA or a Roth IRA?
Thank you.
I’m interested to hear about transfer from traditional IRA to Roth IRA. Thanks!
can you give me advice about calsavers my company made my cal savers roth ira account and I am investing 5% of my biweekly there but i am confused should i transfer to Fidelity Roth ira or both of them are same . i am feeling confused,people are saying calsavers roth ira is not good enough? what do you think?
People have already done this video. Can you do something else?
Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 5 million dollars
If you’re new to investing or have a more complex financial situation, It can be helpful to work with a financial advisor who can provide personalized guidance and help you make informed investment decisions.
On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal port-folio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my port-folio this red season. I’ve made over $150k since then
Due to the market falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?
Sharon Lee Peoples is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I looked her up, and I have sent her an email. I hope she gets back to me soon. Thank you
The increasing tax rate is the reason I rolled over my 401k to a ROTH. I wouldn't want to be paying taxes on current income on withdrawals made from my retirement account. I have been maxing out my 401k, 457b and Roth IRA for the past decade. Two incomes doing the same. Grinding down hard in my 20s-30s to let it ride into my 40s and beyond.
Pre-tax contribution may help reduce tax in you pre-retirement years. While after-tax-contribution may help reduce your income tax burden during retirement.
Both have their advantages but is also very possible to save for retirement outside retirement plan, such as an individual investment account or employing the expertise of a retirement planner/advisor.
I have always thought of getting a financial guide, but I didn't know the way to go about it. I stay in a small town outside the big city.
Well.. I do not perceive location as a barrier. You dont have to be in the big city to get the help you need. All you need is to get an advisor who pays close attention to your financial objectives and provide you with the appropriate strategy tailored towards achieving those goals. A financial planner that is committed to acting in your best interest. In so doing, the location where you are will not be a problem.
Yeah you're correct. But the problem is i am not sure which expert to use. Any ideas?
I have been disabled since 2009 and I am 58 years old at the verge of retirement. My portfoliio of $750k is down to $492k, How can I profit from the present market" , I mean I've heard of people making upto $250k in couple weeks during this crash and I'd like to know how.
Avert too-good-to-be-true con tricks. Consult a fiduciary counselor; these professionals are among the best in the business and offer individualized guidance to clients based on their risk tolerance. There are undesirable ones, but some with a solid track record can be excellent.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
That's impressive, have you always had guidance?
I work with Jennifer Lea Jenson, who is a licensed fiduciary. Just look up the name. All the information you need to work with a letter to set up an appointment is included.
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
I am in my mid 40s, haven't begun my retirement plan and want my financial portfolio to be set to where I no longer have to worry about having enough financially. I am looking for your help please.
I totally agree with you. Get yourself a good financial manager and that is it, you are good to go.
If you are looking to begin your retirement, we have the best recommendation for you. Same one we used in setting up our retirement account.
@@jordynbaker2537 Regarding my first comment, I am really looking for the best help I can get, and the best recommendation will be best for me.
Her name is *Leticia Zavala Perkins* .
How can I get her contact?
You work for a 40yrs to have $1m in your retirement, meanwhile some people are putting just $10k in a bitcion coin for just fe months and now they are multimillionaires thanks to Charlotte Grace Miller
After I raised up to 125k trading with her I bought a new House and a car here in the states also paid for my son's surgery
Glory to God shalom.
Really you people know her? I was even thinking that I'm the only one she has helped walk through the fears and falls of trading
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
It's great to hear that you are considering investing in the stock market after being inspired by the success of Munger and Buffett with Berkshire Hathaway. Here are some key points to consider when investing a significant amount like the proceeds from selling your apartment:
Numerous compelling stocks span various industries for you to consider tracking. While it's not necessary to act on every prediction, enlisting the guidance of a financial advisor is advisable. They can assist you in determining optimal entry and exit points for purchasing and selling shares or ETFs, ensuring well-timed decisions aligned with your investment goals.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 4years+ and I've netted over 2.8million.
Kindly share the details for reaching your advisor. With inflation negatively affecting my funds, I'm in search of a more lucrative investment strategy to optimize their performance.
Leicia Zavala Perkins is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment
Most Americans find it hard to retire comfortably amid economy crisis. Some have close to nothing going into retirement, my question is, do I pull cash from my 401k and buy a house, or spread my money in stocks for cashflow? I'd love to afford my lifestyle after retirement?
For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs.The importance of having financial safety could be why boomers are turning towards advisors in retirement planning
A lot of folks downplay the role of advisors until being burnt by their own emotions. I needed a good strategy to plan for retirement, hence I engaged the services of a true market strategist to help rejuvenate my $700k portfolio and boost performance and returns by 40% in a little over four years.
There has been so much knowledge shared here, I'm at a crossroads with my portfolio and would like to see it grow in view of retirement. How can I reach this professional?
'Monica Selena Park' deserves credit as one of the finest portfolio managers in the industry. Her reputation precedes her, and I highly recommend exploring her work and you can locate her online if you are internet-savvy
I've come to realize that money is a tool. I’ve worked so hard over the years to realize that if you don’t make money work for you, you can’t experience true freedom. fully retired with over $3.5million, my dividends is supplementing my retirement at the moment. started saving and investing in 2010 in growth, No regrets and financially free
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value, my primary concern is how to maximize my savings/retirement fund of about £35k which has been sitting duck since forever with zero to no gains
I have my portfolio overseen by a California-based wealth advisor 'Martha Cornell Kerns', Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown
This is an amazing goal so many of us are striving for, Trying to build wealth and diversify assets. your advisor looks advanced and experienced. I wrote her and scheduled a phone call.
All the best. It’s a tough one to start
Please stop posting this. This gets posted every few videos and is a scam to get others to ask "how?" And recommend a shady financial advisor.
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
Yes, you are right. it's been a brisk tailwind for investors in US stocks over the decades but it is still a delicate season now, so I advise you to consider the guidance of a financial advisor.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
@@hunter-bourke21 Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.
*Camille Alicia Garcia* maintains an online presence. just make a simple search for her name online.
I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.
Not technically a retirement account but HSA should’ve been mentioned because it’s so tax advantaged and investible.
As someone who already is well-versed and familiar with most of the financial topics you discuss---I still watch every single video (and TikTok) of yours because you do an absolutely phenomenal job at explaining things in a clear and concise way. You are truly a gem and are helping so many people with the great advice you give. You seem like a genuinely nice guy who is doing what he loves for all the right reasons. Thank you and keep these quality videos coming! PS--Love the newsletter too.
So true 🙏🏾🤍
That is a super genuinely nice comment encryptx, thank you for watching and its comments like these that keep me going!
I'm 55 and semi-retired with IRA sitting in cash, but not impressed with growth so far. How can I take advantage of the current market to make gross profits and retire comfortably rich? Heard of folks that turned millionaires in shaky times like this
depends how much is 'comfortably rich' if you pinpoint a particular amount to retire with, then it's ideal to plan with a trusted advisor
Agreed, investing is plain-sailing with the help of a reputable advisor, and at first-hand experience, I've seen my investment portfolio of initial $500k yield into a 7 figure amount in a space of 2 years. I and my advisor intend reallocating into gold, recalling the 1929 crash.
I see no other way to maneuver steady profit and steer off losses in this current market except by expertise assistance, would you mind connecting mw with your advisr please? i'm in dire need of proper asset allocation
I've shuffled through a few advisors in the past, but settled with Katherine Nance Dietz, she's well-qualified and very easy to work with, her profile is noticeable on the internet.
thanks for the hint, just inputted Katherine Nance Dietz on my browser and found her consulting page, no sweat.. she seems valid
This has helped me understand a lot more than some of the other videos I've found. Thanks. New subscriber. :)
Thank you for such a clear, concise explanation! You have a gift for teaching. One of the best videos I've seen explaining these topics - coming from someone who is trying grow in financial literacy. Much appreciated!
I have a Roth IRA and a traditional 401k. Nice video! This year I really focused on my finances and saving money.
Thanks so much for this! You explained it so clearly and concisely.
Love your videos Humphrey! You’re ao good at this!!!
Thanks for such a great video about the retaiment account. It helped me understand these accounts very well. I am a long-term listener of your content. It was truly very informative 😊
Thank you so much for your information video. I learned a lot. God bless you.
Such a great video. Thank you
Thank you so much for this video! You explained it well and I was able to follow along as a newbie to these terms.
Just started my first job at 25 right after college and opened a Roth 401 k with my employer who also matches
Amazing presentation
I like the detailed explanation just so precise and detailed
It might be worth mentioning in your next update that if contributing to both 401K and IRA, only one is tax deductible - usually 401k since more money would likely go in there. I think that also makes Roth IRA more attractive than traditional for a lot of people.
Great video, thank you! Great videos for a middle aged working poor person. Helping me be positive about achieving some retirement goals
Liked, subscribed & forwarded to my friend who had investment questions. Great explanation.
great video! 👏👏👏👏👏
Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account.
Pre-tax contributions may help reduce income taxes in your pre-retirement years while after-tax contributions may help reduce your income tax burden during retirement.
Both have their perks but you can also save for retirement outside of a retirement plan, such as in an individual investment account or employing the services of a retirement planner/investment advisor.
I have thought about it, but haven't figured out how to get consultation, I don’t live in a big city.
Look for Monica Mary Strigle I am close to retirement with 1.4 M to my name outside of retirement accounts. I hired her services 3 years ago, she contributed immensely to my portfolio progress.
What is her fee structure like? Are her services available to about anyone? Can you share more details?
Thank you! Very simply put
I am maxing out my 401k, 457b and Roth IRA for the past decade. Two incomes doing the same. Grinding down hard in my 20s-30s to let it ride into my 40s and beyond.
Thank you for the video 🙏
I commented recently on one of your videos here but I have a work 401k that matches up to 6% so I elect 9-10%. I have a little money going into my Fidelity IRA on a monthly basis. I have a fidelity traditional IRA that I’m currently not contributing to as it was basically a roll over from a previous company. I also utilize CIT bank as my high yield savings account which I find to be real good and one of the more consistent ones. I have about a 770 credit score. Always trying to find the balance in savings as I am also saving to purchase a business in 2024. You are a calm breath of fresh air
I am a new follower of your channel Greetings from Sweden 😊
Natalie Carol Nielson, best adviser out there right now
Hi! I'm Divya from India. I'm learning US tax and really confused between 401(k) and IRA. This video really helped me. Thankyou.
Another fantastic video, thank you Humphrey!
Great 101 video. One on the new 529 to Roth would be great.
I was just about to comment at the very end but then you finally mentioned the BACKDOOR Roth IRA. Yeah!
“This is how I got rich”
The first step to attaining wealth is figuring out your goaIs and risk toIerance - either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financiaI growth over the years and enjoy the benefits of managing your money.
Is one source of income enough?
Great video. Very informative and helpful.
Love the videos, would you make a video off other countures form off high yield savings accounts, if possible think the way you do your research and presenting would be lot of help👌
Contributing to both a Traditional 401k and Roth 401k is more about tax optimization. Remeber the current tax deduction you get comes from your top marginal bracket down, when you withdraw you pay from the lowest bracket up. So a combo allow you to deduct the top bracke into a tradtional 401k today then put lower taxed money into Roth, then when you retirr, you can withdraw just enough from tradtional account to pay the lower tax brackets (0%-15%) and cover the rest using tax free Roth money. This way you avoid paying your higest taxe bracket today and when you retire.
It has become harder to retire now than in the past. I was saving instead of investing for a very long time, and now I just have about $516k and I don't know how to make it grow, with all the inflation, into something tangible I could retire with. Any ideas?
At a point like this, when the pressure is already on you to retire, it s best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
This is true. I worked as a financial advisor with Merrill Lynch and then as an independent financial manager. I have seen really great profits that can be made by picking the right stocks and making good profits quickly.
@@arthurworld9768 This is nice. I would really like to work with a financial advisor, but it's hard to find one online these days. I'll appreciate any recommendations made.
I don't like making such recommendations, but I know Monica Amanda McClure and she's been making really great profits. I think she has a website or something.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Match 13th so good time to see this for my ira
Thanks for such a concise and relevant overview!
I'm wondering about your thoughts on 'target date' retirement plans. My employer is matching me on both 401A and 457B accounts, but instead of providing details about specific index funds they're investing in, they recommended just signing up for a target date plan. I assume these are basically just balancing something like a Bogle 3 fund portfolio to favor bonds more as I get closer to retirement age, but it's concerning to me that information like the expense ratio doesn't seem very transparent...
David Marvin Willis, a knowledgeable financial advisor, suggests allocating a minimum of 15% of your income to a 401(k). Utilize online calculators to estimate the ideal savings based on your age and income. Saving at least 15% in a 401(k) ensures a comfortable retirement, leveraging compound interest for potential growth over time."
Your videos are well constructed and informative. May I ask that a topic be addressed? Long Term Care. I being retired face a strong possibility of LTC. Young people need to be aware of how to plan for this event. Insurance, annuities or whatever. the costs of LTC are terribly high. Please consider addressing this. thank you.
Hey Humphrey, when you mention the 401k would you say its interchangeable with the 403b as well? I have the same question as the first faq but have a 403b where i work
Is there some other restriction on the 15 year catch up on the 403b besides 3k per year and 15 maximum overall? Like if you've been maxing out the annual contribution in previous years, are you disqualified because there's nothing to catch up on? Or is that irrelevant?
Did you have thoughts on how to balance contributions when you have access to both 401k and Roth 401k? Always favored Roth because that pool of money should be much larger 30ish years down the road when I begin taking it out, but not necessarily on a per year basis and ideally would be retired by 60. Additionally, I do a Backdoor Roth IRA for the annual contribution limit each year which makes my net retirement very Roth-heavy currently.
One other thing about a traditional ira is the availability of many more investment opportunities
When you withdraw your contributions from a Roth IRA, are you able to put the money back in w/o it counting towards the yearly limit or no?
In addition to a 529 plan, what other account would you recommend for growing children’s savings?
Hello, I have a 403b question. I just found out my provider charges so much in fees. What can I do to get a new provider that charges less so I can get the best service. Also is there any provider you recommend that’s not so costly? Thanks for your time, love your channel and your wisdom by the way!
I have a couple questions
Is the roth ira income limit different for married filing joint?
Is the income considered toward the limit decreased with traditional 401k contributions. For instance say someone makes 150k and contributes 23k to their trad. 401k. Does the roth IRA income linit consider the 150k or the 127k?
Would you suggest becoming a financial advisor? What kind of training goes into that? Is it worth it?
can you give me advice about calsavers my company made my cal savers roth ira account and I am investing 5% of my biweekly there but i am confused should i transfer to Fidelity Roth ira or both of them are same . i am feeling confused,people are saying calsavers roth ira is not good enough? what do you think?
If you have a SEP IRA, does that replace your regular IRA, or can you contribute to both a SEP IRA and a Roth IRA?
Hey @humphrey if i want have tax befits while filing for tax I think we should show Traditional IRA balance or it works for Roth IRA
Not a retirement, but a 529 account for your children's education (not just college) is a great investment too! Not pre-tax sadly.
Is it ever a good idea to use a Roth IRA as a vehicle to save for a home down payment (especially if one has ample savings in an employer retirement plan)?
Does the military TSP (trad or Roth) fall under the 457b?
When should we do backdoor roth IRA to get the most benefit of it?
Do you need to have 401k, roth if you are planning on retiring earlier than 60 and able to take hands on the money? Do you think having just brokerage account is okay if your plan is that way?
Is the employer match in a Roth 401k taxable when you withdraw from it?
Ive been contributing to my 401K with my company and this year I will reach the limit. So now I want to contribute to IRA (I will probably have to do the backdoor IRA). Is this done with the company also? Or am I opening it on my own with fidelity or something?
appreciate the knowledge you've provided. Because this administration has putting so many families into difficult situations, I pray for our country, we need compassion for the American my country.
Things are getting worse these days, if you don't find a way to multiply your income, you might wake up one day and realize you did not plan well for yourself and families
I’m confused about the higher tax bracket if you’re still working after 59.5 years old with the traditional 401k
Can you go from a SEP. IRA to Roth IRA like people do with Trad. IRAs in a Backdoor Roth?
Nice video. In ither countries there are different rules, but its nice to know how it works in USA
For the 457b, the contribution limit is in addition to the 403b right?
Just to make sure I understand, let's say I don't retire by 60, the roth ira wouldn't get taxed because it's already been taxed correct?
I have a 401k account through my employer, i'm thinking about starting a Roth IRA. The 401k reduces my taxable income, but does a Roth IRA have any benefit in terms of taxes, something similar to the 401k?
it'd be so nice to have people like this but for canada
I'm in the US but I like watching Steph and Den who are Canadian finance RUclipsrs.
Any Thoughts on a TSP retirement plan
😱 wowie zowie. So cool 😂😂
A traditional 401k is still taxed for social security and Medicare. Keep in mind that some states do not tax retirement income.
So if I have my own Roth IRA on like m1 finance, and my company offers a Roth 403b or 457b (no match) does it make sense to open one or should I just keep my own Roth?
If you want to retire with more money, contribute as much as you can to Roth IRA and your company retirement plan.
Great video, trading come with a lot of benefits And
I have just bought my first house through it.
As a beginner I was scared of loosing my savings but
I’m glad I took the bold step that is now favoring me...
Congratulations.
I will love to be your friend dear as well.
as sharing some ideas which you're benefiting.
Thank You but is not luck, is all about having good investment
plans most of all trading with a trust worthy expert.
Watching professional trading videos and most especially
connecting with the right person the digital world is
full of in unreal people I met some of them during
my success journey. I felt same way when I started
especially when you use demo account you might
be winning but when you put in real money you start losing
I understand and I pass through it all. I’m very happy I’m profitable now.
Currently i can attest to the fact that I
make $15k weekly through trading
which is more better then my monthly salary job.
Trading becomes my passive income.
At first I was afraid too before I gave it a
try and realized that fear kills dream more than failure.
Great video! Will the employers match be the same for 401K Vs 401 Roth? Or is it employer dependent? Thanks.
Will depend on what your employer offers. Some won’t even offer both as an option to begin with
My employer offers both 401k types, the employer match is traditional 401k regardless of if my personal contributions are traditional or Roth. I assume it's similar everywhere because your employer is not interested in paying taxes at your rate as part of matching--assuming that's even possible. If it is possible, I assume the match is smaller because they'll take out taxes paid to the Roth 401k from the match.
I’m a federal employee and the TSP (fed government version of 401k) offers both traditional and Roth but all match goes to traditional. Never really thought about or asked why that was but what the person above said about the taxes makes perfect sense as to why that’s the case.
What about HSA for investment?
Question, for a Roth IRA, if you open up an account and begin contributing and a few years down the road you are now making more than the income limit and can no longer contribute. What happens to that account? Does it still continue to earn or must it be transferred into a different account?
For Roth IRA or any other account the balance grows or shrinks based on the investments within that account. If you reach income limit for *_direct_* contribution to Roth IRA, you may make *_indirect_* contribution via *_backdoor_* Roth IRA process.
here’s a question that may be a little dumb: what’s the difference contributing to a Roth IRA instead of just the fund itself. to explain, if my Roth IRA is contributed to the S&P 500, why not just the best of the S&P 500 itself? Why is it beneficial to be in a retirement account?
that’s actually a really good question, did anybody answer you yet maybe elsewhere? I am curious too
Because withdrawals are tax-free, no capital gains tax.
@3:40 When you say that the tax rate while not working after 60 will be so low that it wont really matter.... Is that really true? Although you wont have a fixed source of income from a job after retirement, you may still have alot of passive income which may infact bring you to a higher tax bracket when you retire. Also, 401k withdrawals are taxed like any other source of income. So if I plan to withdraw 100k each year from my 401k when I retire, I will still be in above 20% tax bracket.
I have a question that I hope you can answer...... Which is better, putting 25% in a Roth 401K that is not performing good at the point or putting 10% in Roth 401K and 15% in a saving account that pays 5%??????
I am setting up a Roth IRA for 2023 and will contribute the maximum of $7500 (I’m over 65 and I’m self-employed with a S Corp).
Does it matter if my contribution to my Roth IRA is from my personal savings or does my contribution need to come from my business’s account?
I want you to clarify the 401k Roth maximum for 2023. You said the max amount is 30k. Does it mean that for those above 50yrs, they can contribute 30k pretax and 30k post tax in 2023?
My company was just sold. So now I am trying ld that my 401k is subject to penalties if I don't transfer it to an IRA or pull it out since the new company isn't starting our new 401k plan until January 2025. I don't know what I should do. I don't want to be taxed by pulling it out. but everyone is telling me I should. What are the cons of moving it to an IRA for the next 6 months?
I’m 23 and have no idea what to do with a fidelity check I received from my previous employer…do I put it in a 401 or a Roth lol all this is so confusing
You mentioned that the total amount for a 401k, whether Roth or Traditional, is 23,000 (2024) combined. What about the IRA? Is that the same for both the Roth IRA and traditional IRA in which the max would be maxed out at $7K if under 50 years old? Or can we do $7K for regular IRA and $7K for a Roth IRA.
Traditional and Roth IRA's also share an annual contribution limit like 401k's. You can only do $7000 in total IRA contributions for 2024 if you're under 50.
@@tHebUm18 thank you.
hey humphery, can you send me links to vids and or websites to help me better navigate the voya retirement website. I have a bit of money in there and have no idea what I'm doing. Thx man
Hi Humphrey, is there a reason why you use the age of 59.5 years when saying "one of the biggest factors in deciding whether or not you should go with a traditional 401k or not is if you think you're still going to be working by the time you're 59.5"? I can not understand why 72/73 years are not used in your reasoning when required minimum distributions start and you actually pay taxes (or whatever age IRS be change it to by one's retirement). Because, I think most people who work past 59.5 years do not touch their 401k until they move to part-time or retire completely (this is just my opinion, I did not google statistics on it).
I work at a small company that doesn’t offer a 401k. As a result I do have both the traditional and Roth IRA accounts, but I found out a while ago that they share the same $6500 limit of contributions. Meaning if I contribute 3000 to the traditional account, I can only put 3500 into the Roth. My question is, which account should I be prioritizing currently? Or should I be splitting them equally
Roth = taxed contributions/ earnings will grow tax free. Traditional = contributions aren’t taxed yet/ earnings will be taxed once you withdraw
I prefer roth the idea of tax free growth is exciting.
Can a full time employee and also self employed still open a SEP IRA.
So what happens once you convert the traditional IRA into a ROTH IRA? Are you still able to continue to contribute to it even if you are above the income limit?
Converting traditional IRA to Roth IRA is taxable event which you can do regardless of your income level as income "limit" is irrelevant. You may also contribute to *_back door_* Roth IRA which bypasses income limit.
What is a IRA certificate?
I'm separating from the military and I was told I could not cash out my retirement account (called the TSP) because I would be penalized. I thought they meant indefinitely but it sounds like it won't be an issue once I'm officially separated? I guess I also have the option to just leave it in there to grow and can access it at any later point even if I've stopped contributing and am no longer active duty. I set up my own Roth IRA recently and will only be contributing to that for the moment.
Either keep your Thrift Savings Plan account or roll it over to traditional IRA. Max out your Roth IRA every year.
Hello, Im looking into starting a Roth IRA for myself, and both of my children (currently 5 and 7). by watching your videos i think i understand that you can take out as much as you put in without penalties but the "amount put in each year" doesnt change so you must wait until the following year to add another $6k. also i understand theres a 10% pentaly for withdrawing gains before retierment. i like the idea of the account growing into retirement tax free but it also leaves you without being able to use it as youd like when you want to. ive always been the guy that doesnt care about "retirement" because i want my investements to exceed my current income by 2-3x by the time im ready to retire so my question is, Can you use your roth IRA as collateral for a low interest loan, similar to a HELOC would be for an investment property?
your 5 & 7 year old need earned income for their Roth IRAs
@@alrocky my father owns the automotive repair shop I work at and I will become owner soon. at 6 y/o I can hire them and pay them tax free up to I believe $12,500/year
Hello Humphrey. Are you a fiduciary?
You can withdraw money penalty free if you terminate in the year you turn 55 or older.