Roth IRA vs 401K - How to Retire Faster
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- Опубликовано: 20 дек 2022
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This serves as an eye opener for a lot of people who have no retirement plan for themselves. Having worked for so long it is only normal to have financial freedom at retirement, splendid job there.
There seems to be some underlying conditions to each of the plans, and I think one needs to know the implications and earnings involved.
One would've almost thought 401k was the best but for the taxes involved. Still I think it's better as long as the amount you invest duplicates.
There are ways to simply retire early and earn better but all it takes is to pay attention to platforms that can grow your profit with proper hints. But where you can't have these procedures you are bound to make wrong investments.
So how would you know the safest to invest in with minimum flop but better earning?
I have always wanted to invest my earnings for more gains but it's been difficult to know how to go about it, I must say that with these comparisons, i need my own account.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time. I retired with about $650k in my 401k.
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
@@sommersalt88 I completely agree; I am 66 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, i didn't achieve all this on my own, i did it with the help of a Financial advisor. Just do your due diligence to identify a fiduciary one and the rest is history.
@@CynthiaByrd648 This is exactly how i wish to get my finances coordinated ahead or retirement. Can you recommend the financial advisor you used to get ahead?
Do your due diligence, and be on the lookout for one with strategies to help your portfolio maintain an unwavering and progressive growth. "Jill Marie Carroll" is responsible for my portfolio success, and I believe she has the qualifications & expertise to meet your goals.
@@CynthiaByrd648 This is useful information; I copied her full name and pasted it into my browser; her website popped up immediately and her qualifications are excellent; thanks for sharing.
The thought of retirement makes me cry. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension 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 my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
@@james.atkins88 I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?
@@Kim.beneteau Julia Ann Finnicum, is my adviser and she is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@@james.atkins88 Thanks for sharing this. I did my own little research, and your advisor looks advanced and experienced. I wrote her and dialed her twice but she didn't pick up so I scheduled a phone call. She is experience can't wait to have a chat. I hope she doesn't ignore me.
The 401k is good, because retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million. So it really does.
My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. Haha.
Having an investment advisor is the best way to go about the market right now, especially for near retirees, I've been in touch with an advisor for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $520K during this dip, that made it clear there's more to the market that we average joes don't know
@@esther.74 wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
The thing is that I really don't like making such recommendations. But there are many freelance investment advisors you could check out. I have been working with “Elise Marie Terry” for about four years now, and she's made decent returns. If she meets your discretion, then you could go ahead.
@@esther.74 Thank you for this tip. it was easy to find your coach. Did my due diligence on her before engaging her services. She seems proficient considering her résumé.
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
Please can you leave the info of your investment advisor here? I’m in dire need for one.
Looked up her name and her website popped up immediately, interesting stuff so far, about to schedule a session with her.
That’s correct if it’s a traditional 401k. If your employer offers a Roth 401k then take advantage of both.
Wow,you have a good paying job.
Long term capital gains tax is 10% vs income tax is 20% rather go pre tax and pay 10% later
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. Retirement choices determine a lot of things. Currently working overseas but will return to my home country in the near future. I'm a landlord. I invested in property at the age of 22. Value has soared and renting out. Will live on the rental income I receive and live with my aging parents for the time being. At 60 I can withdraw from my superannuation (401(k)) worth about $1.7m.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
@@stevensmiddlemass2072 It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $51k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great advisors will always make returns.
@@TeresaBrickle think this is something I should do, but I've been stalling for a long time now and i don't wanna caught unawares by retirement. I don't really know which advisor to work with; I feel they are all the same.
I definitely share your sentiment about these advisors. When I was starting out, I checked out a couple of freelance advisors online, so you could do the same. I personally work with “Stacie Kristal Weber”, and she's really good.
@@TeresaBrickle I might have heard this name somewhere, but can't really recall. I'll be following her up. Thank you. Do you know if she manages family fund too?
We experienced the peak of our era, and now it is gone. Recession is tanking everything including 401K. My retirement equities portfolio of $750K is in the reds. I keep losing because of inflation. This world will fall to the corrupt rulers in the same way that Rome did. I'm sorry if you're thinking about retiring and you're worried that your pension won't be enough to meet the rising cost of living. Horrible foreign policies everywhere, bad regulatory policy, bad fiscal policy, and bad energy policy.
For retirees and those close to retirement, I believe it's particularly challenging. All those years of labor only to lose it all to a problem you weren't responsible for, my regrets to everyone retiring during this time.
I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
After the pandemic, things became extremely difficult, which is precisely when I sought a consultant's counsel. I've been investing on my own for nearly 3 years and have built up a stagnant reserve of $280K to $570K in just over 24 months.
@@hermanramos7092 I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?
@@hermanramos7092 Thanks for sharing this. I did my own little research, and your advisor looks advanced and experienced. I wrote her and dialed her twice but she didn't pick up so I scheduled a phone call.
I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?
Given the current market situation and the precarious state of the economy, I would recommend refraining from investing in stocks for a while or, alternatively, seeking guidance from a financial advisor. However, keeping a portion of your wealth in gold remains a wise choice.
@@tatianastarcic I find your situation fascinating.
Would you be willing to suggest a trusted advisor you've worked with?
@@maiadazz I would find a local advisor in your area. It’s always nice to see them in person
There are actually a lot of ways to make high yields in a crisis, but such trades are best done under the supervision of Financial advisor.
My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in the US.
As with any big financial decision, it’s important to keep your guard up for economic risks. However, smart planning, time management and seeking advice from a financial adviser can help keep you and your money safe.
@@BillAdamson-bp9ff I agree with you. I ventured into stock with less than $100K, and now I'm about 17K short of half a million dollars. Credits to Jennifer Puckett Hunter. She's verifiable.
@@RickMckee-nq4ni Fantastic! can u share more details?
@@RickMckee-nq4ni 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've just retired recently and I must say I found this video informative and great to review. These psychological concepts are much more useful for individuals attempting to avoid mistakes than I realized when I was first introduced to them. This is probably why Warren Buffett talks so much about temperament being crucial to his investing success.
Developing a solid financial portfolio is more difficult, therefore I suggest you seek expert assistance. The ideas you receive after that can be tailored to your long-term goals and financial desires.
Personally, I would say have a mentor. Not sure where you will get an experience one, but if your knowledge of the market is limited, it seems like a good bet.
The issue is this! Most often, those with little to no experience in the stock market attempt to buy on their own. It previously occurred to me, but I learned from it and contacted "Colleen Janie Towe” a finance expert with offices in the US, and everything changed. I earned $370k so far in the first quarter of this year.
@@joshbarney114Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate a way to reach Colleen.
@@harwellron1289You can quickly do a web check where you can connect with her, and do your research with her full names mentioned..
As I near retirement, securing the stability of my 401k after the tumultuous year of 2022 is of utmost importance. I've heard stories of investors achieving up to $270k in ROI during this ongoing market downturn. Any guidance on how to improve my ROI before retirement would be greatly appreciated.
There are strategies capable of delivering consistent gains irrespective of economic or market conditions, but these are typically implemented by seasoned investment experts or advisors.
For near retirees, having an investment advisor is the way to go. I've been with one because I lack the expertise and emotional fortitude for market ups and downs. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks realise.
Could you kindly share the contact information for your financial advisor here? I'm in urgent need of one.
Hello! Stacey Lee Decker is my advis0r. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online.
She seems highly educated and informed. I looked up her name on Google and found her website. Thanks for sharing.
When choosing between these types of funds, it's important to consider your invest-ment goals, and the fees associated with each type of fund. its important to carefully consider the potential risks and drawbacks associated with each type of investment fund before making decisions. I’ve seen of people losing over $650k to the volatile market
For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.
When I first started hunting for a steady passive income, I had my share of ups and downs, so I hired an experienced advisor for help, and following her advice, I poured $100k in value stocks and digital assets, and I am up $800k so far.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
My consultant is “Sharon Louise Count”, She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision. I basically follow her trade pattern and haven’t regretted doing so
Her website immediately showed once I copied and pasted her complete name into my browser; her credentials are outstanding; thanks for sharing.
I’m so happy I made productive decisions about my finances that changed my life forever. I’m a single mother living in Melbourne Australia, bought my second house in September and hoping to retire next year at 50 if things keep going smoothly for me.
@@alexanderfinlay9639 Sorry for late reply sweetie, I used the FIRE movement to put my finances in order. Then lnvested in stocks, though the assistance of an lnvestment Pro who helped me make it this big....
@@alexanderfinlay9639 @Donna Di Lanni> my guide?.......she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the guru online, on the off chance that you're interested. I made no regrets about substantially adhering to her exchange strategy.
@Jake Farmers she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the
50?! You look 30.
@jakefarmers2900 fake
I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k. Somehow this video has helped shed light on some things, but I'm confused about the current market volatility, I'm a newbie and I'm open to ideas.
Investing in stocks can be a wise decision, especially if you have a reliable trading system that can lead you to fruitful days of success.
Your no nonsense delivery and content has skyrocketed you to one of my favorite channels now. You are doing fantastic work, sir!
That's pretty good info. I didn't know about the hybrid Roth 401K. I learned something new.
probably one of the best channels explainnig things ppl actually need to know in terms they understand without BS.. thank you!
So glad you covered the matching of the employer at the end. Absolutely take advantage of that. I'm contributing to both. I'm doing the matching my company does to my 401k and then contribute to a Roth Ira via direct deposit every pay check.
Almost 45. Graduated college and then ended up taking care of my mother till last year when she passed (rural area so my degree was useless). Working as a line chef this entire time. Basically earning 30k a year poor. Now that she has passed and I am able to have extra money on hand I am looking into figuring out the retirement options. 401k are pretty much rare in my area, and especially in my occupation. Going to try to max out a Roth IRA for the next decade and a half and hope for growth. Being poor sucks.
3 books to read:
1-Total Money Makeover by Dave Ramsey
2- The Richest Man In Babylon by George C. Clason ( foreword by Dave Ramsey)
3- The Intelligent Investor by Benjamin Graham
You will soon after be on your way to being better off
Please make more videos like this. Thanks for the education!!!
Hands down the best channel on financial advice! Have subed and shared with friends and family because of how practical and helpful you are
I’ve watched many videos trying to understand this, and this is BY FAR the best one, thank you !!
The 401k is good, because retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million. So it really does. It's also a very quick way for people who are close to retirement but with little money accrued. I wish more people knew about things like this.
@Margaret I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
@@c.t.u.o Having a counselor is essential for portfolio diversification. My advisor is NICOLE DESIREE SIMON who is easily searchable and has extensive knowledge of the financial markets.
Awesome! today I learned about Roth 401k. I hope when you talk about the Roth IRA back door, some how you mention SEP IRA's too. Have a good day Brian!
Another very simple and easy to understand educational video that every single person can benefit from. This free content is so valuable. Thanks again, Brian.
I'm so glad and grateful I found your channel and subscribed. Thank you for this video.
Thank you so much for describing the difference in Roth and regular 401k. I needed this ❤
Hello i don’t respond to all my subscribers comments accordingly let’s takeout the opportunity and talk on this topic now.
Thank you so much for this information.
Thank you for this comparison. I’ve been following you for a few years now daily!
Thank You for all the help. I liked the video and I subscribed long time ago
In 1998 I changed my new contributions to the new Roth IRA. Now that I am retired, and over 72, I am so happy with my decision. My IRA is smallish, making the RMD also smallish. When I could I did do some Roth conversions too. Uncle Sam is not a partner in my Roth.
i always get scared w these videos bc i’m intimidated by all the new info, but i actually learned so much!! thank u for making this so accessible 😊
First person to talk to simply on the Roth 401k company option! Thank you!
My wife and I both contribute to our 401s and also have a back door Roth IRA. Great video!
Clear and concise. Learned more in 10 minutes then school ever taught me in regards to retirement . THANK YOU AGAIN BRIAN, and happy holidays!
How much tax on 401k?
Basically, I think it’s recommended that you receive your companies full match, try and max out Roth IRA and based on your calcs for maxing out the Roth, put that excess back in your companies 401k.
thanks for all your videos and always appreciate all your contents. It would be nice to have video on more details on 401k such as traditional vs roth and how taxes are applied and which direction is bettter based person's situation.
You are awesome and thank you for the education! Your content has helped me to understand more important aspects.
Brian, thank you for a year full of calm advice and financial interpretation! I hope you have terrific holidays and a bountiful 2023!!
This is great advice. If I can teach my kids one thing it will be to max out a Roth IRA every year. I wish I would have.
Thank you for your videos, this is my new favorite finance channel
Thank you for sharing this important information, lots of blessings to you and your close ones 🙏🏽
I like that you added diagrams but also still made the video audio listener friendly still
401k plans are also protected from lawsuits and bankruptcy under the Employee Retirement Income Security Act. ERISA laws establish the rules and protections for retirement accounts. Under ERISA, 100 percent of your 401k plan is exempt from creditor collections.
Thank you for your time and service may you and your family have a Blessed Holiday.
Thank you for creating this video. I learned something new going to think about this and go for which one that suits me.
You're Awesome! Thank You!
Perfect video Brian! Thank you!
Thanks Brian! I will share this with people I know too.
Omg I am so grateful for this video I've been wanting some clarifying regarding the differences and benefits of these two
in my 3rd year of business school to become a CPA. you are a true inspiration
Great information. Thank you .
Hi Brian! Thank you for your generosity of knowledge helping people who need this kind of information. May you have more blessings of all sorts!
Great job of teaching sir great job many thanks.
Thanks as always!
I have both 401k and Roth IRA. I will be opening a Spousal Roth IRA for my wife at the beginning of 2023. Thanks for the info.
Clear and concise. Thank you for your time and expertise!
Great video, and I love the Roth IRA and Roth 401k!
Please note that employer contributions to Roths (401K, TSP, etc...) are different. The contributions from your employer and any resulting investment earnings are taxed as income in the year that the money is withdrawn.
Very good basic breakdown. Company match on Roth 401k also considered pre-tax contribution. Something to consider
My company’s match on the Roth 401k didnt go into the Roth side but the non-Roth side.
Good one! I used to do 401k and Roth IRA but ever since my company offered the Roth 401k 2 years ago, I have been maxing out both ROTH 401k and Roth IRA. My goal is to have 50/50 pre/post tax when I retire. Just waiting for your future videos on when to invest additional savings for retirement when the market is bottoming out. Its a rush to the finish line for me within the next few years. Good luck everyone.
I like the 50/50 idea (or a mix in general) which is why I don't mind leaving my company's match in the pre-tax bucket while I make Roth contributions in my 401k... did you notice any major differences (paycheck, yearly taxes, etc) when you switched from Traditional to Roth contributions?
@Tommy Abernethy Yes depending on the portion of your salary contribution. For example, you will notice a bigger paycheck difference between 6% of 50,000 vs 6% of 100,000. Keep in mind that this may reduce or disqualify you from your ROTH IRA contribution depending on how much you make as traditional 401k method reduces overall MAGI, and ROTH 401k does not.
Perfectly explained. Thanks for the visual representations as well 👍🏼
Thank you for the information. Very helpful! Love your channel!
If you want to do a balance approach, always contribute to a 401(k) at least to the match limit. Also, try to contribute to a Roth all (or as much as possible) at the beginning of the year to have as much time as possible to grow.
I agree
Not quite the best approach if the market is on the way down. For most people, who aren't expert market analysts, the safest bet is to spread out Roth contributions over the entire year.
This should be rudimentary advice our parents should have given us. Mine never did but I’ll definitely be teaching my kids.
We tried! They didn’t all listen! 😆🤦♂️🙄
I totally agree with you.
It's not possible for your parents to teach you this because in your parent's day there was no 401K they had something much better. They had a company paid for pension.
They can't teach you new rules that didn't even exist back then.
By time yours kids are adults the rules may change again.
@@marshalepage5330 except many pensions and companies went belly up and many people have 0. Only good pension is a government backed pension.
This feels like life changing information really enjoyed this don’t remember ever hearing it an it stick this easy thanks simple to understand
Great info!
It's too late for me, but I'm sending this to my son. Thanks again.
One of my biggest regrets was not opening up a Roth IRA at a younger age.
Great info as usual thank you
Very helpful, ty!
Excellent information. It's very kind of you to share this for free. Like you said most CPAs will charge you a consultation fee for this golden information.
Great Video Brian!
We have a 401k and a Roth through my husband’s employer. We also decided to switch to an HSA in 2023. I will be more diligent in tax deductions in general this next year and definitely live smarter in the tax sense because I’m realizing we aren’t getting any younger and retiring is looking bleak for many people. I dont want to be one of those people 😢
HSA 👍
@@edenterra870 yes, never really looking into it til this year. I know we are late to the game but better late than never!
There is more than one type of a Roth: an employer sponsored version (Roth 401k) *and* an individual Roth IRA (that you would open yourself at a brokerage like Vanguard).
If you and your husband are able, both of you can open an individual Roth, separate from his employer Roth 401k.
We have a Roth 401K, 401K , HSA and pension. We also contribute to our kids 529 plans.
Thanks so much for all the info you share!
Thank you so so much for that overview!
I also use a spreadsheet to model the year to year income and tax expenses between 401K and Roth IRA from start of employment to end of life expectancy, quite useful for people who want to compare the numbers
Can you share the spreadsheet?
Happy Wednesday Brian 😊 wishing you & yours a blessed holiday season ❤️🎄⛄️
THank you Freebird, it's always so wonderful to see you!
Instructive. Thank you !
I got a second Roth when I was fired from my office job and went full time with my side gig. If you are able to get your own side business up and running that can mean an additional 20-26K/year into a second Roth IRA. Loaded up my Solo401K Roth with TSLA and PLTR as they are on sale right now. Always watch Brian and consult a local pro for advice kids, Good Luck and happy investing in 2023!
Bro Tsla is never going back to where it was
Contribution limit for solo Roth 401k is $66,000 if you include the employer contribution, and since you are self employed it’s basically the same as your own contribution.
@@bradyjames6666 It'll go beyond Bro.
@@bradyjames6666 Okay clown
Great vid. I’m an estate planning attorney (also in Chicago!), and there is another massive benefit to a Roth inre succession/gifting at death. Inherited Roth beneficiaries won’t have income taxes to pay unlike an inherited 401k. Can’t understate how much simpler that makes estate administrations let alone planning
Its obvious why because the Roth has already been taxed while the non-roth 401K hasn't been taxed yet. The beneficiaries need to pay tax on any inherited non-roth IRA accounts also. The person owning the Roth didn't have RMDs, but the beneficiaries are required to withdraw from the account. The bigger advantage is not in the Roth or the 401K system. If the person who died have a portfolio of stocks, those stocks can be transferred to the beneficiaries and the cost basis can be reset to the current value. That is a HUGE advantage that even the Roth or 401K system doesn't allow. All the capital gains which would have been taxed will not be taxed due to the cost basis reset. However, there is still a limit due to inheritance laws. Fun stuff.
You are so amazing. Your explanations are easy to digest and make financials enjoyable to watch. You add no fluff and get straight to the point. You are changing lives as we speak
Hello i don’t respond to all my subscribers comments accordingly let’s takeout the opportunity and talk on this topic now.
Very informative thank you kind sir!
Glad I subscribe to your channel and get the notifications on you new uploads, again home run on this one.. Thanks for the update. One question with the Roth IRA are your earning taxable once you draw on your account after the retirement age?
Roth 401Ks and Roth IRAs are tax free when you draw down during retirement.
@@DeuceDeadly74 Does that include your profits as well?
@@ronchildres2451 yes. The appreciation (profit) can be taken down tax free at retirement.
@@DeuceDeadly74 appreciate your assistance
Interested in learning more about the backdoor Roth IRA. Love the Roth 401k account, wish my employer offered that.
Thank you for this video! I was just trying to compare the two.
This is A LOT of good information ℹ️! Thank you!!
Thanks my job offers matching 401K I’m gonna sign up next month!
Why wait?
I triple clicked the like 🤘🏼 you rock Brian!
You rock Jimenezmf911!
You the man Brian. Thanks for everything big dawg
This is fantastic info and great video editing!
If you change companies, then strongly consider rolling over your 401k into a traditional IRA instead of the new company’s 401k. Like Brian said, you get much more investment freedom in an IRA. It’s basically a tax free brokerage account if you like to create your own portfolio, make trades, options, and you can grab any ETF you want like SPX or QQQ or XLE. And you can contribute $6000 per year.
I have both, wish I know about ROTH IRA when I was in my teen. I'd started very late. 😐
Thank you for your videos.
Thanks for ALL you do Brian!!!!
The limits shouldn’t matter in this decision since you can max out you Roth then contribute to a 401K to invents to total same amount regardless of which you choose.
I'd say contribute up to your match % on 401k then max out your Roth and if you want to contribute anymore do so into your 401k. In that sense you 1) lower your taxable income / put money into the 401k / reap the most benefits up to the match % and 2) then reap the benfits of tax-free into roth and 3) then going into 401k after is just for lower taxable income yet again.
Can't do that if you make to much money to contribute to a Roth IRA.
@josefarias111 Roth IRA is based on Modified adjustment growth income so even with the any tax deductions to get under the 153k threshold it wouldn’t help you in that instance but yes it’s still beneficial to get the tax reduction in general. I do agree that contributing up to your employer match is the way to go first if they offer it. Overall though I think the Roth 401k would be the best of both worlds if your company offers it I guess the only downside for that would be your investment options would be limited like the regular 401k.
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