401k Alternatives To Keep More Money

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. The 401k isn't the best investment tool out there. In this video we go over many 401(k) alternatives so you can keep more of your money
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401k Alternatives To Keep More Money
0:10 - Some of the biggest cons of investing in the 401k
0:40 - Why people were upset to learn the truth about the 401k & the 401k should not be your sole investment
1:08 - What Ted Benna is the father of the 401k and says the 401k is failing American people
1:48 - The first 401k alternative is the Roth 401k
2:24 - Tax differences between your Traditional 401(k) vs. Roth 401(k)
4:07 - The second 401k alternative is thinking outside of the box - the investment match
5:10 - Instead of a 401k match what I created for my employees
6:08 - The third 401k alternative that’ll let you save huge amounts of money in fees
6:55 - How much your 401k fees might cost you
8:19 - Are 401k fees worth it?
9:12 - The fourth and BEST 401k alternative to grow your money tax free
9:55 - How to grow your money tax free in real estate
11:03 - More tax breaks that come with real estate
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This Video: • 401k Alternatives To K...
Channel: / minoritymindset
Video host: Jaspreet Singh

[@MinorityMindset]

Thank you for watching! If you enjoyed this video, you should watch - The TRUTH About Your 401(k) That No One Tells You: kzbin.info/www/bejne/aorHnZamrdt5bMU

[@TheeJew25]

Great video, great content, and that investment match is a great idea. I see the benefit for both employer and employee. Keep up the great videos with that great attitude. Personally I would like to see a video "What is the best first home purchase." Standard family, duplex, triplex, quadplex, type of neighborhood, etc. Or whatever the Minority Mindset take is, of course haha.

[@josesaavedra6988]

Hey Jaspreet, what's your take on ESOP?

[@luly8083]

Do you have any recommendations on health insurance for an entrepreneur with kids? Thanks in advance.

[@atjosh1112]

What are your thoughts on self directed or Individual 401k's? I'm talking about the type of self directed 401k that isn't market based.

[@Je.rone_]

It is not uncommon for people i encounter to put money into a 401k and have no idea about how much is in it, how their money is invested, how much comes out of their pay(some people don't even know it is coming out their pay) and fees, etc It's hard to manage your personal finances if you have no idea what's going on.

[@MinorityMindset]

First step is education

[@jamie49868]

I imagine if they are that clueless, that they would not be investing if not for their 401k plan. I know many people that say they can do better and don't join the 401k, but somehow never seem to invest in those other things they say they would do so well at. They know their investment value at all times.....$0.00!

[@ezeamadi5151]

no matter what you invest in you better understand it or you're bound to take an L...just because somebody doesn't know is not an excuse to not learn...

[@Je.rone_]

@@ezeamadi5151 I'm in accordance with that statement

[@ryanwalker3509]

If it just sits in a target date that may be for the best for some people.

[@RealLifeMoney]

These fees are ridiculous especially since many are hidden. We have to communicate with our employers!

[@tqdinh2]

RealLife Money - Weekly Financial Videos 😂

[@ElTokeMaestro]

RealLife Money - Weekly Financial Videos I don’t get charge that much of fees on my 401k

[@jaysant6958]

@@ElTokeMaestroHow so? I’m guessing you invest in index funds with your 401k?

[@JohnnyD5]

Jaspreet, you the man! Love the advice you give; so honest, straight-forward, and most importantly, logical.

[@beyoutiful257]

This is great. I’ve been a banker for 20+ years and I’m still young, 42. And almost everything I’ve said is coming to fruition. Learn how to save, invest etc. there’s no guarantee you’ll be around until you’re almost 60, you may need your funds (who wants to pay interest borrowing against money you’ve saved) .... people are waking up and I’m excited!

[@ucherichardegbu5739]

someone who die before 60yrs what will happen to his 401k...????

[@MM-ng5wc]

???

[@JC_inc]

@@ucherichardegbu5739 Great question

[@digitalmaijiin6236]

@@ucherichardegbu5739 Write a will early, I got help writing mine at 19. Not having the government fuck over my family with petty disputes 😐

[@e-spy]

@@ucherichardegbu5739 my kids will be rich!

[@MR3DDev]

"No one knows how taxes are going to look in the future" Yes we do. Taxes will be higher in the future, there is no doubt about that.

[@MinorityMindset]

🤣🤣🤣

[@titonothere6179]

So why on earth do young ppl procrastinate on their taxes for the future? Bruhhh ppl will be hurting in 2050 if they postpone their taxes for the future.

[@suleman3006]

TechYK this is what people said in the 70s guess what taxes are lower

[@MR3DDev]

@@suleman3006 Unfortunately doesn't apply to our times, you see politicians moving more and more towards the left. Today's republicans looks like old school Democrats and today's Democrats look like a communist party. Given the fact that they are campaigning for more social government services there is no way taxes will be lower in the future

[@chillombia]

Really? I'm sure no one saw that coming in 2001 with the latest tax cuts.

[@SourceImpressions]

I've heard Robert K. say this so many times. But when you say it now it makes so much more sense. Thank you for this one.

[@ddillard143]

So here's the best way to utilize what you just said. Convert your 401k into a self-directed Roth 401k and invest in rental properties as well as the index funds

[@tqdinh2]

DD 😂

[@unemployable1747]

Owning rental property in a tax deferred account is generally a horrible idea. Rental property is naturally tax deferred through depreciation deductions and repairs. As such most people dont end up with taxable income, so to keep it in a ira is pointless as there is no taxable income to defer. You are better off holding dividend stocks in ira, and property in your name/LLC name.

[@ddillard143]

@@unemployable1747 rental properties are still one of the best ways to get cashflow without being tied to Wall Street or without selling off an asset. Plus, I said a Roth so it's tax-free not tax-deferred. In a Roth you would never have to pay taxes on growth no distribution for you nor your beneficiaries. When you pass away your beneficiaries control yourself directed Roth 401k into the OWN self-directed Roth 401k. That means that real estate property makes you and your descendants text free money pretty much indefinitely. Unless you have a better idea

[@unemployable1747]

@@ddillard143 I don't think you understand what I'm saying. You can own rentals. I own rentals and I agree that is a great way to create wealth. Just dont do it in a Roth or Traditional IRA. You can google why it is "tax inefficient" to understand better. Yes a Roth has tax free growth, but most people don't have taxable income on rentals, so there is no tax free growth. Think of it like having a treasury bill in your retirement account. Rental property dosen't have a tax effect if you die, again you can google why. They only time you will pay taxes is if you sell for a profit and don't reinvest via a 831 exchange. The only other time it's an issue is after 27.5 years and you don't have any more depreciation to deduct, and you would just 831 exchange to a bigger place to regain the deduction.

[@ddillard143]

@@unemployable1747 no I understand what you're saying. I was just saying if you're going to have a retirement account why not let it be self-directed, in a Roth and own real estate property in it? You can still have your business in real estate outside of your Roth. But you might as well used to Safe redundancy of having real estate also in your retirement account. After all you got to have something in your retirement account and having stocks does it allow you to have cash flow in your future years without selling off the asset. And you know that inside of Roth that the rental income is tax-free right? And I say this knowing that appreciation depreciation is not affected inside a retirement account so I definitely agree with you about losing that benefit

[@elohcin42]

I could listen to your voice all day long, love all of your videos!

[@qmakesithappen]

Great video Jaspreet! I currently have a 401K that I stumbled into 7 years ago lol one of the better mistakes I've ever made.

[@kdelete4949]

Its never a mistake investing money.

[@qmakesithappen]

@@kdelete4949 this is true, no risk no reward!

[@Fourwedge]

I max out my 401K with super low index funds from fidelity (.02%). I also max out a roth IRA with the same, my wife too. It's a great idea to have lots of other investments too.

[@InOrlando]

Yeah, I do the same thing. I would not recommend not taking advantage of a 401k if it’s available to someone.

[@lip124]

@@InOrlando I which i knew this before, I started in 2017 now I got 20k in my City 401k deferred there and don't want to change but i did however made a IRA last year and putting money in both trying to catch up with my IRA more.

[@40finance]

Great idea on the "investment match." Sounds like a boss who practices what he preaches! Not only are you empowering your employees, but you are likely saving them from high-fee mutual funds by giving them freedom of choice.

[@demeke773]

Tony Robins book explain the 401 k fees very well too

[@jeanaallen7462]

So grateful for finding this channel

[@ewfisher89]

My new job offers a 401k and while I am going to use it I am planning on doing other stuff on my own along side the 401k (I want it to be just one part of my plans).

[@M0rdFustang]

Best way to do it 😎

[@WealthbuilderzTV]

You always keep is so plain and real with your videos. You provide great value

[@MinorityMindset]

Thank you!

[@dugfriendly]

Thanks for reminding us about that Warren Buffet bet.

[@DanielIles]

401k and Roth 401k are just different tools in the shed. They could each work better for different people 👍

[@DanielIles]

Varinder Singh Roth is post tax. Non Roth is pre tax. If you make enough money the later can give a huge advantage

[@Kortneylove-1]

Truth is, though the 401k is one of the safest retirement plans, it is not a particularly a good option. Better strategy; Live below your means, Invest 20-30% of your income into the stock market but of course, be well informed about where you want to put your money... I made my first million earlier this year from stocks alone with about 550k after I dissolved my 401k and added little cash (through the help of a pro though). Greatest decision I ever made.

[@marguritetheodore2194]

Now you have my attention sir How did you do this? Who's the knight in shinning armour? I am slowly giving up on all of these

[@Kortneylove-1]

@@marguritetheodore2194 Sir? It's funny cos I'm a lady or doesn't it suit the "narrative"? It takes quite some level of patience and "Nancy Lynn Lewis" is the "knight", she was in the news alot in 2018. You can check her out online for more.

[@marguritetheodore2194]

@@Kortneylove-1 Low Blow right there ma'am. You didn't have to pull the gender card. Wasnt necessary. Thanks still. Ill check her out

[@the_jean_mum]

@@Kortneylove-1 Wow I know this little lady. Once attended a seminar she was also in attendance here in Texas,, Great speaker. I still think the 401k or putting it in a high yield savings account is the more reasonable option, given the economy,,

[@thesportsguruu]

@@the_jean_mum This right here is the second time I am coming across this name in a week. Came across her podcast and it was lit

[@BusinessBasicsYT]

401k, or depending on government for your retirement is never a good idea. Think like a minority and always be self dependent for your future

[@financialsombrero9097]

Very interesting Jaspreet.Don’t forget to mention the 55 year old rule regarding 401k withdrawals. This allows you to begin withdrawing your 401k at 55 years old without penalties. There are conditions that must be factored in, but under circumstances it’s feasible to withdraw your 401k at 55, not 59...

[@getinthespace7715]

I calculated it out and given current tax rates etc. EVERYTHING beats my 401k because of mandatory distributions in retirement forcing high tax rates. The only reason I have it is because the employer match is amazing.

[@carterjm]

In my opinion, this is video is in the top 5 of all of the videos. I love the mention of Ted Banna.

[@InvestNUFinance]

I agree with you but for high income earners who receive w2's the 401k is a way for them to reduce there taxable income. Of course you should know how to invest in your 401k and know how to select the investment funds inside. You also can access up to $50,000 from your 401k in the form of a loan to do whatever you want with this and the loan is repayable to yourself. There needs to be more education on how to calculate taxes from your paycheck, how to calculate what your paycheck will be after contributing x amount. Yes you should have alternative investments but that should be after you have built some sort of foundations of basic taxes and investing.

[@coldtanmccorkle7154]

Juspreet I understand it now I did it for asset reit to 40k straightest to quarantine leap appropriately seen by it's.

[@gmjones0619]

I get a dose of MM every morning 🤗🤗. Thinking of starting a home business

[@hakhinton8019]

yes thats true a 401k shouldnt be your sole retirement plan.... you should have multiple sources of retirement plans set up... but if you have a company that will match your contribution to your 401k you should TAKE IT..... its free money.....

[@warcamp70]

Try getting your money and then come back to me with this "free money" shit.

[@Mazlem]

@@warcamp70 what would you do with the money if they put it in your paycheck instead of the 401k?

[@Ben5ino]

It’s not free money when you have to invest your money in order to get the match.

[@hakhinton8019]

@@Ben5ino what? that makes no sense... they are matching you dollar for dollar up to a percentage point.... ITS FREE!!!!

[@Mazlem]

@@Ben5ino If you'd have saved or invested the money for retirement anyway, then the only thing it 'costs' you is using the company-sponsored firm. You even save more money in taxes this way too, since it lowers your taxable income. But if you don't want to be locked into that, you can ask the company to put the match into your paycheck and then deposit it wherever.

[@socialmoth4974]

I do 5% in my 401k, 5% in a Roth 401k, with a 3% company match. Now, I'm going to look into index funds.

[@maywashburn2848]

Took the cares option and did a full 401k withdrawal planning on real estate with the money. Worked out the growth and taxes and said nope to the 401k. Better to take a small bit now on taxes then a larger hit later.

[@Truewiseman]

You make some great points. I think there is a scenario(with our current confluence of laws) where the 401K makes sense, and that is for people who are solvent, and saving, but would like to maximize their returns late in life. I mean by way of using the 401K in conjunction with a traditional IRA to fund a backdoor Roth IRA. The idea being that you put in the max amount you can manage into your 401k, that reduces your tax burden in year 1. In year 2 you roll over that amount through your Traditional IRA into your Roth IRA (make sure it's with a company that won't charge the 10% penalty to do this), and that amount gets added to your taxable income that year, but then you balance that by re-contributing to your 401K. That way you pay the taxes now at the low rates you reference, but the returns you get from the investments grow tax free, and you can contribute much much more to your Roth than you would be normally allowed (19K+ versus the maximum normal contributions of 6k) Super complicated, but definitely possible, and really cool if you can do it.

[@lioneljoseph7360]

I stopped contributing to my 401k for these very reasons (paper assets linked to the stock market, government taxes, hidden fees over the life of the fund, etc). Now, thanks to MM, I'm "Making It Happen" and taking full control of my financial situation through business ownership and real estate investing. Shout out to MM you guys helped me out A LOT!!!

[@allanmackenzie9394]

It’s useful to highlight the relevance of fees in overall investment returns. However, this is as relevant for any investment and good (cheap) investments can be found both inside and outside 401k wrappers. It is worth noting that the Roth contributions can be taken prior to 59 1/2 and only the gain is tied up.

[@IgorBelayev]

Can you please post a reference to an article by center for American progress , I couldn't Google for your source. I am sure your viewers would like to read up on your sources to gain confidence in your statements. Love the topic you are covering today.

[@sr20dett1000]

It's worth it if company matches. I didn't like the investment the company offer so I put it at a in a money market fund. So when the market tanked this year I didn't loose money. Then my company got bought out so I had to roll it over to a IRA.

[@ksicoaching4614]

In the UK we dont have 401ks they are called pensions instead but I love that idea of instead of 401ks you teach people how to invest and you match their investments

[@jamie49868]

So many people have no idea how to invest, where to invest, and even why to invest. The 401k is a great starter plan, and a great plan overall. Most offer company match, and that is huge. The money comes straight off the top, so you never see it and thus are never tempted to spend in on a pair of Nikes or new iPhone. And there are rules that make it difficult to take money out even if you are tempted. I wholly agree that 401k's should not be your only option or savings/investment vehicle, nor should a ROTH, but they introduce many to saving and building for the future, and that is neve a bad thing. And did I mention that company match!!!

[@wuudw2hollotyps703]

Awesome video! I appreciate you for all the "game" you share with all of us.

[@NicE-jq3wv]

Downvoted for referring to rent checks as passive income. And for ignoring the significant tax break for 401k contributions above investing in a brokerage account, which for higher earners, more than makes up for the fees

[@ryanking4942]

Investment match is such an awesome thing! Wish more companies would do this!

[@theloominglizard6248]

Youre a smart man and I really like videos thank you for good content brother!

[@aidenmadueno]

How do you fee about retirement vehicles through insurance plans like an IUL? Completely tax free, market growth with no market risk, no money loss, lifetime income, 10% distribution, living benefits of critical, terminal, chronic illnesses and obviously a death benefit to the family. The death benefit can also be used as liquid money along with the accumulated cash value. Let’s say you have $1million in death benefit and you accumulate $2million. You have $3million at age 65

[@dougpool4730]

Thanks. You make the best videos. 👍👍👍

[@user-mb5gw9ou9l]

What retirement plan should I use if I plan on buying into real estate? I have a house with a mortgage (750month) but my wife and I want our own business. She wants a day care and I want rentals. We have a Roth going but I want to pull out early for an “either or” investment. We are early mid 20s should I start a different investment plan? Please help

[@vitex198]

I really never understood the 401k. What makes it better than just investing in stocks and other investments directly? I will be storing my retirement savings in stocks and real estate. What will you guys be doing?

[@sneakyquick]

You must do a 401k if your company matches because it's a free 100 percent return. After the match percentage then you can invest it in alternatives

[@danidaw32]

Adam Berendt AGREED!!!

[@technical19d34]

I'm not so sure about that with mine, my company 401K does not allow any internal rollovers at all. I would love to be able to take the portion that I have contributed and use it to invest in real estate but I don't think it's possible. On the bright side we did just get bought out by another company and we are getting a new 401K within the next couple of months maybe things will change.

[@keertan_pardhana4545]

Exactly.

[@avburns]

In the Index section of the video; I know you were trying to make a passive index fund investment vs an actively managed mutual fund higher fee argument but since the topic is 401(k) you should probably have noted that even with the higher fees of an actively managed mutual fund you might come out better (thanks to having a tax deduction, tax deferred or tax free growth) when the alternative is investing in a cheaper fund that's taxable. Also, 401(k)'s are portable (unlike pensions of the past) so when you have a lot of workers not staying with the same employer for the entirety of their career they'll have the option of taking their 401(k) money "with them" and investing in the lower index funds (which can lower their expenses even if they were stuck with actively managed funds in the past).

[@MrTmenzo]

A low expense ratio index fund in a roth ira will save you money in the long run vs actively mananged and they both roughly have the same amount of returns (7-12%)

[@pilgrim985]

I currently have 83K in my 401K. I have been looking for alternatives. Thanks!

[@jettisone]

May I ask how old you are?

[@pilgrim985]

I’m 44. Trust me, I’m no one to look up to when it comes to finances or investments. I contribute the minimum amount required and I’ve had this 401K since I was about 25 years old. I should of had this much when I was 30 years old.

[@sammyalabamy111]

@@pilgrim985 Curious why wasn't it higher amount as you mentioned, did you withdraw some?

[@pilgrim985]

Sammy from Alabamy No, I never withdrew any but I suppose this is where it gets a little more complicated... And please know, I’m not anywhere being an expert on all of this... When setting up your 401K, you have options... I have mine in the aggressive category, meaning when times are good, I gain more, quicker. So, like when Trump first got elected, my 401K went up way up but then when the feds decided to raise interest rates, I lost so much. Well, I hope this answers your question. Thanks!

[@Vajra1021]

Move that 83k into an “index fund”

[@fernandovargas6821]

Great information! Keep hustlin!

[@user-ee5om8wy7u]

Thank you. Also, you didn't mention ROTH IRA or traditional IRA. Could you give an opinion on that? And what is the difference between index funds and ROTH IRA?

[@damondiehl5637]

A Roth IRA is a bucket that you put investments into. You can go to places like Vanguard or Fidelity and set up a Roth IRA, and then choose index funds to hold in that Roth IRA account. Any money you put into the account is post-tax, and when you withdraw it, it is tax-free. When you hit 70 1/2, you have to start taking money out of your Roth IRA account. There is a calculation for how much has to come out as a required minimum distribution, or RMD. I believe you can invest up to $6000 per year, right now. If you are over 50, you can add another $1000, for a total of $7000. So, max out your Roth IRA, and then invest any leftover money some other way. You can own index funds outside of a Roth IRA or regular IRA. They are a great investment vehicle for people who don't want to put a lot of thought into it. They invest in every qualifying stock within a sector of the stock market, so you have diversification, and the management fees are tiny, in most cases (especially with Vanguard).

[@ryanwalker3509]

Use a Roth if you think either 1. You will make more money than right now in retirement. 2. If you think taxes are going up. 3. You are paying so little in taxes the tax deferred 401k offers little benefit.

[@techsir8866]

I love your videos, just shared with my friends.

[@AksImpact]

Thank you big bro. This is very educational 👍

[@MinorityMindset]

Glad you enjoy it :)

[@mackdaddy274]

I love your Investment match program! An excellent concept as a retirement benefit.

[@blackneck77]

Thank you so much.

[@ChrisInvests]

If you're making a good income from your 401k during retirement, your income taxes will be very high 🙁

[@CHAD-RYAN]

But your making money from your non taxed investmeant

[@jamie49868]

@@CHAD-RYAN Exactly. My company offers a 50% match on up to 10% contributions. So that is like a 5% raise that is going directly to my retirement fund if I contribute 10%. I don't know anybody that wouldn't want 5% more for free. Besides, if you make money in the market via your private account, you pay taxes too, along with brokerage fees.

[@adamrichardson6918]

And if you aren't making good income from your 401k, other than a Roth, where are you "making good money" and not getting taxed??

[@keertan_pardhana4545]

@@jamie49868 exactly. That's like a no-risk 50% ROI, with the added benefit of lower taxes NOW. Jaspreet totally lost me in this video.

[@keertan_pardhana4545]

@@adamrichardson6918 babysitting..for cash;-)

[@fredzag2452]

Jaspreet, your like a Dutch uncle, always there with loads of great advice. I used to tell people to get out of 401k 's, but I didn't have all the reasons you have. Thanks my friend.

[@MinorityMindset]

Never been called Dutch before 🤔🤔 - thank you!

[@youngtimer964]

I invested 3k in traditional 401k in mid 90’s. It’s worth over 100k now with no fees. Yes, I will pay taxes, but I have a hard time regretting this kind of return.

[@chillombia]

Did you watch the video? If you invested 3k in an Index fund, your return would of been much more. AS an example.

[@EnlightenedRogue]

401K’s kick ass. 29% growth in ‘19 & 22% in ‘17. Sure ‘18 was flat but over a number of years you will always come out way ahead. Remember, you’re also getting the company match so don’t worry about the fees. Spread out your investments & open up a Roth if possible so that u can keep your growth $$ tax free.

[@RodasYonass]

401k/Roth 401k is underrated when it comes to tax benefits though.

[@lip124]

Yea pretty much take home money now rather then later benefit with it.

[@charliecrash3450]

Wants are Unlimited, but income is Finite!

[@dcreech500]

I am not a banker or stock broker. So I'm not trying to sell you anything. I opened a vanguard account and opened my own IRA, 529 college, and personal broker account. Fees- vtsax is vanguard total stock market index fund its fee is only 0.04% BUT it pays 1%-1.5% dividend each yr so you actually get paid to have it. Compound interest- it averages 10%/yr over 10 yrs so you double your money every 7 yrs. Taxes- get a roth IRA and all of your growth will be tax free at retirement. How do I know? I am in my 40's and have over a million dollars in my vanguard acct. I will have millions in my vanguard account and will live on dividend income which is tax free up to $78,000 for a married couple. I max out my IRA in vtsax and invest extra income to vtsax to spend before retirement if I choose. I can retire early and spend some of my vtsax regular investment while my roth just compounds even more. Eventually I will live on dividend income alone. Never selling my shares of the total stock market index fund. It will be millions

[@Dan-wx8pq]

I like how enthusiastic this guy is.

[@mikebarnes8000]

Depreciation is great stuff

[@akin242002]

401k plans are heavily dependent on the choice of plans your employer picked. If your employer picks bad plans, then don't use 401k plans. If your employer has great plans, like mine have, it is the better option. Especially if they go direct to Fidelity and Vanguard Roth 401k.

[@PradedaCech]

If "stocks, funds or groups of stocks or whatever go up," does not mean you really have more money, except if you sold it all at that moment. Most people don't. What's important is how much your stuff has gone up when you want to sell..Also, 401K etc. are automatic, most people don't even think about them all too often. So they are automatically forced to save and stash this amount away, somewhere safe. If you just receive a 3% pay raise, you might just end up spending more..

[@mzmeeka_]

Hi!! I’ll admit I haven’t watched every single one of your videos! I’m making my way through and enjoying them all so far! Have you talked about Indexed Universal Life(IUL) Insurance Policies as it relates to retirement options? If not, can you please make a video about it (basics, pros, benefits, hidden fees, cons) KZbin community: feel free to add to the conversation by responding to this comment!

[@Kenro200x]

Thank you for these videos. I ran into you're stuff today and it really makes sense. A light bulb went off in my head.

[@keertan_pardhana4545]

So, usually I am with you Jaspreet, but on this one..I don't know. So what you are telling me is that I should NOT contribute my 401(k), because it charges fees and I have to pay taxes when I start drawing it down? That means that I get pushed into the next higher tax bracket NOW..and don't get the employer match ( which can be a 25%, to 100% return, even if the account is invested in a super conservative fund that has done 2% since inception)? 401k program is FAR from perfect, but this all that some folks will ever have. This video is applicable to a very narrow band of earners.

[@dusanserdarevic501]

Hence the name "Minority Mindset"..

[@keertan_pardhana4545]

@@dusanserdarevic501 this video makes sense for those within a certain income band

[@cpmiller1965]

Agreed here with you. The majority of folks wouldn’t save at all I’m convinced. 401k can work and it helps get most people into the habit of saving. My company matches 3percent , and typically we get an additional 3percent discretionary match if we do well in the financial year. I do have choices on my investment and over 20yrs have averaged 10percent return. I also use the loan available in my 401k to invest in real estate, purchasing distressed properties. It’s been a good saving tool for me, yes I understand the tax ramifications when cashing out, but as my account tells me make money and we can work through the tax part...

[@nancysmith9487]

Thank sir for sharing

[@spunky181]

Are you getting taxed twice if you buy index funds on your own? Won’t you be taxed at the beginning when you get your check then again when you sell it? Is the Roth IRA your best option?

[@ShariKaye]

So true! Investing in real estate is not only for rich people. I started with money I borrowed from... (suspenseful pause)...my 401k. Thanks for the great financial content! I wish more people took an interest in financial literacy. It’s not so much about the money but more about the freedom it gives you to live life on your terms.

[@MinorityMindset]

Thank you for the support - the freedom can be magical

[@justblissful2708]

I did the same thing. Congrats to you. I thought that I was the only one.

[@the360degreemastery3]

Nice one Jaspreet! In my country we don't have a 401K plan, but we do have PFM (Pension Fund Managers). Since I started my business I still put away a little in my PFM account, and invest the rest. That way I create multiple streams of income and maintain a source of collateral in case I ever wish to take out a loan to expand my company

[@831sholo]

Hey Minority Mindset I have a question... I have a small business what advice should I take from you to prepare for next recession and keep more money when doing taxes? Do you also think space rent will lower with the recession? Could you please make a video about that just to have more ideas?

[@M0rdFustang]

I love investing 😀 all my spare money goes towards it right now

[@aTodaCreature]

Very good info!!!! Thanks for sharing your knowledge. Oh and are you hiring? Because I like that match investment.🤠

[@kageisuke]

Considering how often people change jobs, investing in a 401K isn't a bad idea for the short term to get the match money. [Just make sure you stay long enough to get fully vested and get that match money before changing jobs.] When you change jobs, roll over that 401K not to your next employers plan but to another account that is government approved so you don't get penalizing taxes and has lower fees. You'll pay a few years in fees when you have the job, but that is offset by the match money and then you can put it into a lower fee account when you change jobs.

[@michaelrichards90]

I doubt you read these comments, but could you make a video about the Mega Back door Roth 401(k)? I have coworkers asking me about it all the time.

[@QueenAmythest]

Great content, really enjoying your channel! Would love to see you do a video on the importance and types of insurance and trusts to protect your wealth please.

[@osse1n]

*Self-reliance* is the light at the end of the tunnel. The moment you get fed up of things and people not meeting your expectations and take charge of your life, is the moment you take a first step towards becoming the *MINORITY.*

[@MC-vg1tl]

On traditional 401(k), It’s not tax “free”; correct description is tax “deferred”.

[@lip124]

Whats the difference?

[@MC-vg1tl]

@@lip124 there’s a big difference - one is you don’t pay tax and the other, you do at a later time!

[@daneshcol]

My employer contributed 8% to my 401(k). I was always impressed by that. However, I just found out that 3.5% of the 8% goes towards fees!! I agree, 401(k) are ridiculous!

[@thehomeless_trucker]

.... I highly doubt that unless your in front loaded funds. There's nothing wrong with 401k's, just invest in index funds that have very low fees. You chose those funds in the first place, so call yourself an idiot and move on.

[@Specialcot77]

I dont like the Fees 401K that's Why I have Fidelity on the side but U cant pass up Matching

[@desidog4169]

Thank you, Sardar Jee 👍

[@bh7538]

401(K) / Super in Australia seem likes a scam. I had 12 Supers and 10 of them got hit with fees until a few hundred was left (thousands and thousands lost)... Only two of the Supers actually made money... Grrr.

[@swancss3097]

Happy New Year JasP. & to ALL. I need some guidance, I want to use my 401k to help me Purchase my own 2 family house. Any Advice.??

[@keller1334]

My 401k is a no brainer. My company matches up to 6 percent. So I do the 6 percent. Then invest in other things. I imagine only having one investment for my retirement. I am a little late to the game. I could only afford to start in my 30s.

[@liotube7]

Thanks for the efforts. What about Roth ira?

[@malvizar85]

Crazy you didn’t include ROTH IRA as an alternative.

[@malvizar85]

@@trinab.9633 incorrect. Roth IRA is tax free growth because you contribute money that's already taxed. Regular Roth is the same as 401k, tax deferred.

[@trinab.9633]

@@malvizar85 I guess were saying the same thing, anyways, it's a blessing to be able to save, God bless ya...

[@thomasd5488]

@@malvizar85 "Regular Roth is the same as 401k, tax deferred." You misspoke. there is no such thing as a "Regular Roth" There is ROTH IRA and there is TRADITIONAL IRA. When you said "Regular ROTH, you were really referring to a TRADITIONAL IRA, which is tax deferred, same as 401K. The ROTH IRA is tax free growth because of the reason you mentioned. You got that right. There is also a ROTH 401K, which I am guessing is tax free growth.

[@tonymartinez5946]

Excellent video

[@ricardomacias9035]

" JUSTIN " Thank you . The future's looking bright.

[@justblissful2708]

I have a 401k match and whenever it reaches a certain dollar amount I get a loan on my 401k, which is tax free. Then I take that money and invest in real estate. If the market goes south then I know that Ive invested my money in CA real estate. What do you guys think? Wise/ unwise?

[@damondiehl5637]

Borrowing on a retirement account is rarely a good idea. If you lose your job, that money you borrowed needs to be paid back, almost immediately, or it is declared to the IRS as income and is taxed, with an additional 10% penalty tacked on for good measure.

[@125henni]

my 401k is in a target date fund where it's heavy on stocks but still has about 10% invested in bonds. As it gets closer to that retirement age it balances out to where it becomes less risky

[@johngill2853]

I don't want income from an investment. I want Total return. If you don't think Total return is the most important thing in investing you're missing a big picture

[@bigmike4133]

Why no mention of a Roth IRA or just the personaly managed taxable brokerage

[@kdelete4949]

If you do the math, depending on your age the net value after taxes on a regular 401k is very close to what it would be if you contribute to roth 401k. This is because when you contribute to traditional 401k, you are buying 15% to 20% more shares of a fund vs if you had contributed to a roth 401k.

[@jonday1916]

My company matches up to 5% and gives another 1% whether you contribute or not. You just can't beat 120% guaranteed returns yearly. Roth all the way...taxes are all but guaranteed to go up.

[@wannamontana4130]

1-2% on managed funds. NOT. While passive is still less, most actively managed funds are now under 1%. The competitive market place has reduced this. Overstated.

[@cncorn18]

I don't really understand your point about the fees in 401(k)s. If you have money that is being invested at a bank they are going to charge you money for serving as a custodian for your investments and they will also charge asset based fees. In addition to that, if you are participating in some sort of managed account program through that bank they'll likely charge a premium for it. Some people pay the premium and some don't depending on their comfort level with investing. What difference does it make if your investments are in a tax deferred (Or tax free earnings) retirement account, as opposed to a regular taxable investment account? Often times, 401(k) participants are able to have a lot of control over their investments (meaning they can chose different level's of investment services depending on how much they're willing to pay for it) just the same way they would be if they deposited money into a regular investment account. If they pay a little bit more in fees for plan administration (which often times is negligible for participants) the tax benefits are still very nice.

[@vhoy7899]

I prefer an investment match

[@TheLizardKing1967]

Listen to Scott Gunderson

[@621jihoonkim]

Hello. What do you think about Universal Index Fund life insurance??

[@kdelete4949]

Run fast. They add the word index to trick people into thinking they are buying a index mutual fund. For life insurance get a term policy. They work like car insurance and cost less than $50 a month for most people.