401K Explained Simply for Beginners

[@clearvaluetax9382]

How to Use Your 401K Properly to Retire Faster: kzbin.info/www/bejne/jqbGaXqonp2dZrs

[@JNorth87]

401ks are just bets on future tax rates. LOl. among other things of course.

[@fainnetworking271]

,​@@JNorth87

[@cohan.matt1]

Love your videos. Can you please explain 401a, 403b and Roth 403b?

[@jamesfoster1859]

Who else already knew all this and just watches every video

[@Messup7654]

I will watch these videos over and over until I can recite every word in my sleep

[@markmiller7529]

It wont matter, in Brian's position he is fully up to date with everything.

[@andrewwoode]

Gonna show this to my brother

[@ljcello]

I just like hearing Brian talk. He is great!

[@Harb67]

Me. 😂

[@DansBackcountry]

These are the kinds of videos that we all can benefit from.

[@fuyu5979]

Awesome 401K 101 tutorial! It was basical, interesting n informative vid! Kudos for upload. Will be watching ur more in-depth vid on 401K. Looking forward to ur next one. Peace

[@OliverTilney]

I started my 401K in my mind to late 30s, I think I was either 36 or 37. Honestly during that time of my life I didn’t have reliable income, was laid off from at least 2 jobs and wasn’t making much money. So I didn’t contribute much. I’m now in my late 50s and fortunately in the last 10 years I’ve had steady employment with promotions. I got more aggressive in my contributions taking advantage of the up to 6% match my company offers and now have over $100k.

[@zDufferman]

Good timing. I was about to do a presentation to my coworkers on our 401k program at work. Good info

[@shortiejayyy]

This came at a great time! I have been thinking about mine. I feel really stupid for not starting a retirement at my first job at 18 so now I've got more ground to cover. Thank you for the video!

[@Serbslayer]

I knew all of this but here to support the channel ❤

[@sonnyvtsax6452]

I kind of knew all this stuff but you organized it and summarized it very nicely. I like you doing both orally and visually too, it's wonderful teaching, learned so much from you. Thank You!

[@oopsminjung]

Brian is my finace daddy that I never had, thank you for your education, school should teach this kinda stuff

[@AlfredoShrimp-e4h]

I wish they had taught this in school. Wouldve helped me a lot more than having to writing essays on random movies or books.

[@dasfahrer8187]

Clarification on employer matching. A 100% match is only often up to a certain percentage, usually ~5% of your salary.

[@llclo2098]

WOW this is so useful and clear. You're the best.

[@Vfnumbers]

Consider the benefits of contributing a lot and early in your 20s and 30s if possible. Compounding+rate of return with a large 401k balance makes growing it easier.

[@jimv77]

I started my first full time job in summer 2000. Been doing the annual max each year since then when my salary allowed. The amount it grew is amazing. 20% of my current account value is from Employer match alone. For me at the ~15 year mark is when it REALLY took off like a rocket from compound growth! The value literally doubled from the 2019 to 2023. I quit working there in 2019 and the growth is more than my yearly earned income. It's beautiful kids to not have to worry about money.....do it for your future self! I'm also only 47 years old, not an old fart (yet!).

[@0_1_2]

Hey buddy, sorry to break it to you but 47 IS old. Enjoy retirement

[@Thailova]

​@@0_1_2he said old fart

[@KarmenD-ce5re]

HAHAHA, TOO alot of people you are and OLD FART! NO JOKE !

[@ra6298]

@@0_1_2 hey buckwheat. Old is relative and you should respect your elders little chump.

[@Kevin-tn5rr]

I started worrying about money when. I was 21

[@Mexican_Mike]

When Brian said he had an "amigo" I subscribed immediately!!! Aside from that Brian is the GOAT!!!

[@Haddley333]

Excellent video. I was late to contributing to my 401k. I always matched the 3%, but now I'm putting in 20k/year and employer is matching 6%. I'm accustomed to living frugal so I can live without it.

[@davidedwards4088]

I remember finding your channel during the pandemic. Thank you for your calm demeanor and information then and now. Outstanding.

[@TolTube-w2m]

Great video as always, Brian! The 2nd benefit “tax-free growth” 2:38 is not really tax-free growth unless you go with ROTH 401k since with 401k you will have to pay tax when you withdraw.

[@YouTubeLi-s6w]

The only thing i hate is the social security tax at 6%. I wish we can eliminate that tax and let it go towards a 401k instead

[@csick11]

Social security goes towards u during retirement though

[@jmatt98]

@@csick11good luck it still is around with all the people claiming disability

[@RavensTheNextDynasty]

@@csick11yea the problem is this generation doesn’t actually think it will still be around when we need it. So why are they continuing to charge us 6% for something we most likely won’t receive

[@Peace4TheWorld]

Very simple as described 👌

[@tenbearsreeftank5705]

Do one on 457s. Early retirement people don't understand it really

[@jgg204]

Here is the easily simple 5-5-5 math to understand. Starting age 22, put $500 into your retirement account. Then from that point on, add $500 every month. Do this for 40 years. And you will have $5 Million (the 5-5-5). Adjust according. If you want to go nuts, starting at age 22, max out your 401K for 40 yrs. You will have $21 Million.

[@johnketh-n9v]

I’m 32 and I am just starting to invest for the first time in my life. I have started contributing to my 401K and opened a Roth IRA with automatic contributions. My question is, does asset allocation even matter at first, or am I just overthinking this?

[@dvgadd]

Always good to hear from you.

[@clearvaluetax9382]

Always good to see you too!

[@LAB6261]

Can you make a video regarding 403b retirement plans?

[@DanielBaleWyatt]

The rise in tax rates is why I decided to roll over my 401k to a Roth IRA. I don’t want to be 59 and paying taxes on withdrawals from my retirement account.

[@juliach4806]

Thank you! Crystal clear explanation ❤

[@joyful9984]

Thanks very informative. Once you receive the 401k, and they give you the amount minus the taxes, and penalties for early withdrawal. How do you handle taxes at the end of the year? Do you add the gross amount or net amount you actually received of the 401k plus your yearly salary together as your income for the year? It’s hard to understand why your taxed twice on it. Thanks

[@vickaps]

What protection does 401k have from bankruptcy and credit sharks?

[@bathala721]

same protection you get from social security and for the sharks, it's a different breed

[@ReGenMed83]

Can you do one for doctors? Incorporating vs sole proprietorship in California? W2 vs 1099? Write offs?

[@steveaclowe454]

The challenge lies in figuring out how to build my crypto portfolio, as I’m considering investing half, if not all, of my 401(k) into cryptocurrency. Has anyone thought about where Bitcoin and altcoins might be a year into Trump’s administration? Since the election, Bitcoin has risen from $80k to $100k-a $20k increase-and it’s not even inauguration yet. As a beginner with $100,000 to invest, how can I maximize my profit?

[@JohnShaft-k8k]

As a beginner, it's crucial to have a structured plan and a mentor to hold you accountable. I’m fortunate to be guided by LAUREN ASHLEY DEGROOT

[@KarenDeyman]

It’s not easy to find someone truly skilled, so I’m glad to see that many people have discovered LAUREN.

[@JamesTsang-b4t]

Take your time and seek expert guidance-building a portfolio is a complex process.

[@JeanneeVinyard]

How can she be consulted?

[@JohnShaft-k8k]

FACE- BOOK

[@BigMtnRyder]

Hoping you see this, I work for a very large retail company that looks to be sold to a private equity group. My 401k is through work, at Fidelity. If the company is bought out, can the PE group raid my 401k. Should I move my 401K somewhere else? Searching online has not been much help. T

[@MablePauls]

I'm new to stock and crypto. I feel like I’ve missed out on good buying opportunities by investing at the wrong times. With a $450K yearly income, I'm considering putting my savings into the market. Do you think I should learn to invest myself or rely on a financial advisor? I'm getting frustrated trying to find the right coins on my own.

[@tahirisaid2693]

In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.

[@BaffySchenck]

How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. Do you have any?

[@tahirisaid2693]

My CFA *Julianne Iwersen Niemann,* a renowned figure in her line of work. 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.

[@BaffySchenck]

Thank you for sharing, I must say, Julianne appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.

[@KO-lw4lo]

Great job on this Brian. ❤

[@gordonlawltd]

Awesome video! These kinds of videos are so important.

[@shadow0946]

We all love 4O1K videos keep the coming!!😁😃😀

[@ReeLSpirit]

Question. Let’s say you put enough that you get 100% company match. If you do an early withdraw, you wouldn’t lose your own money? You’d only get the 90% of the company match since 10% would go to taxes? So technically it’s still free money at no loss even if you withdraw early?

[@jpadilla0515]

Also do you have a video on 401k loans?

[@jrraven3230]

Thanks Brian 🙂

[@manaoharsam4211]

Thankyou. I shared this video with my friend. I thought this would be a good intro.

[@gvue4396]

One thing that companies don't cover is years vested and the vested requirements

[@skizai87]

Number 5 is kinda misleading and is a very important detail people have to know. Some companies will require you to work for them for a certain time to be 100% vested in the 401k match, typically 3-5 years. This will depend on each company. However, the money that came from your own income is always yours.

[@clearvaluetax9382]

I kept that in mind and explicitly said any money “you” put in is yours. For that reason (one step ahead of these types of comments) I didn’t say “the money in your 401K”. So it wasn’t misleading, it was planned to precision.

[@Rogerederer-b2r]

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.

[@Chrishat-x2j]

I'll suggest you create a diversification strategy because building a good financial-portfolio has been more complex since covid. Recently my colleague advised me to hire an advisor, surprisingly I have accrued over $120K under the guidance of my coach during this crash. She figured out Defensive strategies to protect my portfolio and make profit from this roller coaster market.

[@Morgangreen-b1l]

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 personalised guidance and help you make informed investment decisions.

[@KingRoh-t8h]

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

[@peggytaylor-v3e]

How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio.

[@KingRoh-t8h]

Grace Lorraine Austin is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@Rinas-l3h]

Thanks for this great video ❤

[@ml-zk4yu]

Hi Brian, long shot you will see this. I love your videos. I would love to know your thoughts on CRYPTO

[@Grace_0114]

can you do the same on 403B

[@ChairmanDDD]

Please do a video on ESPP taxes. I have a crazy look back that gets me stock worth $300+ now at a $100 cost to me, but have no idea how to calculate taxes on their sale.

[@John-hi8rd]

Can you also talk about the pension?

[@brbento]

Hey can you do one about trusts or tax advantaged accounts. I love the informative videos. Longtime sub ❤

[@jurpo6]

You are awesome, thank you for your time.

[@jerrycan0820]

Mr ClearValue Tax thank you for great content. 1. I have 15 yr @5.375/170k vs 30. Yrs @5.99%/200k then I need to see a recast after 3 months. What is ur opinion? 50% loan 401k at 9% for 3-5 yrs about 6.5k helping to decrease the value! Your idea? Can you sugest also why a rush electronic interest lock in and mortgage lean agreements take place especially to non english speakers?

[@josezepeda1817]

Brian can you do a video of how to take use “tax advantaged” plans, along with HSA, to maybe, in some cases, lower your taxable income for the year? Pros and cons on Roth and non-Roth accounts. Also is the $23k limit per person or per account?

[@Michael69101]

The 3rd one is the best.

[@Junmar7]

Excellent video

[@EthanM121]

Thank you!!!

[@kdefensemartialarts8097]

Thank you for videos.

[@RavensTheNextDynasty]

I’m lucky my company is private and gives us stocks for years worked. I don’t even really have to save that much a year (currently do like 6k a year) and I’m hoping to retire at 55 pretty comfortably

[@pablopotato5967]

thank you god bless👍

[@ilianahernandez6812]

Thank you!! Need a New video on how to pay a credit card with 12k asap!!

[@patrickgebhard3727]

Brian, what did you do when you when you left your employer and started your tax business? Are 401K’s still worth it for people who are trying to start businesses instead of working corporate? Thank you.

[@clearvaluetax9382]

I rolled it into an IRA. My income in my 1st year as a business was so low that I did a Roth conversion tax free.

[@DFFRNTWRLD]

Helpful explanation!

[@adamburns2452]

I have some pre tax and after tax money in mine I always wondered if you could pull the after tax money before 59 without getting dinged I never did like the options You could buy funds that mimic the the SnP 500 but no ticker with some good and bad I guess

[@stevenmiller1031]

Thank you for sharing.

[@WiseSilverWolf]

What do you think of these Fidelity Index Funds? FSTA (Consumer Staples), FDIS (non-essentials), FHLC (Healthcare), ONEQ (Market disruptors), FTEC (Info Tech) Thank you

[@rezakarampour6286]

👍Knowledge is power .

[@90062jeffrey]

Can you really use it to buy a house? Not like a loan against urself just really use all that money for a down payment without a tax penalty ?

[@21Gannu]

can u make video on hsa hdhp all insurance related

[@leighannlatchman6482]

This how I need everything explained to me in my life 😅

[@cnacne]

I think you should also discuss - YOUR contribution cannot exceed 23k, your employer can also match that 23k.

[@PlayingTheDealer]

Yep, they can certainly match up to that but it might be pretty rare for an employer to do so in their plan.

[@cnacne]

@@PlayingTheDealer Point is - you can contribute the max irrespective of your employer contributions

[@skuirrelTV]

This was my question

[@riyadstl1596]

Can I do the contribution one lump sum before the end of the year?

[@John-hi8rd]

How frequently do we rotate our portfolio in 401k?

[@dupham7900]

what about taking loan against 401k ? From what I searched, the interest go to your account when it's paid back. Is that true ? If that the case someone would go beyond the max contributed amount and also retire earlier before 65 if the interest % is less than the penalty + taxes

[@asianspike]

Is there one for Ira ?

[@tomdrummy4984]

If you withdraw $ before retirement age with 401k ……..does it count as income for that year ? Thanks

[@clearvaluetax9382]

Yes, it would count as taxable income. And it may be subject to penalty if you don’t have a qualified reason to withdraw before retirement age.

[@nightfangs2910]

Brian could you do a video on how your 401K is affected if the company you work for files for bankruptcy protection, or if there is a stock market crash 🙋🙋

[@0_1_2]

Employer bankruptcy - you lose your job and you keep your 401k. Stock market crash- your portfolio value goes down. That was easy. Got any other brain busters?

[@BabaFettaccine]

Employer match into HSA even without a HDHP?

[@MidnightToker454]

Hi Brian, how do you feel about investing in gold for retirement?

[@clearvaluetax9382]

Gold is just a store of value for safety in my opinion. I do own gold myself. But I’m not excessively into it like some gold bugs.

[@ThatGuyAlon]

I never thought about my 401K contributions from my other jobs. I need to transfer them over

[@markhammond568]

When is the Great Melt Up episode 4 coming out?

[@irietropicals4255]

What is the ideal percentage rate of return you would like to see?

[@0_1_2]

300%

[@JoseGarcia-jd4rp]

Let’s say I choose to do this. My company used TD Ameritrade for my 401k in that job. Let’s say I leave that job. Will that 401k follow me to other jobs if I don’t know the login or do I have to keep track of that account? Will the money expire if I don’t log into that account?

[@0_1_2]

Once you leave that employer, you’ll stop contributing and so will they. You can leave the account (provided it meets the minimum) or you can transfer it to another employer.

[@AshtonClark-q9g]

I’m 21 and I’m in college right now with a few years left. I have my college payed for and I have about 22,000 dollars. Does anyone have any advice on how I should begin putting money into a retirement fund. I was thinking of putting money into a Roth account but I wasn’t sure how much I should do. If any of you have any advice, I’m all ears

[@z-mane1438]

Go talk to different advisors & experts at banks ..get the most info possible

[@evilcapcap4262]

Thanks for this information brian 👍

[@jliu884]

If you sell assets within a 401k but don't withdraw the money out of the account, do you still have to pay taxes on it?

[@xisxis9938]

I left my employer a few months ago and I had a 401k. I am not sure where to roll it over to? The new employer has a 437b. HELP, PLEASE.

[@GNX157]

Please do one on a custodial Roth IRA for a grand child.

[@nazarsabodash9066]

Would u trust empower ?

[@JKlessig]

Does a 401k take into account inflation?

[@bobsuruncle679]

Most importantly what is the future for a 401k? Is investing in bonds profitable in a post dollar crash add hyperinflation

[@0_1_2]

No, don’t invest. Send me all of the money that you currently have because it’s going to be worthless in the future.

[@bobsuruncle679]

@@0_1_2 keep listening to Brian and help yourself by not asking for handouts

[@GodFirstGreatGod]

Do the employee contributions count towards the limit?

[@0_1_2]

Nope!

[@clearvaluetax9382]

The employer contribution does not count toward the limit.

[@bjjbarbella]

Can you do one for 403b?

[@sharp_shot_1905]

I literally just submitted by 401k elections last night so the fact this just came out is wild. My company does 6% match so I did a split of 3 and 3 between pretax and Roth 401 k. Is this a good idea considering I’m a new grad hire?

[@francisoconnor2392]

Make sure they match the Roth contribution

[@sharp_shot_1905]

@@francisoconnor2392 thanks for the tip

[@enigmathegrayman2953]

How to retire: work a company that also includes a pension and a Roth 457b plan…

[@alfalfagoldblatt6915]

can you explain 403b

[@aevm40]

Is 401 more beneficial to the company than the worker?

[@jeremyaubrey3927]

Please do a video explaining taxes and if they actually help or not like pros and cons and what other methods the government could use to make money instead of just printing it out of thin air and taxing us

[@superstar5123]

You cannot create money

[@jeremyaubrey3927]

I didn’t mean make as in create I meant make as in earn

[@jeremyaubrey3927]

And they literally by definition created money and continue to print it the dollar didn’t just magically appear they created it

[@JustAName-it5qp]

TSP user here, I get 5% match. Maxing out every year by contributing $885 per paycheck.

[@0_1_2]

Wow, that is so impressive! Here you go 🍪

[@SiriusV23]

Wish we were taught this in High School.

[@annamor4153]

23 000$ is a limit including your company match or not?🤔

[@evetteturay5194]

Hello Brian