Roth IRA vs 401K - How to Retire Faster

Join our Exclusive Investing Community here: ClearValueInve...
GET 3 FREE STOCKS when you open up a stock account here: a.webull.com/i...
The best way to support our channel is to share this video on your social media to spread awareness. We appreciate the support!
Investing Mistakes to Avoid: • Investing Mistakes - W...
Investing Tips for Beginners: • Investing Tips for Beg...
Understanding Stocks and Investing: • Video
Taxes on Stocks Explained: • Taxes on Stocks Explai...
Common Stock Terms: • How to Read Stocks for...
Dividend Stocks Explained: • Dividend Stocks Explai...
How to Bet Against Stocks: • Video
How to Use Call Options To Make You Passive Income: • Covered Call Option St...
This is our TurboTax Link for your tax preparation needs:
www.anrdoezrs....
ClearValue Tax and affiliates and related parties do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
This post may contain affiliate links that at no additional cost to you, I may earn a small commission. Thank you for your support!
Legal Disclosure: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!

[@clearvaluetax9382]

Join our Exclusive Investing Community here: ClearValueInvesting.com GET 3 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax

[@kingdele01]

Can you please compare 401k, Roth-IRA & IUL (Indexed Universal Life-Insurance). Please include actual numbers as well. - I have been hearing some BS about how much IULs are better than all other retirement vehicles.

[@satoshigerbil8789]

Do you have a video explaining 457 deferred comp?

[@MIchaelGuzman737]

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.

[@sommersalt88]

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.

[@CynthiaByrd648]

@@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.

[@Americanpatriot723]

@@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?

[@CynthiaByrd648]

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.

[@Americanpatriot723]

@@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.

[@HarrisWalker-ob4ip]

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.

[@BaileyWright-cd6jz]

There seems to be some underlying conditions to each of the plans, and I think one needs to know the implications and earnings involved.

[@OliviaJones-ky8fi]

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.

[@MichaelWeston-wl2no]

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.

[@BrianSmith-zxx]

So how would you know the safest to invest in with minimum flop but better earning?

[@DavisMiller-yh6bc]

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.

[@richardspenard2663]

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.

[@JerrellHulme-kn8ue]

@farn-4u 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?

[@JerrellHulme-kn8ue]

@farn-4u 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.

[@gs300rich4]

When you get close to retirement you change to less risky investment options. Lower risk-lower reward but you won’t lose money

[@velayuthman]

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.

[@stevensmiddlemass2072]

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.

[@talented009]

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.

[@ThomasHeintz]

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.

[@esther.74]

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

[@DarleneMurphy774]

@@esther.74 wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.

[@esther.74]

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.

[@JohnMoore1641]

@@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.

[@GillerHeston]

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.

[@eloign7147]

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.

[@rogerwheelers4322]

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.

[@joshbarney114]

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.

[@harwellron1289]

@@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.

[@joshbarney114]

@@harwellron1289You can quickly do a web check where you can connect with her, and do your research with her full names mentioned..

[@mohican-jx6fx]

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

[@ericmendels]

Please can you leave the info of your investment advisor here? I’m in dire need for one.

[@ericmendels]

Looked up her name and her website popped up immediately, interesting stuff so far, about to schedule a session with her.

[@CrayonEater94]

That’s correct if it’s a traditional 401k. If your employer offers a Roth 401k then take advantage of both.

[@maiwurld2578]

Wow,you have a good paying job.

[@dank9139]

Long term capital gains tax is 10% vs income tax is 20% rather go pre tax and pay 10% later

[@Powerz00]

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

[@MerrickBonaparte]

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.

[@HoraceWatres]

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.

[@gregorywhem]

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?

[@HoraceWatres]

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

[@gregorywhem]

Her website immediately showed once I copied and pasted her complete name into my browser; her credentials are outstanding; thanks for sharing.

[@darnellcapriccioso]

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?

[@maiadazz]

@@tatianastarcic I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?

[@vox207]

@@maiadazz I would find a local advisor in your area. It’s always nice to see them in person

[@fR_eN]

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!

[@antonnohr]

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.

[@ClementRusso2]

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.

[@VickyAlvy]

Could you kindly share the contact information for your financial advisor here? I'm in urgent need of one.

[@ClementRusso2]

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.

[@Farinhir]

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.

[@jbferrer3]

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

[@VitaliiSych]

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.

[@BillAdamson-bp9ff]

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.

[@RickMckee-nq4ni]

@@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.

[@JohnHannay]

@@RickMckee-nq4ni Fantastic! can u share more details?

[@Reda-sl8hx]

I’ve watched many videos trying to understand this, and this is BY FAR the best one, thank you !!

[@Martin-jk2ng]

Your no nonsense delivery and content has skyrocketed you to one of my favorite channels now. You are doing fantastic work, sir!

[@mattclark2655]

I put 15% in my roth 401k and my company does a 5% match. I have a rollover roth IRA and a rollover standard IRA when I rolled over 401k and roth 401k from a previous employer. If I ever leave THIS job I can roll over my new funds into those too being as they are already set up. I also have an individual investment account through Charles schwabb. Across all those at 37 I've got about 68k. I have 10k emergency fund. Not terrible for my age, but I've also only got 65k left on my 15 year mortgage. I can up my game a bit as my wages increase and my home gets paid off and I'm 100% debt free. I wish everyone the best of luck with their retirement goals.

[@mariemohan2383]

Thanks!

[@clearvaluetax9382]

Thank you for that super thanks Marie! I appreciate it so much and wish you a Merry Christmas!

[@teknerd]

That's pretty good info. I didn't know about the hybrid Roth 401K. I learned something new.

[@lovelyasian938]

Thank you so much for describing the difference in Roth and regular 401k. I needed this ❤

[@ntylesss208]

in my 3rd year of business school to become a CPA. you are a true inspiration

[@dj_bae]

I contribute to my 401k, 403b, and max out my Roth IRA every year. I really want to retire by or before 55 and I’m hoping I can make it happen.

[@edenterra870]

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.

[@peggyturner2431]

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.

[@peggyturner2431]

@@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....

[@peggyturner2431]

@@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.

[@peggyturner2431]

@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

[@julianboyd8719]

50?! You look 30.

[@symms]

@jakefarmers2900 fake

[@AXE914]

I started in my mid twenties and maxed out 12 years in both, now I just max out Roth. I do want my last check to bounce.

[@tha073926]

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.

[@kanuegwu]

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.

[@mathebulamkhize876]

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.

[@hgjg5206]

probably one of the best channels explainnig things ppl actually need to know in terms they understand without BS.. thank you!

[@Riggsnic_co]

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.

[@Oly_laura]

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.

[@martingiavarini]

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?

[@hermanramos7092]

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.

[@Oly_laura]

@@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?

[@Oly_laura]

@@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.

[@jacobb554]

Thank you for your videos, this is my new favorite finance channel

[@mrchills23]

Clear and concise. Learned more in 10 minutes then school ever taught me in regards to retirement . THANK YOU AGAIN BRIAN, and happy holidays!

[@couldbe8348]

How much tax on 401k?

[@glenng9111WoodbridgeSwing]

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.

[@capestreasuresPtown]

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!

[@bradyjames6666]

Bro Tsla is never going back to where it was

[@Blztrls]

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.

[@capestreasuresPtown]

@@bradyjames6666 It'll go beyond Bro.

[@SzymczykProductions]

@@bradyjames6666 Okay clown

[@richlandzee8686]

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.

[@tommyabernethy6982]

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?

[@richlandzee8686]

@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.

[@DaveSchmrdr75]

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.

[@123412346992]

I like that you added diagrams but also still made the video audio listener friendly still

[@AlsaadUthman1063]

[@AnnieHolsen]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[@bartlyAD]

as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management

[@ArielEhrenberg]

Agreed the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around $300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.

[@PennyBergeron-os4ch]

Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch if you don't mind

[@ArielEhrenberg]

DIANA CASTEEL LYNCH the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@PennyBergeron-os4ch]

I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her

[@beardedbubba7628]

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.

[@CrankyGrinch]

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.

[@Kevinw4040]

My wife and I both contribute to our 401s and also have a back door Roth IRA. Great video!

[@za-jm8wf]

Hands down the best channel on financial advice! Have subed and shared with friends and family because of how practical and helpful you are

[@DavidJ245]

This should be rudimentary advice our parents should have given us. Mine never did but I’ll definitely be teaching my kids.

[@maryksnyder1155]

We tried! They didn’t all listen! 😆🤦‍♂️🙄

[@renardfox328]

I totally agree with you.

[@marshalepage5330]

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.

[@marshalepage5330]

By time yours kids are adults the rules may change again.

[@mattclark2655]

@@marshalepage5330 except many pensions and companies went belly up and many people have 0. Only good pension is a government backed pension.

[@iamsam8446]

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.

[@iampicasso1811]

I agree

[@sarscov9854]

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.

[@atldeadhead]

Dollar cost averaging is better

[@rpmen]

Very good basic breakdown. Company match on Roth 401k also considered pre-tax contribution. Something to consider

[@catpaladin1]

My company’s match on the Roth 401k didnt go into the Roth side but the non-Roth side.

[@compoundalchemistget1monan591]

Do NOT underestimate the impact that a company match has on a 401k... This adds up BIG TIME, as that additional money will be compounding from the get-go! Great video Brian, thanks & keep it up. Happy Holidays to you & your family!

[@destinationskyline07]

Rip ..my company only matches up to 5 percent

[@stopandthinkaboutit8636]

Its interesting to hear some people not value a company match, an example of not understanding the big picture.

[@fire_fux]

@@destinationskyline07 better than nothing. Sure some companies match up to 10-12% but they're rare. I think most match 5-8%

[@omgn88]

not if you don't plan on staying for 3 years at a company with a 3 year cliff

[@truthlove1114]

Or true, it depends on the company. My prior company required 5 years to be vested for the company match. My current company lets you on day one be vested for the match.

[@achag9273]

Excellent video, advice n education. As always, thank you. I put my money in Roth 401k. And Roth IRA

[@ryans.6722]

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.

[@albolvo]

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.

[@devereauxjnr]

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.

[@AlbertGReene-p8w]

@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.

[@AlbertGReene-p8w]

@@OttoLane-j9z 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.

[@AL-hi1go]

Very clear and concise 👍🏻

[@napfreedom2153]

I have both!! Job 401k, with a match! Roth IRA with Fidelity holding dividend stocks, and ETFs!!!

[@bjnartowt]

Awesome. Keep in mind that dividend stocks usually pay qualified dividends (QDs). My tax rate for QDs is 0%, so I make sure my dividend stocks are all in my taxable brokerage (non retirement) account.

[@THINKGOODKARMA]

Thank you for this comparison. I’ve been following you for a few years now daily!

[@MidnightToker454]

We should have learned this in high school, not algebra. Thanks for everything man!

[@souledout3239]

Agreed!

[@nowisdumb9773]

Without Algebra, you wouldn’t have 401K.

[@sunnyd4734]

Are you sure? I liked binomials. 😆🤣😃

[@Led.on.YouTube]

Should have learned this AND algebra. Both help in future success

[@TaureanDreams]

Why do people blame school instead of their parents for not teaching them this stuff

[@KohenChia]

ty for this. Not gonna lie, been working for 17 years and I never bothered to learn all the differences until now.

[@jeffp1377]

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

[@ahndeux]

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.

[@JazzyMB7]

Omg I am so grateful for this video I've been wanting some clarifying regarding the differences and benefits of these two

[@gameplayparadiseofficial]

Definitely a no brainer in taking the company match. My nest grew to almost 6 figures within 6-7 years.

[@gameplayparadiseofficial]

@Cult leader for the year, I'm still up +4%. I was up above 15%. Sold a few stuff on the highs like AAPL at $170 and a few others to build a cash position so I can load up on other divies that I'm buying. I think maybe Kevin can talk about how to DCA into stocks and build a dividends portfolio.

[@OLLI_UP]

I am assuming you make really good money then, cause anyone under 100k is not building even half of that in that time frame on standard 3-5% company matches.

[@Kody-xy3jj]

Instructive. Thank you !

[@iiivesa99]

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 😊

[@majaviseibiunouva]

Since i watched your first videos… I’m with you…

[@kerriweiss9900]

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 😢

[@edenterra870]

HSA 👍

[@kerriweiss9900]

@@edenterra870 yes, never really looking into it til this year. I know we are late to the game but better late than never!

[@FreeToBe_Me]

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.

[@mocheen4837]

We have a Roth 401K, 401K , HSA and pension. We also contribute to our kids 529 plans.

[@donjuce]

Thank you for the information

[@Alvin_1914]

Great Video Brian!

[@fusrojosh6870]

best content on youtube, right here

[@dukewilkins5306]

I think I love this man. This man drop jewels everytime. Every single time

[@alwayslearning4]

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.

[@sayless1445]

This was extremely helpful. Thanks for breaking this down.

[@TheArtOfDean]

Several years ago, I had to withdraw from my 401K at a former employer. I feel like I'm STILL paying for it, even though I haven't worked at that company in over 17 years. Thank you for this information.

[@NickwatchesYTtho]

Damn how much did you withdraw?

[@kevin1153]

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.

[@josefarias111]

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.

[@scottmagruder6907]

Can't do that if you make to much money to contribute to a Roth IRA.

[@mattk2643]

@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.

[@seematalwar9440]

Great info, very nicely explained. Thank you

[@stephenponter5759]

Can you do a video on a Roth IRA Conversion from a 401K? I am curious about the tax implications. I have done this, this year, because my 401K has tanked in the past couple years. I figured I will only have to pay taxes on the value at the time of conversion to a ROTH IRA. So I will have to include that amount in this years AGI. I also, did not know there was a ROTH 401K ! Thanks for that insight.

[@markeasley6149]

Roth 401k + Roth IRA hurts in the beginning of the career, but knowing your money is growing tax free and you make some decent investments, it is such a peace of mind. Young workers really should go all in on Roth (401k to start, then also get IRA). Especially for Roth strategy, Dividend stocks with lower volatility make the most sense. This is instead of doing dividends in an individual brokerage account where you will get taxed. Basically you get tax free gains on dividends and you try to purchase the stocks at a discount during market dips. It takes some research but having dividends to reinvest on quarterly or monthly basis keeps you nimble and monitoring your portfolio. Plus many employers offer HSA and HSA contribution which you can use as a traditional IRA and get the best of both types. Especially early in your career you may not have many medical expenses because of your youth, so saving that money and doing dividend investing in an HSA account can really compound over time.

[@jonrios1389]

One of my biggest regrets was not opening up a Roth IRA at a younger age.

[@SkaterFreeBird]

Happy Wednesday Brian 😊 wishing you & yours a blessed holiday season ❤️🎄⛄️

[@clearvaluetax9382]

THank you Freebird, it's always so wonderful to see you!

[@nouneyhill9795]

Excellent information; solving a problem that just occurred...

[@StarInfinite00]

You made a video about this a couple years ago. Don't remember exactly when but I went with a Roth 401k and Roth IRA on the side. Don't mind paying for taxes upfront more worth it for me.

[@circusfreakRob]

I am doing the same thing as of 2 years ago. Roth 401k maxed and separate Roth IRAs maxed. Since wife and I are now in the "catch-up" age bracket, that makes for $45k we can get into Roth each year. Also have a pot of traditional IRA dollars, so it will be nice to have both pots available to adjust tax brackets in retirement.

[@mikei6895]

Being able to roll the roth 401k into a roth and eventually buy real stocks is key

[@jensiecast]

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

[@PitlaWorld]

Interested in learning more about the backdoor Roth IRA. Love the Roth 401k account, wish my employer offered that.

[@lildasani]

Mr. Kim you're the best in giving advice. Thanks for spreading wealthy advice.

[@dapperd5008]

Perfect video Brian! Thank you!

[@DDoubleDrew]

Last year I was able to max out my Roth IRA while also contributing 20% to my 401k (17% from me and 3% from my company). Gonna try to max out the Roth again this year!

[@430aoncrypto]

I love your videos bro!!!!!!🔥🔥🔥🔥🔥🔥🔥

[@PeaceandQuiet4]

I would go the balanced approach as you mentioned. In the early years of one's career, where income is lower than later in life, I would go all-in in the Roth. As you start to make more money in later years, I would then transition to the 401k for the tax deductions and matchings.

[@Mdqvideo]

Great info as usual thank you

[@fortgrove3166]

I contribute both. I max to get the 8% match from my company and then contribute to my Roth IRA for the max contribution for my age. By the way, my company 401k defaults to traditional but I converted it to a Roth. It is with Fidelity.

[@apichadarunyothin2446]

Thanks for the info!. HSA is also another great tax benefit . I have been maxing out traditional 401k and Roth IRA as well as HSA for 8 years now. I wish I could have done this eariler. I am now 42. Hopefully I will be able to retire early.

[@kona6451]

Same exact thing for me plus a brokerage account and I Bonds this year.

[@VashtheStampede007]

You still can’t take penalty free money from 401k and IRA until 59.5. And 65 for HSA.

[@kona6451]

@@VashtheStampede007 yes, thats why you need to also build up a regular brokerage account to bridge the gap.

[@deadcityhauntedhouse9132]

​@@VashtheStampede007 72(t) plan allows early access to fundd

[@LegendaryVideoVlogs]

great video 👍🏼 i work for the post office now, and we have TSP, Thrift Savings Plan for federal employees just like a 401k and a roth as well. just been doing 5% for 401k currently

[@joshhoward1289]

Another extremely important subject is how to withdraw in retirement; especially regarding annuity options.

[@AlsaadUthman1063]

[@shellyh8739]

I'm so glad and grateful I found your channel and subscribed. Thank you for this video.

[@NeoSpacian1237]

Thanks my job offers matching 401K I’m gonna sign up next month!

[@darthbane2669]

Why wait?

[@auomi8762]

Legit channel is so legit! In all the tike I've watched and learned from this channel, I don't think I've ever seen graphics!

[@fah232]

Thank you so much for this information.

[@rayr1426]

Thank you for the post. I do find the comment of "Free Money" when it comes to employer matching interesting. It is not free money but money a company would normally put into an employees pension plan. Yes times have changed but companies and yourself make it sound like the employer is doing the employee a favor. Nothing is "Free" even though "Free" may have been used as an expression. Just to reiterate, you did do a great job on this post.

[@patriciabeller64]

Brian, thank you for a year full of calm advice and financial interpretation! I hope you have terrific holidays and a bountiful 2023!!

[@glockman99]

Great video. Will definitely be watching more.

[@OldOneShoe]

Didn't see it mentioned but look out for vesting because if you don't plan to be with your employer after the vesting period, you won't get the match. Also, check when you get the match. My last employer gave the match for the previous year when the new year started so that meant if you left in say November, no match.

[@Excalibur2]

My previous employer had a 6 year vesting period, earning a fraction each year. Now my new employer offers 0% vest until year 3 is completed - for them it looks like they're offering me a couple percent match but in reality I'll almost certainly be gone before then since they're a temp service.

[@rhiannonwhite2514]

Thank you, would love to see backdoor IRA! 😊

[@JADiaz10]

When you’re waiting for him to say “I’m not qualified…” oh wait, he is 0:19

[@MrSlm1982]

Thanks Brian! I will share this with people I know too.

[@HarvickOne]

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

[@lilyusi]

Can you share the spreadsheet?