Follow these 7 Steps to Build Generational Wealth…

[@saralimas4180]

Almost being 39 I have never thought through how much I want to retire with but have been thinking more and more about this so this video is good timing! My company allows me to contribute to a Roth 401K and they match up to 11% !

[@rachelgabbert3705]

Which company

[@bbb1332-c6h]

@@rachelgabbert3705 McDonalds

[@yhckelly]

This is a great video. The number one issue for financial stability is to have a plan- any reasonable plan at all. It's mind-blowing the amount of people who wing it, leading to failure and resentment most of the time.

[@BurtGordon-o2u]

…or put off planning

[@lizRomrell]

The graphics!!!! Thank you, Ramit and team! You have done simliar videos in the past and Ioose interest because it’s difficult to follow with the advice and numbers without a visual graphic. This was great!

[@stevestory8483]

This is one of the best thorough investment/savings video I've ever seen

[@Momomomomomomo1]

Hey Ramit, I found myself enjoy these videos of you talking more than the calls with people. Thank you for making them!

[@htorres11]

Amen! I feel his interviews with couples are too long and get us mired in the therapeutics of bad money decisions and interpersonal issues between married couples! Dave Ramsey like short videos and calls are more my style! This format is better for Ramit!

[@Squashballs1337]

what i always reccommend to people is to do the following: 401k match 1 month emergency fund payoff high interest debt 3, 6, or 12 month emergency fund Max out Roth IRA (or traditional if you do not qualify for Roth) If eligible for HSA then split the investment between the two. Max out HSA (if eligible) Max out 401k Remainder into taxable account I also always tell people to invest at a minimum 15% and to save at a minimum of 10% of their income. Personally I invest 15% (5% into 401k, 5% into Roth IRA, and 5% into HSA), and my employer matches 5% but also gives an additional 3% a year since we do not have a pension anymore, and have 6 months of an emergency fund.

[@trackee2024]

18:37 Our deductible is $4k for a family but the min to get an HSA is $3.6k; however we didn’t qualify because our individual deductible is $1k and the min is $1.6k.

[@IanSmart-g6y]

I am an Australian, we have a compuylsory super guarrantee contribution, very basically your employer contributes 11.55% of your salary before tax into your super account (up to the current cap of $27500) where it attracts a contribution tax of 15%. If you want to contribute after tax money in addition then that cap is nominally $120000. The earnings and capital gains within the super are taxed up to 15% and this situation continues until you either reach 65 or you meet sufficient conditions of release that you are deemed to be retired for emplyment. At this point your account can go into pension mode which has a compulsory drawdown rate that corresponds with your age but the interesting part is that at this point the earnings within your pension account are entirely tax free, as is any pension you drawdown from it. The actual fineprint on this system is incredibly complex and detailed but this is the very basic nuts and bolts. I would love the equivalent of a roth ira in australia, it would make a really good system amazing!

[@landonbrown9943]

A paid off house, no debt, & a couple million in the bank you should be living good 👍🏾

[@S2E2L]

The goal!

[@anupamar426]

Goals 💯

[@jamesclancy]

No shit Sherlock

[@paws315]

Except for property taxes. An ugly reality in the US which undermines the concept of ownership

[@jessymadsen2699]

Oh that’s all!?!? No biggie😂😂

[@valmac1234]

Just a side note, if you retire to somewhere like Portugal for a lower cost of living and free health insurance, they don't recognize the ROTH and will tax you on your withdrawals unless you can prove you put in tax free contributions. Keep your paperwork!

[@Adman-p4j]

Many countries have tax treaties to prevent double taxation.

[@patienceisalpha]

​@@Adman-p4jonly a few countries recognize Roth as tax free. Classic future expat tax trap

[@andresgarciacastro1783]

So... Let's go live off other people's society.. Stay in your third world country please....

[@hollyc3838]

What kind of paperwork will prove that? I do a transfer from my after tax money in my checking account into my Roth IRA. How do you prove it when you do your taxes for Portugal?

[@tylercampbell6058]

Maybe just slow travel for a month or two at a time per country to avoid the situation.

[@Agi2u]

With regards to HSAs, I don't know how many employers do this but my employer matches my contribution to an HSA of up to $1k. It's actually insane if you're in a company that will match money you put into an HSA.

[@jessymadsen2699]

My husband’s company matches $1400. It’s awesome! We’ve made so much $$$ in our HSA by maxing it out and investing it. Even using it for medical expenses and even for kids’ braces.

[@chetanjilhewar1669]

But you would need to keep an eye on the max on the money you put it. For example, let says your company put in $1000, you would need to put in the left over money I.e 3000 if the maximum is 4000 for the year. If believe it is 4150 for 2024, I could be wrong.

[@prashantgulati9574]

Finance KZbin is amazing. Say the exact same thing to people, over and over again, with a slightly different script. And you've got yourself endless hours of content that people will gobble up. Gotta love it :p

[@arh1234]

It takes some of us a few iterations from different perspectives to really "get" it. Plus, repetition is helpful to stay the course!

[@Bantallas]

And every time there will be somebody who sees it for the first time.

[@xaldath4265]

The irony is people still fail to grasp how simple the process of generating wealth is. Easy, even...once you truly get it.

[@s10case]

That's me right now!

[@mchristian5217]

Funny thing is most still won’t do it.

[@htorres11]

What a great video this is! Top quality advice wrapped up in a top quality video production. Between Ramit, Ramsey, and JL Collins there is no reason why anyone should have issues wrapping their head around the core principles required to reach financial goals! Thanks Ramit!

[@aryangrover]

Loving the fact that this video didn't start with 'buy a house you can't afford and work for 40 years so that your kids have a million dollars when you die'.

[@delijahanderson]

Ramit, I’m a huge fan and I appreciate all of the knowledge you share with the world! I’d love to have a job like yours. Thanks for what you do!

[@lowlowseesee]

you can definitely have a job like his. I do what he does right now but with all my coworkers using his methods lol. I do it for free but its a lot of fun improving peoples situation. I have a meeting with a coworker tomorrow and I also have had meetings teaching the owners of the business I work for on how to manage their money lol. Im a college drop out who has never cared about money and i have none. i only now have savings at 43 thanks to ramit. so I know if I can teach people for free, you could for sure do it and make money. get some george blackman youtube writing skills and you are set. but yeah you could for sure make a living as a financial person. ESPECIALLY if you joined his Earnable program and or put in the work. the community in his programs are even more supportive than I am being right now lol

[@delijahanderson]

@@lowlowseesee I’ve thought about making it a career or at least a side hustle. I know I’m passionate about personal finance bc I help family and friends for free too. It’s hard for me to charge people when I’m trying to help them get their financial situation together lol

[@joelargueta9191]

Are Roth 401k’s not common? I always see the 401k vs Roth IRA discussions without mentioning Roth 401ks? Everywhere I worked has offered a Roth 401k.

[@smilesnluvd6526]

I think the comparison there is to look at the fees. Most 401k's fees are higher than IRA's. So you'd only max out the 401k first if it's both Roth and has a low fee (somewhere around 0.06%).

[@saulmarquez8989]

@@smilesnluvd6526 most 401ks offer higher fees because of target date funds …..but they still have a option for a blue chip fund or similar S&P 500 fund that offers super low fees

[@jerrystauffer2351]

It's fairly new. I can do a mix of regular and Roth 401K

[@Ry22futbol]

For questions like this, it’s probably better to watch The Money Guys. They are certified financial advisors, and they are better for people who are interested in going beyond this kind of advice

[@jdp486]

Yes. I hate when financial people compare Roth IRAs and 401ks... It automatically strikes me as outdated information. Just compare traditional and Roth!

[@JulieLaursen1]

After paying almost 40k AFTER insurance in medical bills because of one company's large out of pocket max over 3 years, when I joined another company I chose the insurance with the lowest max out of pocket. I may not have an HSA, but I don't have any medical debt and I have more peace of mind.

[@Rigs_1980]

Yes agreed on maximizing 401k. But be careful because if you max it on month 9. The company you work for will not add money the additional months left in the year. It’s crucial to read the benefits. I was not aware of this until maybe 5 years ago.

[@michelletucker2842]

Yep definitely need to make sure to spread your contributions across all pay periods in order to maximize the match (at most employers)

[@RM-cq1ny]

My strategy is three buckets: S&P fund, tech fund, and target date for my Roth IRA until I hit the max. Thanks for the tips.

[@lanniehernandez5078]

Make a video for 40 to 50 yrs old beginner millionaire PLEASEEEE!

[@Artbynbru]

From what I’ve seen, the videos are made more for 20 and 30 yr olds. I am looking for the same information as you! Just commenting as well to see if there are updates on your question.

[@akierramissick6918]

@@Artbynbru Agreed!!!! Help us 40's ppl out.

[@lippzy6983]

I believe it works the same, it doesn't matter when you start but the sooner the better​@@akierramissick6918

[@lippzy6983]

From what I've watched on yt the only difference is you'll have to invest much more than us 20yr olds

[@vgmijpn8ball]

Thanks! I hope you can make a video about a financially healthy couple on your podcast sometime. We've seen over 100 couples who aren't on the same page, but what are we aiming for?

[@mchristian5217]

I would like to see that too. Someone to model doing it right. Especially someone in retirement using the 4% rule with no worries.

[@AdrienneMcheapo]

You can only use HSA money tax free if used for specific medical expenses. After 65, you can use HSA money for anything, but if you use it for non-medical expenses, you have to pay taxes.

[@22bouha]

Thanks Ramit! I’ve always love your fun no-nonsense way of delivering an otherwise boring topic. I have never listened to any of your videos or podcasts and not laugh because of the humor you inject in, which still doesn’t take away from the important details you’re providing. I’m a follower of yours and been following your advice about 50% of the time (401k contribution, HSA, & Roth) since 2021, and I now have about $90k across my 401K and brokerage accounts. I’ve 2 young kids so that’s why I’ve not followed your advice a 100% as I invest in their 529s and they’ve between them about $32K. I’ve been out of work for months due to an illness but I just secured an amazing job with a great income and I’ll restart being IWTish😂 maybe about 80% of the time as I am not able to bring myself to stop investing in my kids 529 even though my middle schooler is starting to apply for scholarships. Thanks for all you do. It’s very very helpful especially for/to an immigrant like me.

[@Kgomotso_DivineDiva]

Thank you 4 info ..we hv different acc in Afrika but your guidelines helped me a lot .Im pushing Tfsa Growing my RA ,Got rid of debts also bought properties im about to settle 2homeloans. The other 2 houses r on airb&b Im building my richlife

[@curleenr4317]

Can you teach us about rollover IRA? Thank you 🙏🏾

[@lori.imhoff]

I pay 12% into state retirement as a teacher every month. I also have a Roth IRA that my parents started when I graduated. They put in some money for my birthday every year but I'm not really adding to it since I'm already putting so much into state retirement.

[@poojaghosh7783]

You teach so well! 👏🏽

[@chetanjilhewar1669]

To bad, he could do teach well at high school or college level classes. I would if he could teach finance to kids in elementary schools.

[@peggyyu9752]

Maybe it is better to teach online so his message can reach more ppl 😊 plus .. teenager never really listen anyways 😅

[@jdp486]

Much like compounding interest, most people have no idea how quickly 3% inflation each year can increase costs. Costs of $73k this year will be $177k in 30 years.

[@arh1234]

4% rule includes increasing your draw for inflation each year

[@Artbynbru]

My company offers both 401k and Roth 401k. Company matches for both. Do you treat the Roth 401k as a 401k? Should I contribute on both to get full match? Or should I also open a Roth IRA in addition?

[@randombandit362]

I think your expenses can reduce drastically if you pay off your house and have no debt. Do that by 55 at the latest and then you’ll have 7-10 years to determine your annual expenses at retirement, and save a ton too

[@rjaymanguino2760]

What if instead of aggressively paying down your house you aggressively invest instead? 😳

[@strongheartfitness]

At 51, my mortgage is all that’s left. I should have that paid off in the next 3 years all while investing simultaneously. Maybe then will I buy a New To Me suv. Thank you Ramit!

[@lowlowseesee]

thats a great idea. only problem with that is are two...one...people who can afford to pay off their house usually over save and don't enjoy themselves and they are miserable. thats not a rich life. two...most people dont run the real numbers on home ownership so most people have fixed cost so high that they can barely afford to pay their mortgage let alone pay off their house in a good time limit. most folks wont have their homes paid off until they are too old to really enjoy their money. guilt free spending now not when you turn 70 lol

[@yandirn2478]

This is exactly my plan!

[@kasilva5649]

Thank you for the video! I have a question, if my 401k is Roth should I open separate Roth IRA?

[@Szechieh1986]

Ramit!!Super love your videos and I look forward to them every week! Love your response especially when people come up with ideas that do not make any sense at all - It always make be roar out laughing out loud.

[@cyanoswag]

Do you have any suggestions for adapting this plan for other (not USA) countries?

[@marcelocamargo5233]

I moved to the States 4 years ago, I loved this video but I do not understand something: if I achieved the first step “maximize the 401k with match of my employer” then “I paid off debt” then I maximized the Roth IRA: why should I go to maximize the 401k up to the limit of $23,000 (it has higher cost) and not go to a low cost index fund (vanguard S&P with a cost of 0.04). I really do not understand, and I have the idea that I am missing something. Thank you!

[@desireedindal8160]

Great Vid !! I love the simplicity of your advice. I would have included Real Estate as part of Step #7.

[@stephenwebb9882]

A note on HSAs: a lot of employers will have an HSA provider and deduct directly from your paycheck for you, but you can roll over an HSA just like a 401(k) to a preferred HSA provider when you leave the employer.

[@bgoode652]

My company's HSA provider is crap but the payroll deductions need to go there. So be it for the SS savings. I transfer the majority of the balance a few times a year to a Fidelity HSA I setup so there is never much in the company's provider.

[@glasshalffull2930]

Target date funds ‘typically’ are way too conservative. The fund through my employer has you almost 30% in government securities/bonds 15 years out from retirement. Huge drag on building your nest egg and could easily put you $500K behind what the S&P 500 might have provided.

[@charletfoster8917]

Great lesson on how to invest for our future🙏🏿😊💰

[@jamellita]

And how do you manage (spending) your money when the retirement comes?. Great Video by the way.

[@jthomas274]

Do you have a section in your book for high income earners? Maybe I overlooked it. At what step you would incorporate the back door Roth, before or after maximizing 401k yearly contributions?

[@arh1234]

If you earn enough to need to do backdoor Roth IRA, you should probably max your IRA and 401k. Either way, his suggestion to max IRA before filling up the 401k max still likely applies.

[@mchristian5217]

@ramit any chance if a second season of your show on Netflix?

[@claudetteg9386]

Hi Ramit what do you do at 63yo no investment..no 401k a small salary...????

[@AlyssaWolverton]

You dont need a lot of money to be wealthy. We are military family with no debt. Currently 30 and contribute $1000 a month to retirement. We make 66k a year if you count our housing allowance.

[@taylorapolonio]

I'm curious if you can talk about how to adjust retirement planning if you want to retire before the traditional age

[@Kornheiser10]

He's not a fan of FIRE. Bigger Pockets youtube is good for that topic

[@RobertDamanii]

I’d be retiring or working less in 8 years, and considering this financial recession, I’m deciding to begin taking up skilled trades. I’m curious to know best how people spilt their pay, how much of it goes into savings, spendings or investments, I earn about $140k per year but nothing to show for it yet.

[@AmyGimsby]

You should contribute to your retirement diligently, or better still look into financial planning don’t come to KZbin for advise, consult a financial firm about your situation

[@tibouthine6409]

Hey can you make a video for young people , like which risky place to invest for a divers portfolio ? thanks that a great video

[@Mer-oo9wo]

THANK YOU FOR BREAKING THAT DOWN!!!!

[@hamidoudembele5323]

Hello Ramit, Thank you for everything since I follow your podcasts and your documentary on netflix where I discovered you. I have one question. Please, could think that it will be interesting for me to buy your book wince I live in France. I ask you that because I don't master the USA market. Thank you again

[@EveningDeveloper]

Good info, but odd to not consider social security or pension when estimating retirement income needs.

[@marilynflores7649]

Hello Ramit, I've been doing everthing you suggested. Unfortunately I do not have a 401k but, I do have a 403b. So, should I do the same with my 403b as you recommended for a 401k? Please help.

[@daniellefaith47]

Could you do a similar video for a situation where someone is paying into a pension plan and has the option for deferred compensation? My retirement contribution to the pension is set and I'm not sure if/how to split additional money I want to set aside for retirement between a roth and deferred comp 🤔 I appreciate you and your content Ramit!

[@lilifey729]

I have a pension plan of monthly salary divided by (2% times number of years worked) for life after age 55. I still contribute to 401k and just started Roth IRA. It's better to save more than less🤔

[@thsh9673]

My employer does not match anything in the 401(k) they offer Do i put any money in this 401(K) or just invest my money somewhere else like s&p

[@justanotherjessica]

Would you recommend that someone with a TSP (government retirement account) use a Roth IRA as well? The expense ratios are low and you can do either traditional or Roth contributions. I'm asking because my husband puts all his retirement investments into his TSP and am curious if he should put some of it in Roth IRA instead.

[@marioschuster]

Sadly, as an European, I understand only like 25-33% of this video. Most things don’t exist here.

[@11Voltage]

Hello from the UK. Each country should have their own versions, it's good to make note and then go and find your countries version of the same (we have pension account not 401ks and ISAs instead of Roth IRAs)

[@Woclshejtiknew1]

As a european: In uk- take the employer match on auto enrolment contribution. Plus, max your stocks and shares isa (no cash isa. Waste of tome) In europe : Put as much as legally possible towards your private pension fund, choose the cheapest pension funds like vanguard, choose equity like s&p 500 , and take the government deductions for putting money in private pension.

[@ramitsethi]

Loving the comments showing how to adapt this material to your location. I also have a UK edition of my book, which is adapted to the local market.

[@joefirth7428]

​@@ramitsethi I'm from the UK. Have both editions of the book and they're great.

[@dianncotterell5531]

​@@11Voltage yes, and here in Canada we have the RRSP that's for retirement nd the TFSA which is a tax free investment account. We also have other accounts to for investing.

[@hanksung]

Okay... so, what if I wanna move to another country, and I'm NOT American? Like I wanna go to working holidays in mutiple different countries before I turn 31 to decide which country that I wanna move to, The Netherlands, or Canada, MAYBE Austria, and I'm sure that I'm pretty sure that I'll go to Australia to working holiday for 3 years to earn more money, so that I can go to a country where I wanna move to to study Pop music, which is a feild that I wanna be in, to be a singer/producer (Even though I haven't studied anything about music yet. But I'm REALLY PASSIONATE about music, ESPECIALLY early 2010's American Pop/EDM Pop/Electro Pop music. And I love some of the 2000's Pop Rock/Pop Punk/Emo singles too. And I know more of those things than most people who are NOT musicians.), to get a working visa after that. And The Netherlands is the country that I'm leaning towards the most NOW. So... what do I do before I'm sure which country that I wanna move to before I ACTUALLY more there? And when that happen, I'll probably be 35 to 40? And I JUST turn 22 3 weeks ago. (And... I don't have a job now, and I probably won't have money to invest LITERALLY before I start working holiday before I turn 25. So what do I do between when I'm 25 to 35 or 40?) Hopefully you'll see this question and answer it? Because I really need some guidance about this 🙏

[@sibusisontiwane7410]

In South Africa we have either a provident fund or pension fund instead of a 401K; my employer will pay this on your behalf which is 15% to 27.5% of base salary meaning no cash burden to me (non taxable fringe benefit). Should I match this by taking 15%-27.5% of my salary too?

[@adnesavchen1549]

always learning thing with you. I was investing more so now I will pay my debt 1st I am always missing something. Thank you for all you advice. Could you plz have one episode for the Canadian way of doing thing. I am a huge fan of your and also sharing with my friend and matter of fact some is hearing about you for the 1st time. I also find it very great gift to my friends and relatives. I just hope they learn all those knowledge early not like me I whish II knew about that 20 years or even 10 years before. That would make a huge difference in my life. Thank you

[@TheNapoleonComplex1]

@ramit I signed up for financial advisor when I was 20 that is charging me 1%. I'm now 41. How do I separate from them?

[@101289teutonicguy]

What a lot of people dont realize is that a lot of companies offer a ROTH 401k as well and that contributing there gives the ROTH benefits as well as the company match!

[@imlibratheone8644]

I max out myself HSA and IRA before going back to add more to my 401k. If it's triple tax advantage, I feel like its the better move. Am I missing something ?

[@worldwideachievers1234]

Many are not aware of ROTH IRAs. 401k plans yes but not ROTH. Everyone should understand ROTHs and fund them annually. After tax money going in but tax free coming out. Having no debt is more important than anything as you near retirement. If you’re debt free then you know.

[@sarahbarrett6704]

What about a Roth 401 k work offers both? How much should I be putting into it? Sh🎉I put more in my Roth 401k or a Roth IRA? Or just max out my regular 401k?

[@TheseWhiteNights]

Question. What is the difference between a target date fund and the robo advisor for vanguard? They seem to have the same strategy of moving funds from stocks to bonds

[@Dee_ann94]

You’re leaving out one main thing… we get these returns assuming we won’t die before. Nothing is promised. I was in a serious car accident 9 months ago I could have lost my life , but instead I couldn’t work for some time since I was handicapped (broke 5 bones). My goal is to have cash flow now so I don’t have to work for my whole life because what if you can’t physically work?? I’m not putting my money in Roth ira yes I have a retirement plan since I am a teacher in California but I putting money aside to purchase real estate so eventually I can move out and rent all the rooms. I will have 1000$ cash flow each month and they are paying for my rent. I bought in January and I’m glad I did had I waited 5 months my house is now worth 50k more. I agree you should have a retirement plan but not to max out all your money to put into it. Diversify your money.

[@Brian-3000]

Weird I thought you’d talk about the mega backdoor Roth in plan conversion with your employer as the last step!

[@bgoode652]

That one confuses a lot of people for some reason and isn't available to everyone also. I'm guessing he just wanted to keep it simple.

[@vanbeek62]

Unpopular Opinion: If you're eligible for an HSA and will utilize it maximally with investing the contributions and keeping receipts to reimburse with gains in the future, I would place it before the Roth IRA just for the tax deduction benefit alone.

[@christospsarrakis1990]

Great content as always. Greetings from Europe

[@dorindawilliams6790]

If a company decreases its 401K Match, and you are vested, should you take the difference and pay off High Interesr CC, then use those funds for the next step or add above the 401K match (if you started late and need to catch up)????

[@pnic4540]

IWT Team, Why did we not discuss the Roth 401(k) option?

[@dabdias]

Target date funds are not that great!! Have you ever calculated the foregone returns from reallocating towards bonds? By making more money in equity, you can stand larger stock price declines and most likely you will have more than you would have in a target fund. It’s all about compounding!!!

[@sijodevasia2034]

@ramitsethi Can you make a video for types of investment tactics for those of us who are 1099 workers? I work without benefits and it seems my main two options from this video are to pay off my somewhat reasonable student loan rate of 4-7% across 7 loans and then max out my Roth IRA? Are HSA's applicable to me? Big time fan! Read your book right after graduating college but only now am I realizing how to manage my money/budget.

[@arh1234]

1. If you're 1099, start a solo 401k. Fidelity and Schwab are popular spots. 2. You can open an HSA if your health insurance qualifies. You can filter healthcare.gov plans for HSA eligibility 3. Definitely continue with your IRA

[@ghizlaneiggouch1406]

Is this good for everyone plan or just Americans?

[@bradchin7746]

What happens if your employer offers a Roth 401k? Should one do the reverse? Roth 401k and Traditional IRA? And what about a SERP? Should it all go in there?

[@branditurney8281]

If you’re a married couple filing jointly and you make too much to contribute to a Roth, is there any way to use one? If not, I’m assuming you just skip that step and move onto the next. If you have children can you do anything better than a 529 plan? My husband and I are federal employees and I was wondering if you could do a video for federal employees taking pension into account for retirement.

[@Kozanne5]

Yup, backdoor Roth. Google it, basically contribute to an individual IRA (you cant have any other funds in an IRA) and then you can covert it over. They might get rid of it in the future. So use it now!

[@delijahanderson]

Look into a back door Roth IRA.

[@123Mack08]

Roth TSP doesn't have income limits. Same tax benefits as a Roth IRA.

[@branditurney8281]

@@123Mack08 I thought that I watched a video once about the pros and cons of TSP vs Roth TSP and remember leaving the video with the feeling that for our situation it was better to stay in the TSP. I’ll have to revisit.

[@IrisP989]

Can you explain why it’s best to be taxed at a 24-% tax bracket when I assume that my husband and I will pull out less than 6 figures a year for retirement and therefore should be taxed less?

[@busa4250]

Can someone please answer why last week the Dow and Gold & Silver were at their highest prices at the same time? Thank you :-)

[@lailatov957]

How much should be contributing in Roth IRA on low income?

[@andrewpatterson4043]

Ramit, why the hate towards Kiyosaki? For many of us who are actually doing well, Rich Dad Poor Dad was quite impactful.

[@longview3k69]

Ok, so i have around $27k in High Interest Debt, but I have a 401k and I just opened up a Roth with $1. I looked into getting into a Target Date Funds but they require $1,000 to get into. After I build my 1 month Emergency Fund, should I save to get into the TDF and after contribute $50 a month or just focus on paying off all of my Debt and continue to build my Emergency Fund first before getting into the TDF? Note, I have started setting aside 10% of my paycheck to my Emergency Fund and will add more to it from my Guilt-Free spending to speed up the filling.

[@longview3k69]

I got your answer, had to rewatch that part of the video multiple times to understand it completely

[@amansawhney3318]

If you assume your tax rate will not change then contributing to your Roth vs 401k after the match doesnt yield more money. For most retirees I think the tax rate is lower in retirement so that would make 401k contributions more effective than Roth. However, you have additional flexibility with a Roth. Namely you can pull from a Roth without penalties for qualified events and for your contributions at any time. That’s a massive benefit

[@deliamak]

I might have missed what you said. Where can we open a Roth IRA account, and a HSA account? Is it through your bank or something else?

[@kuni-vu1ln]

As an expat working in Dubai is this possible?

[@garbopr8613]

Are hysa a good idea?

[@CourtneyAnderson-b1w]

I’m in Australia- can Australians invest in a Roth IRA? Is there an Australian equivalent?

[@roqonu]

This is a great video in all aspects.

[@gaganb1159]

Sat shri akaal sethi sahib, very good info but can i access target funds as I live in NZ

[@KA-NV]

If I am investing in a 401k and a roth would you suggest to do pre tax in the 401k or is it better to invest after tax money in it?

[@grissom.]

Excuse my ignorance if I missed this in the video, but say I have already maxed out my match in my 401(k) (5%) and also contributing $250 a month to my Roth IRA ( target 270).. Which one should I increase first? Should I contribute 10% to my 401(k)? And only receive the 5% match or start contributing more to my Roth ? Thanks for the guidance. I am 20 with no debt trying to make sure I set myself up for the future. Edit - I see that you recommend to max out the Roth first. Also I wanted to add I love your philosophy, I’ve listened to a bunch of people on the Internet in the Dave Ramsey, Robert Kawasaki, etc etc and I love the way your mindset… I’ve been following you for quite some time and using your conscious spending plan, I can’t take financial advice from anyone besides you. My parents do not have a great relationship with money they live paycheck to paycheck.. that’s all thanks

[@mrmistmonster]

Just a small note for step 7: don't use target retirement funds in taxable accounts. When they adjust the holdings it's a large sum of money you are being 'paid'.

[@MarissaFranklin-ym1cq]

What do you mean by this?

[@arh1234]

​@@MarissaFranklin-ym1cq The structure of target date funds allows large capital gains bills from internal restructuring. This happened at Vanguard maybe 2 years ago. It's a rare occurence.

[@mrmistmonster]

@@MarissaFranklin-ym1cq a couple years ago my 2050 target account moved around some assets internally. So I was given a rather large one time payment worth like 5% of the investment. This then just bought more shares which all went down 5% in value (because it was paid out to me). The bet value of the fund didn't change. If that money was in a brokerage account instead of an IRA account it would have had severe tax implications. An index fund almost never shifts around money like this which is what makes it better suited for accounts without tax advantages.

[@amyhudson1016]

So I should invest rather than pay extra on my home mortgage?

[@trackee2024]

14:24 but I have a Roth 401k through my employer? That’s post-tax.

[@Nisa-gm5wg]

Wonderful to have too

[@rufdymond]

Pensions are a great way of saving. I currently put £1,000 per month into my pension - my employer contributes £433 and I contribute £567. However because it’s done via salary sacrifice it’s done at a net pay reduction to me of about £450. So for a £450 reduction in my wage I’m getting £1,000 per month added to my pension….id say that’s a pretty good deal.

[@masoncnc]

Target date fund blew up in 2021 where both bonds and equities dropped.

[@bubblyunicorn]

I recently read your book and it said to invest in the 401k instead of a roth 401k (if your employers both) because you will have more money to compound over time. There wasn't any mention of the potential of higher taxes when we to withdraw in the book. Do you still recommend we put all the money in the 401k? I have heard other financial folks say the roth 401k is better because we don't know what the tax situation will be like in 20, 30, or 40 years.

[@davidveitch5996]

HSA. Any UK equivalent?

[@JonathanAlexeyPereiraFontes]

This is only applicable in USA, in Portugal we don't have 401K, or Roth IRA. We only have PPR that is the most similar to Roth IRA i think.

[@tomaszp2027]

EU is getting pretty aligned on some of the retirement products - see new PEPP concept. I'm not in Portugal though, so no idea if you already have it. Also some of the member countries have multiple equivalents of what Ramit mentioned (pre/post tax accounts with or without employer's matching) on top of social security.

[@JonathanAlexeyPereiraFontes]

@@tomaszp2027 will looking for it. But I’m pretty sure in Portugal is only PPR products.

[@lowlowseesee]

he has a u.k edition of his book

[@JonathanAlexeyPereiraFontes]

@@lowlowseesee I'm not in UK, in Portugal we have their book too.

[@ankitsethiya1626]

Some employers even add a match for HSA! Do you have an advise on how much to put in HSA or max that out as well? Wondering, what would I do with so much money sitting for medical expenses!

[@ProvidenceFarmstead]

You left out when your Roth and 401 are maxed you may be able to put in after tax into your 401 my company allows 10% then you can back door that into your Roth for the future tax free growth

[@sammygheb801]

Do you still advise contributing to Roth IRA even if your annual income is greater than 146k?

[@danielad.927]

Wow! The Roth IRA sounds amazing. We don‘t have something like that in Germany. We pay taxes like crazy…