Tax Attorney Explains: The 5 Most Critical Financial Accounts You Should Have

[@TobyMathis]

If you want to dive deeper into this topic, schedule a free consultation with my team today. Visit: aba.link/pgs

[@franciscofalcon7000]

1. Checking account (3 months of money) 2. Savings accounts (3 to 6 months worth of expenses) 3. Investments account (stocks, bonds, mutual funds, ETF and more). Higher rewards comes with higher risk, get knowledge and caution. Let start with brokerage account, money marketing fund 4. Retirement account 5. Health savings account

[@nickt1072]

I only keep around $1000 in my checking. All other funds get allocated to an Trad / Roth IRA, HYSA, self directed brokerage account, or my mortgage...

[@SupportThe0ppositeNPC]

Or under the matress

[@robertweekley5926]

​@@SupportThe0ppositeNPC - I put those $ in an Envelope, in a Drawer! Same idea! 😂

[@drlax15m]

I wouldn’t keep more than 1 months of expenses in checking as a buffer, if it stays in longer than a month you’re losing money, and like 3 months in an emergency fund high yield savings account

[@stephenkutney9626]

If you have an IRA or 401K and specify your distribution in your will, what tax rate does your estate pay when you pass away?

[@spatty2589]

Thank you for being direct and to the point. I got all the info I wanted and needed without a bunch of fluff and nonsense.

[@brandonwiggins1578]

Just started using a Fidelity brokerage account as our primary "checking" without losing any features, with a Fidelity business account to hold our excess cash and non-retirement investments. Total game changer! Getting paid to hold our cash as opposed to letting it rot in a bank checking account is incredible. You're always out here giving the best advice, Toby!

[@TheBrokenLife]

Fidelity's cash back credit card is also pretty good. I keep everything but the cash to go for 2 weeks in my Fidelity account.

[@jimdefazio8649]

Are they invested in stocks or are they just paying a flat rate to keep it in there? If stocks, do you have to make a million trades each month buying and selling to manage money in, and money out?

[@brandonwiggins1578]

@@jimdefazio8649 I keep them both in money market funds which is at 4.97% as of today. For funds that don't need to be as liquid (i.e. my true brokerage account), I invest it as I normally would.

[@kimberlindy]

What do they pay, what APR?

[@TheBrokenLife]

@@kimberlindy It's not a permanent fixed rate, but it's been right around 5 for awhile now, paid monthly. Their cash-back card is 2 on every purchase (and then promotions like everyone else does). If you play your cards right, you can actually earn 7 on everything you buy by combining that system (5 on the cashing waiting for the bill to come due, plus 2 from the card) instead of spending cash/debit. The cash back goes straight into your brokerage too, so it starts earning its own 5 as soon as you get it. There are no hoops to jump through to get any of it. It's just a money market account (I'm presently in SPAXX if you want to look deeper into it) that they manage however they manage it. Just start a brokerage account and select your default cash position for whatever fund you want (they're all about the same) and it simply pays that much interest. I would imagine _most_ brokers are about the same right now, but I haven't used anyone but Fidelity. Their cash back card is just like anyone else's too. Just sign up for it if you want it.

[@Livingin-LasVegas-xp2ox]

Hi Toby, are online banks ok to keep a savings acct? They are FDA insured and were rated high thanks Deb

[@neerajchaudhary1821]

Another awesome video

[@willmallory9085]

If child support and alimony have no limits, investment accounts shouldn't either! Sorry, sore spot for me.

[@scarling9367]

Several states have set limits on that. It's a state to state issue.

[@antwankeenan]

I agree 1000%

[@jasonbrown3658]

America is in desperate need of family court reform.

[@willmallory9085]

@jasonbrown3658 agreed!

[@christopherbeckerdite4273]

Most people miss having life insurance also. Its the most unregulated account to have.

[@wanda7519]

Hi I’m already retired and have a deferred comp acct. I’m getting very nervous with today’s happenings and was wondering if it would be smart or not to withdraw at least half my money and put in my credit union or invest some?

[@drlax15m]

yes put most of it in something stable, and have a reasonable draw that doesn’t deplete it

[@JasonSmith-vd1sz]

Fantastic information. Thank you for posting.

[@diananguyen-thien5446]

Can retirees put money into HSA? If so, what are the qualifications rules? Thanks

[@EDavis-bu7cx]

Thank you. This is very timely and helpful to me and my family.

[@TobyMathis]

Awesome to hear that it was helpful for you and your fam!

[@inmate0054]

So Roth is off of already taxed money?

[@MrJeffHaney]

KZbin Silenced the volume on this video for me.

[@frankiesmith9186]

Is it too late to start any of those accounts at age 58 ?

[@TobyMathis]

I recommend setting up a free consultation with my team to find the best solutions for your situation. aba.link/pgs

[@Rolando-SE]

For decades now, my checking is a cash management account. using same brokerage, opened separate purpose built brokerage accounts just for “whatever” vs emergency funds vs long term wealth building. Compartmentalization Made everything so easy and efficient. At a glance I could easily adjust accounts for levels of volatility and liquidity. Only my LLC used a bank.

[@gordonfreeman5648]

Soon you'll cry

[@willmallory9085]

17:20 I'm retired military on Tricare, can I still benefit from HSA?

[@TobyMathis]

First off - thank you for your service. I do not think Tricare qualifies as a high deductible plan, so I do not believe you will be able to contribute to an HSA. You might want to see if there are exceptions, but I am fairly certain. Sorry friend.

[@willmallory9085]

@@TobyMathis you're the 2nd finance guy and you had the same answer he did. Just thinking of ways to lower my tax bill.

[@naptime43x]

@@willmallory9085 you could look into a 529 plan. from what i understand those can be rolled into a retirement account now too.

[@rickmiles5297]

If you invest in a traditional accout and defer the tax, that doesnt give you a 22% return. You have to pay it back with interest later.

[@jackxkodiak2024]

You fail to mention that many companies do a 401k/IRA match of your contribution ...

[@laetitiazichy-vanlidth5882]

Silver/Gold?

[@jimdefazio8649]

Would love to have an HSA but the “low deductible health care plan” is like a grand a month for me and my family and absolutely prices us right out of ever possibly opening an HSA. The prices of health care coverage in America are a complete joke. We use health share instead and do DPC for small stuff.

[@mbrenterprisesbdif]

ABSOLUTELY UNBELIEVABLE

[@skepticalmechanic]

Really???

[@romeoowusuagyemangagyemang6764]

God bless you for all that you do!

[@maggiew7293]

401K's can become a liability if you lose a spouse and end up in a higher tax bracket.

[@richardguzman3874]

I don't see any advantage for having an HSA if you are a veteran (retiree) ... not paying much when I go to the VA

[@margaretr.4427]

This was very interesting and educational. I wasn’t sure if a HSA was useful for me because I felt like what if if I don’t ever use it? The money is wasted. Knowing it can be rolled over into something else is good. I’m going to look into that more since I already have a Roth IRA. Thank you

[@TobyMathis]

I'm glad you found the video helpful! It's always good to explore different options.

[@willmallory9085]

Excellent topic Brother

[@Jaime6529]

where are you located, Do You mind telling me? Im in the ORANGE COUNTY , CALIFORNIA area.

[@TobyMathis]

We have offices located in Las Vegas, Tacoma, and Draper. We operate in all 50 states. Feel free to reach out to my team for a free consultation. aba.link/pgs

[@500stoney]

To clarify: It is not possible to convert a Health Savings Account (HSA) to a Roth IRA after age 65, but you can use your HSA funds for retirement in other ways: Withdraw funds Once you turn 65, you can withdraw money from your HSA for any reason, but you'll need to pay ordinary income taxes on withdrawals that aren't used for qualified medical expenses. This is similar to how withdrawals from traditional IRAs are treated after age 59.5 This piece of misinformation severely hurts this guy’s credibility

[@breehartley1627]

My Roth hack - I fund my Roth 403b monthly but not my Roth IRA. I add up my receipts at the end of the year, take withdrawals equal to the amount of my receipts, and put it into my Roth IRA. Money going into my Roth IRA is now triple threat and I have do not need to keep receipts forever and have access to all the money at 59.5.

[@georgeoganisyan3370]

Thank you

[@swedeclc]

Very clear explanations. Thank you.

[@TobyMathis]

Glad it was helpful!

[@AlgebraCorner]

Do you have a dedicated HSA Video? The idea of a reimbursement is confusing.

[@TobyMathis]

This video might help =) kzbin.info/www/bejne/h4qvgXWFa86Bg7M

[@Hi-jx5oe]

At what age can you convert it into a Roth ? If you don't live to that age what happens to the account?

[@SM-pc7io]

Update on the SEP Roth?

[@ReAl-uu8ku]

Excellent video like always!

[@thomaslunden]

You mention contribution limits when talking about Roth accounts, but not when talking about traditional accounts. Why was that? The deductible to be eligible for HSA contributions is 1600 currently, but you say 1800 and 1600 within a minute (around 17:25 and 18:20). You also say you can convert an HSA to Roth if you don't have medical expenses- not true. If you withdraw for non-medical expenses beyond a certain age, you still have to pay taxes on your withdrawals, so it's more like converting to a traditional. Enjoyed the cadence and structure of your video while making breakfast.

[@mrbailey31]

Lose the sound effects, they are just distracting

[@barryfitzgerald3839]

Only need one account Off shore account

[@robert549]

There's always one....

[@FirstJohn418]

Thank you!!

[@TobyMathis]

Glad you enjoyed it!

[@tomhall7250]

Every thing you mention has counterparty risk

[@WizardKingCorey]

Dang Toby, looking good sir. Thanks for the advice.

[@TobyMathis]

thanks for watching =)

[@ELconomics101]

Coach Toby good afternoon

[@chewie1355]

Thanks

[@ppw8716]

So, yes to paying off the mtg? I’m in the same situation.

[@tomdixon1213]

Pay off your mortgage but consider ways to protect your house from deed theft.

[@jameszeris5418]

Excellent

[@sakareaMolelekeng-yy8nb]

freebook

[@oSnapMillerTime]

Da man right here

[@gordonfreeman5648]

This applicable only to US citizens.

[@kansaidan2302]

We're in unchartered waters here ...... 15 year past history average investment gains may no longer be a dependable gauge. $35+Trillion DEBT may torpedo most dreams. Hyperinflation may destroy $USD Fiat in short period of time completely devastating investment accounts. Massive DEBT is the elephant in the room that most people are ignoring.

[@oky9653]

Thank you. Last one is really good

[@TobyMathis]

Glad you liked it

[@GaryGettenberg]

He spent 20 minutes saying two minutes of information

[@musclebymike1382]

I prefer crypto and real estate only, I'm not interested in stocks

[@TobyMathis]

Best of luck with your investing journey

[@SenorNavel]

Health savings account? 😅 Damn that's so American

[@beckybrynjolfsson]

I can understand practical advice but don't tell me how to do your job. I plan on hiring someone in tax and asset protection. They will work for me and I don't have to know how to do their job.

[@tomdixon1213]

Before he can go to work for you, he has to show you how knowledgeable he is, so you will trust him.

[@robert549]

There is a fault in your thinking. Just because you plan on hiring someone to do something for you does not mean you should not understand how they are doing what they are doing, and why. If you don't value self-education you will fail because you may eventually be left hanging out to dry.