Maxing out my 401k helped me become a young millionaire! Here are the lessons I learned and some tools I used to get there. Empower (free financial tools + $20 gift card): (affiliate link) – terms and conditions apply
CHAPTERS
00:00 Intro – Max Out 401k
01:27 401K Employer Match is Powerful
02:47 Automation is Key
03:50 Investing Fees Matter
05:02 Compound Interest is a Long-Term Wealth Builder
07:09 Outro – Max Out 401k
#maxout401k #401k #InvestingTips #FamilyFinance #PersonalFinance
OTHER VIDEOS TO WATCH
Jeremy Schneider: How to Become a Millionaire with Index Funds
Joshua Becker: Overcoming the Distraction of Money
How to Make $5k Per Month as a Bookkeeper From Home
MARRIAGE KIDS AND MONEY:
This award-winning blog, podcast and YouTube channel are dedicated to helping young families build wealth and thrive.
Each week, Andy Hill interviews personal finance experts, shares the best fintech tools and even discusses his own journey with family financial independence.
BIO – ANDY HILL:
Andy Hill is the award-winning family finance coach behind Marriage Kids and Money – a platform dedicated to helping young families build wealth and happiness.
Andy’s advice and personal finance experience have been featured in major media outlets like CNBC, Forbes, MarketWatch, Kiplinger’s Personal Finance and NBC News. With millions of podcast downloads and video views, Andy’s message of family financial empowerment has resonated with listeners, readers and viewers across the world.
When he’s not “talking money”, Andy enjoys being a Soccer Dad, singing karaoke with his wife and relaxing in his hammock.
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CREDITS
Research & Writing: Andy Hill
Video Editing:
Thumbnails: Ardi, The Thumbnail Wiz
Channel Management: Nev Maraj…(read more)
LEARN MORE ABOUT: 401k Plans
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HOW TO INVEST IN SILVER: Silver IRA Investing
How Maxing Out My 401k Helped Me Become a Millionaire
Becoming a millionaire may seem like an unattainable goal for many individuals, but with proper financial planning and discipline, it can become a reality. One effective strategy that played a substantial role in my journey to becoming a millionaire was maxing out my 401k.
For those unfamiliar with it, a 401k is a retirement savings plan offered by employers in the United States. This plan allows employees to contribute a portion of their pre-tax income towards their retirement savings. The contributions are invested in various options such as stocks, bonds, and mutual funds, with the aim of growing wealth over time.
One of the key advantages of maxing out my 401k was the ability to contribute a significant amount of money to my retirement savings. The maximum annual contribution limit for 2021 is $19,500, but for individuals aged 50 and older, an additional catch-up contribution of $6,500 is allowed. By diligently contributing the maximum amount each year, I was able to rapidly build up my retirement nest egg.
Another crucial benefit of maxing out my 401k was the potential for tax advantages. Contributions made to a traditional 401k are tax-deductible, meaning they reduce the taxable income for the year. This not only lowers the current tax bill but also allows the contributions to grow tax-deferred until withdrawal during retirement.
Furthermore, many employers offer a matching contribution as an incentive for employees to save for retirement. It typically means that an employer matches a percentage of the employee’s contribution up to a certain limit. Taking full advantage of the employer match can significantly boost retirement savings. In essence, it’s like receiving free money, making it a valuable opportunity to take advantage of.
The compounding effect of regularly maxing out my 401k was a game-changer in my journey to become a millionaire. Through the power of compound interest, my contributions and returns from investment gains grew exponentially over time. The earlier one starts contributing and the longer the money remains invested, the more significant the impact. This allowed my retirement savings to snowball and accumulate steadily, inching me closer to my million-dollar goal.
Moreover, maxing out my 401k was a valuable lesson in discipline and delayed gratification. It required sacrificing a portion of my income now to secure a comfortable retirement in the future. By making retirement savings a priority and living within my means, I was able to consistently contribute and invest in my future financial well-being.
Becoming a millionaire is not an overnight success story but rather a result of consistent and disciplined actions. Maxing out my 401k played a significant role in my journey, providing a powerful vehicle for wealth accumulation over time. By contributing the maximum allowed, capitalizing on tax advantages, and leveraging employer matches, I was able to grow my retirement savings substantially.
Maxing out your 401k might not be feasible for everyone, especially those with limited incomes or financial obligations. However, the key takeaway from my experience is to prioritize retirement savings and diligently contribute as much as possible. Whether it is 10%, 15%, or even 20% of your income, consistently saving for the future will make a considerable difference over time.
In conclusion, maxing out my 401k was a critical factor in my journey to becoming a millionaire. It provided a tax-advantaged and disciplined approach to saving for retirement, allowing me to accumulate wealth steadily. If you have the means to do so, consider maximizing your 401k contributions and start investing in your financial future today.
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Rip 160k laters
Great video, Andy. My company was suppose to be getting a 401k but haven't heard anything lately
We’re on baby step 6. Hopefully have the house paid off before we turn 35. Then max out for 10 years and coast to retirement.
15% match wow! – what was the vesting period?
Okay so what company did you work for making $160k and are they hiring??
Absolutely! I've received $30k+ in the 6 years I've been with my company. This is where I tell people to stay clear of Dave Ramsey with his investment advice – he's telling you to give up free money! My wife and I both max out 401k and Roth (Backdoor) IRA each year, anything else goes to our taxable brokerage.
Great content, but as a professional video editor i have to say you that could do better than current video style. keeping straight forward , droping some points where you are lacking in terms of gaining audience retention rate.
1] No visual showcase of what you are trying to say
2] No zooms, cuts effects on video { it helps to keep blinking viewers eyes which give signals to brain to remain active and eliminate boredom}
3] A good transition from one clip to other should be smooth enough which is missing .
4] Showing texts and pictures are one of the way ,why big creators got success in their niches but here i find nothing.
……………………………………………..and many stuffs i can count you.
WHY GOOD VIDEO EDITOR IS IMPORTANT ?
See youtube is a great platforms to build your brands and i love to help creators to help them in their journey to success. Without engaging videos there is less chance to crack youtube because , its algorithm promotes your content on two bases CTR, AUDIENCE RETENTION GRAPH .CTR depends upon how good your thumbnail is ,and AUDIENCE RETENION depends on how the video performing, and as a perform i am a master of both of them. so if your interested, we can discuss more.
thanks
If your pay is less than this and you cannot max out then I've got an idea for you: max your employer sponsored retirement account on the first paycheck when you get to a month with three paychecks.