In this video, Jake explains why he doesn’t invest in an IRA or 401k for retirement.
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This video is not financial advice and meant for entertainment purposes only.
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If you really make the money your videos imply than you wouldn't be eligible for a ira anyway.
Your argument was weak about not at least maxing out you matching contributions from your employer. Yes, everything over that should be into a taxable account (after maxing out your HSA), but you will lead people away from the gains from matching funds. I think it will hurt many people who watch this
What about an HSA?
Thank you for creating this video. It help me finally decide what no to do!!!! I totally agree with your message.
TY for admitting you're a libertarian. You're being indoctrinated into an anti-government cult speared by corporatism to help them remove their tax obligations. You're just unaware they've waged that cult mindset against us for 100 years after we had FDR appropriately tax rich nazis who ruined and continue to ruin our country.
Interesting ideas. You said to borrow against your assets instead of selling them and having the tax consequences but how do you pay back the borrowed money, what funds do you use? Seems like you can’t just live on borrowed money but will need to sale assets or use some other after tax money.
I kind of came up to the same conclusion as you on retirement accounts. One thing I do is keep a Roth IRA and contribute yearly to it with index funds, for now. Once it is built up a decent amount or until I am somewhere in my 50’s I will change over to option selling. Once I am 59.5 I will solely sell options as a way to not sell positions and hence keep my portfolio intact. I figure that’s the closest thing to buy borrow die with an ira, keep producing income selling options and pay no tax.
Your business, your employees! Are you hiring? I am looking for new ways to make income. To support my family. Leaving my job & trying to figure out what to do with my 403b. I have been so upset the last few days that I didn’t have the education to already have a roth IRA. An what I thought I knew about whole Life insurance is not what I thought it was either.
You give me new hope thank you. I am 39 the money in my 403b is the most money I have ever had. Pocket chang to you, but I am so scared of what to do with it properly. So far I thought of putting it in a roth IRA @Van Gard. Then get an investment account some where else. Now though I want to learn as much as I can from you. An thinking real estate. Any videos about best way to get started with real estate?
100% aligned with your core beliefs about gov and the system. The M in the word masses is silent….Demopublicans & Republicrats are of the same politicult. I don’t understand why anyone in their right mind wouldn’t be libertarian or independent. Worshipping these politiclowns and bipartisan overlords is what’s destroying us. Left wing, right wing same bird and it’s a vulture to society. Save the world by red pilling it!!
In the future, if you have both a trad Ira or a 401K AND a Roth, you can essentially control how much you pull from the 401K to go right up to your tax bracket threshold and pull the rest from a Roth.
I have that Robert Kiyosaki subscription too.
Thanks for the great video Jake. I like your idea of taking line of credit against taxable account. However, I see few things missing in your video. Like, people do a series of ROTH conversions to minimize/avoid RMDs which is also good for inheritance, as well as liquid with no taxes. Also, you spoke about traditional 401k, but with ROTH 401K you don’t face the issue of RMDs. Need the right combination of traditional+ROTH 401k to get the maximum tax advantage. Like, start with ROTH 401K contributions when the income is low and tradition 401k when the income is high in later years.But when compared to contributing to only a traditional 401k account, your idea is much better!!!
Anti Freedom accounts! Awesome
Wow! Some things I haven’t thought about. Thanks
Better to have less credit lines . Too much borrowing dude. When your older you want simple. 401k. Pension , maybe rental . And savings account . That’s it. Your old
Wow this video made no sense at all . Your 71 take some money out . 401k is not the only thing you need for retirement it’s another form of income when you get old lol
You can transfer jobs 401k roll .
That’s the point of the 529 is a just in case .and they can use it for other things as well
For you regular people don’t do this .
keep grinding bro luv your videos your channels gona b big <3
Brilliant advice…..I mean, opinions Jake. Thanks for sharing.
One advantage of the retirement accounts is it forces discipline. For someone like yourself, sure you have the required discipline to not spend that money and let it grow. But a lot of people don't have that. If the assets are touchable, chances are 9 put of 10 people are going to spend it some way. For someone who doesn't have that discipline, they need those restrictions on their money to realize the compounding growth.
when you're talking about 401k vs taxable account are you referring to a taxable account as like you're regular stock broker account?
I swear me and this man are the same person
Thought you were a little too extreme for me at the beginning of the video lol but you did a great job selling me at the end. I doubt I’ll ever be a business owner or high income earner, so how do your numbers look when put up against a Roth IRA and a Roth 401K? I am able to do both along with a taxable stock account that I “Yolo” my spare money into.
This is a very good idea,
If your a business owner…..
If your a blue collar paycheck to paycheck person ( like me)
It’s better to have forced retirement savings with tax deductions at the end of the year,
But after this video I’m going to try to do both,
Awesome video Jake thanks.
Good video but I would have to disagree
I was contributing about 6% to my 401k and every paycheck I was paying around $1500 in taxes.
My take home money was good enough for me to set aside enough money to go straight to my personal stock/crypto portfolio or real estate every paycheck.
I felt comfortable enough with my take home money then I wanted to increase my 401k contribution to max 16%, I figured I would still have a good amount going towards my personal portfolio so why not add more to my 401k ?
I was thinking 16% would add at least $500 every paycheck to my 401k which was basically my goal
What ended up happening was pretty cool, something that I didn't even realize could happen
Instead of being taxed $1500 my taxes came down to $1000 and my 401k started adding $500 more
So basically just by maxing out my 401k I contributed the money I wanted to that would have gone to my taxes if I hadn't done so
So basically instead of getting that money to uncle Sam right now, uncle sam let me have it and put it in 401k
To me this was pretty huge
If I didn't have enough take home money for my personal portfolio I wouldn't contribute to 401k but since I do I feel like it's just shifting money that would be taxed to a locked portfolio for free
They were talking about making the estate tax way less. Like 3.5 mill
Awesome video! The RMD issue was really eye opening. I do have two critiques:
I'm not sure if you purposely left off hsa's but I think they are the best out of all the tax friendly accounts.
You can withdraw your roth contributions at any time tax free so if you have 6k laying around you might as well use it like a savings account.
Agree on public education. College is pushed so hard these days and its mostly a money scam. There is so many skilled trades you could get into they pay you while you take classes, and train you. I skipped college and hired on with Exxon Mobil. They paid for all my courses to train and Started out making 80k in 2006, as a process operator. still here in 2021 currently at 130k a year. With overtime 175k a year. I will say I take advantage of my company match of 6% because its free money< but most is invested elsewhere.
I don’t necessarily disagree with your views on 401K’s and IRA’s, but your political views are pretty WTF dude. A monopoly on war and violence??? What does that even mean? You’re telling me you can’t go out right now and commit violence or wage a war on something? You couldn’t hire mercenaries? And looking at it from a different standpoint, even if I agreed that they did have a monopoly on these things, well who else is going to have it? Wouldn’t that be one of those “necessary monopolies”? Or do you imagine corporations having their own armies and the ability to wage war (physical not economic) on their competitors, or on sovereign states? Yeah the great Walmart / China war of 2030 – that would be epic… Like I really don’t get this. As for your takes on the government itself, I mean, you speak about it as if it’s a monolithic thing all working in harmony towards a unified goal, when that couldn’t be father from the truth. The government is – at the executive level (I don’t mean the exec branch, I mean the people that actually have the power) are broken into two primarily opposed groups, and it’s structured in such a way that even when one party controls the majority of government, you still can’t just operate as if the other party doesn’t exist or matter. As people like Joe Manchin are proving now, even people in the dominant party can keep it in check and be held to the will of the opposing party, because that’s who most of his constituents are. When you take a step back and realize that government isn’t a monolith all working toward the same goal, and is instead people that are for the most part constantly fighting each other ideologically, that is why not very much gets done, but that’s basically how the founding fathers designed it, they didn’t want anyone to be too powerful or be able to just unilaterally exert too much control without any checks on their power, so to summarize, if you really hate government and how it operates, then you can blame those founding fathers that everyone (but especially libertarians) love to praise and masturbate to. Sorry for the political rant, but hearing this stuff kinda irks me. And notice I’m not taking any political side here, so don’t try coming at me that way.
Hello fellow Ron Swanson student