Don’t Make This HUGE 401(k) Mistake!
Take Your Finances to the Next Level ️ Subscribe now:
Download FREE Financial Resources from the show ️
Sign up for the Financial Order of Operations course ️
Download The Money Guy Net Worth Tool ️
Our professional focus is on financial planning and investment management, and we leverage our knowledge for your benefit. We help you focus on the things you can control and manage the things you can’t. Visit our site for more info ️
Facebook:
Instagram:
Twitter:
TikTok:
Let’s make sure you’re on the path to financial success – then help you stay there!
The Money Guy Show takes the edge off of personal finance. We’re financial advisors that believe anyone can be wealthy! First, LEARN smart financial principles. Next, APPLY those principles! Then watch your finances GROW!
We can’t wait to see you accomplish your goals and reach financial freedom! New shows every week on YouTube and your favorite podcast app. Thanks for coming along on the journey with us….(read more)
LEARN MORE ABOUT: 401k Plans
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
When it comes to retirement planning, a 401(k) can be an important tool for building a nest egg. However, a big mistake many people make is not contributing enough to their 401(k) or failing to take advantage of employer matching contributions.
One key thing to keep in mind is that the earlier you start contributing to your 401(k), the more time your money has to grow. Even if you can only afford to contribute a small amount each paycheck, those contributions can add up over time and make a significant difference in your retirement savings.
Another critical mistake to avoid is failing to take advantage of employer matching contributions. Many employers offer to match a percentage of their employees’ contributions to their 401(k). This means that if you contribute to your 401(k), your employer will also contribute money to your account on your behalf.
If you’re not taking advantage of this matching program, then you’re leaving free money on the table. This can seriously reduce the amount of money you’ll have saved up for retirement.
It’s also essential to ensure that you’re investing your 401(k) contributions wisely. You should review your investment options regularly to ensure that you’re not putting all your eggs in one basket. Diversifying your investments can help to reduce the risk of losing money if a particular investment performs poorly.
Lastly, don’t forget to revisit your 401(k) contributions periodically. As your salary or financial situation changes, it may be possible to increase your contributions over time. This can help you to reach your retirement savings goals faster.
In conclusion, a 401(k) can be a powerful tool for building retirement savings. To avoid making a huge mistake with your 401(k), make sure to contribute regularly, take advantage of employer matching contributions, invest wisely and review your contributions periodically. By doing so, you’ll be well on your way to a comfortable retirement.
I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 75K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities
Save 25% if your monthly income net or gross?
Long time subscriber who sends everyone who asks about finances to this channel. You your answers are so reliably perfect that I trust that my son will hear good advice even if I have not vetted it first. Really excellent show today. The questions were amazing and the answers even better!
OK I love the increased funny tangents btw the team! Makes the show even better lol
I have taken out 60 mos car loans and paid them in 36-40 months but what it does is it gives me the leeway in case I have a tough month or two or get laid off, I might have a $75 less car payment.
The rich people use the insurance product to borrow money – Bo – the reason why they do it is because they use the money at a lower interest rate than the tax amount that they’d have to pay. Say they’re in a 28% tax bracket but they borrow at 8%, they are saving 20% on their money. Having said that, there are very few insurance products set up that way. People do it all the time with real estate. They borrow money against the property to use to spend and they pay it back with the rental income they generate and they don’t pay taxes on the money they live off of because they don’t tax loans. If you have enough depreciation, etc., there may be very little taxes on what you generate from your rentals. It’s more complicated than that but that’s the gist.
The latte factor is a metaphor for anything. It’s just to show where you waste your money. It’s your same philosophy as $1 = $88. I hate when people pick on this because David Bach was just trying to show where you waste your money and there are plenty of people that say that they have nothing left over to invest and he shows you that you probably do.
I'm just curious. Does anyone know what the old FOO steps were?
Regarding the audience question on donate now or save more and donate more later. The show often talks about the why. Sometimes philanthropy helps to give you the why. As you grow old, you develop pillars of your life that makes you whole. Your family, maybe your life long college friends, your hobby friends and your work friends (which typically ends when you no longer have a common work parameter). The more pillars you have the more fulfilling your life can potentially be. Civic or non-profit organizations and your involvement can become another pillar. When younger, you want to explore different civic/non-profits to see what appeals to you; see what fits with your style and which ones don't. You're also likely to develop long lasting friendship with members of those organizations. When getting involved when younger also allows you to potentially do more and more leadership roles within that organization especially if it is a regional to global organization. Ex. I joined Kiwanis to become acquainted with a new town and make new friends in the new town I moved to for work. I now have additional life long friends, I'm an officer, multiple co-chairs of club service activities, held a multi-club level role for couple years, hold a district (2 state) role for International, lead the district foundation and have contributed to a number of international campaigns. I also know, wherever I move to, if there is a Kiwanis club, I have automatic friends. If you wait till later in life, you miss the opportunity to grow in the org(s) as well as potentially only being seen as a big $$$ donor.
You guys would need to understand that 99% of other voices out there are advising people to have 2-3 months living expenses in an emergency fund before leaning into a 401k. In many cases, that’s maybe a three year endeavor when you consider high interest debt most people have. Someone like me…normal income in an expensive city she loves w/ minimal expenses splitting all non-rent funds three ways: high interest debt paydown, emergency fund, 11% to my 401K. That puts me right in the group being criticized & hey, that’s fine. Will take me about 18 months to get up to around 17% 401k and that’s great b/c I’m a single woman w/ a job she loves — doing her best in a way that’s actually sustainable and responsible. All I’m saying is, don’t feign shock that the general public is struggling to meet that 20% when even those of us actually paying attention have to work quite a while to get there.
28:03
With the Lambo Latte, thing is its the same mindset. If you can justify 9.00 a day of a coffee because you want it, then you can justify blowing big bucks on other things. Doesnt mean you cant get one a month. I carried my lunch all of my life and still do. Just bought a classic vette that I can drive to a place to get an espresso. To me it is an overall strategy.
Any way time stamps can be used to separate video out by topic/questions?
Insurance is not an investment tool. It is a tool to protect your assets and investments.
Inflation's up, rent's increasing, gas is up, electric rate are up.
People's pay is flat.
People have less to save.
Is Bo never excited?
Inflation has to be playing a big factor in the drop in savings rate. Hard to save when everything is costing more.
What about when you have 80k in debt? Do you still do the full max on employer match?
It's hard to base saving rate of gross income because taxes are not the same everywhere. Here in Canada, Québec for 100k income, tax rate is 27.6%. There is 4% going for pension plan and employement insurance. For a total of 31.6% out of the pay right away.
What happened to last week's live stream? Was only able to watch part of it live and when I went to finish it I could not find it
who has the TLDR on this?
Try to put some timestampes on. I am not a U.S resident but like hearing about information that isnt the 401k itself
Time stamps please
No time stamps. No watchie
You guys keep talking like the stock market is going to go up when the fact is I’ve just been losing money in my 401k the last two plus years. It certainly looks like it could be several years before interest rates come down and earnings go back up.