Today we’re covering a specific example of how using a 401k and a Roth IRA together can save you a ton of money in taxes in retirement. If you are just using your 401k at work or any other pre-tax retirement investment account then you certainly want to spend a few minutes on this video.
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401k 6%
Roth 8%
That’s what I did.
Do you recommend converting the traditional 401k to a roth 401k in addition to the Roth IRA? Or should we stick with traditional 401k if that's what we have?
Thanks for the great video! Can both 401k and roth ira maxed out at the same time?
Thanks. I almost made a mistake. This helped. I was going to do 4 & 4 % but now im gonna do 6&2%
Been such a great help thanks!
This was good advice for me. Thank you.
does this change if your 401k is a Roth 401k?
I don't agree with the advice to "only save what you need for retirement then stop". You should spend what you need to live on and make some memories then stop and save the rest (though not necessarily all of it in "strings attached" retirement accounts. You may just find yourself not needing to work anymore.
Can anyone tell me if I can still put in money for a 401k roth and a roth IRA at the same time? I don't make enough to hit the maximum amount each year. Or does it matter to have both?
my advisor says dont maximize or invest in Roth first.
Invest in 401k upto employer contribution and then invest in IUL first which gives max benefit. If there is money left then max 401k and invest rest in Roth.
is that a good approach?
What do you mean "save what you need to for retirement, then stop?"
You mention in one video to not put in more than the employer match in a 401k. What do I do with the remaining money if I have maxed out my roth IRA, put up to the max 6%, to get employer match? I got a 2% raise and want to invest that money. Would you suggest a brokerage account for taxable gains?
If the employer offers Roth 401k do you Max that out before even considering a Roth IRA?
Im a bit confused.. so can I contribute 6k into my roth and contribute an additional 6k into my 401k through my employer?
A point to be considered is, though your tax bill would be higher, the investment would've also grown to a higher amount since taxes weren't taken out initially.
Thank you, you made sense for me.
Suffer an ignoramus some questions:What taxes are paid when monies are withdrawn: capital gains and whatever sales tax is paid on the sale of the stock? When one says that money is in a 401k growing without having tax paid on it, are they usually talking about something similar to a savings account where compounding is happening, or are they talking about capital gains, or both? Are the taxes on withdrawing usually less than what one would pay just buying and holding stocks? How is this advantageous?
What if your 401k ain't FDIC insured?
Should you do a 457 deferred compensation plan roth or pretax. The rumor is that its not really a roth. Also would you accumulate more with pre tax investing
Thank you !! I don't speak English well but I'm understand a little it's a good deals how you explain !! Thanks teacher!! Your the best!! Thanks!! I likes your videos it's helpful!! Thanks!! Can you do videos in Spanish?? it's will be help me full !!! Thanks thanks wonderful video !! I like !!
This is why I opened a ROTH a couple years ago since I will be retiring in about 3 years. I have a 457 and 401a cash match plan through my employer and have been only contributing up to the max cash match I can receive. Passing this video around to my fellow co-works. We do have a ROTH inside the 457, but I believe it is better to open with a brokerage firm.
Justin, can you contribute to a Roth IRA and a employer sponsored Roth IRA 403B at the same time ? U said that you could contribute up to $19,000 in a employer sponsored Roth 403B compared to $7000 in a traditional regular Roth IRA if you are 50 years old or older.
Dustin: I think you may have just answered one of my questions… So – (In General without knowing the specifics) if your employer DOESN'T match the funds… a better route would be to continue adding to the 401K while contributing to a separate Roth IRA (up to the max limit) ? (Employer does not offer a Roth 401k)
What about compounding interest? Wouldn’t having more money in one account provide more growth?
Just get 2 rental property that paid off and charge 900 a piece.. Bang u good now.
Hey Dustin what do you suggest for some of us that don't want to wait until we are 70 years old to touch our money. Only thing I know of is a 457 which I already have everything else I have to be near death age to touch
I contribute up to the company match on my 401(k). I also contribute $6,000 to my Roth IRA. If I want to save more money for retirement, should I increase my 401(k) contribution or do something else?
6000 pre tax in a tax deferred investment vehicle is not the same as 6000 post tax put into a tax free investment vehicle so that’s apples to oranges