Where I Allocate My Investments: Income Streams, Roth 401k, HSA, Roth IRA, and Liquid Assets

by | Aug 25, 2023 | Fidelity IRA | 29 comments




My income streams and where I put my money! Today, we’ll go over a ~personal finance~ update where I tell you all exactly where I put my money, including: my investments (voo etf, individual stocks), roth 401k, health savings account (HSA), roth IRA, and my liquid assets! ✨ Please DEMOLISH the like button, I’ll love you forever

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Things shown in this video:
Fake tree in my room:

0:00 Exciting agenda
0:30 My 4 income streams
2:14 My proprietary filtering method
2:31 Roth 401k
4:18 Roth IRA
4:39 Health savings account (HSA)
5:25 Why I max out my accounts
6:12 Liquid assets (how much)
7:13 My investments
8:53 Bull? Bear? 🤔

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TAGS lol: where I put my money, what i do with my money, my investments, roth 401k, HSA, health savings account, roth IRA, liquid assets, what i invest in, what i do with my savings, sp 500 investing, my income streams, taylor bell, how i make money, what stocks i invest in, my stock portfolio, my income sources, investment strategy, Long game investing, retirement accounts, how i grow my money, taylor bell money, what is a roth 401k, what is a roth ira, how should i park my money

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My Income Streams and Where I Put My Money: Investments, Roth 401(k), HSA, Roth IRA, & Liquid Assets

Managing one’s finances effectively is essential for long-term financial security. In today’s world, an individual’s income can derive from various sources, which should be optimized to maximize wealth creation. In this article, we will explore different income streams and the most lucrative investment avenues individuals can consider. Additionally, we will discuss the benefits and advantages of Roth 401(k), Health Savings Account (HSA), Roth IRA, and the importance of maintaining liquid assets.

Income Streams:

Diversification is key to financial stability. Relying solely on a single income source can leave an individual vulnerable to unexpected circumstances. Therefore, exploring multiple income streams is crucial. Many people today have a primary job, which is their main source of income. However, side hustles, freelancing, and rental properties can contribute to additional income streams. When considering side hustles, individuals should focus on their skills and interests to ensure maximum profitability and job satisfaction.

Investments:

Investing is an effective way to grow wealth over time. Diving into the world of investments might seem daunting, but it offers a wide range of opportunities with varying levels of risk. The stock market is a popular option, and individuals can invest in individual stocks or gain exposure through mutual funds, index funds, or exchange-traded funds (ETFs). Real estate investments, such as rental properties or real estate investment trusts (REITs), can also provide steady income and long-term appreciation. Additionally, other investment options like bonds, commodities, or peer-to-peer lending platforms offer further diversification.

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Roth 401(k):

A Roth 401(k) is a retirement savings plan offered by many companies. Unlike a traditional 401(k) plan, contributions in a Roth 401(k) are made after taxes. This means that withdrawals in retirement are tax-free, including the earnings on the investments. Investing in a Roth 401(k) is advantageous for individuals who expect their tax rate to be higher in retirement than during their working years.

Health Savings Account (HSA):

An HSA is a tax-advantaged account that is linked to high-deductible health insurance plans. Contributions to an HSA are tax-deductible, grow tax-free, and qualified medical expenses can be withdrawn tax-free. HSAs offer an excellent way to save for medical expenses in retirement, especially since healthcare costs tend to rise as individuals age. HSA balances can be invested in various investment options, similar to a 401(k) or an IRA.

Roth IRA:

A Roth IRA is an individual retirement account that provides tax-free growth and tax-free withdrawals in retirement. Contributions to a Roth IRA are made with after-tax income, making it an attractive option for individuals who expect their tax rate to be higher in the future. Roth IRAs have income limitations for eligibility, so individuals with higher incomes may need to consider alternative retirement savings accounts.

Liquid Assets:

While investing is essential for long-term wealth creation, maintaining a portion of one’s assets in liquid form is also crucial. Liquid assets, such as cash or highly liquid investments, provide a safety net during emergencies or unexpected expenses. These readily available assets are easily convertible into cash, offering financial flexibility and peace of mind.

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In conclusion, identifying and optimizing income streams is vital for a solid financial foundation. Investing in a diverse range of assets, such as stocks, real estate, and bonds, provides opportunities for long-term wealth creation. Additionally, maximizing tax-advantaged accounts like Roth 401(k), HSA, and Roth IRA can enhance retirement savings. Lastly, maintaining a portion of liquid assets ensures financial security during emergencies. By strategically managing income and investments, individuals can build a strong financial future.

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29 Comments

  1. Sean Roger

    Absolutely true, having a great savings and investing makes life goal’s easier, I make most stock purchases when the market is in a confirmed uptrend or cheap cost, although most stocks I bought months ago which showed strong signs of doing well has greatly underperformed. It’s okay for me on the long run, however it’s a good time to add to existing holdings at follow -on opportunities.

  2. Evelyn Lee

    Reduce Ed to 300000 dolars

  3. Evelyn Lee

    I gained 3 times in ten years❤❤

  4. Evelyn Lee

    I did un mille❤❤

  5. Nick

    It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time. don't think I could retire with less than $3m in income generating investments and i'm not talking 401k, maybe $2m at the very minimum. I plan to work until I'm at least 45.

  6. Teresa Brickle

    t's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time. don't think I could retire with less than $3m in income generating investments and i'm not talking 401k, maybe $2m at the very minimum. I plan to work until I'm at least 45.

  7. Agee Fonzi

    Wharton Alumni never fail to explain finance. That moment you said you dont own any Cryptocurrency is a relieve for me.

  8. Edward Takenaka

    ❤❤❤❤❤❤❤❤❤

  9. Torstens Bücherecke

    That was video interesting. It is strange how much saving for pension is supported by US government compared to Germany. I'm from Germany and some years older. But basically although I'm in a similar payment area (yes, in Germany the the payment is much lower than in US or at leat in some areas of US even though I have studied and working more years) your pension part is 2,5 times higher than mine at least for the part that I pay by myself but there is also a part with the company where I'm working has to pay but even than the factor is high.Germany state is not even investing the money as you can do with e.g. ETFs. Everyone which is working in Germany as an employee pays for the people which are currently getting pension. The system was a good Idea after WW2 (because it would not be possible to start in another way) but not today in combination with lower birth rates and more pensionists it would be helpful if everyone pays for his own.

    But anyway back to you: I'm really impressed how good you are handling financial topics. Your Invenstment strategy could be optimized a little bit – if you are interested I have written a blog post about FIRE in my Blog (I think the FI part is more interesting than the RE for you but maybe you even did all that stuff at Wharton already) – but you did the basic research and doing the important things right. I would recommend to not spend to much in single stocks (my personal limit is around 3000 per stock but whatever it be that can be a full loss for one stock but that depends on risk readyness and money one have). Bonds would have been a bad idea when you posted the video because of increasing interest rates (which I learned in 2022). Maybe in the next years bonds will be more attractive again.

    At 25 I did not even think about saving money. I pretty much enjoyed spending money to much (which makes you only short time happy). It took me a while longer to get the mindset which you have with 25. 🙂

    I love the view from your appartment. I do like to get back to NY now. 😉

  10. Josh Lawless

    I have a Charles Schwab brokerage account as well. What funds do you put your money into?

  11. Mashood Sabir

    Superb Taylor 🙂 so calming and fun to watch and you are a great YouTuber too <3 <3

  12. Steve Scott

    What about traditional savings accounts? That's the only thing I noticed missing from your list. Do you subscribe to the old adage of having 3-6 months of expenses liquid in a savings account? (High-Yield, of course.) If not, why?
    Sorry for the year-old question. Just found your channel. And until now, I had never considered adding an HSA to my portfolio. Thank you so much for that! Keep up the great work. Liked & Subscribed.

  13. Mrs.Jumaly

    Thanks!

  14. Sean Jones

    Hi darling! – Sean from England here… I discovered your YouTube channel recently, and yes I steam rolled over that like button. So this financial talk is a totally different language for me. How did you learn to be so money savvy?! Like where do you even start learning to get smart with the purse?

  15. Meerutkavishal

    I'm from India and ur english is so good.
    One day i will meet you

  16. Abby

    I didn’t realize until watching this video that my HSA balance stays year after year! So I called my work (Fidelity investments) and gathered a bunch of info so thank you because now I’ll be making it out each year!

    I actually work in the 401(k) dpt at Fidelity so I wanted to share that you can actually withdrawal from your 401(k) when you reach 59 1/2 and as long as your first roth contribution was put in there 5 years before then the growth and initial contribution are tax free. The age 72 refers to your Minimum required distribution which is something separate. What I’m trying to say is that you don’t need to wait until you’re 72 to avoid taxes when you withdrawal your Roth money.

  17. Tarek Hallal

    the way you say "this is Taylor" is very reminiscent of T. Swift!

  18. Joel Carrillo Ramírez

    I'm super excited by your content. I really consider that you can establish a friendly environment everywhere. Best regards.

  19. MeMirrorCard

    Hi Taylor! I like your strategy and I learned a great deal from this video. I want to see your bank account #'s. This way, I can invest! HA! Do you have an e-mail for personal contact? P.S. Are you familiar with coinbase?

  20. Morgan Fogarts

    Would love to see some more investment content in the future(what you think are good strategies for having your money make more money)! As someone who is relatively financially illiterate, this was super helpful for me, thank you!

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  25. Bennette Lauren

    Bravo! I’m about ten years older and nowhere near your level of personal finance goals. I mostly chalk that up to my expensive chronic illnesses 🙁 I could have saved about 10k extra every year the past ten years If not for them .. but instead I’m alive so that’s cool lol . So appreciate your health above all 🙂 not just for money but just because! I may be bitter about my own experiences with finances but also happy to see people taking control of that aspect of their lives

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