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This video will help you decide ether the Roth IRA or the 401k is better for you

These are two of the most important and well known investment accounts, everyone knows about these and there’s a lot of hype, so the big question is, which one should you invest in?

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These videos are for entertainment purposes only and they are just Shane’s opinion based off of his own life experience and the research that he’s done. Shane is not an attorney, CPA, insurance, or financial advisor and the information presented shall not be construed as tax, legal, insurance, safety or financial advice. If stocks or companies are mentioned, Shane might have an ownership interest in them. Affiliate links may be present, the offers and numbers presented may change over time so please make sure to confirm that the offer is still valid. Some offers mentioned may no longer be available or they have been changed. Please don’t make buying or selling decisions based on Shane’s videos. If you need such advice, please contact the qualified legal or financial professionals, don’t just trust the opinion of a stranger on the internet and always make sure to do your own research and enjoy this family friendly content.

But the problem is, most people don’t really even know what these investment accounts even are. There are key differences that separate them and these differences are what we will be focusing on today in this episode. Knowing these differences will allow you to make a better decision on which one you should go with

When it comes to selecting the best retirement accounts there are a bunch of big ones: Roth IRA, IRA, 401k, Roth 401k and the list goes on….

The two biggest and most common types of retirement accounts are the Roth IRA and 401k. Chances are, for 90% of you, one of these two retirement plans will be the best choice for you, maybe even both.

Roth IRA (Individual retirement account) explained: In this video I will explain the key differences that might make ira investing the right choice for you.

401k explained: How does a 401k work? In this video I will explain why 401k investing may be right for you as well.

Every situation is different, sometimes the best choice will be to go with one or the other and sometimes the best choice will be to do BOTH. It depends on a ton of factors like your career, how old you are, how much you can invest, how much you’re making, what your goals are etc etc etc…

One common broker that is used to set up IRA accounts would be the Vanguard Roth IRA, but there are many other good ones too, you just have to look around

Thanks for watching/reading and if you’ve gotten this far leave a comment related to how expensive starbucks is!…(read more)

LEARN MORE ABOUT: 401k Plans

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If you’re like most people, figuring out how to save for retirement can be confusing. Two of the most popular options are Roth IRAs and 401k plans. But which one is better for you? Here’s a guide to help you understand the basics of both:

Roth IRA:
A Roth IRA is a type of individual retirement account that allows you to contribute money from after-tax income. This money grows tax-free and can be withdrawn tax-free in retirement. There are income limits for eligibility, but contributions can be made at any age as long as you have earned income.

401k:
A 401k is a retirement savings plan offered by some employers. You can contribute a percentage of your pre-tax income, which reduces your taxable income for the year. Your contributions grow tax-free until you withdraw them in retirement, at which point they are taxed as ordinary income. Employers may also offer matching contributions up to a certain amount.

So, which one is better for you? It depends on your individual financial situation and goals. Here are some factors to consider:

Income level:
If you have a high income, a Roth IRA may be a better choice because there are income limits for eligibility. A 401k has no income limits, so it may be more accessible for high earners.

Tax situation:
If you expect your income tax rate to be higher in retirement than it is now, a Roth IRA may be a better choice because withdrawals are tax-free. If you expect your income tax rate to be lower in retirement, a 401k may be a better choice because you’ll pay less in taxes overall.

Employer contributions:
If your employer offers a matching contribution to your 401k, it’s usually a good idea to take advantage of it because it’s free money. Roth IRAs don’t have employer contributions, so you’re solely responsible for funding your retirement.

Investment options:
A 401k plan may limit the investment options available to you, while a Roth IRA has more flexibility in terms of investment choices.

Penalties:
Some circumstances allow for penalty-free withdrawals from a Roth IRA before retirement age, but with a 401k, withdrawals made before age 59 1/2 typically incur a penalty.

In summary, both Roth IRAs and 401k plans can be valuable tools for retirement savings, but each has its own benefits and drawbacks. Consider your income level, tax situation, employer contributions, investment options and potential penalties when making your choice. It’s always a good idea to consult with a financial advisor to help you make an informed decision based on your specific goals and circumstances.