Why Does Dave Prefer a 401(k) Over a Roth IRA?
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Simply put.. do you wanna pay taxes now or later.
Why 15%?
What does max and match mean
My company doesn't match 401k. So what I got out of this video is max out Roth first then 401k second.
@0:52 – The off-angle camera shot is absolutely ridiculous. Just stick with the straight shot for straight information please.
Check with the company you work for as they may offer a Roth 401K. The company I work for offers a 401K and a Roth 401K.
What 15% is he talking abt?
Nice video, well I am new to online investments, I have been practicing using a demo account. I like to prepare for my future, I wanna start up a Roth IRA account. I don't know much about it or which is better. I am scared that I don't know enough to start all by myself. I am willing to try, but I need help with what to do next.
Thank you for explaining so this 56yo understands
There is some confusion here. There is a roth 401(k) and a roth IRA (and traditional of both). Even the asker and announcer funges it at the end LOL. Anyway the question here is why prefer 401(k) to IRA. I think.
Do Both! and also because you have started the roth ira you will avoid the 5yr rule later down the road.
Do 401k tax free?
This information is a little misleading. The emailer doesn't fully understand his own question. The emailer is treating a 401(k) as a traditional IRA account. Every employer I've had has had a 401(k) traditional or 401 (k) Roth IRA. The debate really isn't should I do a 401k or a roth…It should be IRA versus Roth IRA. You can always rollover a 401k roth into a private roth once you quit your job. It sounds like they kinda address this near the end of the video but I wish they were more straight forward to this guy.
That man has a really satisfyingly deep voice
This didn’t age well. Welcome to Biden’s tax on unrealized income.
He doesn't actually explain why the Roth is better without the match.
Out curiosity, do these guys actually practice what they preach?
He touched on it but I want to understand why it wasn't more plain. The understood wisdom around Ramsey is to contribute to the 401k to get the match first and then fully fund the Roth IRA. It doesn't seem like that was plainly stated in Chris's answer.was I the only one confused for a second at the question and the advice?
I've always struggled with this, I'm not sure I see any difference. With 401k being pre tax you are putting in 20 to 25 percent more than you would in a Roth FYI your take home to be the same. I would expect that difference to grow compounding which would offset the taxes at withdrawal. Unless you see your tax rate staying high after retirement I think it's a wash.
401k Roth with match… don’t miss this!
At my job we can put into pre-tax or Roth 401k in any combination like 5% in the Roth and 3% in traditional pre tax but it’s all in the same account
Aight
Yeah, but… no taxes. Ever. That counts for a LOT.
You can just dona brokerage account as well and then get to your money whenever uou want to. Roth is great when you retire as a supplement to your regular 401k when you need some extra money buy dont want it to bump you into the next tax bracket.
Dumb, have both. I have BOTH!!
Roth 401k not being mentioned is a disservice
Do the Roth 401k…perfect combo of both!
401(k) match, max HSA, max Roth, then the rest… 401k, ESA, 529, brokerage, etc is really up to you. Nobody talks about how amazing HSAs are!!!
I'm 34 and starting work? One third of your life gone? How?
A lot of 401k plans have a Roth 401k option too. Your check deferrals will go to the Roth and the employers match will go to the traditional 401k