My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means.
Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
My CFA Carol Vivian Constable, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
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. 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.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
Interesting. I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Recently, I've been pondering retirement. I've also invested $800K on S&P 500 so i could secure my financial future. i need an approach to invest in Stocks like Nvidia stocks and ofcourse AI stocks that will align with my risk tolerance and financial goals but it seem to be bearish right now.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks
I always hear how 401k’s have a huge disadvantage because you pay taxes on it eventually. Good point of the tax break you get from it as your working and in the biggest tax rate of your life. 2nd point grows tax free until you decide to take money out or RMD. This is what made me a humble construction laborer a very wealthy man. There isn’t any other reason and it wasn’t difficult thanks to having been able to have one of the best and biggest mutual fund groups at the time to choose investments from. Now paying taxes as I enjoy the income this throws off to me on a monthly basis. Never having to sell off a stock just collect the passive dividends. If you set it up right you can live of the income only and have it still increase in value as the stock market increases through the years. And then have a nice ending portfolio for your family to fight over on your demise. Azul explained this very well today. Not all of us had the opportunity to invest in a Roth in our earning years. So the 401k was our ticket to financially independence. God bless
My company offers 401k Roth in addition to 401k traditional. I contribute to both. Max to the traditional with match (high tax bracket so worth the deferral today for lower rate later) and also max after-tax dollars to Roth. Back-door Roth IRA as well. I am fortunate to be able to save aggressively, making up for a late start.
@@peterjazii6925 - Yes. Doing both is referred to as a mega-backdoor Roth. I just need to keep the overall combined contribution under the ~$65k limit, including company match
My wife and I have been each maxing out our 401k back in 2001 in our early 20's. We are fortunate to say that it really wasn't that hard. I finally actually felt rich around 2019/2020 timeframe. Starting our kids down the path of saving and investing even earlier at age 16.
Together, My Wife has been Maxing out her 401K (ROTH) for years! I’m taking care of our Rentals! (Just did a 1031 Exchange and bought 2-Townhouses and Sold one House! Reverse order from above, a week apart!). I was very pleased with the outcome! Oh, sold the house to my Renters! Didn’t use a Real Estate Agent! Cost me $75,000 Cash! But,:I’ll get about $1000/mo of additional Rent! My Depreciation Basis goes up by about $400,000! (So, $400,000/27 years!) and I was about 10-years into my 27 year Depreciation! Needless to say, I met with another Renter Yesterday about another 1031! Oh, and I don’t pay Capital Gains on this Transaction and I’ve got a much larger basis!
You need a 401K + a post tax brokerage account, save & invest just as much money in post tax account as your IRA because a lot of things are going to happen before you are 59. If you get laid off or have emergencies you have income from post tax account to smooth out the bumps. I retired at 56 and live on my post tax half, letting my IRA half grow. @73 will switch to living off my IRA half due to RMD and reinvest my post tax brokerage half to handle future inflation.
Someone correct me please. In the Uk it is more advantageous to put money in works pension as we have a 20% tax relief at source, then the first 25% we take out is tax free. Making it better than using an ISA.
Can you make a video on how what to say or how to bring up the topic of saving for retirement with family or friends that are dangerously close to approaching their 50's without serious savings?
The standard deduction may actually go back down too in 2026. That’s more important. However, due to inflation the standard deduction normally increases and it is fine to have some monies in 401k. If done properly just simply withdraw to the standard deduction. Those monies are total tax free. Even if slightly above, the effective tax rate is quite low. Don’t go all Roth. Doesn’t make sense. You should look at HSA also if available. This is pure tax free. Just need to use for medical expenses.
Apart from the fact that there is no employer match, would you consider a 403b to be, basically, the same as the 401k, and therefore, the same rules should be followed?
Azul, JPM out with a research note today which details how much they believe you can spend in retirement compared to the 4% rule. They dive into the different rate for men vs. women.
Invest in Bitcoin before retiring by diversifying across assets, allocating a small portion of your portfolio, staying updated on market trends, and considering long-term holding to balance risk and growth😊
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
Sounds interesting. I was planning to invest some few £ in some coins, stack them up and leave them for a few years, but seeing this changed my mindset. Thank you very much
The US financial industry is truly broken, while it castigates Americans for not saving enough in our 401ks, it likewise scares us about paying taxes when it’s time to use it in retirement. I just don’t get it!
@@h.s.levine2932 true, but such is life. there are some basic financial fundamentals that remain constant, though. compounding interest, 401k match, and Roth 401k/Roth IRA to name a few.
@@h.s.levine2932then learn to adapt to those rule changes and be in position to do so. It’s about “balance” as what Azul is talking about. There is no right ratio but if one has monies in various areas or strategizes as such then one should be better off: Most have their retirement savings via 401k or pension which is taxable. Younger generations if smart are starting Roth and as their income grows then more traditional 401k. People shouldn’t over save. There are other sources of future income such as social security. If one has a lot in 401k then one should consider deferring SS and retire early to draw down the 401k at an ideal tax rate.
I'm already in my 60s and starting a new job in a couple of weeks. They pride themselves on their great benefits, but I'm really only there for the medical (partner is a bit younger). I don't plan to be there long enough to be vested. I'm going Roth all the way and plan on taking withdrawals from my traditional IRA for a few years before collecting social security.
Any advice for someone who missed the boat and never opened a Roth account and only has 401k and brokerage account and a few hundred grand in savings bonds? I’m the only person on the planet that of savings bonds as an investment decades ago.
@@Martin-og9zg 1st if you have a company 401k and they match it get the match. 2nd If you have a company Roth 401k max that. Always max your Roth IRA if you can. The individual Roth IRA is fantastic. Your money you put in, not that you wanna really do this , but you can take out penalty free at any time just no gains of what you put in or you’ll be taxed and penalized on the excess part. Max the Roth . Tax free growth forever . You still have to be 59 1/2 years old to start withdrawals of your gains. Double check everything I’m saying but I’m pretty sure it’s all facts not guesses from other you tubers, it’s from reading the requirements. Learn as much as you can.
I did it. If your tax burden doesn’t change, they are equal. I was mid $150K when I retired. With kid out of college and other costs, I didn’t need as much from my 401K and so my taxes decreased.
If you can afford to max out 401k traditional account do it. You could take the tax savings from that deferral and invest it into a Roth IRA or Brokerage account. Having multiple buckets gives you the most flexibility.
"tax savings from that deferral and invest it into a Roth IRA" That's false as the "tax savings" is part of and inside the traditional 401(k) contribution.
Most financial advisers disagree with you. They say to just use the 401(k) to get the company match and then put any other money into a Roth account. Why take tax deductions now and then have to pay tax much later in the future when rates will very likely be a lot higher? RMDs alone could cause a huge amount of your 401(k) to go straight to the tax collector.
Why take the tax deduction now. Maybe to feed the kids now and pay the mortgage now when my salary is lower. Then as my career grows and the kids leave the nest, and my salary is increased by promotions, then I don't need the cash flow for current expenses.
I think if money is that tight you wouldn’t be putting money in a 401(k). The example you gave just doesn’t make sense. In my case, my wife and I were raising a houseful of kids and we had no tax liability despite making a good wage. So, instead of taking the tax deduction which wouldn’t have done us any good, I put the money in a Roth IRA . But if the money had been so tight that we couldn’t feed our kids, I would not have cut that money even shorter by contributing to a retirement account.
