1. Count your Cash 2:00 2. Get That Free Money 4:44 3. Get Your Liabilities Under Control 7:45 4. Maximize That Tax-Free Money! 10:47 5. Hit the Max! 16:12 6. Finish the Drill! 18:50 7. Focus on Abundance Goals 23:29 8. Pay off the House? 25:28 9. Remember Generosity 27:39
Thanks to the Money Guys, moved my emergency fund into a high yield savings accounts 3 months ago earning 5%! It was the biggest no brainer. Thanks for the push!
You guys have been killing it on the visuals lately. Simple, clean, easy to read and understand. The "Investing in Roth vs. Pre-Tax 401k" slide really stands out and so many people can easily digest this information.
I (23, just finishing college but worked when I could) had 20k as a nest egg sitting at my bank. My bank is chase. I literally made pennies each month. I moved it to my schwab brokerage in a money market fund and now it makes $100 each month. Money guys is the reason I maxed out my roth this year. Thank you for making financial education accessible!
This is the best video they have ever put up. I was saying to myself before the end this video is perfect but it missing giving. Not only did they cover. They said ground zero. Amazing advice. The is by far the best financial advice you are going to get ever. Without paying for it of course. I listen and criticize these videos so much. Sometimes it sounds like a lot of bragging and no help. And often I feel I have to give up my dreams in order to succeed financially and im still struggling doing that at 45. But hearing this video makes me realize there are people who care about their own fellow human beings. And the part about money is a tool is correct. I wish I could say more about how great this video is. This February I changed jobs from making 60k a year to I've already made 80k so far in those 7 months. I noticed when I gave away my money checks started appearing in the mail from things.
If Bo ever isn’t excited at the beginning of a show, I’m gonna be worried about either him or the show content. Great info guys. This show covers it all. Good show to pin somewhere.
I paid off 5 credit cards. I have 2 more to go. I have paid off a lot!! It has taken me a couple of years to wipe this out. I have 3 HSAs. Love the triple tax advantages! Working on moving all the HSAs from previous employers to my current employer plan.
Thank you. Just what I needed to watch. My hubby and I are directors of our farm business and own property, plus small pensions. I am nearly 52, hubby is 55. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
I totally agree, I'm 60 and newly retired with about 1.2 million outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of the invt-advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
I encountered Julie Anne Hoover through my wife, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested in. You can hunt her up online if you require care supervision.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
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Very much appreciated, your response suggests a person of benevolence.. just inputted her full name on my browser, and came across her site, top-notch qualifications! she seems well-qualified
for a retiree like me at this time of the year, my main concern is finishing my roth conversions that i planned for. my $8750 hsa( more than 55 y/o) contributions will finish in December. have kept up with my estimated quarterly tax payments so i am current there. in January, will take out me and my wifes 40k in IBonds(2022 his and hers with 20k in giftbox that i gifted for 23) that were purchased in April 22. this will be 19 months so will get 1.5 yrs of interest(7.12, 9.62 and 6.48%) and put in my vanguard mm cash reserves fund that is currently 5.29% and pay 4th quarterly taxes. i have never gotten prepaying your mortgage early if you have a low interest rate. i still have 4 yrs on my 15 yr @2.75%. if i prepay it, that money about 80k, stops working for me and the $1700 i am paying for my mortgage will just be quickly spent elsewhere. it is ok so long as your mortgage is not a big percentage of your monthly draw.
The other benefit to the brokerage account is if you retire pre 59.5 yrs old, it gives you a source of retirement income without a penalty that retirement accounts carry.
Hi Money Guy Show! I'm a CPA and think your investment strategy makes the most sense on RU-vid :). Does that 25% hyper accumulation of salary amount include maxing out your 401k (23.5k), Roth (6.5k), and HSA (3.85k)? Wondering how a taxable brokerage account comes into play.
The 25% includes all funds placed in an account that you are saving for retirement. Additions to taxable brokerage account included. Some people earn enough where they could max out their 401k and IRA without hitting 25%. Or you have people saving for FIRE. In both cases you need a brokerage account
@@sd0753 thank you for advising! i was recommended some of the channels older videos explaining it the past few days and watched those confirming the same thing, funny how the algorithm works lol
HSA - Over 50 - you can add 1000 catchup. And .. what people don't know ... the 1000 catchup is PER PERSON (over 50) that are covered by HDHP. So -- as an employee who is over 50 ... I can do 8750 into my company connected HSA -- taken from my paycheck. BUT THIS YEAR --- I also went to Lively and opened an HSA for my spouse - and contributed 1000 for her catchup. She can use my HSA funds - for the family. But she can also use her Lively HSA account for HER medical. so in 2023 - we have contributed 9750 for the year ... or over 10% more to HSA than I have done before.
I've been maxing out my HSA for 4 or 5 years, as a family, and I still have... $8k in it. What goes in comes right out. Active kid and wife, lots of physical therapy (and now some health issues coming up). Maxing out my Roth and 401k gets me to the 20% savings rate for retirement (then 5% employer match), but just there isn't enough in in the tank to pay out of pocket for health expenses, just so that I can invest HSA money. Maybe I could trim my lifestyle here or there, but I don't think I could cover all those health expenses. [No option for a Cadillac plan.] I had been hoping that I wouldn't have to use those catch up contribution options once I hit 50, but it's starting to make me think, I might want to. I suppose that's life--I'm well on my way financially, so I don't complain about it (much).
@@justthebrttrk You're probably right, I sure do feel like I'm in the messy middle. One in college, the other headed in 2 years. Getting to the end of the messy middle, but it sure feels messy! Thing is, I'm turning 47 and I feel like I'm out of step with what they define as "messy", I thought they considered it one's 30's. But back then, it was pretty easy to me, I didn't make much, all my time taken up with little kids. Now I make more, with the risks of making bad decisions with money having seemingly worse consequences, kids almost out of the house, and my 50's looming way closer than I ever thought it would be... ugh!
My wife writes the checks and I keep the books so we both know everything all the time. I've kept books in Quicken software since it was invented and can get financial statements of various kinds with different levels of detail either at the moment or comparatively for thirty years. Or if the question is more focused, such as "Am I stupid and spending too much on booze?" I can find out in less than a minute. I recommend it because it keeps us aware of our financial situation at all times.
Something to be careful of: Since interest rates have risen,people who are keeping some cash as for a potential house purchase are likely to have an extra $10,000. or more of added interest income as compared to the previous year that will be taxed at a severe rate. If the person meets "safe harbor" this merely means a big payment to IRS and possibly State come April,but if safe harbor (meaning,for most people that they have at least as much withholding and estimated tax payments for the current tax return being prepared as compared to the previous year's total taxes that were due/paid) , otherwise there could be an unpleasant surprise estimated tax Penalty The irony is that the extra "income" does not even fully compensate for inflation,which might be the cruelest tax of all.
Maybe a minor point but It seems like the FOO chart is missing a verb / action? e.g. could be "Pay off High Interest Debt", "Fund Roth & HSA", "Cover Deductibles", etc.
I agree. Ciuld beva bit more specifically clear. I had to clarify what I'm looking at. I looked for an unabridged, more detailed version but basically just figured it out through their videos and other finance resources. Would love like a "if-then" branching chart.
Can you guys please go into detail and define the terminology you are using while talking about surpassing the income for Roth IRA. I am in this situation where my income increased and don’t know what channels to pursue
Came here to say the same. This information seems like a topic that never gets touched on. I’m putting a ton more in my wife’s 401k to help lower our MAGI (modified adjusted gross income) so that we can stay eligible for the Roth IRAs that we’ve already funded earlier in the year. I’d love a deeper dive into this topic, myself.
I get the 3.5% arbitrage of mortgage rate vs. having the money in HYS/MM. However, for me, I just have the pre-payment on auto-pilot such that it'll be paid off a month before my earliest retirement date. It may not be the "best math" for the past year or two, but much like just "setting and forgetting" my Roth IRA and 457b once a year, it just seems like the best thing to do so I would never get tempted to do something "dumb" the the cash.
Right there with you. I was influenced by Ramsey before I found Money Guys. From day 1 I put extra towards principle and house will be paid off in 18 years vs 30. Money Guys might not agree but that debt stresses me out.
Can you create a video for about things to do before 2023 ends for small business/ entrepreneur specifically taxes guide deductibles, 401k, etc? Thanks
What’s the best options for self employed people that are not offered employer Match? I have an emergency fund, I max out my Roth IRA, and put more than I should into a brokerage account. I feel like I am missing out.
Once you max the IRA, you can put money into the 401k even if it's not being matched. Brokerage account is good too, but is still taxable funds on both ends of the transaction (taxed funds and taxes on withdrawal).
Biggest flex is Brian saying “I have enough cash I can write a cheque for it” for his remaining 200k mortgage. Just cash. Damn, well go ahead and flex on us then Brian 😭🤩
Also see if there's money from previous years you can put into retirement funds. I found out I could last year a little too late, but now I know and plan to take advantage.
What do you guys think about a Schwab or Fidelity CC, as long as it’s paid off every month. Schwab gives 1.5% cash back to a brokerage account and Fidelity gives 2%.
Are highly compensated employees (HCEs) subject to caps when contributing to after-tax 401(k), after they’ve maxed out their pre-tax 401(k) contributions?
Brian and Bo don't mention the other benefit of Roth that (since the contribution limits of Traditional and Roth are the same) you can contribute more to a Roth account (as it equals the contribution plus the tax amount).
Exactly! You can contribute $1 pre-tax, or contribute $1 post-tax, which is kind of like contributing $1.25 (or whatever your marginal tax rate is) pre-tax. I know they don't consider it part of the 25%, but in some ways it is.
I don't see HYS or Money Market as "making money" - it's just holding value vs. inflation. Leaving EF money in a low-interest location is losing value.
I totally fell asleep at the wheel during the pandemic. Is right now a good time to reconcile/refinance student loans with interest rates being so high? My interest rates for a couple of my student loans has ballooned to 9% but is it worth refinancing to 6 or 7%??
Personally o was able to get from 9 to 4.449. Dude any savings is savings 9 to 6 is a good swing. Get a fixed rate loan not vari. My 2 cents. Best of luck
The most important thing that should be on everyone's mind currently should be to invest in different sources of income that don't depend on the government. Especially with the current economic crisis around the world. This is still a good time to invest in various stocks, Gold, silver, and digital currencies
1. Count your cash 2. Get that free money 3. Get your liabilities under control 4. Maximize your tax free money 5. Hit the max 6. Finish the Drill 7. Focus on abundance goals 8. Pay off the house 9. Remember generosity
Wouldnt it also be true that its better to invest in your ROTH ira if you’re younger since the tax free capital gains is gonna be much larger when you retire? Or am I missing something and that’s not a factoor
So (pertaining to about 19:00) does contributing to a 401K lower your income as pertains to being allowed(getting in under the maximum income restriction) to make straight contributions to a Roth IRA ?
Yes. The income limit for Roth IRA is based on your modified adjusted gross income, which is the income after pre-tax contributions (such as HSA & 401k). I’ve been hovering around the limit for a few years and I’ve been calculating how much pre-tax I need to still contribute fully to my Roth. Some plans allow you to do both pre & post tax 401k, so it’s not all or none
These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $89k now to put in the market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
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I’m in a total 30% tax rate between (federal, state and city taxes) . I understand that reducing my taxable income is nice but isn’t Roth always better because you get tax free growth especially over time? I dont want to invest for the short term, I want to invest for the long term. So even though I might have to lose 30% of each dollar I invest to taxes, isn’t putting money in my roth still better?
Your plan sounds too complicated for someone who doesn't live in the USA :) too many variables that I don't understand how to apply to my European background. I prefer the Ramsey baby steps, because they are more specific
I struggle with this question as well. The ESPP is your income so generally i think it makes sense to take the 15% advantage and move on. If you are in growth environment, and can afford to hold, you can ride the appreciation. If you do cash out, think about taking that 15% advantage and investing
I built mine up until it was considered a long-term investment and then usually cash it out to fund my Roth IRA for the year. Like all investments, it has a "it depends" clause, but as a plan is working well for me.
3-6 months makes me cringe. If you hold 30k in extra cash, that will cost you $650k over 30 years in gaons. Keep 1 month of expenses and then 3-5 months in an S&P 500 ETF.
Ramit Sethi says to go for IRA first and max that if there's no match for 401k, then fund the 401k afterwards. Seems sensible to me, and I believe the Money Guys agree.
The best you can do with a taxable account is the same as a tax advantaged account ... but you have to seriously limit your investment options to get them to match. At least that's true if you aren't planning to lose money with your investments.
You may want to look at the fees/expense ratio associated with each. It might turn out your Roth IRA has lower fees, so beyond the match (if applicable) it may make more sense to put money there.
Deduction of your Goodwill donations. Another rich guy thing. It assumes you make enough to itemize. Still the right thing to do, but not so much a tax advantage.
When I discovered the channel for the first time their course and the cost of their course was the first impression I got from them. I overcame that first impression but I wonder how quickly their subscriber count would go up if they either lowered the price (year-round, not just black Friday) or stopped marketing it (still selling it on their website, but not talking about it anymore on the show). First impressions are everything.
@@thoryan3057 the “free” financial order of operations guide on the website is a vague pdf that just points to courses for sale. Feels bait n switch. I like these guys; I just don’t like that feeling.
My husbands company offers a Roth AND a traditional 401k. Can we contribute on both sides? Let’s say 5% traditional 10% Roth his employer offers a match up to 5% on the traditional side. Also would you consider and espp part of the 20-25% goal for retirement we are also contributing 8% to that. Thank you @TheMoneyGuyShow
The employer usually offers a match on either. You can contribute on both sides but the total is currently 22.5k. And I mean yeah the ESPP counts as saved money but unless you’re getting a really nice discount off share price and selling it as soon as it vests I wouldn’t do that, too much risk in 1 company not doing well.
