We experienced the peak of our era, and now it is gone. Recession is tanking everything including 401K. My retirement equities portfolio of $750K is in the reds. I keep losing because of inflation. This world will fall to the corrupt rulers in the same way that Rome did. I'm sorry if you're thinking about retiring and you're worried that your pension won't be enough to meet the rising cost of living. Horrible foreign policies everywhere, bad regulatory policy, bad fiscal policy, and bad energy policy.
For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
For boomers and senior citizens, the current market and economy are unnecessarily harder. I'm used to simply purchasing and holding assets, which doesn't seem applicable to the current volatile market, and inflation is catching up with my portfolio. My biggest concern is whether I'll survive after retirement.
Yes, gold is a great investment and a good bet against the devaluating dollar, been holding some for awhile now, I’m grateful my adviser’s moment by moment changes in the market are lightening quick, cos who know how much losses I would’ve had by now.
I've kept much of my savings in cash for safety, but I'm unsure if it's right for retirement. Contemplating investing $400K in stocks, as I've heard investors can profit in tough times. Unsure about my next move.
It's impressive how much you saved during your working years, a feat not many achieve in a lifetime. Now that you're retired and rely on your investments, it's wise to redistribute your capital to mitigate risks during market fluctuations. Consulting a financial advisor can help simplify this process.
Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
100% agreed, my so called target retirement fund in 401k had absolutely terrible return compared to sp500. I moved all to sp500 but biggest regret of my life I didn't do it sooner..What else is best way for me to invest $100k in a non-retirement account?
you need a certified financial planner straight up! personally, I invest in ETF's and also love investing in individual stocks. yes it’s riskier but am comfortable in my financial environment
Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. During the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my portfolio has grown by 25% every quarter since Q3 2020.
Considering our economy runs on a boom and bust cycle, you set yourself for failure when you gamble on your retirement. It is not just Wall street that is a gamble, as you are one hospital stay away from losing it all, when you are retired an on a fixed income.
@@ozhunter6708 I think the issue is people buying more than they can actually afford. Bigger/more expensive houses and cars than they should get based on their income and having a lot of kids when you can't afford it.
She says take the tax now to avoid taxes in the future with a Roth account. Yea, until in 30-40 years and you go to retire the government needs your money to prop itself up and then suddenly they tax it. There is no guarantee they won't tax Roth earnings later.
This is a really good point. They're already talking about limitations on Roth balances (mostly because of the Peter thiels of the world). But agree with your sentiment.
I agree with this idea because there's no way to know how high taxes will be later! Taxes have increased a lot since I started working, including state and federal taxes on purchased goods.
This is what kept me from investing in a Roth for the longest time, thankfully I’m at a point where I can invest in both and just pray the rules don’t change.
@@beckinfidelis3916 Yeah taxes will probably go up in the future but even if that is true it depends on many other factors, for example if you're in a high tax bracket then the money you contribute to a traditional ira will save you money based on your marginal tax bracket (your highest bracket that year) but when you withdraw if it's your main or only source then you're paying it at basically you're effective tax rate which is always lower than your marginal tax rate. Don't blindly put in Roth or Traditional without planning it out as best you can.
biggest problem is 401k providers charge .5-2% per year in administrative fees called a daily asset charge. My 401k provider(voya) charges .8 which is $800 per $100k you have invested. I'm at a pretty small company with a total of about $4m in our 401k collectively, thats $320k per year in fees we are paying as the EMPLOYEES! Sorry but that is an outrageous amount of $. Imagine if we, the employees, only paid $100k/yr that would be an additional $200k that could be going towards our investing. This is something people don't talk enough about and most don't even know of these charges as they are well hidden.
That's true. This fees are insane. That's why we see financial people driving insane cars and having huge houses. Lol. I always think about this. The people with the important jobs, that society needs, make nothing. And the people with the jobs that we don't need make a ton (social media influencers, actors, musicians, athletes, financial advisors).
Most employees don't ask the tough questions though. The fees can eat up a good portion of any employer match. I talked with our plan administrator and uncovered 7 different fees, just for investing into target date funds. Total ripoff
@@stonersgym8120mine doesn’t. Actually I’m pretty sure my company pays all the fees. I have never seen fees taken out of my 401k with both my past and current employer.
Also, you need to have discretionary money to save. If you're living on a prayer because of the cost of living, just chewed up your 30% margin if you were lucky enough to even have that.
Yeah most are financially stupid. People complain about the cost of eggs, then go out and buy a new car and whatnot. Every single person I know personally who said they never have money to save for retirement I tell them all the nonsense they waste money on. It’s a truly strange mindset to observe.
Major companies pay big money to figure out just how little money they can pay you relative to where you live to keep you hovering just above drowning and just below being able to improve yourself. Keeps you locked in and lowers their costs.
I love how we just blindly believe what institutions like Vanguard, Blackrock, etc., tell us. They are always going to say people do not have enough in their 401k's, because they rip you apart on the fees.
I maxed out on my investments when I was 23... I lived extremely frugal. Today at 50 yrs I am completely financially retired...been retired since I was 48.
BTC can disregard techincals when in a bull, did that in 2020 when it crossed previous ATH... stayed there a few weeks and continued pumping like crazy to 60k. Also, there is one constant... when around 90 on monthly RSI, the end is near. And don't expect crazy price targets of 500k... expect around 100k at most and be happy if there's more after that. If you believe big boys and CEO's of big invesment firms saying targets like 1M this cycle.. you deserve to be their exit liquidity..It's not about guessing the market's next move; it's about playing it smart and steady during trading...managed to grow a nest egg of around 2.3B'tc to a decent 21B'tc in the space of a few months... I'm especially grateful to Linda Wilburn, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
Yup. People complain but at the same time show their ignorance and impatience with their 401k as well. Also the dumb things they have done like borrowing to buy material things they don’t need, having it managed without knowing there’s a fee, and only contributing up to company match among other things.
Not only have wages stagnated, but pensions have disappeared. So now we have to take these low wages to live today, for short term savings, and retirement savings.
Wrong. 401ks aren't intended for high earners. Highly compensated employees (HCEs) are already capped by how much they can contribute to a 401k. It's all designed to keep you poor and working (paying taxes) until you're 70. The only way to win is to invest no less than 50% of your income. You'll never get ahead until then.
WRONG! A 23 year old could simply max out their 401k(preferably roth) from the age of 23-26, 4 years, and at the age of 60 would have over $3m. You just need to start early and be smart about investing.
My husband and I maxed out our 401Ks every year and saved additional money with other investments. Living below your means pays off big time by your 40s. My own 401K has mushroomed since I started it in the early 80s. Start investing the day you hit the job market or it will be too late.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
"Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Insightful... I was curious about her, so I looked her up online. I discovered her website, and I must say that she seems knowledgeable. I sent her an email outlining my goals. I appreciate you sharing.
@blackworldtraveler3711 sure, most people are not aware they can change there elections though. They need to have financial literally classes in high school
Sure they tend to perform worse over the long term but they are design to hedge against economic downturns because most people don't know how to invest/balance their portfolio or what they're doing so this is automatically giving them a glide path. We saw this happen a lot in 2008 when retirees saw their 401k drop 40-50% due to heavy weighting into stocks and if they're pulling from it to live there is a big sequence of return risk where if it's balanced between stocks and bonds you get less volatility and would have done better
So the Republicans do a good job? No. Democrats and Republicans are both terrible. They are just great at keeping civilians arguing with each other. Think about this... California and New York are terribly run states. But guess what? Mississippi is too. They went from the richest state in the union to the poorest with bad education and no jobs. Republicans aren't helping there. The only thing they care about is keeping their office. Once we start voting them out, they will finally start acting like public servants, not like they are our bosses
The problem with Roth ira is that it doesn’t decrease your current year taxable income; some people rely on that to decrease their yearly taxable income in order to decrease the income tax they pay yearly
That’s not a problem with me. I just did the math and figured out what worked better for me. I just maxed out Roth IRA every year since it started in 1997. Also maxed out my 401k contributing up to over $40k a year into aftertax and Roth. Not many people can say they have over 1.6 million in Roth and retired debt free at 51.
Maybe because the top earners are better educated and active participants of their own personal finance; also, you start to care about retirement as you get older when you’re near the peak of your earning potential. I honestly did not care about retirement when I was younger, earning a lot less. Now I care tremendously and contribute as much as I can.
Why is it the employer’s responsibility to correct people’s short-sightedness? People, you need to put at least 15% of your income into retirement. Think ahead, you can learn to live on less now but you can’t work after you lose your health.
The government is not your friend. The government is the root of all your problems. Little talk, and action, about Social Security going into insolvency within a decade. FJB.
She did a great job explaining that the 401K was NOT supposed to be the ONLY account for retirement. It was originally designed to be supplemental to a Pension. Corporate America took away pensions, and Many give minimal contributions to the employee 401K so entire generations will Never retire.
It unfortunately makes sense. When I didn't make much money I only put the amount that gave me my full match and as I got raises I put in more and more. I have friends that don't put anything in it at all because they need that money to pay their bills. So people who make lower incomes have it harder to save.
Thanks Charles, that was eye opening! Companies big, medium, and small focus on their executives and high earners. I am a capitalist through and through, but these graphs made me realize that companies do have responsibility for their middle and lower wage earners. I can imagine bipartisan legislation that forces companies to push the great majority of their retirement plan dollars to lower-paid workers. I wish everyone would watch this and try to think through it. I understand that small-business owners take the greatest personal risks, but even they should help their employees more.
She's not a fool she's just saying what would be best for her own benefit and not what's best for the country as a whole. Since she is part of a wealth management firm they usually make money off of percentage AUM (assets under management) so if they cut interest rates stocks will go up and they collect more from the AUM fees
A company I worked for 30 years ago put millions of dollars a year into the retirement plan of the CFO. That company later struggled and had to sell out to another company. Regular employees got $15k a year salary and had to contribute to a pension plan to get any pension money from the company. The top executives didn't have to contribute to get their millions.
Those are also my buckets, but my HSA is my favorite one. I hear that they are trying to work some legislation through where everyone regardless of health plan will be able to open an HSA.
i do Roth and Traditional but not HSA because my health plan is really good and wouldn't rather not change to a HDHP and the limit is pretty small compared to what i'm investing in my other account but i agree those are all good places to invest.
@@whasian2007 The good thing about an HSA is that money is with you forever for old age health expenses, but your "really good" health plan that you have now won't be there when your health starts causing issues as you may have to dip into your retirement accounts to cover health costs. Currently my HSA is invested and growing at about $1500 to $2000 a month and I will have a 6 figure HSA account when I retire. Maybe it benefits me more than it would you as I turn 55 this year and I can put in $9,300 a year for the family plan so I perfectly understand your line of thinking if you can only put in $4,000 a year.
@@michaelb.8953 yeah I understand the benefits but that's assuming that the amount of money I'm saving from my companies PPO plan vs the HDHP plan when comparing what my personal cost are are not being invested. If i'm investing my savings in my megabackdoor roth it pretty much comes out the same if not better. I am single so my cap is the $4k which isn't much but I also have plenty of other investment vehicles and for my age, my financial knowledge and what I'm making I'm very fortunate that I probably won't have to worry about it. For context I'm 35 at about 450K in investment assets (retirement and brokerage) and investing about a little under 100K a year between my different account types (traditional roth and brokerage). I could still be wrong though and maybe it would be beneficial for me to switch.
I had a govt teacher in high school that did his own stock market education module during the semester. It got me interested and here I am 42 years later, after a blue collar and middle management career, retired early and a multi millionaire. Thanks Mr. Kilmartin!
My son has his 1st job after college. Doesn't make much, but puts 3% into his 403b . . . It will get matched his 2nd year. Putting $1,000k in when one is
To all these people crapping on 401k’s: what are YOU doing wrong? Did you save a good amount? What did you invest in? You know you can save in an IRA instead and pay less fees and have more control right? If you’re irrational about money, save it in a high interest savings account. I saved 10% when I made $12 an hour. Educate yourself. Be responsible for yourself.
My employer stopped offering a company match in 2008 during the financial crisis and never added it back. I started contributing when I was making 25k and now, as a highly compensated employee, I'm limited on how much I can contribute. To government needs to incentive employors and remove or raise some limitations.
Seeing as I pay income tax and then I get taxed on the money I take out of my 401? Retirement accounts should be %100 tax exempt period. And you can't pay blue colar people lower than the average cost of living. If you do they can't afford to put in for retirement..
You don’t pay income tax on the money that you contribute to a traditional 401k until you withdraw it after you retire. It can grow tax free for years until you begin to withdraw it. That’s the whole idea of a traditional 401k.
I invest in actual physical metal materials (As a small buisness/Recycling) Copper , brass , aluminum, lead, steel ect..... the list goes on and on The market fluctuates but don't trust the system to make you money go out and earn your profits
Fed should have raised a quarter point last time instead of letting inflation fester. Problem with company 401ks is the investment teams I have yet to see one worthy of what they are being paid...except maybe t-rowe. They just sit back push payments and take their fee.
Many people that I’ve worked with use it as a slush fund for buying new cars, trucks, atv’s, jet skis, vacations, etc…then gripe that they can’t afford to retire.
Although inflation, the current administration, printing money are horrible. Stopping buying SUV’s new I phones and 10 dollar Starbucks every day. The line is 20 cars deep every minute. Saving Should be the priority.
And let's not act like people didn't know that 401ks would benefit high earners more. The 401k came about to help high earners get away with not paying more taxes, so it's no surprise that people with lower incomes aren't getting similar benefits. If people can't even save enough to hit the employer match (if your company even offers retirement accounts), how are people expected to build a third leg?
What I’ve never understood is why the IRA limits aren’t the same as the 401k limits. If you do not have access to a 401k through an employer, you are basically penalized by only being able to contribute 7k where as someone with a 401k can contribute 23k. I’m lucky in the fact that I am employed by a company that has a 401k and the fact that I’m able to contribute 30k as I’m over 50. My employer also matches 10 percent, so able to put away quite a bit. Government should at least sync up the limits on both though in my opinion.
What’s with these stupid “3 legged stool” analogies? I have not sat on a 3 legged stool, nor can I remember when I’ve ever seen one. Anyway, just another nonsensical analogy to confuse you rather than tell you to your face, that the system most of you love so much has nothing for the elderly; in fact, this is the fastest growing segment of the homeless population.
I downloaded a list of stocks. Nearly 6,000 on the list. 4,000 of the companies on the list do not generate a profit, so the reason your yearly earnings are low is because many of these brokers are (probably) receiving kickbacks to put some of these non-performing stocks in your portfolio (or hide - bundle - them in ETFs), while others, with more insight, know which stocks to avoid. Corporations operating at a loss may be able to do it for a year or so, but eventually the stockholder will be the one to pay the price. Do your homework folks.
Interest rates are still too low. If the fed cuts rates this year they will definitely raise them next year. Unless you just like paying one two or 300% more on the products you bought 3 years ago you need to keep raising rates not holding rates but keep raising rates. Now the government doesn't want that they want a nice soft landing to keep prices at maximum that way it feels like a soft landing you know the reality is everybody up top got their money everybody on the bottom stayed the same
The reason they’re top heavy is that they grow exponentially and there is limits to how much you can contribute. If an account grows 10% annually and you have $400,000 in your account, your growth will be $40k compared to the contribution limit which is closer to $20k. So larger accounts grow faster each year than smaller accounts do. Combine this with the fact that most people barely put anything into their 401k while others use it as a valuable wealth building tool and you’ve got your explanation. Disciplined savers have lots, skimpy savers have little. Nothing to do with employers as they actually are monitored by the government to ensure they give equally to employees based on percentages of income
I was in the top earners in my company and after 30 years the 401k pot I had accumulated was pathetic at just over $1.5million . Our ESOP stock compensation on the other had was close to $4.5 million . My immediate bosses account was in excess of $10 million but he was the guy who made our company what it is today. I don’t know how folks are going to manage with these paltry retirements and dismal social security.
Roth might really only be good if you stay within the 22% tax bracket. When you start making more and getting taxed more, a trad account could return better benefits
I'm a middle class guy I'll most likely top out at 100k at the end of my career in 10 years. If the stock market averaged 7% for the next 10 years I'll retire with over a million. People not investing & saving for retirement are not a fault of the 401k plan.
Why shouldn't an employee be responsible for their own retirement? Social security as a safety net so you won't starve in retirement. The rest is up to you. Why should a company be responsible for anything except what it takes to attract competent employees? If they want to supply retirement, platinum healthcare, free ice cream, that's their choice.
This is their concern? Dude I got laid off from a job and lost my 401K as a result. That is more what I’m concerned about because I can just save on my own with less risk.
All the while the lower income are driving a more expensive, higher note, higher operating cost, higher maintenance cost, lower resale vehicle. But have the least savings.. you draw the conclusion of what the problem is. But, they “look” like they have $$. Most millionaires drive Toyota camery, Corolla, something reliable and with low operating costs.
They’ve got themselves into a Catch-22 and I don’t think she’s really as bright as she’s made out to be because lowering the rates they push up prices even more for both goods and property and the rest of the world won’t be able to afford what they need including Housing
Roth IRA 100 percent does have an income limitation. Modified Adjusted Grose Income Single filers In 2024, the MAGI limit is $146,000. If your MAGI is above this amount, your contribution limit will decrease until it reaches $161,000, at which point you can't contribute anything. Married couples filing jointly In 2024, the MAGI limit is $230,000. If your combined MAGI is below this amount, both spouses can make the full contribution. If your combined MAGI is above this amount, your contribution limit will decrease until it reaches $240,000, at which point you can't contribute anything.
Bring pensions back, or suffer the consequences as a nation. Our nation’s businesses decided our nation will suffer the consequences a long time ago. Time to pay the piper, the Supreme Court will decide if you get a tent on the street in old age. The question is, will this nation get burned down or blown up? Because equilibrium isn’t going to come from global finance ownership. Politicians will not save this country from predatory capitalism.
Just swapped all of my last ETH and swapped it into AMS22K. Already up a little bit. Unfortunately I have some other junk staked which won’t free up for a while. Still now I am on the train!
You give the gov roughly 20%, contribut 1-10% to 401K. After bills what's left for savings? I'd rather skip the savings account and but some silver or gold... or maybe some crack.
Roths are terrible for those who are high earners. They most definitely will not be earning as much when retired. BTW did you know high earners' spouses cannot add into IRAs of their own no matter how little they make or how close to retirement they are.
This phenomenon began when traditional defined benefit plans were largely abandoned by the private sector, excepting governments and unions, and defined contribution plans became the ‘standard’ plan. Tax law drove this behavior, and tax law drives the lopsided plans. Stop blaming the employers!
Here we go again. Get the govt to help. What leveling of playing field. U make less u most likely contribute less. U make more u most likely contribute more. Stop living above your means and then when u raise up, u are 60 or 70 yrs of age. And start crying g to Uncle Sam. See what happens to California workers forcing fast food to give $20 and Major pay offs. Franchising closing doors.
I just hate the fact that most retirement is tied to a casino known as the stock market. Why is my potential future invested in a rigged casino that could drop at any moment?
If your retirement isnt tomorrow or even in the next 5 years. Market volatility doesnt matter. Over 30-40 years dips mean nothing in the grand scheme of investing in stocks. What matters is how much $ and time in the market.
Is it supposed to be news that lower income employers dont usually have 401k? If you arent making much money or working part time its very difficult to save much in a 401k.
