Why You Do Not Want to Build Wealth In A 401k or IRA

Подписаться 6 тыс.

Просмотров 2,2 тыс.

50% 1

401ks and IRAs are often touted as top wealth-building tools, but are they?
Learn why a lot of the conventional wisdom around maximizing out contributions to 401ks and traditional IRAs is wrong and outdated.
Mega Back-Door Roth-IRA Strategy - • How to Do a Mega Backd...
Video Contents
00:00 - The 401k Myth
01:50 - Disadvantages to 401ks and IRAs
27:43 - When You Should Use a 401k or IRA
⚠️ Exercise caution before using this strategy. Do your own research and make sure you fully understand the risks you are undertaking!
💡 I do not work with clients or offer any consulting services. If you want to learn more about the best tax and investment strategies, subscribe to my channel and check out these courses ▶️ sharonwinsmith.com/courses/
The information provided in this video is owned by Winsmith Tax LLC and is solely for informational and educational purposes. It is not intended as investment, legal, or financial advice. Always consult with a professional familiar with your unique situation, or conduct your own research before making any decisions. We might receive commissions for recommending certain products or services.

Опубликовано:

9 июл 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 16

@Anvillgroup 7 месяцев назад

It’s always good to come across a channel that provides facts about investing and no fluff. Thank you😊

@sharonwinsmith 7 месяцев назад

Thank you so much! 😀

@NwokediIdika 3 месяца назад

Great points! One thing worth adding is that 401ks have creditor protection that IRAs don't have.

@chayden1402 10 месяцев назад

You are spillng the 🍵 tea😮...facts nothing but facts

@sharonwinsmith 10 месяцев назад

Haha this made my day! Appreciate it! 🙂

@asteel1236 Год назад

Agree 100% on Roth - But Don't you lose out on the company match for 401ks which is basically a 100% return on your contribution - say up to 6% match for example?

@sharonwinsmith Год назад

I covered in the video how a company match might be one of the very limited situations where a 401k contribution makes sense (at least up to the match).

@jackieboy1593 10 месяцев назад

What if you're planning a FIRE strategy where you can eventually quit, have very low earned income, and start moving money from the traditional IRA to the Roth IRA, while staying in the bottom income bracket? Effectively using the Roth IRA to convert traditional IRA funds with ultra low or no tax.

@jackieboy1593 10 месяцев назад

I remember some guy called Mad Fientist called it the Mega Backdoor ROTH strategy.

@delongzhai4887 4 месяца назад

hello Sharon, I do have a traditional 401k, in which I hope not to do a rollover to traditional ira very soon because I enjoy liquidity and I'm 26, soon 27, so, a long time before I actually retire. Is it worthwhile to take it all this year? or should it be withdrawn on a periodic basis? or is there any way to convert traditional 401k to roth ira without paying the penalty?

@goobtron 3 месяца назад

Don't Roth IRA contributions come out of your top marginal tax bracket though? Whereas when you withdraw from a Traditional, you are taxed all the way up the brackets so your effective tax rate is lower? Assuming tax rates stay the same

@Pseudify 9 дней назад

I think this could be true in specific scenarios, maybe? For example, if your retirement income is mostly or all from a traditional IRA then this might be a factor to weigh. But I think the goal should be to have a diverse source of income in retirement. So unless you’re planning for failure, I wouldn’t worry about this scenario. But I might be missing something. I was hoping to see in this video some scenarios comparing things like this. I know others have done that before, so probably why she didn’t bother.

@woodforever1 4 месяца назад

What’s the difference between Roth 401 vs Roth IRA?

@sharonwinsmith 4 месяца назад

Roth 401ks are usually offered by a large employer. There are differences in how 401ks and IRAs are administered and the regulatory rules that apply.

@woodforever1 4 месяца назад

@@sharonwinsmith Thank you!

@darshpatel7256 2 месяца назад

@@sharonwinsmithThank you for the insight, what's your opinion on roth 401k then ? It behaves the same as roth ira with the exception of rmd's.. other than that any other flaws (yup i understand flexibility and other points covered under trad. 401k but since roth ira were recommended, i was curious abt roth 410k and mxing it out opinions)