Why You Should Stop Contributing To Your 401k! (repost) 

I didn't jump in it too early I wasn't in down here right here I got my starter at $6 I got a little profit on the top of this candle here it dips down and then I added back so my first trade I got myself up 1,000 bucks on it and then after I was up $1,000 increasing share size ready to step up to the plate be more aggressive capped my position at about 10,000 shares on this and look I mean this was a nice move from 650 up to 750 all the way up to8 we peaked at $8.30 before pulling back now

I worked hard in 2019 2020 21 22 and put some money into the market long term sitting in a pretty nice spot those of you that are newer right now you're paying your dues you're gaining you experience you're trying to lock up some profit but I encourage you to put some away for the long term so if you can use a Roth IRA you put some away tax-free save for your retirement and benefit from you know growth in the overall market and compound interest as it um as it starts to gain

Who is this person you work with? I have tried getting around me and it is practically impossible to get one that doesn’t charge exorbitantly. Can you also share what the fee structure is like?

*Layan* *Talia* *Chokr*

Thank you for this amazing tip. Verified her, wrote her and scheduled a Phone call. She seems Proficient

It’s important to consult with a financial advisor before making any investment decisions.

Yes true, I learnt that in 2023, when I lost almost everything. But I switched to using a financial advisor and I've been returning at least $98k every month so I’ve been sticking to investing via an Advisor.

how can i find a decent one like the one you use?

Leah Foster Alderman is the licensed advisor I use. Just search the name. You’d find necessary details on the web to set up an appointment.

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

The point he is making is that you don't have access to your money in case of an emergency or great business opportunity.

One of the companies my brother worked for had a stock program that he participated in and the others has 401Ks that he never participated in. Guess what? He’s now 67, retired and has the stock and SS, but if anything major goes wrong, he will be in major trouble. He was making 6 figures, but he always had to have his big boy toys.

@@glasshalffull2930 He's 67, I think he will be fine. He lived his life his way.

​@@beatricerights Retirement accounts not intended to be an emergency fund. 6 months expense in a high yield savings account is for emergencies.

Josh is also talking about retiring early. He said he's 50, I'm 52. If everything is locked up in a retirement account it's a 10% early withdrawal penalty. Put that same money outside a pre-tax account, whether Roth or taxable investment account, and you now have access

Only works with 401k at the last place you are working at.

​@@bobb7918 good reason to make sure when you move to a new place you move your 401k with you

I did this and retired at 56, I didn't need the money for expenses but I used it to pay off my RV, so now with ZERO debts I travel the country with the wife in that RV full time. I haven't taken out any other money and live off a $4k/month pension with medical. Only thing I have to figure out is housing in 5 years or so when we decide to stop traveling. By then I'm counting on my $625k in IRA and 401k to have grown a little and I'll probably take SS early. It's all about lifestyle I can live off $5/6k a month even if i have a little mortgage

@@bobb7918 True but let's say you get let go at your job at 54. You start a new job later that year just roll the old 401k over to the new job's plan and you are now eligible to the entire amount at 55.

@@TheDjcarter1966 Awesome and congratulations!

Hopefully you save more than that if you can.

@@Scott-xf5xb Great start. I'm in a similar situation and just reduced my pre-tax 403b contribution to equal my employer's match of 2.5%. Instead of participating in my employer's ROTH 403b, I'll open a ROTH IRA with Fidelity where I way more options to invest and without all the fees. Good luck to you!

Over a year, single filers making less than $47,026 in taxable income, 0% on qualified realized long term gains. For joint filers, making less than $94, 051, same thing. Only over those incomes, you might be subject to 15-20% tax rates. If you can withraw and live on those amounts or less, 0% tax.

Or just a bridge account.

As long as you retire from your current job and have your 401k with that job at time of retirement and are 55 you avoid the 10% penalty, and you are planning on moving to a tax free state do that first and you avoid state and if you can wait until following tax year odds are you can get away with 15% effective tax

@@TheDjcarter1966 i am also planning on withdrawing some early from 401k to qualify for ACA subsidies which more than offsets any penalty

@traybern Sorry nope that is money I am going to live on when I retire early and can get prem credits on HCA by living off the Roth. I will be over 59 1/2..

​@traybern I do Roth / Brokerage / 401k.. You really should do Roth first after any employer match, then do any additional investing into the 401k assuming you don't have any plans to retire early. I have no regrets with having a big stack of money in a brokerage account, it gives a ton of freedom and I know it will ultimately be my bridge account in retirement.. Roth contributions are very limited and it will be the very last thing you ever withdrawal from. It's better to invest too much into a Roth early on rather than invest too much in a 401k early on. Once there's too much in a 401k your really going to struggle being tax efficient anyway and most of the people watching this content is likely investing a larger percentage of their net income because they're financially savvy. If I only invested into my 401k by the time I retired I'd literally be in a higher tax bracket than I currently am by the time I retire and a lot of the lower tax brackets would just be eaten by SS and there just wouldn't be any effective way for me to do roth conversions.

Definitely Max the Roth but you'll want additional money too

I don't know... I'm avoiding 32 percent tax now so I can pay 22 later. I'm maxing my 401k now.

And another thing to consider is that a high-income earner today, say over $100k/year, would want to use the traditional 401k to keep them under the high tax bracket of 22 - 25%. In retirement, just withdraw up to the 2nd tax bracket 12 - 15%. With that said, also get a Roth account so that you can use it to supplement your 401 withdrawals.

@@Darwinq84 ahh yep that is what I thought as well. Thanks for replyijg.

The point he's making is that rather than just focusing purely on the potential to save an extra 10% or so in tax savings in a 401k, your pretty much giving up any freedom to use that money without occurring a penalty and the future can be uncertain. I'm just glad I put most of my money into a brokerage account, my 401k is basically out of sight out of mind since I just do automatic contributions and then just max out my Roth at the start of the year while I'm still eligible.

While in our 50’s, most of us are at our maximum earning capacity. Therefore “that extra 10% tax savings” is significant. The alternative is to not contribute so you’ll have cash for mostly needless emotional purchases. Making retirement planning suffer in the process. And the whole retire early because you’re gonna die early troupe becomes pointless. You can’t really have it both ways. It’s either one or the other…..

Not everyone wants to work until 59 1/2

@@bryonsview You can work until age 55 and then the rule of 55 applies to 401Ks which allows you to make withdrawals penalty-free.

I could care less what others do. Everyone is grown, make your own choices.

I tend to agree! Please say that again, "paying taxes today uses pre-inflation dollars that are worth more than future dollars."

You are correct. I would rather pay the taxes I know today are better than the unknown taxes with the USA 35T in debt.

I don't ever understand when people bring up the loans from their 401k.. I just don't see any benefit as you'd ultimately still need to save an extra 50k over 5 years just to pay back the loan assuming that you needed the 50k to spend in the first place.

There is no "tax savings" from $50k 401(k) loan and "tax savings" by paying interest to yourself that can be used to fund a Roth contribution.

Bye bye-bye 👋

Lol. Triggered.

He says it is a repost just skip these.

​@@bobb7918I like reading the new comments.

Did you even watch the original, anyway? lol