After losing my job unexpectedly at the age of 39, having $425,000 saved for retirement, $10,000 in an HSA, and having a house that could be worth an additional $200,000, I'm searching for ways to make extra money. What are some of the promising alternatives?
@JacklynHerrera-wj7zm
2 күн бұрын
It makes sense to consider hiring a financial advisor at this point, but delaying retirement for a bit might be a more prudent choice
@ms_christinejones
2 күн бұрын
I’m confused about whether to combine all my investment accounts into one. If I decide to do this, how should I go about it, and will there be any consequences I should be aware of? I also intend to sell my property, which could add an extra 200K overtime. Should I consolidate everything into one investment account, or diversify across several sectors?
@saulgoodman_98
2 күн бұрын
These are important questions for a financial planner. I met mine at a NYSE event, and she helped my wife and i rebalance our 1.7 million portfolio between a traditional IRA and a brokerage account. She has been trading with our permission and has managed to recoup our financial losses thrice over again. We keep and manage the market cautiously.
@janicerhansenmx679
2 күн бұрын
That is impressive! my portfolio has remained stagnate. Who is guiding you please?
@saulgoodman_98
2 күн бұрын
If you look her up on the internet, you're going to surely find more information about her.
@tommeade5167
3 күн бұрын
Great video. My only concern from moving from a 401K to an IRA, is my legal protection. 401K's are more protected from legal action.
@earlyretirementari
3 күн бұрын
If you move it to a Rollover IRA instead of Traditional IRA, ERISA protection remains.
@earlyretirementari
3 күн бұрын
Your IRAs are protected from your creditors under federal law if you declare bankruptcy, but this protection is currently limited to $1.51 million for all your IRAs.1 The limit doesn't apply, though, to amounts you roll over to an IRA from an employer plan, or any earnings on that rollover. Source: www.nusenda.org/news-resources/financial-library/blog/2023/02/27/what-is-a-rollover-ira-and-do-i-need-one#:~:text=Your%20IRAs%20are%20protected%20from,million%20for%20all%20your%20IRAs.&text=The%20limit%20doesn't%20apply,any%20earnings%20on%20that%20rollover.
@coastalhillbilly3419
3 күн бұрын
@@earlyretirementari Awesome, thanks
@earlyretirementari
3 күн бұрын
@@coastalhillbilly3419 my pleasure
@csilver7405
2 күн бұрын
Does the Erisa protection include include Roth conversions from funds originally in 401k/457b?
@roburb73
3 күн бұрын
I appreciate the honesty! I've talked with several to make sure my avoidance of professionals isn't my bias because I had two I had to let go. They give me the sene advice and that's even after knowing my situation. It's a cookie cutter aptoach and I feel like I could give the same advice and I'm not even certified. Haha. I decided I like to manage my own and I do very well educating myself through reading and watching - you're a huge help!
@dianafinley
3 күн бұрын
Nice video! My 401K has good enough investment options, but the "advisory" and other fees that I can't opt out of are eating away at savings. I'm glad you mentioned right at the start that you need to be 59.5 in order to do an in-service rollover to an IRA, since you will probably save people's time. It took me a while to determine this last year. Counting down the remaining 3.75 years when I can roll over my balance to an IRA at Vanguard. I intend to do this annually until retirement or until my employer uses another 401k provider. I know there will be transfer fees, but not anywhere near the fees I'm paying.
@earlyretirementari
3 күн бұрын
Thank you!
@jasonbroom7147
21 сағат бұрын
My plan offers index funds with incredibly low expense ratios. I made the mistake of rolling over one 401(k) to an IRA and found out the expense ratios I was paying (to the broker and for the funds themselves) added up to almost 2% a year! I moved that money to my employer-sponsored plan and have been seeing much better growth, since there are almost no fees.
@Wazup4177
2 күн бұрын
I retired at 52 with a government defind pension currently netting 7k monthly. 3% annual cola with 100% spousal benefit and 100% lifetime healthcare for me and my wife. I also have a 457 worth 1.5 m that's continuing to grow. I realize I'm blessed to have that type of pension, and i have a great cfp who's guided me over the years. But i do enjoy and appreciate the information you and James put out at Root. Thank you!
@earlyretirementari
2 күн бұрын
Awesome!!
@MichaelToub
3 күн бұрын
Great advice, thank you!
@earlyretirementari
3 күн бұрын
You’re welcome!
@JeffWoodroof-by2ws
3 күн бұрын
If you have access to Fidelity's Brokerage Link in your 401k that should give access to any EFT, stock, bond, and treasury. Plus, retain the 401k legal protections (aka: OJ money..lol).
@PatrickMattson
3 күн бұрын
I have brokerage link (403b) and have a fidelity brokerage account, but I can only invest in mutual funds for the 403b.
@LizaPhilips
Күн бұрын
I converted my 401k to a Roth IRA to avoid higher taxes in the future. I'd rather pay taxes now than be stuck paying taxes on my retirement income when I'm retired and living off my savings.
@earlyretirementari
Күн бұрын
Roth Conversion = Tax Insurance :)
@phillogan1
Күн бұрын
Pre-tax contributions may help reduce income taxes in your pre-retirement years while after-tax contributions may help reduce your income tax burden during retirement.
@Johnlarry12
Күн бұрын
Both have their perks but you can also save for retirement outside of a retirement plan, such as in an individual invstment account or employing the services of a retirement planner/invstment advsr.
@emiliabucks33
Күн бұрын
I have thought about this, but haven't figured out how to get consultation, I don’t live in a big city.
@emiliabucks33
Күн бұрын
I just googled her name and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a call.
@flying.forward
2 күн бұрын
…dude…I didn’t even know this…🤯
@Steve56-w9r
3 күн бұрын
I thought mutual fund returns are posted net of fees per SEC rules?
@openfor45
3 күн бұрын
I'm nearing retirement within 2 years. I've been transferring some 401K to my IRA's the past 8 years. Will continue to so and will transfer the remaining balance to IRA once i official retire. The options in most if not all 401K's are limited. IRAs on the other hand provide maximum flexability to invest.
@VivaciousOM
3 күн бұрын
For people with large retirement savings, where is there advice about personal umbrella liability insurance?
@almorrow9345
3 күн бұрын
Appreciate your videos/explanations to a variety of financial planning topics. Does the 'Early Retirement Academy' software for withdraw amount(s) utilize the Guydon/Klinger guardrails approach (a withdrawal approach you mentioned and discussed briefly in a prior YT video) ? Is said software potentially modified for a Kitces risk-based approach?
@earlyretirementari
3 күн бұрын
Yes and you can learn more here about the logic: www.rightcapital.com/blog/dynamic-retirement-spending-strategies/
@Sylvan_dB
13 сағат бұрын
Sure, if your 401(k) happens to allow those options. Chances are if your 401(k) has high fees it also won't allow any in-service anything unless it allows them to charge a fee. Loan? Of course, just a $150 initiation fee and a $10 per payment processing fee. Hardship withdrawal? Naturally, with a $150 processing fee. So glad to be done with that nonsense! (still must deal with federal nonsense - they are experts at creating complexity and I don't see any solution)
@duneme
3 күн бұрын
I’ve got 5-Rental Houses we hope to Retire on but, the Wife has a 401K and has been a good saver! We are at about 30% ROTH (and increasing!) We can roll over the ROTH to a ROTH IRA right? Yes, I like the idea of converting it all to ROTH as we have the Rentals so, the longer we can keep that money invested the better for us! (Avoid RMD’s!)
@earlyretirementari
3 күн бұрын
Roth can go to Roth.
@europana7
3 күн бұрын
My 401k has a brokerage option to purchase stocks and ETFs ... Although no ETNs nor options. 401k is protected from lawsuits and bankruptcy. ...
@sheenayaj1700
3 күн бұрын
Ari, I just left my old job. Part of my 401k is in a ‘Roth Basic.’ So, can I roll over that portion to my Roth IRA then the traditional portion to my Traditional IRA?
@earlyretirementari
3 күн бұрын
Yes.
@sheenayaj1700
Күн бұрын
@@earlyretirementarisweeeeeet! Thank you!
@flying.forward
2 күн бұрын
Which portfolio analysis tool is this? StratiFi?
@earlyretirementari
Күн бұрын
Kwanti
@johnny_blades
3 күн бұрын
You don't have to be 59 1/2 to rollover a 401k. If under, the company will make the check out to your brokerage firm without any tax liability. The problem with rolling over is most folks have no clue on investing, thus the need for a financial advisor, but he / she will wind up putting you in high expense ratio investments with their added service fee. Probably better off staying in the target fund and forget about it, or learn how to do it yourself, which I did! 😁
@ericgold3840
17 сағат бұрын
Perhaps a diversified investment portfolio is advantageous compared to an all in the S&P500 index -- I honestly haven't decided. But I do think that S&P index will beat the best investment portfolio Root financial can devise if it has a 1% AUM expense attached. So for those who are young and afraid to leap to IRA to save 401k ER expenses, I say jump and go for a low ER S&P index. Things to not get easier than that. I add the 'young' proviso because bonds should be added when closer to retirement.
@christinefarelas6434
3 күн бұрын
I like your video - thanks for sharing. So let’s say I rollover 401k to IRA - it still seems like there still needs to be follow-up with rebalancing and other changes as the market changes? Where will one go for assistance with that? Also I didn’t see bonds listed? I’m afraid I don’t know what I don’t know?
@earlyretirementari
3 күн бұрын
Hmm, maybe that’s what a financial advisor does 🤔
@christinefarelas6434
2 күн бұрын
@@earlyretirementari exactly- but your I thought your point was to save on fees with a self managed IRA instead of 401k 😊 I do admire your wanting to feel good about your work and how you left a big financial institution to help people by sharing your knowledge!
@earlyretirementari
2 күн бұрын
@@christinefarelas6434 don’t ignore moving your 401k, and work with an advisor if you don’t feel confident in your finances.
@miketheyunggod2534
3 күн бұрын
401K’s are dinosaurs. All they do is keep your money hostage. Use your money when you want to. Plus, the financial advisors get rich off of you by stealing your money.
@earlyretirementari
3 күн бұрын
Sounds like you love 401ks and advisors!
@JPK-o9d
Күн бұрын
Nice. ‘We only work with millionaires’. Think I’ll start watching other channels.
@earlyretirementari
Күн бұрын
I have videos to help all ranges regardless of where you are on your financial journey. If you don’t like the style of content, you may enjoy other channels like the Money Guy Show and Rob Berger.
@ericgold3840
17 сағат бұрын
Watch this channel for the education. Whether they want you as a client is irrelevant.
@ericlaukonen9911
3 күн бұрын
I have a 401k where I contribute as after tax (roth 401k). My employer matches with pretax. As a result my 401k is listed as 66% roth and 33% 401k. If I use the rule of 55 after leaving work next year (I'm currently 55) how are the distributions treated?
@VivaciousOM
3 күн бұрын
I’ve heard that IRAs are fair game if you are sued but 401Ks are not. Is there a lawyer among the viewers who can say definitively?
@earlyretirementari
3 күн бұрын
Read this: www.nusenda.org/news-resources/financial-library/blog/2023/02/27/what-is-a-rollover-ira-and-do-i-need-one#:~:text=Your%20IRAs%20are%20protected%20from,million%20for%20all%20your%20IRAs.&text=The%20limit%20doesn't%20apply,any%20earnings%20on%20that%20rollover. “Your IRAs are protected from your creditors under federal law if you declare bankruptcy, but this protection is currently limited to $1.51 million for all your IRAs.1 The limit doesn't apply, though, to amounts you roll over to an IRA from an employer plan, or any earnings on that rollover.”
@jamesdorsky4887
3 күн бұрын
If I do an in-service withdrawal but continue to work, my ongoing contributions will continue to go into my 401k, right? So I would do more in-service withdrawals? I guess how cumbersome it is to do this process would determine how often to do it. Thoughts?
@earlyretirementari
3 күн бұрын
YES. You can keep doing new contributions and it’s not a hassle. I’d recommend taking the 15 minutes to do the conference call and make it happen.
@ThrowBackZone
Күн бұрын
So, if your 401(k) fees are high, you’re basically throwing money away? 💸
@YT2024-HB
Күн бұрын
I’m curious if you guys charge your AUM fee on the current 401k funds or if you would now charge 1% or more now on $1.4 million which equates to ~$14k a year in fees. In that case, you would be $4k a year more expensive a year than his current holdings (which I agree the index fund route would be better). It’s hard to say there is $14k of value this year and every year going forward when it’s a 1 time implementation. Please be more transparent with all fees associated with your case studies.
@earlyretirementari
Күн бұрын
I don’t recommend working with us until you have $2M outside of a 401k (IRA, Roth, Brokerage). I’d say we’re not a good fit at this time and start with the academy: ari-taublieb.mykajabi.com/early-retirement-academy
@YT2024-HB
Күн бұрын
I appreciate the response but to have a more complete answer. Let’s assume the person had $2 million beyond this $1.4 million. Once that $1.4 million leaves the 401k and is in the IRA, does that trigger the AUM fee (not sure if you guys charge that fee for funds in a 401k or not)? I believe there is value in advisors but potentially not telling someone they avoiding paying $10k in expense ratios to in turn pay $14k AUM fees doesn’t seem value added
@earlyretirementari
Күн бұрын
@@YT2024-HB We have a tiered structure, and I don’t recommend hiring us if you are solely seeking investment guidance because I don’t believe an advisor can justify the fee. I recommend you watch this. Is It Crazy Paying $30k/Year to An Advisor? kzitem.info/news/bejne/qWp6tGZ5oIJ-i2U
@YT2024-HB
Күн бұрын
I understand your tiered fee structure. For the $2 million outside of this 401k/IRA would be $10k for the first million (1% * $1 million) and $7.5k for the next million (.075% * $1 million). So a total of $17.5k for those assets. Now moving to the 401k, as you mentioned this person is paying $10k in expense ratios and would pay $800 for that $1.4 million in the low cost vanguard funds. You simply need to answer if a client of yours would pay an additional $10.5k (.075% * $1.4 million) for the AUM. So to avoid paying the $10k in fees to the 401k they end up paying $11.3k ($10.5k AUM fee + $800 expense ratio). Again transparency would be great, at the end of the day, the person would be paying $1,300 more in combined fees than they currently are, although you make it sound like they are saving $10k in fees.
@Scdoo100
3 күн бұрын
You are ignoring the liability protection that 401k accounts enjoy. Telling people to roll over large IRAs without considering that is bad advice at best, malpractice at worst.
@earlyretirementari
3 күн бұрын
See comments.
@EdwardJerlin
2 күн бұрын
As long as it's a "rollover" IRA, not a "traditional" and goes direct from 401k to IRA, the protection remains. I'm unclear as to whether the protection extends to Roth conversions from the rollover. Have to look that up.
@coastalhillbilly3419
3 күн бұрын
Company 401ks usually have crappy money markets as well
@Kevin-jf5bw
3 күн бұрын
that was my case. however, we also had a linked brokerage account with Schwab. since the Schwab mmkt was paying 1%+ in excess of the 401k side i moved the funds. also bought a couple CD's at Schwab while I waited for rates to peak. This year I have gone back into bond funds...
@PatrickMattson
3 күн бұрын
Can you do this with a 403b too? I turn 59 1/2 next month.
@earlyretirementari
3 күн бұрын
Confirm with your HR. Sometimes 403b require termination of employment.
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