Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k.
@LeylahCollins
11 күн бұрын
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
@Marcos-q1b
11 күн бұрын
Not everyone has access to this kind of information. Lack of knowledge can definitely make people panic. it's amazing that i’ve been able to make over $687k passively through investing with an advisor! Having a great wealth manager can really make a difference, regardless of how the economy is doing. Keep up the good work!
@MichelleBennett-g6d
11 күн бұрын
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an adviser, as this allows you make smarter investing decisions.
@alexYolan-wl3xm
11 күн бұрын
Mind if I ask you to recommend this particular coach you using their service?
@MichelleBennett-g6d
11 күн бұрын
'Grace Adams Cook' is the licensed adviser I use. Just research the name. You’d find necessary details to work with to set up an appointment.
@HugoBergmann-lu4nd
3 ай бұрын
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.
@LiaStrings
3 ай бұрын
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
@FarrahBaker467
3 ай бұрын
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.
@StacieBMui
3 ай бұрын
Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
@FarrahBaker467
3 ай бұрын
Sharon Lee Peoples 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.
@grego6278
3 ай бұрын
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
@HodgeChris
2 ай бұрын
I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 1500+ units from collabrative efforts in the fund my estate planner has me invested in. I do not work.
@KaurKhangura
2 ай бұрын
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
@carssimplified2195
2 ай бұрын
My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.
@brucemichelle5689.
2 ай бұрын
If I may ask, as in withdrew all of the money from the 401K and IRA programs? If so, what was your strategy behind that decision? Thank you.
@carssimplified2195
2 ай бұрын
I learned about govt actions from cfp in ny by name ‘’Aileen Gertrude Tippy’’ . Ms. Aileen explained the benefits of long-term Treasuries and alternative investments, which the govt doesn't disclose.
@brucemichelle5689.
2 ай бұрын
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
@richardspenard2663
Жыл бұрын
The thought of retirement makes me cry. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings to fall back on.
@JerrellHulme-kn8ue
Жыл бұрын
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
@BiblicalFlatEarth
Жыл бұрын
It is the US government war on we the people. Trust no banks.
@GoaWay4Sanity
Жыл бұрын
*yep!* *they want you to work, a 9 to 5 matrix job your whole life, then they want you to retire when you’re about to die…?* *hell nawww, I’ll pass!*
@hoganmatt87
Жыл бұрын
@user-qm6mo9ct5g You probably have more options than you think. Did you ever find help with this?
@Matt-tt2br
Жыл бұрын
Right big Gov cuz gambled it all away on stock market
@joebsniffs
Жыл бұрын
I stopped 7 years ago. My fiance had $330,000 in her 401K she was dying of cancer terminal she had eight months left to live they still wouldn't let her take her money without a penalty. They said it's not a hardship She withdrew $85,000 of the 330000 paid 34000 in taxes penalties they stole from her
@davidmcknight8201
Жыл бұрын
Are you contributing to a Roth or Roth 401(k) now?
@joebsniffs
Жыл бұрын
@@davidmcknight8201 no nothing
@marcjay077
Жыл бұрын
Sorry for your loss! .If your wife was no longer working she could have done a rollover to an IRA, where you get to choose how much money is withheld for taxes and penalties only come into effect when you file taxes and it may have been possible to use an exception for the penalty for unpaid medical bills.
@josephkingsley8708
Жыл бұрын
My god that’s awful. Makes your blood boil hearing stuff like this. fucking organized crime is all it is. The government always gets their cut. A
@joebsniffs
Жыл бұрын
@@josephkingsley8708 she was a teacher in the IU Department she worked for the psers. 22 years in Pennsylvania
@ravbarring
Жыл бұрын
My mum lost almost everything during the 2008 Great Recession. She was two years from retirement. Ended up at Wal Mart. What I learned is when the company she worked for went bankrupt, the 401k was also tied up in the process and was inaccessible for almost 9 months. A fraction of the balance remaining which was taxed upon access. Robbed by the employer, market and IRS. I as the eldest son support my mum. She lives with us. Just one example of how The 401k was a huge scam for us. So no. Mr McKnight. The 401k is a load of Bollox.
@davidmcknight8201
Жыл бұрын
Sorry about your mum. The 401k works for a lot of people, but not everyone, particularly when they hope to retire right around a market crash.a
@bluegillmich
Жыл бұрын
within a year of the 2008 crash my 401k came screaming back, i never lost a dime .I don't understand is why the company going bankrupt would affect her 401k( outside of maybe not making a match anymore)..
@captainkrunch6372
Жыл бұрын
She probably had 100% in company stock😢😢😅😅😅.
@Mrttansamman1000
Жыл бұрын
This was a Democrat in 2008 .. they will continue to this to make sure they do not pay million dollars payouts. Because the money you have given to 401k had already been spent. It's like given your money to a buddy to hold for a year, see what you have in a year from your buddy.. probably nothing.
@DavidMcKnight
Жыл бұрын
@@Mrttansamman1000 Sorry, who was a Democrat in 2008? Dave Ramsey?
@TheWealthyIdiots
Жыл бұрын
He didn’t say to stop using a 401k 🤣. This was a pretty wild stretch.
@davidmcknight8201
Жыл бұрын
He sure did. He likes the Roth 401(k), but that's totally different than the traditional 401(k) that 95% of people contribute to.
@TheWealthyIdiots
Жыл бұрын
@@davidmcknight8201 yeah but you never once showed where he suggested you stop contributing to a 401k or where he suggested you take your money out of your 401k. He merely pointed out the tax burden of when you make withdrawals.
@DavidMcKnight
Жыл бұрын
@@TheWealthyIdiots you’re really straining at gnats here. He explained the implications of the 401k and then recommended the Roth 401k and Roth IRA instead.
@TheWealthyIdiots
Жыл бұрын
@@DavidMcKnight yeah I might say that a Roth IRA has more benefits than a taxable brokerage account but I’m not telling to stop investing after 6.5k a year. Saying that there are vehicles that may be better than a 401k isn’t even close to saying you shouldn’t have one, or should pull your money out of one.
@DavidMcKnight
Жыл бұрын
@@TheWealthyIdiots I’m happy you came away with that conclusion. Most didn’t. From his website: We’re big fans of the Roth 401(k). In fact, in a showdown between a Roth 401(k) versus a traditional 401(k), we’d go with Roth every single time!
@Susanne-zuku
11 ай бұрын
I watch several KZitem videos on how to trade in the stock market but haven't made any head start because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands
@Susanne-zuku
11 ай бұрын
@Anikaparvati1 What is the name of your broker and how do i connect with him or her ?
@Susanne-zuku
11 ай бұрын
@Christina-Gisela Wow that was easy, i found her website and left a message for her . i hope she reply me. thanks.
@oldenyz3148
Жыл бұрын
It's hard not to contribute to the plan your employer is matching.
@DavidMcKnight
Жыл бұрын
Indeed.
@Unicorn-Black
Жыл бұрын
now im concern i was putting money in roth, but if dave r. say to put money in roth i suspect something will happen and its wrong to do... my policy is do the opposite of what dave r say to do..... 💯
@DavidMcKnight
Жыл бұрын
Well take solace in knowing that it's also something I'm telling you to do. ;)
@jimselvy6157
2 ай бұрын
When working, I maxed out my Roth 401K. The company match was in pre-tax so it automatically had multiple buckets.
@albacus2400BC
10 ай бұрын
I actually followed these steps over the years to accumulate some money over the years, but my portfolio has really declined this year. I have lost over 30% of my $200K portfolio in the market, and now I'm desperately trying to improve my portfolio. How do I turn the tide around? 😞
@ericmendels
10 ай бұрын
The market hasn't been good this year, but it is important you find stocks with market-beating yields and shares that at least keep pace with the market long term. You don't have the luxury of long term advantage, so I suggest seek guidance from a broker or financial advisor.
@cloudyblaze7916
10 ай бұрын
I agree. I diversified my $400K portfolio across various market with the aid of an investment advisor, and I have been able to generate 113% of the gross capital in net profit across high dividend yield stocks, ETF and bonds, in a short time.
@victorlaranjahal
10 ай бұрын
That's impressive! I could really use the expertise of your advisor. Could you recommend who you work with, please?
@cloudyblaze7916
10 ай бұрын
*Sharon Louise Count* serves as my advisor, bringing extensive qualifications and experience in the financial market. Her deep understanding of portfolio diversity positions her as an industry expert. You could look her up yourself.
@gregorywhem
10 ай бұрын
Thank you for this. I'm gonna check her out and try to reach her. I hope she gets back to me soon.
@keithmachado-pp6fv
2 ай бұрын
The seed vs harvest analogy resonates but if you pay tax on the harvest (even if it’s more tax dollars) but you come out ahead after tax (because you paid less % tax and paid it with future inflation adjusted dollars) then it is ok to pay the tax on the harvest.
@quincylockett9554
Жыл бұрын
Until it’s time to take distributions you don’t know how much is in a 401 k at any time. All you have is a report with numbers that mean nothing if you can’t cash it out. It just makes you feel a way.
@DavidMcKnight
Жыл бұрын
So don’t do a 401k and don’t take the company match?
@jeffi854
11 ай бұрын
Yes sir I’d love to speak to you about a problem I’ve been having and work with my retirement accounts. I originally signed up for Roth IRA and did not receive a statement until a yr after the account was opened up. I noticed on my W-2 there hadn’t been taxes taken out on my Roth account. When I called to inquired why I learned that the hospitals investment company had accidentally set my accounts up in a Traditional IRA and was told there wasn’t anything I could do about it.
@DavidMcKnight
11 ай бұрын
Just fill out the intake form at Davidmcknight.com and we’d be happy to chat with you.
@JulioNavarro-ov3ek
10 ай бұрын
So what do I do with my 401k while I’m still working? My company won’t let me take my money or move it unless I quit or get fired.
@tscoff
Жыл бұрын
The danger of a Roth 401k is it increases your AGI. Your AGI can limit how much you can contribute to your Roth IRA, so keeping your AGI under $153,000 will allow you to put the full amount into your Roth IRA.
@DavidMcKnight
Жыл бұрын
Yeah but the Roth 401jk allows you to contribute so much more. And if you’re over MAGI limits then just do a back door Roth.
@davidkennedy517
Жыл бұрын
If you are making 153k from your job do you really think you will be in a higher tax bracket when retired?. I think not.
@markoshea8993
Жыл бұрын
Government could start taxing Roth by the time some people retire. Some sitting senators are proposing taxes on unrealized gains. I am using a mix of traditional, Roth and taxable, we will see what happens. The way things are going with non stop spending I am not sure the dollar will be worth anything by the time I retire
@DavidMcKnight
Жыл бұрын
You may be right on the inflation but I still think it’s a long shot they’ll tax the Roth when 95% of all retirement accounts are pre-tax. They’ll just raise the taxes on those accounts instead of double taxing the Roth.
@MH-gg9fz
Жыл бұрын
What??? I’d rather pay no taxes as I build the nest egg than pay as you go when you build. And, when you start withdrawing, you control when you take it out. Another example of Dave Ramsey steering his listeners down a path that ultimately hurts them.
@DavidMcKnight
Жыл бұрын
This makes sense if your country isn’t marching into a future where experts generally agree that taxes have to rise dramatically to pay for $239 trillion of unfunded entitlement obligations.
@johngill2853
Жыл бұрын
At time stamp 4:19 is were the real advice is. But if you retire early you want a little more in traditional and he suggests(before Social Security)
@fortgrove3166
Жыл бұрын
I am in a Roth 401K. I am good.
@DavidMcKnight
Жыл бұрын
Perfect.
@bkeith1853
Жыл бұрын
Company matches .75 for each 1.00 up to 8% of contributions to non-Roth . I can’t see giving that up, however I do see only investing what is matched and put the rest in Roth
@DavidMcKnight
Жыл бұрын
You don’t have a Roth 401(k) available to you?
@av8rgrip
Жыл бұрын
Also IRMAA’s. The trick I am finding is avoiding the 32% tax bracket while reducing future RMD’s and IRMAAs. Also realize there will be a period of time between retirement and now age 75 before RMDs are required creating opportunities to perform roth conversions at lower tax rates. Yes it is a gamble either way, so is investing. I don’t think the lower tax brackets will change. Politically they can’t do that, but sliding the brackets to the left they will do. They already have it baked in with the sunset of the “Trump” tax cuts and phase out of SS tax limit (currently 160k of income).
@DavidMcKnight
Жыл бұрын
Good comments. Thanks for chiming in.
@gasolinedixon2394
Жыл бұрын
And people think America is the best country? I’m happy to be an American, but our government is beyond disgusting!
@DavidMcKnight
Жыл бұрын
Thanks for your comment.
@jo4285
8 ай бұрын
1st world problems when theirs literally people dying of starvation.
@chriss3625
11 ай бұрын
Shouldn’t we consider the limit up to -92000 401k withdrawal for married? Less the 27700 standard deduction (and I realize all of this is subject to change) would keep your income at no higher than 12% tax… not certain of the ss effect here… I am really having a hard time justifying the 22% tax I must pay now to potentially avoid 12% later… We do fund Roth iras … it’s the Roth 401k that I haven’t been able to stomach when the taxes are due…
@DavidMcKnight
11 ай бұрын
If you don’t think your effective tax rate down the road will be greater than your effective tax rate today than you should probably hold off. All my data shows that taxes will have to double by 2030 to avoid calamity.
@Omonike88
Жыл бұрын
I'm in the process of rolling over my 401k to IRA ROTH. I rather bite the bullet NOW. Taking three years to get this done.
@DavidMcKnight
Жыл бұрын
Could be a smart move.
@paladin556
Жыл бұрын
Isnt the point of tax defered 401k so that you can put more money in (the money that would be taxed before hand) and get better compound interest on it? What would the difference be if we put $10 a week tax defered in a 401k or put $7 a week tax free because we paid the $3 tax already. Wouldnt the gross and net be more if the interest rate is the same since the invested money is more? We cant say what the tax rate will be 30 years from now, but we also cant say that we will even have a US dollar 30 years from now. So have you run the numbers? Not bases on the same dollar amount invested. But the same dollar amount out of my pocket.
@DavidMcKnight
Жыл бұрын
Your math is correct. The question rides on what tax rates will be when you take the money out. Most gurus (including Ramsey, Orman, etc) believe taxes will be higher so recommend the Roth 401(k).
@alrocky
Жыл бұрын
"What would the difference be if we put $10 a week tax defered in a 401k or put $7 a week tax free because we paid the $3 tax already." That's 30% tax at contribution. At retirement if the entire balance were taxed at 30% at withdrawal then traditional vs Roth would be a wash as you'd have identical spending income.
@DavidMcKnight
Жыл бұрын
@@alrocky that is correct. So it all comes down to where you think taxes will be when you retire. If higher then Roth makes the most sense.
@b1crusade384
Ай бұрын
1:16 Well. 401k is pre-tax money. So it’s no shocker that you have to pay taxes to get it out.
@boballman1860
Жыл бұрын
401 k charges 20 different fees! Congress tried to change it! But of course it got stop!
@DavidMcKnight
Жыл бұрын
Twenty?!
@michaelswami
Жыл бұрын
This is all premised upon the government honoring its bargain with respect to o Roth investments. What evidence do we have of that?
@DavidMcKnight
Жыл бұрын
Well, they’ve honored it over the last 25 years but there are no guarantees for the future.
@republitarian484
10 ай бұрын
What would make more sense. . . investing in an unconstitutional "retirement" program like a 401k where your money is tied up for 40 years or to save and pay-off your mortgage, car loans, student debt (if you even think college teaches you anything), purchase land, invest on your own?
@randallmadison9910
10 ай бұрын
Lmfao. How is unconstitutional? You guys are hilarious.
@republitarian484
10 ай бұрын
@@randallmadison9910 . . . the US Income tax code is unconstitutional. It's legalized theft. There is no constitutional right to confiscate peoples income. There are no government services used for income. And if there are any they are funded by local, state, or other means. And NO I'm not making the argument that no taxes should be paid. But there is no reasoning behind our income tax code. It's plain manipulation and theft.
@creeper2054
Жыл бұрын
I disagree with both. Start income imvesting on your while you are young, DCA the income back into the account every month, and you will have a personal, self directed pension at age 50. Why pay into a 401k that loaded with fees while you hope that market goes up through the years you pay into it?
@DavidMcKnight
Жыл бұрын
Because it’s a pretty fool-proof formula to turn yourself into a multi-millionaire. And if you do it in the Roth 401(k), you shield yourself from the impact of higher taxes down the road.
@creeper2054
Жыл бұрын
Ok, and what is the average 401k balance in the US upon retirement? A million dollars? I don't think so. My scenario would only require a third of that.
@DavidMcKnight
Жыл бұрын
@@creeper2054 people don’t follow the formula so they don’t get the result. If your formula works well for you, good on you!
@creeper2054
Жыл бұрын
Is it a 401k formula or fantasy? I welcome others to chime in if what I stated is way off.
@DavidMcKnight
Жыл бұрын
@@creeper2054 the formula is not the Roth 401k. The formula is save 20-30% of your income into tax-free accounts over a long period of time and let the market do the rest.
@josephkelleher8820
5 ай бұрын
Here is the way I was taught concerning making a determination between a traditional and a Roth Ira or a traditional or Roth 401K: If you expect your income in retirement to be MORE than you are now receiving while working invest in a ROTH IRA or ROTH 401k. If you expect your income in retirement to be LESS than you are now receiving while working invest in a TRADIONAL IRA or TRADITIONAL 401k.
@DavidMcKnight
5 ай бұрын
I would say it’s your tax bracket not your income.
@guzzi95
Жыл бұрын
Of course we can't hardly Blame Dave Ramsey since he doesn't make up the amount of taxes we will be Forced to pay down the road. I bought a couple of fixed index annuities and also a 4-CD ladder that I renew when they mature. The Ideal best strategy to start with is Get out of debt so a big chunk of your Social Security isn't going to monthly payments.. There is a Huge difference in what I was making per hour when I started my job compared to the day I retired from it.
@DavidMcKnight
Жыл бұрын
It’s a relatively recent phenomenon that financial gurus have started endorsing tax-free accounts over tax-deferred accounts.
@Matt-tt2br
Жыл бұрын
And with inflation there needed to be more making. Comes out even if your/ people, are lucky
@dimelosantitbs
15 күн бұрын
Are there any of these comments real? And not bots? 😒😒
@MrJmyers32
Жыл бұрын
your effective tax rate will never be less than when you are young, married and raising children.
@davidmcknight8201
Жыл бұрын
Yes. Lower income, lots of deductions, etc. Great time to pay tax on retirement contributions.
@johngill2853
Жыл бұрын
But how many people save more latter in life When I started at 27, my first year was just $500 in contributions. Last year at 52, invested $30,000
@bradstock2313
Жыл бұрын
I max out both 401k and roth 401k in my job, this is 100% why I am currently a millionaire. My highest take home pay to date is $36,500.
@DavidMcKnight
Жыл бұрын
That’s awesome. Nice work!
@alrocky
Жыл бұрын
@ *BS* you cannot max out both [$22,500] to traditional 401(k) and [$22,500] to Roth 401(k).
@DavidMcKnight
Жыл бұрын
@@alrocky Right, maybe he’s splitting the contribution between the two.
@bradstock2313
Жыл бұрын
@@alrocky The maximum contribution to a roth 401k with catchup is $7000 and in 2022 it was $20500 total
@donna3302
Жыл бұрын
@@bradstock2313 I think you meant to say 401k and Roth IRA, which will each have different limits (the 20,500 and the 7,000 including catchup respectively for 2022). Roth 401k will be different and has a combined yearly limit with a traditional 401k.
@natebreon7797
Ай бұрын
How did it take Dave until 2023 to figure this out? SMH
@elyon9329
Жыл бұрын
1.) A DOLLAR is a Monetary Unit. [Gold / Silver Coin] according to the Constitution Article 1 section 10. 2.) only Congress can collect taxes; IRS is not a governmental agency. 3.) THE UNITED STATES INC. has been bankrupt several times. So that FRN is worthless paper! 4.) Study Noble Drew Ali!
@DavidMcKnight
Жыл бұрын
Thanks for your comment.
@karenjensen2345
Жыл бұрын
How can we "switch over" from a traditional IRA and 401k?
@DavidMcKnight
Жыл бұрын
Talk to your HR contact.
@michaeln.2383
Жыл бұрын
Unless an employer does matching contributions, the 401k doesn't make sense. I think if you spread your money out over the largest stocks in the market, you'll do much better than a 401k. Someone else recommended to put the minimum amount into a 401k to get a match, which makes sense.
@DavidMcKnight
Жыл бұрын
Yes I like contributing up to the match unless it’s a Roth 401k in which case fully fund if possible.
@davidkennedy517
Жыл бұрын
Even with no match you are still getting tax deferred or tax free compounding so the 401k may be worth doing.
@ianbelletti6241
Жыл бұрын
I've always heard that diversification is important. I've known people that hold both a Roth IRA and the traditional retirement accounts. The traditional 401k and IRA get used for medical costs because they are tax free expenses but the Roth IRA is used for all other expenses because you don't pay taxes on the withdrawals.
@DavidMcKnight
Жыл бұрын
Penalty free.
@jimc4839
Жыл бұрын
Everybody has a better idea. Be careful and soft through the bs. They're are some fast talking good salesmen out there.
@DavidMcKnight
Жыл бұрын
I’m not selling anything in this video other than the reality that Dave Ramsey, for very good reasons, is pushing the Roth 401(k) over traditional accounts.
@epost1978
Жыл бұрын
Is anyone noticing that the comment section on financial videos always turns-out to be a pitch for some financial advisor?
@DavidMcKnight
Жыл бұрын
How so? And which advisor?
@great456789
Жыл бұрын
Anyone that really knows Ramsey’s teachings knows he is very much in favor of 401k. He does state that it is better to do Roth 401k over traditional if AVAILABLE.
@DavidMcKnight
Жыл бұрын
That’s the point of my video. 👍
@johnberry2877
Жыл бұрын
Million dollars😂😂😂😂 As an RN for over ten years, employers don’t contribute a penny and after losing it all twice, FU#k the stock market !!!!
@davidmcknight8201
Жыл бұрын
Ouch!
@joebsniffs
Жыл бұрын
401K was to help the government not the citizen
@DavidMcKnight
Жыл бұрын
And for companies to get out from under expensive pensions.
@GaryKarr
Жыл бұрын
Do you know what an updated paradigm is worth? Twenty cents! #DadJoke
@DavidMcKnight
Жыл бұрын
Hah!!
@tedbozarth8300
Жыл бұрын
Got us again with a tricky click bait title as suspected … I mean who wouldn’t have watched had you included “traditional” in title?
@DavidMcKnight
Жыл бұрын
Do you ever use the word traditional when describing your 401(k)?
@rustyhamilton4518
Жыл бұрын
I wonder how the extra 33% contribution from an employer plays into this plan?
@DavidMcKnight
Жыл бұрын
What do you mean?
@nhanha7433
Жыл бұрын
There is lawful stuff everyone want to earn big from someone nothing left. Can we trust them
@chucko12
Жыл бұрын
I just lost 12% of my 401k because it was in four different bond funds. If I do nothing else in this life I want to warn people to never be in bond funds they have absolutely nothing to do with the characteristics of bonds. They are tied to Hocus pocus where they just give you 10 of thousands less than what you put in. I certainly think bond funds should be illegal because the everyday people investing in them are certainly going to be under the impression that they will get their principal back unless there's some kind of once-in-a-blue-moon default. But no they are tied to Hocus pocus and you will lose your money. I want to warn people. Individual bonds 👍👍 , bond FUNDS 👎👎
@DavidMcKnight
Жыл бұрын
Yes, rising interest rates Can decimate a bond portfolio. This is why I make the case for annuities and cash value life insurance as a bond replacement.
@jimbutler9076
Жыл бұрын
Can Dave give us the name of his bankrupts lawyer
@davidmcknight8201
Жыл бұрын
$150 M may just do him in...
@felicisimomanaois6962
Жыл бұрын
When you withdraw your money you pay taxes, when you file your income tax still you pay higher tax. What’s left is 50% . It’s worst than you think
@DavidMcKnight
Жыл бұрын
You have to pay an additional tax for filing?
@paulturner4419
Жыл бұрын
Omg what a bunch of half truths. You are completely ignoring opportunity cost. And you’re assuming contributions will be the tax pre tax or post tax.
@DavidMcKnight
Жыл бұрын
Is it a half truth that Dave Ramsey no longer recommends 401(k)s and exclusively recommends Roth 401(k)s because taxes in the future are likely to be much higher than they are today. That was the point of this video.
@paulturner4419
Жыл бұрын
@@DavidMcKnight who cares what he thinks?
@DavidMcKnight
Жыл бұрын
@@paulturner4419 apparently about 30 million Americans.
@nhanha7433
Жыл бұрын
For workers minimum tax. For those earn big must report income because our industries oversea. Need to pay at least 40% tax. Or they joint the Bric
@abdiasbatista8770
Жыл бұрын
I just cashed mine last week , gonna invest elsewhere
@DavidMcKnight
Жыл бұрын
Hopefully you didn’t needlessly incur a big surrender charge.
@abdiasbatista8770
Жыл бұрын
@@DavidMcKnight I did unfortunately, but like you said, better now than in retirement.
@soniarosen4118
Жыл бұрын
If you cash all in is no need, just roll it over to another retirement account
@dmark2639
Жыл бұрын
Yes, you have to pay income tax on 401k withdrawals in retirement. However, consider that you will automatically be in a lower income tax bracket in retirement than when you were working That is still a benefit, even if tax rates change over time. And yes, ROTH is better still, as no tax is due upon withdrawal. However, there are limits to how much you can stuff into a ROTH each year, thus you should max that out and put the excess into 401k and other taxable investments too.
@DavidMcKnight
Жыл бұрын
Yes, fully fund the Roth and the Roth 401(k) to the extent you can.
@michaelpence468
Жыл бұрын
Dave has NO CLUE!! He is not a macro economic advisor. He has no way of verifying or validating this advice.
@DavidMcKnight
Жыл бұрын
Thanks for your comment.
@nhanha7433
Жыл бұрын
Without government most of the companies going out of businesses how we are floating.
@nhanha7433
Жыл бұрын
Beside we need support the federal to ensure the businessmen earn big no betray
@imjamescameron
9 ай бұрын
Still twisting words dude, not cool.
@DavidMcKnight
9 ай бұрын
If the Roth 401(k) and Traditional 401(k) were the same type of account I might see what you’re saying.
@nhanha7433
Жыл бұрын
If we deal with crook. We suppose to sale everything we have away or what
@markmyjak7739
Жыл бұрын
Yes, you are going to pay taxes on it. Remember, you deferred those taxes all those years.
@johngill2853
Жыл бұрын
What is the median retirement savings in the US? Most people pay very little tax in retirement. Don't think general statements and actually do the math to what combination is best for you.
@markmyjak7739
Жыл бұрын
@johngill2853 I don't know. I'm building my own investment portfolio. I'm building it, so taking SS is an option, not a necessity. And I won't do a 401(k).
@soniarosen4118
Жыл бұрын
It's true, I pay small amount of taxes in retirement and have more money in high end stocks because of the differ taxes plus I get money back from paying health insurance, real estate taxes, and everything else that is taxable plus I can sell and buy stocks all on my own and do not paid no one to watch my portfolio, so I 'm in control of my money
@johngill2853
Жыл бұрын
@@markmyjak7739 I love the 401k, it gets me out of the 22% tax bracket. I can't stand to give the government anything more than I have to
@anthonydooley3616
Жыл бұрын
This video is completely misleading. I listen to Dave Ramsey every day. Dave recommends investing 15% into retirement. 1st, use the 401(k) up to the match, after that invest in a Roth IRA. If you are still not up to 15% at that point, go back to the 401(k) until you reach 15% of your income. This video is purposely trying to discredit Dave, who is much wealthier than this guy and has helped 10s of millions of people get out of debt and build wealth. This is click bait only. Dave is right and this guy is a liar. Dave recommends term life insurance because it's cheaper. The goal is to become self-insured so that you don't need life insurance, but Dave still has a term policy even though he is worth hundreds of millions. Long-term care insurance is recommended when you turn 60, not before. You should become a member of Dave Ramsey's group, since he is much more successful than you.
@DavidMcKnight
Жыл бұрын
I think you missed the point of the video. The point is that he’s begun recommending the Roth 401(k) not the traditional 401(k). Your answer leads me to believe you didn’t actually watch it.
@nhanha7433
Жыл бұрын
I do not know we need to feed the representative or bankruptcy caused by businesses man. We will empty
@micon9460
Жыл бұрын
401k is terrible!!! You can make 50x more if you just buy real estate with money you would put in 401k. It's sort of passive income and you just sell the houses when you retire and you'll be a millionaire if you have 4 homes....lot easier than majority of poor Americans think
@DavidMcKnight
Жыл бұрын
Sounds easy! But not all Americans want to manage real estate or have the stomach for it.
@jeanhuelsman1766
Жыл бұрын
But you have to pay property taxes.
@DavidMcKnight
Жыл бұрын
@@jeanhuelsman1766 yep some taxes never go away.
@johngill2853
Жыл бұрын
Really?
@micon9460
Жыл бұрын
@@DavidMcKnight true
@nhanha7433
Жыл бұрын
Tax stuff as we have industries as home we need safety we must pay most stuff and security. Now our industries oversea. We broke. We handicap. Tax
@bbkyjohnson
9 ай бұрын
In my opinion if you don’t think they will get around to taxing Roth accounts at some point I think you are probably mistaken.
@DavidMcKnight
9 ай бұрын
Roths only represent 5% of all accounts. Why not just raise taxes on the accounts that haven’t been taxed yet like 401k’s and IRAs? That’s where the real money is.
@bbkyjohnson
9 ай бұрын
Because they won’t like the fact you are making money without paying taxes. They’ll raise taxes on everything else as well.
@nhanha7433
Жыл бұрын
That the reason we can not use the Bric monies
@nhanha7433
Жыл бұрын
Are these companies still play the important roles
@shdmd2118
Жыл бұрын
I disagree. Yes there is a place for a tax free Roth account. However, don’t forget , if investors tax defer, and not pay advanced taxes, they will be able to invest more money longer. So say a person invests 100k over 30 years , compared to 70k invested , over 30 years, that extra 30 k invested income may exceed taxes you eventually have to pay
@DavidMcKnight
Жыл бұрын
All comes down to your tax rate in retirement. If your tax rate will be lower than it is now then your math makes sense.
@chicchacchula
Жыл бұрын
I max out my 401k and it’s now going 100% to Roth. I make too much to do a Roth IRA. So I use the Roth 401k to build my tax free bucket for retirement. My company matches and of course that money goes into the tax deferred bucket. So I am building both. Yes, I pay more taxes now by contributing to the Roth 401k instead of pre-tax. It’s about $8-9k in extra taxes per year that I’m paying now. But, I’m just choosing to get the taxes paid now out of my income….while I am working and making an income that covers all my expenses. Those taxes are just another current expense. I look at it like this….if the government would let me put more than $30k into the 401k, would I do it? Yes. Well paying the taxes now by doing Roth 401k is me basically doing that. The extra $8-9k now is like me putting more money away towards my retirement. But…it is painful on April 15th every year when I see how much higher my current taxes were….but retirement is always about long term planning. Not short term.
@DavidMcKnight
Жыл бұрын
I love it. That’s a great perspective.
@GoaWay4Sanity
Жыл бұрын
*401k is a tax-code for the poor!* *go to school, get a job and get a 401k…* *not meeeee!*
@DavidMcKnight
Жыл бұрын
I’d at least get the free money if I were you.
@GoaWay4Sanity
Жыл бұрын
@@DavidMcKnight *I get free money from Crypto currency and staking* *furthermore, crypto, is not taxed like a 401k* *401k’s are still apart of the government matrix, they determine how much you get, it’s not really your money and they are in FULL control of it* *never been a fan of a 401k or working a job all my life*
@nhanha7433
Жыл бұрын
Bankruptcy and richest just keep borrow monies. Small government
@peterbland7227
Жыл бұрын
Run from these people, especially if you have a plan where your employer matches s portion of your 401k investment. Free money. Also, very few people watching this have to worry about their tax bracket changing. If anything, your tax bracket will go down when you retire. The only folks that need to be concerned are the top 5% of investors who may see their capital gains tax rate go up.
@DavidMcKnight
Жыл бұрын
Dave Ramsey is actually advocating that you put money into your Roth 401(k) instead of the traditional 401(k). Are you suggesting he’s off base?
@johngill2853
Жыл бұрын
@@DavidMcKnightdepends 100% on each individual persons circumstances
@DavidMcKnight
Жыл бұрын
@@johngill2853 agreed.
@ludwigmises
Жыл бұрын
Company 401k match applies to both Roth and traditional. Dave’s advice to do the Roth doesn’t mean forgoing the company match, the free money, which seems to be what your comment implied.
@FreakyLynx
9 ай бұрын
This past year I’ve been splitting my 401k contributions between traditional and Roth, but it’s still heavily split towards traditional. The tax savings I use for a variety of spending - including investments in my brokerage account. Roth is not a magic salvation, if you have a high tax rate now you might as well reduce your taxable income by going traditional. Yes tax rates tend to go up but you have some control on how much you tax out in retirement. Not everyone has the same requirements and one strategy doesn’t fit all.
@mosoulreal7806
Жыл бұрын
Yeah stop before it crash again 😂
@DavidMcKnight
Жыл бұрын
Crashes are ok so long as you have a long investment horizon.
@nhanha7433
Жыл бұрын
The company president and the CEO they are going out of businesses so easy and richest in mutual fund and companies stock
@churchofsagan647
Жыл бұрын
Cool misleading title, bro.
@DavidMcKnight
Жыл бұрын
Thanks for your comment. It feels accurate to me.
@churchofsagan647
Жыл бұрын
@@DavidMcKnight Your title claims Dave R says we should STOP investing in a 401k. But, like your video kinda clears up, Dave says always go for the 401k match first, then whatever has a Roth, which could still be the 401k. But hey, I get that the engaging title is kinda the nature of the beast on youtube.
@DavidMcKnight
Жыл бұрын
@@churchofsagan647 thanks for responding. The distinction is that Dave is saying to put money into the Roth 401(k) instead of the traditional 401(k).
@churchofsagan647
Жыл бұрын
@@DavidMcKnight *Larry David voice* yeah, but you didn't say traditional in the title.
@DavidMcKnight
Жыл бұрын
@@churchofsagan647 usually when people say 401(k) in my experience, they mean the traditional, but I hear you.
@patheticprepper4496
Жыл бұрын
I was 10 years ahead of and always smarter then Ramsey, by the time he comes around to liking gold... as his followers will be busted
@DavidMcKnight
Жыл бұрын
What percentage of one’s portfolio should be in gold?
@nhanha7433
Жыл бұрын
Because they alway talk about less fund for government while they put our industries oversea. And earn big
@freedomworks3976
Жыл бұрын
Insurance salesman
@DavidMcKnight
Жыл бұрын
Your comment makes you look like you didn’t watch the video in which I discuss almost exclusively the benefits of the Roth 401(k). Come on people, dig deeper!
@lynnscott8286
Жыл бұрын
Dave Ramsey has lost his reputation
@davidmcknight8201
Жыл бұрын
the lawsuit didn't help.
@RobertChristopher-df5sh
11 ай бұрын
401k is a decent investment but not realy a good retirement !!!
@DavidMcKnight
11 ай бұрын
What would work better?
@NewToSea-Doo
Жыл бұрын
😂
@jeremymccage9213
Жыл бұрын
I dumped mine
@DavidMcKnight
Жыл бұрын
How about the Roth 401(k)?
@jeremymccage9213
Жыл бұрын
@@DavidMcKnight none there either. I make interest small but loose nothing ever. U.s. savings bonds. 30 years.
@DavidMcKnight
Жыл бұрын
@@jeremymccage9213thanks for your comment Jeremy.
@jeremymccage9213
Жыл бұрын
@@DavidMcKnight yw
@strokerace4765
Жыл бұрын
It’s simple, Ramsey is a multimillionaire Republican celebrity, he would love to crash the stock market
@DavidMcKnight
Жыл бұрын
How would that benefit him? Help me connect the dots.
@brianmullen2383
Жыл бұрын
Dave Ramsey, has been in this "Game" for decades and has always been promoting "Securities", Mutual Funds such as 401K's, IRA's, etc...The Tax impact on 401K's, 403B's, non-Roth IRA's, have always had this negative tax consequence, so why in 2023, he is just now preaching the truth? I'm sure he still hates non-term Life and Annuities, but there are legal tax advantages in these products, if done correctly. Taxes are only going in one direction, we are 34 Trillion in Debt, taxes will not be lower when you are older!
@DavidMcKnight
Жыл бұрын
Taxes aren’t going lower, that’s for sure.
@np5246
Жыл бұрын
401(k)s and IRAs are not mutual funds. They're tax-advantaged retirement accounts.
@allenwarner6310
Жыл бұрын
Your tax on that money when you put it in there and then they tax you again. At least in Russia and China they get 50% this country your taxes are 60% at least
@DavidMcKnight
Жыл бұрын
Not with a Roth IRA or Roth 401(k).
@Riggsnic_co
8 ай бұрын
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.
@TheJackCain-84
8 ай бұрын
For retirees and those close to retirement, I believe it's particularly challenging. All those years of labor only to lose it all to a problem you weren't responsible for, my regrets to everyone retiring during this time.
@martingiavarini
8 ай бұрын
I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
@bob.weaver72
8 ай бұрын
After the pandemic, things became extremely difficult, which is precisely when I sought a consultant's counsel. I've been investing on my own for nearly 3 years and have built up a stagnant reserve of $280K to $570K in just over 24 months.
@bob.weaver72
8 ай бұрын
I agree, that's the more reason I prefer my day to day invt decisions being guided by a init-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a init-coach for over 2years+ and I've netted over 2.8million.
@TheJackCain-84
8 ай бұрын
I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?
@MaryOlson7
9 ай бұрын
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@MaryOlson7
9 ай бұрын
@rachealhubert74 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. Alice Marie Coraggio, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@MaryOlson7
9 ай бұрын
@rachealhubert74 Alice Marie Coraggio
@MaryOlson7
9 ай бұрын
Lookup with her name on the webpage
@Patricia-Margaret
9 ай бұрын
@rachealhubert74 Alice Marie Coraggio her trading strategies is working for me for more than a year now and I’m making good profit from the stock market and she's 100% honest, reputable and trustworthy
@burnerloco4138
Жыл бұрын
I lost close to a half million dollars in 08’. I hung in there and keep going with the 401k and actually got it all back and was getting anywhere from 10-25 thousand every few months until 2020 then Bidennomics happened and it has been a roller coaster since.
@DavidMcKnight
Жыл бұрын
That’s pretty much the stock market for you. Glad you hung in there.
@Simon-vo7gi
7 ай бұрын
Please explain Bidennomics.
@t185bear
2 ай бұрын
I stopped looking at my 401k when Lehman Brothers shut down (9/2008). I got laid off six months later, and continued to not look at my 401k until late in the summer of 2009. At that point, I was down about 10% from the last time I looked (9/08-8/09). But the history section of Vanguard showed me how things had been going, and I had been down 40% the same week I'd been laid off. So I'm glad I didn't look. Imagine losing your job and finding out your retirement account had lost half its value at the same time! Anyway, I stopped contributing to my 401k (since I wasn't working there anymore) and despite not putting anything into it for 15 years, it's more than tripled in value. And my subsequent IRAs & 401k's are worth about the same, because I kept contributing to my various retirement accounts over the last 15 years. I'm up about 35% over the last year, so if that's Bidenomics, I'm all for it!.
@oneof001
Жыл бұрын
When you have a 6% match it's hard to give up free money.
@DavidMcKnight
Жыл бұрын
You can still do a Roth 401k and get the match. This is something I totally recommend.
@np5246
Жыл бұрын
If you don't have a Roth 401(k), but want to invest 15% of your income (Baby Step 4), then what you could do is contribute just enough to get the employer match, then the remainder into a Roth IRA (without going over the limit of course). So if you have to contribute 6% of your income to get the employer match, but have no Roth 401(k) available, you could consider contributing 6% into the traditional 401(k) and 9% into a Roth IRA.
@DavidMcKnight
Жыл бұрын
@@np5246 it’s ok to have some money in the 401k. You can offset that income in retirement with your standard deduction.
@miked8730
Жыл бұрын
If you feel this strong about Dave Ramsey's ways you should go on his show for a debate or have him on your show. I actually owe him alot as I owe no one and have a good grasp on my money situation.
@DavidMcKnight
Жыл бұрын
@@miked8730 I’d love to.
@christiansmith-of7dt
10 ай бұрын
I dumped all my 401ks because all of them just kept losing money no matter what i invested in
@DrSanto91
23 күн бұрын
My coworkers keep on harping on me doing 10 percent. He'll I don't like Mines being at 3%. I simply told them yes it's my money but I won't be able to really touch it. He'll and I be telling them reason I can't 10 percent I got bills to pay.
@Andrew-it7fb
11 күн бұрын
Correction, because you chose bad investments.
@christiansmith-of7dt
11 күн бұрын
@@Andrew-it7fb thats not true , I made so much money off my other investments it would make you sick if you found out
@yellowtrain3161
Жыл бұрын
Lol, Ramsey has always recommended ROTH over traditional. I don’t ever recall a time when it was any different.
@DavidMcKnight
Жыл бұрын
Not true.
@chief5981
Жыл бұрын
@@DavidMcKnight what’s not true about that?
@DavidMcKnight
Жыл бұрын
@@chief5981 he has recently opened up an entire section on his website addressing tax-deferred vs tax-free. This is a recent development.
@baldeagle242
Жыл бұрын
Dave has been around longer than the Roth, so that can't be true.
@chief5981
Жыл бұрын
The only time I’ve heard him say to go tax deferred is when it’s time sensitive.. like for older people.. grow as much as you can now, pay taxes on the backside
@glascottsfinancialservices3054
Жыл бұрын
Great advice about utilizing the standard deduction as opposed to not to
@davidmcknight8201
Жыл бұрын
Yes, very important to include discussion about utilizing the standard deduction.
@josephhuman7390
Жыл бұрын
Ok sir I have never heard of you or seen your videos, but I must say I am impressed. I am a Dave Ramsey guy I actually meet with one of his smart pro investers she suggested the Roth and a money market account ( I did both) my company is now offering a 401k starting in June, she suggested taking it only up to the match, but back to you sir , I'll start watching your channel maybe I can learn a little something. Good work on the content. I keep watching.
@DavidMcKnight
Жыл бұрын
Thanks Joseph!
@anthonydooley3616
Жыл бұрын
This guy is lying. Why doesn't he show the video of Dave saying these things? Because Dave didn't say them.
@billyjefferson3594
Жыл бұрын
On the money dave… but actually the number i have seen is that NINETY ONE percent of 65 yo couples will have at least one spouse need LTC before death. 64% for men and 76% for women.
@DavidMcKnight
Жыл бұрын
Would love a source!
@tommymodec
Жыл бұрын
I am normally not one to defend Dave Ramsey, however, there are two points you make that I disagree with. First, I am fairly certain Dave has encouraged the Roth 401(k) and IRA for years. His line of thought is to contribute to the match no matter what and choose Roth if offered. Second, you also have to consider Dave's primary audience when you mention PLI. They are mostly middle-class folk paying off debt, building an emergency fund, and starting to save for retirement. Should these people be putting a couple hundred $ per month into PLI? Probably not. Moreover, the majority of PLI policies sold today are not properly structured or funded, which could lead to a lot of heartaches later in life if you are relying on it as a retirement income stream.
@DavidMcKnight
Жыл бұрын
I’m not sure when he started to exclusively recommend Roth, but the article I saw about it was recent. And you’re right, a lot of his listeners shouldn’t be doing PLI but his advice is rather categorical. Anyone who has a PLI should surrender it immediately. He puts no qualifiers on it.
@tommymodec
Жыл бұрын
@@DavidMcKnight He has encouraged Roth for the 5+ years I have been exposed to his content. Do you listen to him, or just read the website? I don't like Dave's categorical responses on anything, especially with totally cashing out a policy with few details. That said, we also see the majority of IUL agents categorically slamming traditional retirement accounts, as well. I am against those statements in all cases.
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