The Roth IRA is a great investment account, but is a traditional pre-tax 401k the better choice? I'll run through the numbers and show which account gives you the most spending power for your retirement. The results may surprise you! Be the first to sign up for my soon to launch newsletter! Follow me on Twitter: @jayfairbrother 💰 INVEST WHERE I INVEST - M1 FINANCE💰 : Manage Your Budget and Investments with Empower: HELP SUPPORT THE CHANNEL AND GET PERKS: YouTube Membership - Patreon - OTHER VIDEOS TO WATCH: ✅ The Optimal Order for Investing Your Money - ✅ The 4% Rule and Beyond - ✅ Should I Contribute to a 401k With No Match? My Favorite Personal Finance Books: - Connect with Me On My Socials - Instagram: Facebook: Twitter: /// HOW I MAKE MY VIDEOS \ My ENTIRE Camera & Recording Equipment: Music In My Videos From Epidemic Sound: - For business or one on one consulting inquiries, please email me at jayfairbrotherofficial@gmail.com *Some of the links and other products that appear on this video are from companies which I will earn an affiliate commission or referral bonus. I am part of an affiliate network and receive compensation for sending traffic to partner sites at no cost to you...However this DOES NOT impact my opinions and comparisons. Thanks for your support! Some of the offers mentioned and information conveyed in this video may change after the posting date. The content in this video is accurate as of the posting date. None of the content in this or any of my videos is meant to be construed as investment advice. It is for entertainment purposes only. Please research and carefully consider the risks of any potential investment before taking action. Only YOU can decide the best actions for your money! #rothira #401k #traditionalvsroth...(read more)
LEARN MORE ABOUT: IRA Accounts
INVESTING IN A GOLD IRA: Gold IRA Account
INVESTING IN A SILVER IRA: Silver IRA Account
REVEALED: Best Gold Backed IRA
As financial planning for retirement becomes more essential, many people have to choose between investing in a Roth IRA or a 401k account. Both options can help you save for retirement, but there are significant differences between the two that you need to consider before choosing one. In this article, we’ll discuss what Roth IRA and 401k are, and how you can retire with more using them. What is a Roth IRA? A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. It means that you don't pay taxes on the money you earn in the account, and when you withdraw it, you pay zero tax on the earnings. Roth IRA contributions are made with after-tax dollars. There are income criteria that could limit the contributions to the account. What is a 401k? A 401k is an employer-sponsored retirement plan that offers pre-tax contributions. It means that you contribute to the account with money you haven't paid taxes on so that you can reduce your taxable income each year. However, when you withdraw the money in retirement, you will pay taxes on your earnings. Some employers offer a matching program where they contribute a portion of your contributions to the account. How to choose between Roth IRA and 401k? Your decision on whether to choose a Roth IRA or a 401k will depend on your financial situation, including the required contribution, expected retirement age and income, and tax bracket. Here’s some advice on how to decide between the two: - If you expect to have a higher tax bracket in retirement than you have now, it may be advantageous to contribute to a Roth IRA. By paying taxes now, you avoid paying them in the future when tax rates may be higher. - On the other hand, if you expect to have a lower tax bracket in retirement or have a higher tax bracket now, it may make sense to contribute to a 401k plan. - If your employer offers a matching contribution to your 401k, take advantage of it to maximize your savings potential. - If you're self-employed, you can open a Solo 401k or a SEP IRA, both of which work similarly to a 401k but offer more flexibility. How to retire with more using Roth IRA and 401k? One of the best ways to retire with more is to contribute as much as you can each year to both a Roth IRA and a 401k account. For 2021, you can contribute up to $19,500 to a 401k and up to $6,000 to an IRA account. Another strategic way to retire with more is to diversify your portfolio by investing in mutual funds, exchange-traded funds (ETFs), and individual stocks. By doing so, you can increase your earning potential and reduce your overall risk. It's also vital to rebalance your portfolio regularly to ensure it aligns with your financial goals and adjust as necessary. As you get closer to retirement, it may be beneficial to reduce the risk in your portfolio by shifting to less risky assets such as bonds. Final thoughts Deciding between a Roth IRA and a 401k is a personal choice that depends on your financial goals and tax bracket. However, there's no reason to limit yourself to just one, and contributing to both could help you achieve your retirement dreams faster. Remember, the more you invest, the more you'll have when you retire, so start as early as possible, stick to your savings plan, and invest wisely. https://inflationprotection.org/maximizing-retirement-savings-comparing-roth-ira-and-401k-plans/?feed_id=81768&_unique_id=64211e5ee486a #Inflation #Retirement #GoldIRA #Wealth #Investing #401ktaxsavings #401kvsrothira #BestInvestingStrategy #betterthanarothira #Bogleheads #investingstrategies #isrothbetterthan401k #jayfairbrother #retirementincome #RothIRA #rothiravs401kvstraditional #rothiravstraditionalira #taxablevsroth #traditionalvsroth #VanguardIRA #401ktaxsavings #401kvsrothira #BestInvestingStrategy #betterthanarothira #Bogleheads #investingstrategies #isrothbetterthan401k #jayfairbrother #retirementincome #RothIRA #rothiravs401kvstraditional #rothiravstraditionalira #taxablevsroth #traditionalvsroth
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