Becoming a Millionaire: Roth IRA vs 401K (What makes the MOST PROFIT)

The problem with 401k is what if the government decides to significantly raise capital gains taxes in the future? There's already been a lot of talk about increasing taxes on investments and this could potentially undermine the 401k after tax value. RothIRA is guaranteed tax free, acting as a hedge against tax increases

Max 401K $22.5K
Max Roth IRA $$6,500
Total = $29K
Goal = $290K income for 10% Retirement portfolio

Are you trying to build your income and prepare for retirement? It’s important to choose stocks that are expected to hold up in inflationary environments. To combat the negative effect of inflation, it’s a good idea to diversify your portfolio across different asset classes, such as stocks, bonds, and real estate. I've been using the services of a verifiable financial advisor Robin Brezik . I started with $140k, with her assistance I've have made more than $700k. You too can do same.

Actually it's not that difficult of a decision. If you are an active trader (and will continue to be active) the Roth is undoubtedly superior. Starting early enough some securities can appreciate 100, 200% or more and that profit is then tax free and can be reinvested.

Retirement timing and choice determines a lot in one's life. Investing before retirement comes, is another. My parents spent years working full time jobs, but my mom was investing through a financial manager while my dad did his by himself. My mom retired with over $6.5 million, whereas my dad retired with less than $500k. It is your choice on how you invest. As for me, I invest with my financial manager Robin Brezik , and I have never regretted it, as my portfolio keeps increasing.

I hate the irs

I find myself at a crossroads, uncertain whether to liquidate my $150,000 stock portfolio. I'm seeking advice on the best strategy to capitalize on this current market.

Taking early notes from Warren as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.

What about having both?

This is a somewhat misleading comparison as it suggests to have a roth retirement account you must have an IRA and for pretax you must have a 401(k). Many 401(k) plans offer a roth contribution option while there are also traditional IRAs. A better comparison would have been IRA vs employer sponsored retirement plans (not all are 401(k)) or roth vs traditional contributions.

Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.

Great video! The 401k is good for some persons, because retirement choice determines a lot in ones life. My parents spent same number of years working a full time job, but my mom was investing through a financial manager while my dad through the 401k. My mom retired with over $6.5 million, whereas my dad retired with little close to $3 million. It is your choice on what to invest. As for me I invest with my financial manager Robin Brezik , and I have never regretted it, as my portfolios keep increasing.

With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.

Why are IRA contribution limits kept so LOW ($6K/$7K)? They should be made the SAME as 401k limits so that folks without a 401K can be on equal footing! Somehow this video has helped shed light on some things but I'm aiming to create a portfolio worth not less than $2m before I turn 60.

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. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.

A Financial Planner told me Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. How can take advantage of compound interest and potentially grow your retirement savings to about $3M over time?

Taxes - earning less and owing more

I feel sad that even though I am investing, I don't have the brain power to dig through how each company is doing, is this a good time to buy stocks or not, my reserve of $450K is laying waste to inflation and I don't know what to do at this point tbh, I need solid data on market trajectory

I've bought most of your stocks picks but I'm still unable to make profit. However, a few investors I read about were able to make profits of upto $50,000 monthly, so am I doing something erroneous? please i need some hints on how to make enormous profit

The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations,I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??

if im making Gross $110-120k a year would I benefit more if I increase my 401k to 15%? I am currently at 10%.

My employer dont match our 401k

Hi
Can I have both ROTH IRA and 401K at the same time?

How can I know what tax bracket I'm on

With changes in the economy leading to instability in the stock market, some individuals may face a decrease in their investments in an effort to benefit from the current market conditions, I am considering liquidating my $725k portfolio consisting of bonds and stocks. Someone else in the same situation? Please tell me in the comments!..

One of the most helpful video. Props!

Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I'm 27, and earn nothing less $150k per year, but nothing to show for it yet.

I contribute more to my Roth IRA now since I have more write offs now. Kids etc. and will increase my 401k when they move out lol

Nah we drive trucks. That retirement money will go quick.

Can I contribute money into both of these retirement plans ?

you explained that really well

so could i invest in a roth ira and 401k at the same time? i am young and in a low tax bracket but also my employer matches 401k. so should i invest mostly into a roth then also invest in a 401k so i take advantage of the employer matching?

Flawed logic... If you're making "a ton of money," you should max out both options and more. 👍

Year-over-year inflation stood at 6.5% in December 2022—the lowest that figure has been in more than a year. Inflation was in line with what economists expected and gave many of them a reason to believe that the peak of inflation may be behind us. I have approximately $150k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?

<Don't get me wrong, I know the economy is in shambles and in order to break even and make profit, we have to ride it out until stock recovery, but how are some folks in the same stock market as me still able to pull off substantial profits of as much as 650K within months, what am I doing wrong?>

The same high-yield potential exists in both bullish and bearish situations what matters is knowing where to look. I have been diversifying into the stock sector and trading aggressive through an advisor. Away from all the distractions around I still make profits from my investments, made $700,000 last year.

higher tax brackets later on the 401k withdrawal

Thank you for answering the questions I had in minutes 😘😘

Max is now $6500

You forgotten about Roth 401k

To me as I read between the lines here. It’s best as a lower tax bracket to invest in 401k not Roth. It’s the opposite. With Roth, you have your money you already paid taxes on, second in the Roth account still covers taxes and third when it’s time to withdrawal the tax season will still charge for the annual income paid out. That’s way to much taxes to be paid out for the mid-class. I see where this is going and how it set mid-class to stay that way. 401k is better and don’t pay more. I’m like wow, now I know 401k is better than Roth.

Good review, loved your analysis of potential future tax brackets which may be higher thereby increasing tax burden which I hadn’t thought of? Great video, thanks!

Can we open multiple roth ira’s 👀

What if I am not always employed? I lose my 401k? Military spouse 🙋🏽‍♀️

Random internet guy
- “If you want to put in more than $6,000 into your IRA, well you can’t”

Wall Street Chad
- “Hold my beer”

It’s called a Back door IRA…

What if you have both ?

What company you suggest to open Roth IRA???

As one who made the mistake and maxed out my 401K, 403B, and deductible IRAs from 1978 to 2018, I am now paying the taxes on my RMDs at way higher rates than I had, before I began my SS at age 70.
I did begin Roth Contributions and Conversions beginning in 1998, but not as much as I should have when my tax rates were lower.
In the end, tax rates will continue to increase, so for those under age 40, maxing out Roth 401Ks and IRAs is usually the best plan.

I will forever be indebted to you Mrs Anna you’ve changed my whole life I’ll continue to preach about your name for the world to hear you’ve saved me from a huge financial debt with just little investment thanks so much Mrs. Anna