401k matching. FYI verify when company contributions are made. My company pay a small amount each pay period then another portion in a 1 time distribution at the beginning of the year. Interpretation- they take up to 6% out of my pay each pay period. They match 3% each pay period. Then, once a year distribute the other 3% into the account. If you don't work for.the company the entire calendar year, then the additional company 3% is not distributed. [Opportunity cost for that 3% & loss of control of the additional 3% out of each paycheck] Something to think about.
If you have surplus capital then you can invest more but it's important that you meet the match, after that you can invest in a ROTH, IRA, HSA or continue to use your 401k. I'd say meet your match and then use a ROTH as taxes will likely be higher in the future, after that use a HSA and then IRA, if you are more prone to illness or occupational hazard then HSA might take priority over your ROTH
@@BrianFeroldiYT thanks! For anyone following this comment, the article states that the tax savings of a 401k end up being .73% in annualized return. That is the benefit to have your money locked up until 59 1/2 years old. And that number does not take into account the (typically higher) fees in a 401k that would erode into the .73%. Also the analysis assumes the US tax rate does not increase. Is that .73 or less enough of a benefit to hamper your liquidity?
HSA is good but wont the health care costs increase if we have to visit Dr multiple times in a year? So saving some money in HSA account and paying a lot for Dr visits!!!??
@@BrianFeroldiYT yes. we can claim expenses later year too. but wont we end up paying more for copay or Dr visits etc now?. Ofcourse its a win if we dont have to go to hospital visits NOW which will help to grow the money.
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2024 IRA contribution limit is 7000 not 6500.
Good catch. You are correct!
So what do I do with a Provisional IRA? 8:42
Good to see this 👏🏾👏🏾👏🏾
Thanks for watching!
Love this
Cheers!
Top of the morning coach
Morning!
401k matching. FYI verify when company contributions are made. My company pay a small amount each pay period then another portion in a 1 time distribution at the beginning of the year.
Interpretation- they take up to 6% out of my pay each pay period. They match 3% each pay period. Then, once a year distribute the other 3% into the account. If you don't work for.the company the entire calendar year, then the additional company 3% is not distributed. [Opportunity cost for that 3% & loss of control of the additional 3% out of each paycheck]
Something to think about.
Good point
Are you recommending 401k only up to the match and no more?
If you have surplus capital then you can invest more but it's important that you meet the match, after that you can invest in a ROTH, IRA, HSA or continue to use your 401k. I'd say meet your match and then use a ROTH as taxes will likely be higher in the future, after that use a HSA and then IRA, if you are more prone to illness or occupational hazard then HSA might take priority over your ROTH
ofdollarsanddata.com/should-i-max-out-my-401k/amp/
@@BrianFeroldiYT thanks!
For anyone following this comment, the article states that the tax savings of a 401k end up being .73% in annualized return. That is the benefit to have your money locked up until 59 1/2 years old. And that number does not take into account the (typically higher) fees in a 401k that would erode into the .73%. Also the analysis assumes the US tax rate does not increase. Is that .73 or less enough of a benefit to hamper your liquidity?
Surprised no NQ Brokerage. I would put that ahead of some of the ones listed
I don’t even know where that is
HSA is good but wont the health care costs increase if we have to visit Dr multiple times in a year? So saving some money in HSA account and paying a lot for Dr visits!!!??
You don’t have to use it in the same year you contribute
@@BrianFeroldiYT yes. we can claim expenses later year too.
but wont we end up paying more for copay or Dr visits etc now?.
Ofcourse its a win if we dont have to go to hospital visits NOW which will help to grow the money.
let's invest in JAPAN.
Because….?
@ Undervalued.
Especially small cap stocks.