The Optimal Order For Investing Your Money (2024)
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- เผยแพร่เมื่อ 3 มิ.ย. 2024
- Investing your money can be get really confusing. What should you invest in? Where should you invest in first? Should you pay off your debt first? Max out your 401k? Today, I’ll share the optimal order to invest your money and what I personally invest in.
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00:00 Start Here
00:12 Step 1: Your Cushion Fund
02:17 Step 2: Match The Match
04:30 Step 3: Say Bye To High
06:11 Step 4: Rare Triple Tax Break
08:36 Step 5: Acceleration
10:04 Step 5.5: Beyond The Match
10:18 Step 6.5: The Regular One
11:36 Step 7.5: The 2 Priorities
12:37 What should YOU invest in?
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All opinions expressed by Vincent Chan are solely Vincent Chan’s opinions. You should not treat any opinion expressed by Vincent Chan as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Vincent Chan’s opinions are based upon information he considers reliable, but does not warrant its completeness or accuracy, and it should not be relied upon as such. Vincent Chan is not under any obligation to update or correct any information provided. Vincent Chan’s statements and opinions are subject to change without notice.
Past performance is not indicative of future results. Vincent Chan does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned. Before acting on information, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
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** Please note: I misspoke and said the 401(k) contribution limit is $24,000 in 2024. It is actually $23,000, and those 50 and older can contribute an additional $7,500.
Great video bro!
What are your thoughts about CHILIZ (CHZ)? A lot of people are suggesting me to buy, they are talking about a price target of 2 dollar. With a lot of new partnerships, and the upcoming European Championship, sounds it realistic. Your thoughts?
This is the financial literacy teacher we need in school 💯🙌🏽
Hahah thank you!! What did you think of the video?
@@VincentChan I absolutely loved it. A clear path to financial freedom. Not just how to invest!! You are much appreciated 🙏🏾❤️🥳
Love a step by step guide. Absolutely great info.
I once read that if you invest and have other sources of income aside from dividends, you can live off dividends without selling. I have nearly $200,000 to invest. How can I broaden my investment portfolio?
That's why it is advisable that you still need to have something that will keep you going even if you're investing. You can just seek the help of a FA if you’re confused on strategies to diversify your portfolio.
I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I invested in value stocks and digital assets, i accrued over $80K in dividends last year
I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?
'Kristin Amber Landis' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I found you recently and I really enjoy your content, including this video. It’s clear you put an enormous amount of effort in producing these.
Just one clarification on your video in the Roth IRA segment. The income caps are MAGI (Modified Adjusted Gross Income). I think this is important to point out.
Keep up the quality content!
Such a great video. I especially appreciate the dollar cost averaging breakdown. I'm in year 2 of a 7 year journey toward financial independence and I am learning and implementing something new every day. Thank you!
Great video! One approach I've embraced is the 'priority pyramid' for investing: start with creating an emergency fund, then clear any high-interest debt, move onto tax-advantaged accounts like retirement savings, and finally, explore other investment opportunities. This pyramid strategy keeps us focused on building a strong financial base while aiming for growth. Thanks for sharing:)
Thank you Vinny.
Great summary. 👍
Really helpful👍
Great info!
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my money goals?
keep contributing! I'd suggest you consider financial advisory at this point, remember you are in for the long haul
No doubt, having the right advisory is invaluable, my portfolio is well-matched for every season of the market and just yield 100% from early last year. I and my advisor are working on a 7 figure ballpark goal, tho this could take another year.
@@maria_casey truly appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor... mind sharing info of this person guiding you please?
Can't divulge much, I delegate my excesses to someone of great expertise ''Katherine Nance Dietz'' preferably you can look her up, her qualifications speak for itself.
thankfully came across the consulting page of Katherine Nance Dietz just after inputting her full name on the web, i'm super impressed with her qualifications and it was easy to schedule a call session with her
Real helpful! Thank you 😎👍
Yayy!! I’m glad :) did you learn anything new?
@@VincentChan Yeah! I learned about the high yield account! When I get an entry level job in IT, I will save the money and transfer some to one the high yield account after open another bank account!
Good video. I've never heard credit card debit broken down like that.
Glad I was able to help :) did you learn anything new from it other than the debt
I like using a custom whole life insurance to provide me a hedge against potential market crashes.
Nice video
Thank you so much!!
We definitely need to learn about the future prospects on pineapple 🍕
😂
Where’d you get that shirt??
Smallest to largest debt payoff is better because the wins work emotionally and psychologically encouraging you to continue. Kind of like a video game. Weaker enemies to gain experience points so you have more power to beat the bosses.
Often a good starting point to make your first million is too start off with 999k and then from there hustle the next 1k
yeah!!!!
I love this video. I do something like this. My dad taught me this.
Great Dad!❤
Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last 4months of 2023
I don’t comfortably throw recommendations of her on the internet God she’s brilliant her skills are set exceptionally .Thank you Amelia Jason I’m sure there’re also good people who excel in their field ! .
Woah for real ? I'm so excited. Her strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
she's mostly on Telegrams, using the user name.
@AmeliaJason11 💯 that’s it
When sending her a message do ensure she’s VERIFIED” cause a lot of imposters out there., .
4-wk T-Bills consistently paying higher than 4% (closer to 5.2% lately). Only ties your money up for 4 weeks at a time. I would recommend this option vs. HYSAs.
Combination is best. Or just buy USFR or SGOV. Much easier
Distribution age restrictions is the main reason I don’t want to own an IRA.
I’d rather to put money on cash investment accounts and selling contracts or investing in stocks.
While Roth IRA is a good choices for stock investment, I am considering opening one.
The value of Mexico Piso increased over 20% over USD. Currency trade is also a good investment.
True, how to invest...is a concern for all of us. 🤔
What did you think of the video? :)
@@VincentChan I found your method to save money for a raining day useful.
You missed the biggest advantages of the HSA. If you pay for your health visits out of pocket, there is no time limit on when you can reimburse your health invoices. You let you HSA grow tax free and then when you're about to retire, you can pull those reimbursement out tax free!
Especially if you already made out like a bandit, I say just take everything and park it T bills until the ish hits the fan. Then reassess.
The only issues are that if one has a ROTH 401K and 457b; taxes will be taken out beforehand anyway. HSA can only be used for medical expenses.
There is a caveat to your last sentence. At 65 you may use your HSA funds for anything you want, but any of that money you spend on a non-qualified medical expense will be taxed as regular income.
@@slapshot1373 So basically like a 401k.
It’s “Roth” by the way. It’s named after senator William Roth
Distribution age restrictions is the main reason I don’t want to own an IRA.
I’d rather to put money on cash investment accounts and selling contracts or investing in stocks.
While Roth IRA is a good choices for stock investment, I am considering opening one.
The value of Mexico Piso increased over 20% over USD. Currency trade is also a good investment.
@@City-Hiker Piso? Or Peso?
Whew, clicked so fast 😅
Does the HSA count toward what you can contribute with an Roth IRA? Roth is $6500? so if I max that out, I can still max out the HSA?
HSA contributions are separate from Roth contribution limit. You can max out both accounts.
HSA’s are quadruple advantaged-you forgot that it’s also FICA exempt
Nice wallet :)
I don’t know much about the HSA even though I have one. But seems like I’m losing out by not contributing to it 😢
You said you max out your HSA every year. In order to have an HSA you need to be employed. I am guessing you are self employed. So how do you get an HSA? I am curious.
You said in your video (3:04) that the max for a 401k is 24k, I’m looking on the IRS website and it says 23k is the limit in 2024, where is the extra 1k coming from?
I think he is stating that for 2024. He also stated $7k for ROTH IRA; however, that does not go into effect until this year until April 15, 2025.
Ahh great catch! I misspoke and said the 401(k) contribution limit is $24,000 in 2024. It is actually $23,000, and those 50 and older can contribute an additional $7,500. I added this correction in the pinned comment.
@@wewhoareabouttodiesaluteyo9303In 2024, the IRS website states that the maximum contribution limit for people under the age of 50 is $23k. He commented below your comment that he made a mistake.
The $7k for 2024 is correct.
I thought HSA’s had to be used at the end of the year or you lost the money?
Please clarify
Nope that is FSA :)
@@VincentChan thank you 🙏🏾. Loved this video 💯✨
well FSA terms differ depending on who's offering it
And, if you work for a company that offers an FSA, (in most cases) you CANNOT open a HSA (even on your own). This is my situation... and why I have to skip the HSA step on every financial advisor's list of wealth building priority locations.
@@terr281 ya’ll need to bargain the heck out of that HR Mgr 😈😼
Pretty sure you need income to contribute to a Roth IRA. So slightly incorrect statement that you can be unemployed
This is correct. You have to have reportable income, on a tax return, from ... some... source to be able to put money into a Roth IRA.
@@terr281 And Roth IRA contributions can't be more than the reported income for any given tax year.
Sadly, the tracker link seems to be down.
it works for me, what errors are you running into?
@@VincentChan The link goes to the page where there is a title, short paragraph, a graphic and a bar with a square unhappy face. I assume that was the download button.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
Most people miss it but the secret to retiring comfortably is finding a way to make returns while your money works for you. My Dad, as i remember started saving for retirement quite late but I know he was making more than 10k returns from his investments monthly and it was completely passive.
401k match is 23k in 2024, not 24k
Thank you Vincent.
I am currently saving 3 months worth of expenses and gradually increasing to 6 months worth of expenses. A HYSA does offer a better return rather than letting it sit in a bank with minuscule interest rates. However, I will say that HYSA does require some procedures to withdraw from. In addition, interest earned on your HYSA it is subject to state income tax. Yet, I will still invest in HYSA. 👍
Right now, you can also "invest" in the money market "Cash" option in specific brokerage firms and get that ~5% returns on the cash just sitting there. I won't name firm names, but some... you cannot. Do your research.
Bitcoin
$5,000 to fix the front bumper? Hot damn did you drive a BMW or Mercedes or something? If I messed my bumper up I could just get one from a nearby scrapyard and install it myself.
He misses the highest return investment. Which I think should be what most people do right after saving up an emergency fund. Starting your own business. I started an office cleaning business for $200 at 19. I went from making $7.00/hour to $50. Working for someone else will almost always leave you with less than you could have if you just learned how to build businesses.
If you're paying $5k for someone to replace your bumper instead of doing it yourself then you're throwing money in the garbage and not managing your money wisely.
I hit the link and gave my info …. Spread sheet never came 🤔
please check your spam folders. tens of thousands of people already received the free spreadsheet but sometimes it does get stuck in spam.
@@VincentChan checked the spam folders a few times since submitting. Still nothing.
So if I have a few thousands dollars with no work history I can still contribute to a Roth IRA?
You or your spouse needs earned income (a job) to contribute to Roth IRA.
... 401k... 24k max... Anyone here able to take a 24k pay cut and still live? Anyone here paying enough in taxes to necessitates a 24k tax reduction? This is silly.
The tax reduction is good but not great I prefer Roth because taxes generally go up and I prefer growth tax free.
This is where, if possible, the moment you accept the job... you put in the maximum into the 401k to get the maximum company match. And, on the forms, go ahead and accept the broad index fund option. Later, go into your own account and learn, make changes, etc. as you learn more. But, the important thing here... try to live on the (assume 5% of your check for the maximum company match) 95% of your pre-tax check from the beginning. Get vested so you keep that company match (based on the company's plan) and, per the plan, make sure to get X $s (where X is over the minimum in the account for when, if you leave, they don't just send you a check for your contributions... which you then have to pay penalties on or quickly open and convert into a regular IRA.)
Then, if you are lucky enough to be financially able years later, up that 5% (example, above) to 6, 7, 10, 20%, ... to get to that maximum amount into the 401k in normal or Roth contributions. I'm not to this step yet, instead investing in my spouse's and my Roth IRAs (setup by me) to their maximums every year instead. And, have a brokerage fund for (a) learning more about the market while actually doing it and (b) quicker access to the funds than age 59.5... which is too long in my opinion. With the self setup Roth IRA, you can always pull out your contributions for free... period. Not so with the 401k, either pre or Roth.
You don’t have to immediately max out your 401k. At minimum invest enough to get the company match. Then reassess your financial situation every year to see if you can contribute more. In my case to get the company match I needed to invest 6%.
@@xxxxMonkeyGirlxxxxI’m assuming you mean you have to invest 6% to capture the FULL match.
Your not throwing away free money with a 401 K if the money you make is not enough to pay the bills.
This bills suck
Dude i love your videos but it's based for americans :(
we would love something that applies for every country
click bait? the savings tracker doesn’t appear anywhere after entering my email address and clicked the download button. Please advise.
check your spam folder
Spam folder is empty. I have done it twice with 2 different email addresses. I just wanted to see your spreadsheet layouts. No worries, I have moved on...
What, no real estate step!? 😢
Certainly not
First?!
Yayy did you learn anything in the video?
@@VincentChan I did Vincent.
I am a first-generation, phd student who grew up in the foster care system and learning about financial fitness is critical.
You have given me some solid starting points to continue managing my money well and start building wealth. Thank you!!!
BUY PHYSICAL SILVER!!!!!!!!!!!!!!!!!!!
Ah… The myth of the 401K match. You forgot to mention that you need to remain at most companies for 5-6 years to get “vested” in the plan to receive the match. If you leave to work a higher paying job, you can kiss that match goodbye. 😘 If you stay, you can enjoy your measly raise that will not keep up with inflation.
This view is debunked so many times
I could be wrong but I think most do safe harbor with 100% vesting immediately nowadays. Still everyone should read their plan details.
It depends on the company’s vesting schedule. Some companies have immediate vesting, some have graded and some have cliff.
This guy must still be working in 1999
My company still has a 3 year vesting schedule on the company match contribution into the 401k plan, and just last year began allowing Roth contributions to the 401k instead of only pre-tax and "after tax". (For those without all these options, Roth 401k contributions, for those employers that offer a match, are post-tax dollars but do get you the company match. Pre-tax dollars are the "usual" 401k contributions with company match also given. "After tax" is money allowed into the 401k, post tax from your check, but doesn't qualify for the company match.) Due to my financial situation, I converted from pre-tax to Roth for the contributions, since most low and low-middle income workers in the USA get little benefit from the pre-tax contribution option. If your 401k offers Roth as an option, you're likely better off using it.
Also give more money away for charity. I’d say make THAT YOUR ULTIMATE GOAL instead of free money. I think the “free money” obsession people have is unhealthy and leads to the wrong motivations and work ethic. Work input should match work output, no more no less than you think you are realistically contributing to the economy and your actual work output. If you don’t think your getting paid enough to match your work output I’d say correct things about your spending habits, unless its too late and your in any debt at all, but in that case just use the internet. Dave Ramsey is a great resource.