HSA's is the most unknown investment vehicle, and better than every other investment. Obviously a caveat is having to use it on health expenses, but NEVER getting taxed (even on the growth) is so rare.
It’s a blessing to have no health issues and being able to grow one of these accounts. I don’t think it’s a caveat for health related expenses because that’s one thing that will increase as we age.
All great points. The only thing I disagree with is you said when you were in your low 20's and not making much money you didn't want to put it into a Roth. That's actually the absolute prime time to do it because you are in the lowest tax bracket you will ever be in. And then your contributions AND growth come out tax free. It's an incredible investment vehicle ESPECIALLY when you are at your lowest earnings.
Yeah but making 32k a year, it would be tough to put money away in a Roth. I’m not too concerned about tax free growth. I have a plan for retirement that will help avoid some taxes!
I also didn't want to save a ton of money when I was younger because I didn't make a lot of money to begin with and didn't have much to spare. Love the tip of using your roth ira to help your emergency fund!
Based on your advice on a refinancing video, I decided not to refinance my 20 year loan to a 10 year loan in order to pay my house off quickly and instead take advantage of the low rates and refinance to a 30yr loan. By doing this my mortgage payment drops by $1000 a month. With this money, I can choose to put it back into the mortgage, or invest it. Maybe purchase an investment property, max out my 401k, or play in the stock market. Sure the bank gets more money by refinancing this way, but I think I have more to gain than lose, especially taking inflation into account. And also what ever I lose in additional interest payments is offset by the house appreciating over time.
Yes sir! And also you might decide to rent your current home out and buy another home later (say the market corrects). Now you got a very positive cash flow property and get to move into another house! Or buy a rental and have very low debt to income. If you’re young still, you got the right idea!
@@MillennialFinance101 Yes that thought has also passed my mind. I could easily get my house rented out for much less than what my mortgage would cost me when I am ready for the move
That’s exactly what I did with my first home and it had decent cash flow because of the refinance. Now it’s paid off and all cash flow :). Market is a bit crappy to buy any rentals right now so I’ll just hold tight for an opportunity!
Just be patient because as rates go up, prices come down. Just make sure you got some cash ready to offset the interest and have down payments ready!!!
Hello! Thanks for the informative video! I have a question...if you and your spouse have a net combined income of over $200,000 per year...can you still contribute to your Roth IRA?
Your MAGI must be below 196k to contribute $6000. It starts phasing out after that amount. $600 for every 1000$ over that amount. www.schwab.com/ira/roth-ira/contribution-limits. So if you make 206k+ (MAGI) combined, you would have to get a Roth 401k or a back door Roth IRA
I just got an email from Ally that the APY is dropping again to .50% When is the FED raising it again......😒.....Oh well at least is better than nothing!
Video with valuable information as usual. I will be looking into HSA after this. After watching your video a few months ago on refinancing a mortgage, I finally refinance my mortgage a month ago. Thank you for sharing your knowledge!
Great video! My company offers a 401k and match ( don’t recall exactly what percentage) why do recommend a 401k first over Roth IRA which is tax free and penalty free on withdrawals? I am debt free besides my mortgage
Sorry I realized I didn’t answer your question hehe. I recommend the 401k because it’s a bit easier for most to get into without hurting their finances since the $100 may only cost them $60-$70 when you factor in all the taxes (in ca, it’s a lot). A Roth, that same $100 will cost $130 of your pay. So it’s a bit more impactful. I would definitely say always Roth but a Roth might introduce some wreckless spending later since the entire amount can be pulled out tax free. Meaning we’ll see a lot of corvettes around instead of gradual withdrawals for living lol
I love these videos. They’re easy to understand. Thank you!
I work in financial services and your explanation of the various accounts is more educational than studying for the Series 7. Very impressive!
Thanks. Welcome!
HSA's is the most unknown investment vehicle, and better than every other investment. Obviously a caveat is having to use it on health expenses, but NEVER getting taxed (even on the growth) is so rare.
It’s a blessing to have no health issues and being able to grow one of these accounts. I don’t think it’s a caveat for health related expenses because that’s one thing that will increase as we age.
All great points. The only thing I disagree with is you said when you were in your low 20's and not making much money you didn't want to put it into a Roth. That's actually the absolute prime time to do it because you are in the lowest tax bracket you will ever be in. And then your contributions AND growth come out tax free. It's an incredible investment vehicle ESPECIALLY when you are at your lowest earnings.
Yeah but making 32k a year, it would be tough to put money away in a Roth. I’m not too concerned about tax free growth. I have a plan for retirement that will help avoid some taxes!
Glad my work provides the employer’s match. Currently in the process of trying to max out my 401k account eventually 🙌
Just do it and live off less!!
Great advice as usual
Great job again...
Wonderful tips...
Thank you.
Thanks!
Awesome information. Thanks!
Thanks for watchinf
I also didn't want to save a ton of money when I was younger because I didn't make a lot of money to begin with and didn't have much to spare. Love the tip of using your roth ira to help your emergency fund!
I’ve been there! Yup those Roth’s are not too bad!
Hi, ignorant question here.. if I have both 401k and Roth(401k) accounts, what is the maximum combined amount that I can put on these accounts?
Year 2022 - 20500
Year 2021 -19500
Combined for both accounts
Based on your advice on a refinancing video, I decided not to refinance my 20 year loan to a 10 year loan in order to pay my house off quickly and instead take advantage of the low rates and refinance to a 30yr loan. By doing this my mortgage payment drops by $1000 a month. With this money, I can choose to put it back into the mortgage, or invest it. Maybe purchase an investment property, max out my 401k, or play in the stock market. Sure the bank gets more money by refinancing this way, but I think I have more to gain than lose, especially taking inflation into account. And also what ever I lose in additional interest payments is offset by the house appreciating over time.
Yes sir! And also you might decide to rent your current home out and buy another home later (say the market corrects). Now you got a very positive cash flow property and get to move into another house! Or buy a rental and have very low debt to income. If you’re young still, you got the right idea!
@@MillennialFinance101 Yes that thought has also passed my mind. I could easily get my house rented out for much less than what my mortgage would cost me when I am ready for the move
That’s exactly what I did with my first home and it had decent cash flow because of the refinance. Now it’s paid off and all cash flow :). Market is a bit crappy to buy any rentals right now so I’ll just hold tight for an opportunity!
@@MillennialFinance101 true.... houses now a days are overpriced!
Just be patient because as rates go up, prices come down. Just make sure you got some cash ready to offset the interest and have down payments ready!!!
Hello! Thanks for the informative video! I have a question...if you and your spouse have a net combined income of over $200,000 per year...can you still contribute to your Roth IRA?
Your MAGI must be below 196k to contribute $6000. It starts phasing out after that amount. $600 for every 1000$ over that amount. www.schwab.com/ira/roth-ira/contribution-limits. So if you make 206k+ (MAGI) combined, you would have to get a Roth 401k or a back door Roth IRA
Good tips!!
thanks young lady
I just got an email from Ally that the APY is dropping again to .50% When is the FED raising it again......😒.....Oh well at least is better than nothing!
it'll be a while! See if you can get a little more in covid recovery stocks! Be careful though!
Can I use robinhood?
I wouldn’t but you definitely could.
I dont know what you are talking about uncle mihn. 😢😢😢
These are money accounts adults wil have when they are ready to stay saving for their future and retirement
Is that a gaming set up lol
It’s for video editing and sometimes gaming lol
I think I’m gonna do ROTH 401k with my work. Should I start a HSA after I max out my ROTH IRA? Or open a HSA first?
Go with hsa first! Safeguard your health and put a little bit into the Roth.
Video with valuable information as usual. I will be looking into HSA after this. After watching your video a few months ago on refinancing a mortgage, I finally refinance my mortgage a month ago. Thank you for sharing your knowledge!
Nice!!! Hsa are awesome!
@@MillennialFinance101 and I went with BoxHomeLoans as well. It's a very good company to work with indeed.
@@opiston awesome! Sounds like you're on the right path for winning!
Great video! My company offers a 401k and match ( don’t recall exactly what percentage) why do recommend a 401k first over Roth IRA which is tax free and penalty free on withdrawals?
I am debt free besides my mortgage
Both! If your income is lower, Roth. If income is on higher brackets, 401k. A little of both isn’t a bad idea though.
@@MillennialFinance101 thank you for your response!
Sorry I realized I didn’t answer your question hehe. I recommend the 401k because it’s a bit easier for most to get into without hurting their finances since the $100 may only cost them $60-$70 when you factor in all the taxes (in ca, it’s a lot). A Roth, that same $100 will cost $130 of your pay. So it’s a bit more impactful. I would definitely say always Roth but a Roth might introduce some wreckless spending later since the entire amount can be pulled out tax free. Meaning we’ll see a lot of corvettes around instead of gradual withdrawals for living lol
@@MillennialFinance101 thank you for your sharing your knowledge 🙌
I currently put my money in 401K because of the employer match and because I’m in a bigger tax bracket.
My deductible is like $6,000 LOL
Same lol