One advantage of the retirement accounts is it forces discipline. For someone like yourself, sure you have the required discipline to not spend that money and let it grow. But a lot of people don't have that. If the assets are touchable, chances are 9 put of 10 people are going to spend it some way. For someone who doesn't have that discipline, they need those restrictions on their money to realize the compounding growth.
Agree on public education. College is pushed so hard these days and its mostly a money scam. There is so many skilled trades you could get into they pay you while you take classes, and train you. I skipped college and hired on with Exxon Mobil. They paid for all my courses to train and Started out making 80k in 2006, as a process operator. still here in 2021 currently at 130k a year. With overtime 175k a year. I will say I take advantage of my company match of 6% because its free money< but most is invested elsewhere.
I kind of came up to the same conclusion as you on retirement accounts. One thing I do is keep a Roth IRA and contribute yearly to it with index funds, for now. Once it is built up a decent amount or until I am somewhere in my 50’s I will change over to option selling. Once I am 59.5 I will solely sell options as a way to not sell positions and hence keep my portfolio intact. I figure that’s the closest thing to buy borrow die with an ira, keep producing income selling options and pay no tax.
I'm 63 and had a pretax 401 with my job, when i retired I moved it to a IRA with Raymond James. It is a lie when they tell you to contribute to pretax! You will never be in a lower tax bracket, has Congress ever reduced taxes?? I want mine out to invest in real estate, but haven't figured out how much, maybe over a few years to keep from paying so much in taxes.
In the future, if you have both a trad Ira or a 401K AND a Roth, you can essentially control how much you pull from the 401K to go right up to your tax bracket threshold and pull the rest from a Roth.
Interesting ideas. You said to borrow against your assets instead of selling them and having the tax consequences but how do you pay back the borrowed money, what funds do you use? Seems like you can’t just live on borrowed money but will need to sale assets or use some other after tax money.
I’ll just die with a portfolio line of credit. Kids inherit stocks at a stepped up basis and can sell to pay of debt and pay no capital gains. Look up the “buy borrow die” strategy.
Awesome video! The RMD issue was really eye opening. I do have two critiques: I'm not sure if you purposely left off hsa's but I think they are the best out of all the tax friendly accounts. You can withdraw your roth contributions at any time tax free so if you have 6k laying around you might as well use it like a savings account.
@@JakeGosselinTH-cam I enjoy my HSA as I contribute enough money to cover my max out of pocket medical expenses… and I invest it the HSA affiliated (TDA for me) brokerage account.
This is a very good idea, If your a business owner….. If your a blue collar paycheck to paycheck person ( like me) It’s better to have forced retirement savings with tax deductions at the end of the year, But after this video I’m going to try to do both, Awesome video Jake thanks.
Your business, your employees! Are you hiring? I am looking for new ways to make income. To support my family. Leaving my job & trying to figure out what to do with my 403b. I have been so upset the last few days that I didn’t have the education to already have a roth IRA. An what I thought I knew about whole Life insurance is not what I thought it was either. You give me new hope thank you. I am 39 the money in my 403b is the most money I have ever had. Pocket chang to you, but I am so scared of what to do with it properly. So far I thought of putting it in a roth IRA @Van Gard. Then get an investment account some where else. Now though I want to learn as much as I can from you. An thinking real estate. Any videos about best way to get started with real estate?
Thanks for the great video Jake. I like your idea of taking line of credit against taxable account. However, I see few things missing in your video. Like, people do a series of ROTH conversions to minimize/avoid RMDs which is also good for inheritance, as well as liquid with no taxes. Also, you spoke about traditional 401k, but with ROTH 401K you don’t face the issue of RMDs. Need the right combination of traditional+ROTH 401k to get the maximum tax advantage. Like, start with ROTH 401K contributions when the income is low and tradition 401k when the income is high in later years.But when compared to contributing to only a traditional 401k account, your idea is much better!!!
If your employer offers 401k through vanguard you can literally invest in vti and Voo 😂😂 same thing bro . If you click on the fund it’s same thing . How about put 401k on the background and make your own portfolio . Yes 401k is for retirement that’s why you just add to it and just go hard in your personal account . I get what your saying but do both for the people that have jobs lol . 401k is a autopilots thing in the background of your life . Just do both
Thought you were a little too extreme for me at the beginning of the video lol but you did a great job selling me at the end. I doubt I’ll ever be a business owner or high income earner, so how do your numbers look when put up against a Roth IRA and a Roth 401K? I am able to do both along with a taxable stock account that I “Yolo” my spare money into.
Your argument was weak about not at least maxing out you matching contributions from your employer. Yes, everything over that should be into a taxable account (after maxing out your HSA), but you will lead people away from the gains from matching funds. I think it will hurt many people who watch this
I get the feeling he is speaking as a business owner and he may agree with you if he worked for a paycheck. Most people plan to be long term employees so of course they should add to a 401 to employer match. I tend to agree more with Jake on this one, if there was a great employer match say dollar for dollar I would do it but most jobs have a .50 to dollar match. Usually something like 3% match for 6% contribution. To me I would have to see if that is even worth it, maybe yes, maybe no
Better to have less credit lines . Too much borrowing dude. When your older you want simple. 401k. Pension , maybe rental . And savings account . That’s it. Your old
I don’t necessarily disagree with your views on 401K’s and IRA’s, but your political views are pretty WTF dude. A monopoly on war and violence??? What does that even mean? You’re telling me you can’t go out right now and commit violence or wage a war on something? You couldn’t hire mercenaries? And looking at it from a different standpoint, even if I agreed that they did have a monopoly on these things, well who else is going to have it? Wouldn’t that be one of those “necessary monopolies”? Or do you imagine corporations having their own armies and the ability to wage war (physical not economic) on their competitors, or on sovereign states? Yeah the great Walmart / China war of 2030 - that would be epic… Like I really don’t get this. As for your takes on the government itself, I mean, you speak about it as if it’s a monolithic thing all working in harmony towards a unified goal, when that couldn’t be father from the truth. The government is - at the executive level (I don’t mean the exec branch, I mean the people that actually have the power) are broken into two primarily opposed groups, and it’s structured in such a way that even when one party controls the majority of government, you still can’t just operate as if the other party doesn’t exist or matter. As people like Joe Manchin are proving now, even people in the dominant party can keep it in check and be held to the will of the opposing party, because that’s who most of his constituents are. When you take a step back and realize that government isn’t a monolith all working toward the same goal, and is instead people that are for the most part constantly fighting each other ideologically, that is why not very much gets done, but that’s basically how the founding fathers designed it, they didn’t want anyone to be too powerful or be able to just unilaterally exert too much control without any checks on their power, so to summarize, if you really hate government and how it operates, then you can blame those founding fathers that everyone (but especially libertarians) love to praise and masturbate to. Sorry for the political rant, but hearing this stuff kinda irks me. And notice I’m not taking any political side here, so don’t try coming at me that way.
Lol good points. Maybe the word “monopoly” skews the point I’m trying to make. I do agree with the founding fathers in that they tried to limit the power of government. But unfortunately history shows it’s impossible to limit the power of government for much longer than a few centuries.
Wow this video made no sense at all . Your 71 take some money out . 401k is not the only thing you need for retirement it’s another form of income when you get old lol
One advantage of the retirement accounts is it forces discipline. For someone like yourself, sure you have the required discipline to not spend that money and let it grow. But a lot of people don't have that. If the assets are touchable, chances are 9 put of 10 people are going to spend it some way. For someone who doesn't have that discipline, they need those restrictions on their money to realize the compounding growth.
$ADTx easy triple Tesla pays out 100m for a grendel licker 👅 to continue not working
agreed.
Thanks for sharing!! Very good info. I agree with you. !!
Agree on public education. College is pushed so hard these days and its mostly a money scam. There is so many skilled trades you could get into they pay you while you take classes, and train you. I skipped college and hired on with Exxon Mobil. They paid for all my courses to train and Started out making 80k in 2006, as a process operator. still here in 2021 currently at 130k a year. With overtime 175k a year. I will say I take advantage of my company match of 6% because its free money< but most is invested elsewhere.
I kind of came up to the same conclusion as you on retirement accounts. One thing I do is keep a Roth IRA and contribute yearly to it with index funds, for now. Once it is built up a decent amount or until I am somewhere in my 50’s I will change over to option selling. Once I am 59.5 I will solely sell options as a way to not sell positions and hence keep my portfolio intact. I figure that’s the closest thing to buy borrow die with an ira, keep producing income selling options and pay no tax.
Great video! always felt the same now you made a video reinforcing all those points 🙌 These retirement accounts are just a big opportunity cost.
I'm 63 and had a pretax 401 with my job, when i retired I moved it to a IRA with Raymond James. It is a lie when they tell you to contribute to pretax! You will never be in a lower tax bracket, has Congress ever reduced taxes?? I want mine out to invest in real estate, but haven't figured out how much, maybe over a few years to keep from paying so much in taxes.
In the future, if you have both a trad Ira or a 401K AND a Roth, you can essentially control how much you pull from the 401K to go right up to your tax bracket threshold and pull the rest from a Roth.
Interesting ideas. You said to borrow against your assets instead of selling them and having the tax consequences but how do you pay back the borrowed money, what funds do you use? Seems like you can’t just live on borrowed money but will need to sale assets or use some other after tax money.
I’ll just die with a portfolio line of credit. Kids inherit stocks at a stepped up basis and can sell to pay of debt and pay no capital gains. Look up the “buy borrow die” strategy.
Thank you for creating this video. It help me finally decide what no to do!!!! I totally agree with your message.
Awesome video! The RMD issue was really eye opening. I do have two critiques:
I'm not sure if you purposely left off hsa's but I think they are the best out of all the tax friendly accounts.
You can withdraw your roth contributions at any time tax free so if you have 6k laying around you might as well use it like a savings account.
Roth IRA* contributions
I forgot about hsa but I’ll look into it. I’m pretty sure I’m not eligible since our family is part of Medishare.
@@JakeGosselinTH-cam I enjoy my HSA as I contribute enough money to cover my max out of pocket medical expenses… and I invest it the HSA affiliated (TDA for me) brokerage account.
This is a very good idea,
If your a business owner…..
If your a blue collar paycheck to paycheck person ( like me)
It’s better to have forced retirement savings with tax deductions at the end of the year,
But after this video I’m going to try to do both,
Awesome video Jake thanks.
Brilliant advice.....I mean, opinions Jake. Thanks for sharing.
😂
For you regular people don’t do this .
Wow! Some things I haven’t thought about. Thanks
Your business, your employees! Are you hiring? I am looking for new ways to make income. To support my family. Leaving my job & trying to figure out what to do with my 403b. I have been so upset the last few days that I didn’t have the education to already have a roth IRA. An what I thought I knew about whole Life insurance is not what I thought it was either.
You give me new hope thank you. I am 39 the money in my 403b is the most money I have ever had. Pocket chang to you, but I am so scared of what to do with it properly. So far I thought of putting it in a roth IRA @Van Gard. Then get an investment account some where else. Now though I want to learn as much as I can from you. An thinking real estate. Any videos about best way to get started with real estate?
What about an HSA?
They were talking about making the estate tax way less. Like 3.5 mill
Well done on the info 🧠💵💼👌🏾
Thanks for the great video Jake. I like your idea of taking line of credit against taxable account. However, I see few things missing in your video. Like, people do a series of ROTH conversions to minimize/avoid RMDs which is also good for inheritance, as well as liquid with no taxes. Also, you spoke about traditional 401k, but with ROTH 401K you don’t face the issue of RMDs. Need the right combination of traditional+ROTH 401k to get the maximum tax advantage. Like, start with ROTH 401K contributions when the income is low and tradition 401k when the income is high in later years.But when compared to contributing to only a traditional 401k account, your idea is much better!!!
when you're talking about 401k vs taxable account are you referring to a taxable account as like you're regular stock broker account?
That’s the point of the 529 is a just in case .and they can use it for other things as well
If your employer offers 401k through vanguard you can literally invest in vti and Voo 😂😂 same thing bro . If you click on the fund it’s same thing . How about put 401k on the background and make your own portfolio . Yes 401k is for retirement that’s why you just add to it and just go hard in your personal account . I get what your saying but do both for the people that have jobs lol . 401k is a autopilots thing in the background of your life . Just do both
You can transfer jobs 401k roll .
Hello fellow Ron Swanson student
I have that Robert Kiyosaki subscription too.
Thought you were a little too extreme for me at the beginning of the video lol but you did a great job selling me at the end. I doubt I’ll ever be a business owner or high income earner, so how do your numbers look when put up against a Roth IRA and a Roth 401K? I am able to do both along with a taxable stock account that I “Yolo” my spare money into.
keep grinding bro luv your videos your channels gona b big
I swear me and this man are the same person
Your argument was weak about not at least maxing out you matching contributions from your employer. Yes, everything over that should be into a taxable account (after maxing out your HSA), but you will lead people away from the gains from matching funds. I think it will hurt many people who watch this
I get the feeling he is speaking as a business owner and he may agree with you if he worked for a paycheck. Most people plan to be long term employees so of course they should add to a 401 to employer match. I tend to agree more with Jake on this one, if there was a great employer match say dollar for dollar I would do it but most jobs have a .50 to dollar match. Usually something like 3% match for 6% contribution. To me I would have to see if that is even worth it, maybe yes, maybe no
Better to have less credit lines . Too much borrowing dude. When your older you want simple. 401k. Pension , maybe rental . And savings account . That’s it. Your old
I don’t necessarily disagree with your views on 401K’s and IRA’s, but your political views are pretty WTF dude. A monopoly on war and violence??? What does that even mean? You’re telling me you can’t go out right now and commit violence or wage a war on something? You couldn’t hire mercenaries? And looking at it from a different standpoint, even if I agreed that they did have a monopoly on these things, well who else is going to have it? Wouldn’t that be one of those “necessary monopolies”? Or do you imagine corporations having their own armies and the ability to wage war (physical not economic) on their competitors, or on sovereign states? Yeah the great Walmart / China war of 2030 - that would be epic… Like I really don’t get this. As for your takes on the government itself, I mean, you speak about it as if it’s a monolithic thing all working in harmony towards a unified goal, when that couldn’t be father from the truth. The government is - at the executive level (I don’t mean the exec branch, I mean the people that actually have the power) are broken into two primarily opposed groups, and it’s structured in such a way that even when one party controls the majority of government, you still can’t just operate as if the other party doesn’t exist or matter. As people like Joe Manchin are proving now, even people in the dominant party can keep it in check and be held to the will of the opposing party, because that’s who most of his constituents are. When you take a step back and realize that government isn’t a monolith all working toward the same goal, and is instead people that are for the most part constantly fighting each other ideologically, that is why not very much gets done, but that’s basically how the founding fathers designed it, they didn’t want anyone to be too powerful or be able to just unilaterally exert too much control without any checks on their power, so to summarize, if you really hate government and how it operates, then you can blame those founding fathers that everyone (but especially libertarians) love to praise and masturbate to. Sorry for the political rant, but hearing this stuff kinda irks me. And notice I’m not taking any political side here, so don’t try coming at me that way.
Lol good points. Maybe the word “monopoly” skews the point I’m trying to make. I do agree with the founding fathers in that they tried to limit the power of government. But unfortunately history shows it’s impossible to limit the power of government for much longer than a few centuries.
@@JakeGosselinTH-cam no worries man. Thanks for responding and keep up the good videos
Anti Freedom accounts! Awesome
Wow this video made no sense at all . Your 71 take some money out . 401k is not the only thing you need for retirement it’s another form of income when you get old lol
If you really make the money your videos imply than you wouldn't be eligible for a ira anyway.
That’s is correct. I could do a “back door ira” but I still hold the opinion that retirement accounts don’t make much sense.