28 Comments

  • Let's Talk Money! with Joseph Hogue, CFA

    Does your company offer a 401K plan? See why I hate ๐Ÿ˜ก…and love these free money investment plans and how to get the most from yours! https://youtu.be/XnF6D2CvogI

  • denalikid72

    Can you do a video showing the steps after you fund your Roth IRA? I understand how to set up and fund it but then I fall flat. Thank you for all the valuable info!!!!

  • Dylon Garrett - Investing and Personal Finance

    You explained retirement plans so fluidly. You deserve to be the highest paid teacher โœŒ๏ธ๐Ÿ‘Œ

  • G.E. Stroud

    You've mentioned that some securities like MLPs shouldn't go into a retirement account for tax advantage reasons. Do you recommend using a separate broker for these types of securities, or having two accounts with one broker?

  • GenExDividendInvestor

    Super valuable information. They should make this required watching in high school & college. Invest in an IRA/ROTH!

  • Dan Vigliotti

    A few questions/thoughts:
    1.) Even if you have several IRA accounts (say you have 5 IRA accounts), you can only contribute up to the annual limit of $6000 (or $7000 for over level 50 folks) across all accounts (not $6000 per account), correct? This is what I gather from reading but no one answers it directly.
    2.) I have access to a traditional 401k and a Roth 401k at work. Both include low cost index funds from Fidelity of which I take advantage. I take advantage of the Roth 401k because of the higher limits but company match goes into traditional (I dont have a choice). The question, can I max out the Roth 401k ($19,000 for 2019) and have a Roth IRA with an additional $6000? My research says, yes. I know the withdrawal rules and RMD rules are different for Roth 401k vs Roth IRA – thoughts on those?
    3.) While I do take advantage of my 401k and IRA options, I HATE two things about both. The money is locked up (even a Roth IRA I cannot withdraw contributions for 5 years). I personally plan to retire early and so want the dividend/interest available for use/reinvestment. But the biggest thing I hate – everything is taxed at income rates instead of capital gains rates. So, especially for traditional IRA or 401k, I am getting a graduated tax rate at income tax levels which can really add up. I much prefer the 15% (or 20% depending) on my capital gains and dividends. Is there an argument or math that makes it work paying income tax rate? I suppose if your investments will yield less than what you make now – but thats not the goal!

    I feel like a mixture of both retirement and taxable accounts is the correct plan. But all I hear preached is MAX OUT YOUR RETIREMENT ACCOUNTS. Is that the best bang for your buck?

    Sorry, for the mental dump. Sometimes I have to think out loud.

  • tou xiong

    My work place offer 401k with some percent matching but they do it through Securian. I notice that the same index fund expense ratio cost 1.12% while the same index fund if bought at Vanguard would only have expense ratio of .05%. I already got a Roth IRA with Vanguard but did 401K just to get the matching, after I leave workplace will roll over 401K into Roth IRA.

  • belangp

    There appears to be something not quite right about your chart of taxable vs. IRA investing. I agree with the difference in the curves out to year 29, but upon liquidation in year 30 the drop in the IRA total wealth should be larger than from the taxable account. The taxable account should have capital gains which will be taxed at a lower rate than income. The IRA withdrawal will be fully taxable at the investor's income tax rate and both capital gains as well as reinvested dividends will be taxed.

  • Jack Buchanan - F.I.R.E. and Personal Finance

    Roth conversion ladders and withdrawing Roth deposits are both ways people in the FIRE community get their money early. Love the way you break these videos down. I think it would be cool if you divided this into age groups and how they should use these accounts!

  • Mark Emery

    Fidelity recently announced zero commissions, and you can earn a 1.58% monthly dividend on the money in your account while you determine what stocks, bonds, or reit's you want to buy.
    NO OTHER Broker gives this high of a dividend in your core account. Your core account is the money you use to fund your brokerage account. So your money is not just sitting there earning little or no interest while you decide what stocks, bonds, or reit's you want to buy. This is also great if you use the "sell and hold cash" from May to Oct strategy!

  • Greg Kamei

    Thank-you for a very thorough overview of IRAs and Roths. Are there limits to the number of and the interval between Roth conversions that can be done each year? I believe the foreign dividend tax withholding is waived for foreign stocks held within a tax-advantaged account, but it depends on the tax treaty between the US and the foreign country. I wonder if you could address the tax implications of foreign stocks (ADRs) held in a US brokerage account in a future video.

  • Arch

    Thanks to your videos I have a good idea of what dividend stocks are for me, thanks a lot. How about a video for top 5 asian dividend stocks?

  • R s

    Thank you Joseph, for this wonderful video. I'm a big fan of yours. My two questions are 1.that there is no income limit eligibility to contribute to traditional IRA correct? 2 is it true that we cannot claim a tax deduction if married filing jointly incone is =123k or for non working spouse married filing jointly= 202k when doing traditional IRA.

  • Brandon Smith

    Fidelity is my one stop shop. My 401k has been there for years. They sponsor the Delaware 529 plan I use. I also have a Roth with them. They have the industry's ONLY 0 expense ratio mutual funds. Their cash management account couldn't be better. Free bill pay. No ATM fees. No annual fees except on the 401k plan, but they are micro small. My company's 401k plan allows me to manage 95% of the contributions, allowing me allocate my capital my way while further reducing management fees. The screener tool is decent. Customer service is on point every time, chat or phone. I like the web interface. Now there's $0 trade commission on domestic stocks and ETFs. For me and my needs, #Fidelity just works. However, shop around and see what may work better for you.

  • Christian Buonopane

    In my opinion I feel that it may be better to use a Roth IRA if your younger. I am 15 and have a part time job after school and I think Roth would be better now only because I am obviously in a lower tax bracket. It makes sense to pay taxes lower now rather then higher later

  • Tim Crowe

    Why didn't you tell people how they can move there 401k into an IRA while they are still working?

    Disclaimer:** some companies won't keep matching you if you do this.

  • Olayinka Ase

    Good info and advice on how to leverage both. I like ROTHs because of how easy it is for the beneficiary to inherit w/o madatory distributions and inheritance tax. Are you familiar with self-directed IRAs that allow you to hold LLCs? If so can you talk about the pros and cons of this method of retirement investing?

  • tnevy1

    Often overlooked is at tax time everyone qualifies for a personal deduction. So you can withdrawal that amount from an IRA and still pay no tax. The big question is how much do you need in your IRA to max this out every year? After you have that amount everything else to a ROTH? If so, what is a target amount at a given age to shoot for to stay on this track?

  • deedee spirit

    What do u know about putting ur money into a Roth 401k? Will u be able to take tax write off right away and then pay no taxes when u take the money out at retirement!

  • Lork Lorkman

    Hey Joseph, thanks for the help. So my question is when I sell positions within my Roth IRA, am I creating a taxable event? I'm somewhat confused when it comes to buying and selling positions within my Roth IRA.

  • Sharon Shibu

    Hi Joseph, once you max out your ROTH , what types of investments should be considered for taxable accounts? Do you have any video which provides info on this? I remember you mentioned about MLP's that could go into a taxable account , in one of your past videos. Anything else that you would put across as a suggestion/advice ? Thanks.

  • Sharon Shibu

    Would there be any tax implications if i move from one ROTH account to another ROTH account with a different broker? Anything that you would advice to take care off in doing so?

  • Sharon Shibu

    What if someone who is below the 130k salary range and has a ROTH , gets promoted and now falls in the 150k range, would he/she be forced to stop investing in ROTH ? What happens to the previously invested funds ?

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