FINANCIAL PLANNER EXPLAINS: Optimal Order of Investing for Retirement

0:00 The Optimal Order for Investing for Retirement
0:32 The Problem with a Laddered Order
1:03 The Optimal Order Pyramid
1:38 #1 - Pay Down High Interest Debt
2:27 #2 - Protect Against Emergencies
3:12 #3 - The Highest ROI You Have
5:13 #4 - Supercharging Your 401k
6:32 #5 - Triple Tax Savings Account
8:09 #6 - The Tax Rate Decision
10:58 #7 - Maxing Contributions
11:28 #8 - Becoming Debt Free
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Always remember, "You Don't Need More Money; You Need a Better Plan"

[markkowatch]

GREAT video. This should be required viewing for all adults who think about their future.

[roberttaylor]

Your videos are so uplifting. I am 57 living down in Miami. Found your channel while searching about retirement - whenever that is. is the sweetest. Your videos put a smile on my face. Choosing a Roth IRA is advantageous as it uses after-tax funds and allows tax-free growth. When I retired, I had $3M million saved, and I won't be taxed on my withdrawals

[era-FP]

Great content. Thank you. Good that I have discovered your channel

[billh]

I did my investments a little different. Emergency fund with a years worth of money; Max out ROTH 401k; and putting extra money into a ROTH IRA and a brokerage account. The only debt I have is my house with 3% rate. Excellent video that I will share with my adult children. Thank you.

[jfay]

Excellent video. Thanks for breaking this down!

[themillionairescode]

Thank you for sharing this valuable content!

[Amelia-Elizabeth]

I watch several YouTube videos on how to trade in the stock market but haven't made any head start because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands

[nobeliefisok]

HSA at my company also has a $250 seed money contribution from my company plus they match the first $500 contributed. It also is fully investable into anything at Fidelity. There are no pre-selected funds with high fees. Wow! HSA is such a great place to invest first (along with 401k match)

[eddieloujones]

There are more variables that need to be considered. A paid off house in retirement means less income needs to be drawn. This is important of you are on Obamacare or want to avoid Irmaa or other income related penalties. Roth money is also valuable to help keep reportable income low. So these are ok rules of thumb I think individual situations need to be assessed before you accept any standard rules as gospel. Unfortunately a lot is based on reportable income, so the lower you can keep your reportable income the better you will likely be. I know Eric is aware if this as I learn a ton from this channel. It's one of my favorites and I appreciate these guys a ton.

[stevemlejnek]

Only the gains in the Roth account are illiquid until 59.5 without penalty.

[cjkrolak]

I think home ownership should be added to the triangle, could be squeezed in next to ROTH since it behaves similarly to a ROTH from a tax perspective.

[lioncrud]

is student loan considered high interest debt? i have an interest rate of about 7% on mine.

[jaycox]

Do you have recommendations on where to put your emergency fund such that it has sufficient liquidity, principal protection, perhaps inflation resistance, but is not a "leaky bucket" that has interest taxed at my full marginal rate? Thinking about how my high yield savings accounts are outpacing inflation... until I pay the taxes on the interest... thank you for the excellent videos BTW!

[cjkrolak]

where would you put whole life / VUL on this triangle? In the green next to maxing out 401K?

[syovar]

Question on 401ks. If you have ROTH and Traditional matching on the same job, do you take both? If you have 2 jobs and both have matching options, do you take them all?

[Kep]

On that last chart. If I invest in Small Cap stocks, there's a 90% chance I receive a 12% return? 12:40

And does expected volatility = standard deviation? Sorry, im a little confused.

[serialmigrant]

Can we simulations for other low interest debts. I have a canadian residential mortgage that acts like usa commercial mortgages. Im now at 2% locked in, but in 14 mo it will jump to whatever the rates will be. They are currently 6%. Intuitively, I think I should prepare to crush this mortgage in 14 mo...

[kevinwoodrobotics]

If you invest in money market at 5% and you’re in a high income bracket, that’s almost the same as your 3.5% interest rate. Also risk is another thing difficult to put into the equation

[brainp]

Maxing out a traditional 401k can help reduce taxes on all other contributions since it lowers your AGI

[MichaelCarrPilot]

First I’ve seen someone recommend 3-6 months of INCOME and not needed expenses per month times however many months you want.