Roth 401k vs. Traditional 401k - How Will You Retire Richer?

. What's better a Roth 401k or a Traditional 401k? In this video you will learn the pros and cons for both a Roth 401k and a Traditional 401k so you know what's better for you.

Recommended:

Will You Retire Richer With A Roth 401k Or A Traditional 401k
0:11 - There are so many ways to do your retirement planning
1:00 - I’m not a big fan of the 401k
1:35 - How the 401k works | traditional 401k
2:30 - Put some numbers on the traditional 401k example
3:00 - How taxes work on your 401k
5:20 - The tax risk for your 401k
5:59 - Historical perspective on high taxes
6:56 - How the Roth 401k works
7:50 - Taxes on 401 Roth 401k
9:43 - What’s better for you? Traditional 401(k) or Roth 401(k)

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Give the majority $200 and they will come back with a pair of shoes. Give the minority $200 they will come back with $2,000.

Think from the mindset of a consumer and be the provider, that's the Minority Mindset. Don't be the majority. #MIH #ThinkMinority

Twitter: @M2JaspreetSingh
Personal Instagram: @M2JaspreetSingh

Video host: Jaspreet Singh

[johnlichtenthal]

Another thing to consider, which I’ve rarely heard mentioned: tax deductions and credits. I have 5 kids under age 18 right now. That’s 5 large tax breaks I have right now, that I won’t have when I retire. So you better believe I’m doing Roth 401k contributions right now. My taxes are depressed right now because of those deductions and credits, which lessens the tax burden on my Roth contributions.

[theGrayArea]

My advice to younger folks when it comes to investing is, just start.

[jamesd]

I am employed by a major bank in the U.S. and they offer both Traditional and Roth 401k. It's almost 20 years and I'm so happy I chose Roth. Great video! Ty

[jessykapop]

Jaspreet . Just want you to know you are my favorite investment/ wealth planning badass YouTube channel. Every single video is amazing.

You explain everything perfectly and make the topics interesting and easy to follow. Thank you!!!!

[ChrisInvests]

Roth is much better because there are no required distributions. If you live beyond the life expectancy, your traditional 401k or Ira will run dry 👎

[kwilly]

I watched 3 videos on youtube trying to explain this to me. I finally got the difference when I watched you! TY

[granitemoss]

My husband uses a Roth 401k at work, and get a certain match. ANY time we contact the brokerage firm about ANYTHING, there is high pressure to switch to a traditional 401k, and to move out of our chosen funds into a target age fund. Nope, those aren't for us, we're happy with what we've got! Great info as always.

[ricardomacias]

"ROTH" "Thank you very much" Respectfully many blessings n Well being to you n your family.

[beckytanner]

Traditional IRA is really for people who start investing late and/or don’t expect much growth in the IRA. If you’re young and invest long term, go with Roth.

[jlee-dwzu]

I just retired, but I am uncertain that my 401k and IRA will ensure a stable future. I have $900k set aside, I am seeking an approach that matches my risk tolerance and financial objectives. Please I need advice, should I invest in stocks or real estate ?

[xiction]

I started with the Roth and went to traditional when I had higher income but I switched back to the Roth because tax rates are lower.

[Mannymd]

Why isn't this channel called Sikh-ing Wealth?!?!

[sha_la]

Good Morning Jaspreet! I think having both are good especially if you have an employer that matches. Never leave money on the table is a valuable lesson that I have been taught. I think I could do better with my Roth. I need to max it out. I am almost there, but I need to get there. Almost is not good enough!

[bren]

I contribute to both a traditional and Roth 401 through my employer. Also contribute to a Roth IRA outside of my employer

[zulkifalahmad]

I am watching Jaspreet's video on valentine's day with his pink turban.

[SlickGamble]

Another angle to consider: You gotta know your bracket and for moderate income earners, there's very high value in the pre-tax savings since you are stretching the amount you earn at the 12% bracket. You can get up close to 70k earned income before you run out of easy runway. How? Maximum contribution to the 401k, HSA pretax investing and the 12k standard deduction. After that, you'll need taxable investment money to take advantage of other possible options such as charitable donations, tax loss harvesting, etc.

[TheLuckyWarrior]

Sadly, mine was a pre-tax deduction so when I pulled out money, I had to pay tax on the entire amount. 😢 Rolled it over into an IRA before taking a distribution.
I pulled out a large sum to purchase a rental property. Now I have to pay tax on the money I pulled out this year to pay the tax for what I took out last year. Live and learn. I should have bought the property inside of a self directed IRA.

[joannapalacios]

I have both also Roth 401k and 401k from Amazon. Seriously I've been googling trying to find out the difference a few months ago and by chance today I just came up on your video on YouTube and by chance I say because wasn't looking for anything on the subject lol. I want to say thank you because I finally got my answer you made easy enough for me.

[danielestrada]

My company offers both traditional 401K with a match, and a Roth 401K. I do both 👍

[iowawizkid]

Da Plan
1. 5 rental properties owned, 1 currently. Move headache to property mgmt when i retire.
2. 10% traditional ira
3. Max out Roth for wife and I
4. I'm in Iowa, so farmland in a location that will be in high demand 20-30 yrs down the road.
5. Create a trust for assets to pass along benefits to future generations.