Seven 401k Mistakes (401k Investing for Beginners)

Seven 401k Mistakes (401k Investing for Beginners)

A 401k can be an amazing investment vehicle, allowing everyday working people to build wealth over the course of their career. Although, there are some drawbacks to these accounts that you should be aware of and they're not always the unicorn of investing. Failure to comply with the rules and guidelines that come with this retirement account could leave you with unexpected fines and tax bills from the IRS. Does it make sense to use a 401k only, keeping the entirety of your investments in a single account or are there better places to park your cash? These are some of the most common mistakes investors make with these retirement accounts.

Each of these videos is completely original--written, narrated and animated by myself.
My equipment/programs
Blue Yeti Microphone
Apple iMac
GarageBand
VideoScribe
The script is then narrated by me and the animated using VideoScribe. Each image is individually selected, timed and synced with the narration to create a flowing video.

DISCLAIMER: Nothing published on my channel should be considered personal investment advice. Although I do discuss various types of investments and strategies, I am not a licensed professional. Please invest responsibly.

[claircourtway]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[chriswalter]

I've come to realize that the key to amassing wealth lies in making sound investments. I purchased my first home at the age of 21 for $87, 000 and sold it for $197, 000. My second home, acquired for $170, 000, was later sold for $320, 000, and my third property, purchased at $300, 000, fetched $589, 000, with buyers covering all closing costs and expenses. Not reaching a million before retirement feels like an unfulfilled goal..

[johnmccullough]

What about adding the pension to this advice?? Should I still put in 10% into my 401k or does it matter

[Deborah-x]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274, 800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[antinormality]

1) Not taking advantage of a company match
2) Cashing out when you change jobs
3) Not increasing contributions over time
4) Being oblivious to investment performance
5) Loading up on too much company stock
6) Not understanding the downsides
7) Cashing out

[BateserJoanne]

As I approach retirement, ensuring the stability of my 401k after the turbulent year of 2022 is a top priority. I've come across stories of investors achieving up to $270k in ROI during this current declining market. Any advice on enhancing my ROI before retirement would be highly valued.

[johnben]

As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.

[TheRDGuarantee]

Hey Chris, just found your channel and watched a few videos. These animations can't be easy to do and I love the style that you bring to the table. I have a 403b, but its essentially the same thing and the concepts in here apply to both!

[chrisw]

Definitely do the match, the rollover, and put raises into your fund until your total contributions are 19, 5 a year! I'm tracking for 2 mil when I'm 62 at the current trend

[PierceJordan]

Awesome video as always man! Love the 401k. Employer match definitely adds a LOT over time

[PenniesNotPerfection]

Great video Chris! I've sadly seen friends make several of these mistakes. And I've yelled at plenty of coworkers for not getting our company match. It's crazy! Thanks for sharing! - Mary

[donm]

Props on mentioning the S&P 600. Seems like most people don't know that the best performing index isn't one of the big 4. Awesome job on the quality content!

[mgallegos]

Too little too late for some of us. I wish I had this education 25 years ago.

[billnolan]

Retirement is wonderful if you have two essentials
- much to live on and much to live for. It’s one reason I don’t involve in short term investments and why I’m still holding my stocks and tokens despite the crash. A good plan, risk and debt management helps actualize financial longevity.

[joedessenberger]

Great straightforward explanation of the pitfalls! I was a Director of Finance at a previous job and had to sign off on all employee "loans" from their 401k plans. I wanted to scream "No" at them every time, but could not. I tried to educate them in a way that I was allowed, but more often than not the immediate gratification bug had them under a spell...

[Bear_]

I put 23% of my income to my retirement. Was 13% 457 and 10% 401k. Maxed out my 457 in october change to 17% 401k for rest of year. Also iam taking a loan out of my 457 for first time home buying.

[robinhaneyyt]

Thanks for the video Chris really enjoyed it and the animations are great!

[AyeItsXander]

I hold the S&P 500 index fund in my 401k and hold FSKAX in my ROTH 🙂🚀 my employer matches 6% and I have a 30 year time horizon till retirement. I hope when I’m older I’ll thank myself for investing 🙏🏽

[JoseRojasYT]

Dude nice video! Definitely deserved my thumbs up. Keep up the great content.

[AdventuresandUs]

401K is the best way to dollar cost average in man. Great tips!