What Do I Do After Maxing Out Investments?

What Do I Do After Maxing Out Investments?

Listen to how ordinary people built extraordinary wealth—and how you can too. You’ll learn how millionaires live on less than they make, avoid debt, invest, are disciplined and responsible! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, Christy Wright, Rachel Cruze, and John Delony.

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• The Ramsey Show (Highlights):

[tombaker]

With that kind of income I would recommend to not liquidate taxable investments to pay off debt that could otherwise be paid off in ~3 months from income.

[BrokeMillionaire]

Congratulations. She’s doing very well. She should be a millionaire in no time.

[lkjg]

This call is a perfect example of why you need to get financial advice elsewhere. This caller wanted to get investment direction and the next thing you know, Ramsey folks telling her to "pause her 401K" and/or cash out investments to pay off a $20k car loan. That's sorta like going to the doctor with an ingrown toenail and he wants to amputate the foot. Geez....

Max out the 401k, if she wants to, she can do a backdoor Roth (at least, until Congress eliminates it), build up an emergency fund to about $50k, set up a brokerage account and get at least to the 15% in an S&P 500 Index Fund, and if she feels like it, throw extra at the car loan until it gets paid off.

[markh]

Never stop contributing to a 401k, especially if there is a match. Car loans are cheap. Stay invested! Dave makes me want to scream.

[thetruth]

At 2:25 this lady says I can pay off my car payment today Dave immediately good go do it!! No debt Dave I love him

[spot_of_tea]

She is fine, no need to liquidate your savings. She will win either way as long as she stays away from debt.

[widescreen]

This lady sounded like she isn't interested about any advice other than about her original question.

[j.mney]

A brokerage account is a great way to build wealth if the Roth and Traditional IRA’s are maxed.

[genxx]

She doesn’t have a home yet. Once she buys a home, it will take up a lot of her income and she won’t be spinning about what to do with it.

[Takar]

What do I do when I can't invest in a tax deferred, or tax free retirement account?

Invest more money else where. Always invest as much as you can, especially if you don't have any personal debt and you're having a little fun to keep you sane.

If she's not wanting to buy a house anytime soon, don't save that money in cash, but still save/invest that money.

[teaboone]

Why can’t callers answer questions directly? It’s hard to listen to when they are longwinded. Yes/No answers are sufficient.

[readysetmoses]

There is absolutely no reason for her to stop her 401K contributions to pay off a 20K car loan while making 200K / yr. Some of their advice is asinine.

[Rashaadthegr]

Finally a new video for us living the max out life.

[patienceisalpha]

Don't pay capital gains tax for that.

[chefsvods]

This is where simple "Pay off all your debt right away" is not the right answer depending on her car interest rate. If that interest rate is lower then 4% on that auto loan no reason to pull out the money in the market that could be making 6-8% in the market which then that money pulled from the investment account would just get taxed. Also what he said about stop investing in 401k all together terrible idea if they had an employer match

[aiswebmaster]

He doesn't really mention it, but if she's maxing out savings in tax advantaged retirement accounts and then wants to save for a house, that is more than 3 years away, she should setup a brokerage account and save there while investing in funds/indexes averaging 10+% that way if she decides to not buy a house or if she does, she'll be building wealth quickly. If you are not sure, do the math and weigh your options.

[QuintariusGodbee-bhxj]

Should I pay off a house and car below 3 percent ? When I can make 10 percent or more with just investing that money ? I have my emergency fund set and completed other baby steps. I'm just not sure if it would be logical to pay off debt below 3 percent.

[robloxvids]

Dave said she can put 19k into a 401(k). She can put 20.5k. She can get close to 15% retirement (30k). 20.5k 401k and get an HSA (this can count as part of retirement IMO) and max it out. That gets her to around 24k if she can't do Roth. Also, the 15% rule shouldn't be hardfast. 15% savings is way more important for someone earning 60k than 200k. The absolute amounts are way different. And there's no rule that her retirement "lifestyle" has to match her working lifestyle. I think what she was getting at was how to cease 401k contributions, pay off the car, and get the 401k maxed out by year's end. You can do it. Just change your 401k paycheck deduction. Say if you don't start contributing until May, you will deduct about $2, 500 per month. Yes that's a lot, but with a healthy E-fund and no debt, she can do it.

[TheDjcarter]

Really like George but he is such a robot... literally every answer is the baby steps, rinse and repeat. It's not hard to just answer her question, probably boost emergency savings to six months expense then max Roth, max 401k, put the rest in a regular index fund and just watch you money grow.

[appleztooranges]

$15k isn’t enough for an emergency fund. Especially if you own a house!