What to Do After Maxing out Your 401(k) Plan

What to Do After Maxing out Your 401(k) Plan

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[oliviaarnold]

I will forever appreciate this channel "The Money Guy Show". You've helped my family a lot, since the pandemic till now your advices and lessons are inspirational and helpful to us.
My husband and I have been able to be minimal, conscious in spending, saving and lnvesting wisely. We have able to earn on a weekly basis and it helps the family a lot. You're such a blessing to this generation. We all love♥️😊. I'm so happy to join you today too

[appleztooranges]

I’m here now as well! I’m doing a taxable brokerage since I am understanding stocks now and etfs

[BrianW]

My employer's 401(k) at Fidelity started offering Mega Backdoor Roth in 2020 and it's available to everyone in the company, not just "super high income folks". Of course, an employee still needs to have enough income to be able to afford to fund the backdoor contributions after they've already contributed $19, 500/$26, 000.

[jordanwilliams]

I love that they answered the question by teaching the asker the framework for *how* to explore their goals and equip himself to answer the question for their own specific situation, rather than just "giving the person a fish".

[nickdoyle-achievefinancial]

I’m not passing up an opportunity to make Roth contributions! Granted we didn’t have to choose. After maxing both of our mega back doors, we still fund a lot of taxable. My employer has discontinued deferred comp.

[freemarketspeople]

Why do you guys take questions, but then say you wish you had more details? Take questions that have the details. It’s your show.

[imdoc]

I’m a physician, my wife is an online professor. We make about 450k per year. We’ve maxed out our 401 k’s, I have a deferred plan to reach a combined 10% a year retirement savings, we have about 140k in 529’s, our oldest will start college in 3 years, and our only debt is our mortgage which is about 200k. We have cash flow every year, which varies depending how many trips we take. My question is where else could we invest in that is not retirement and safe from creditors? We’ve met with a few financial advisors but feel that we are not getting good advice. Thank you for your channel btw.

[jroysdon]

Knowing what the future holds, and if FIRE is the way to go, or just continue on working somewhere I enjoy and doing something else as a hobby (or even working part-time as a lay minister), makes current investing complicated. I suppose one could split the difference and do both mega Roth and a taxable brokerage account. Not the most efficient for either path, but options for both, or even changing trains somewhere in the middle.

Alas, I don't have a 401k at work, and the 457b I have doesn't allow post-tax contributions, so for now I just max out the IRAs and the 457b, and next year with excessive funds I'll start contributing to a taxable brokerage account.

But still, I enjoy learning about the backdoor and mega options so I can advise others who may need to use them.

[deanrobbins]

401k > HSA > Roth 401K > BD Roth IRA > Maybe Money Investing + Cash Reserves
Drive beaters if you have skill to fix them
Live with your folks for a few years after college to pay off your debt(s) and invest - Take advantage of time
Don't rent...save your dollars for a STARTER home (something you might be able to rent out later)
Don't forget to live, enjoy life & your relationships on the way. When you have "thrifty" friends, your dollars go a lot further.

[andynoutah]

No ROTH 401k in plan option? Donate to AT in 401k and then roll it over before earnings in plan

[miriamstrauss]

*The person who doesn't know where his next dollar is coming from usually doesn't know where his last dollar went*

[MrNickAch]

This is the order I try to follow:
1. Company 401k matching (Roth especially if you’re young.)
2/3.Max IRA (Roth especially if you’re young and/or lower tax bracket.)
2/3. HSA
4. Max 401k (Roth especially if you’re young.)
5. Taxable brokerage account

[lifeisgood]

……. The average person already pays 30% in taxes…. Car registration fee, gas…. Yeah it has a tax built into it, sales tax, property tax (yes it’s combined into your rent), income tax, hidden tarifs on alcohol, etc,
I probably paid about 22k in taxes last year when I calculated it… and i only paid like 12k federal income….

[roburb]

I was so upset my company (Fortune 500) doesn't offer a Mega-Roth. Right now both my wife and I max out each 401(k), each traditional IRA (backdoor), and then add to the taxable brokerage. I would rather add that money to the mega, but nope. We don't qualify for an HSA, so that's not an option. Haha

[Lion_McLionhead]

The lion kingdom's day job doesn't allow any roth 401k contributions after maxing out the traditional 401k.

[loganjenkins]

You guys are awesome, keep up the great work! ❤

[miriamstrauss]

*This is such an underrated channel!!*

[unkindguy]

I guess I don't have to worry about mega back door roth when I am on minimum wage :(