How To Maximize Your 401(k) Strategy!

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Investing, Education, Business

4.7 • 3.1K Ratings

🗓️ 15 January 2025

⏱️ 29 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

"I’m 31. My 401(k) lets me pick a percentage for Roth and a percentage for Pre-Tax contributions. I have $7k in a Roth IRA, and plan to max out 401(k) and Roth IRA next year! My 401(k) match is 8% Pre-Tax. How do I pick my Roth percentage?" We'll walk you through that question and more in today's Q&A episode! Jump start your journey with our FREE financial resources Reach your goals faster with our products Take the relationship to the next level: become a client Subscribe on YouTube for early access and go beyond the podcast Connect with us on social media for more content Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	401Ks, how to maximize your strategy.
0:10.0	Brian, I am so excited about this because we get to tell people how they can make small decisions that can have huge impacts.
0:18.0	We get to tell people, hey, I've got a question and I want to know
0:21.7	the answer to this question and we love that we get to do that for you guys. Every
0:25.4	Tuesday at 10 a.m. Central Time, we get to load you guys up and today is no difference.
0:31.1	So right now we have our team out in the wings, collecting your questions, because we
0:35.5	believe there's a better way for you to do money.
0:38.3	We also believe that you should subscribe right now to the channel if you have not yet subscribed.
0:44.3	So with that, senior content developer, Megan, I'm going to throw it over to you.
0:49.3	All right, and we are starting off with a 401 question from LP.
0:52.3	It says, I'm 31. My 401k lets me pick a percentage
0:56.5	for Roth and a percentage for pre-tax contributions. I currently have $7,000 in a Roth IRA,
1:02.8	and I plan to max out my 401k and my Roth IRA next year. My 401k matches 8% pre-tax. How do I
1:10.7	pick my Roth percentage?
1:12.6	I love this.
1:13.6	So a lot of people are faced with this question.
1:16.6	Hey, my 401 when I do open enrollment or when I go out to the website, it says, hey, I can either
1:22.6	put money into the Roth side or I can put money into the pre-tax side.
1:26.6	Now, I do want to clear something
1:27.9	up because we've got some questions around this. He mentioned in here, he or she mentioned
1:32.4	in here that I get an 8% match pre-tax or I get a match on a pre-tax match on 8% of my contributions.
1:42.3	I want to be clear. That does not mean that you have to make pre-tax match on 8% of my contributions. I want to be clear. That does not mean that you have to make
	...

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