"I'm 25 and Make $240k - What Should I Do?"

Money Guy Show

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

Education, Business, Investing

4.7 • 3.1K Ratings

🗓️ 26 July 2023

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

If you're young and make a high income, how should you balance saving for the future and spending? 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	Do you have a question for you guys?
0:09.6	My 401k offers three contribution options.
0:12.8	Free tax, Roth, and voluntary after tax.
0:16.9	In what situation would I choose voluntary after tax?
0:20.8	What's the benefit over traditional savings?
0:23.1	Man, Giselle, I love this when you set us up for this.
0:26.4	So a lot of people think that when it comes time to save an 401k, you have two options.
0:32.0	You do free tax or Roth.
0:33.0	We talk about those, ad nods them all the time.
0:35.4	We're talking about those.
0:36.8	There's actually a third option that people don't realize, and that is the after tax.
0:41.1	The apex predator.
0:43.9	The after tax 401k contribution.
0:46.2	Here's just beautiful about the after tax.
0:48.0	The pre tax and Roth are kept.
0:49.4	You can only do 22,500 if you're under 50.
0:52.3	It goes up to 30,000 if you're over 50.
0:54.8	However, the after tax portion is not kept at the 22,5.
0:59.2	If your employer makes out available, you can actually put dollars in that all the way
1:03.1	up to the section 415 limits, which I think this year are $66,000.
1:07.8	That's right.
1:08.8	You could put $66,000 into your 401k if you so chose by doing the after tax.
	...

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