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Matthews in Hartford, Connecticut.

Hey, Matthew.

Hey, how's it going?

Thank you for taking my call.

Sure.

I maxed my 401K out, like three, four months left in the year, put them the 15% in, like, you guys, like, tell us it's a good idea, too. And my company has an after-tax account, but I can continue to put a percentage of my check-in after-taxes that rolls into my 401K Roth. Do you have a mortgage? I do have a mortgage. Put it on that. Don't put it in that. Pay your mortgage off. That was the only question I had. Okay, it's easy. Yeah, we tell people, but when you're in baby steps four, five, and six, four is 15% of your income going into retirement, five is kids college, any other money we can find above living life well,

we're going to throw out and pay off the mortgage next.

Because what we found, Matthew, the data tells us that the typical millionaire in America,

and we've done the largest study on them of anybody, has a paid-for-home and a healthy

muscle-bound 401k account.

You're going to have both if you go this route. Now, when the house is paid off, you can go back and play some of these other games. You can max out. You can, you know, you get to this year be 24-5. If you're over 50, you could do, or over 60, you could do 11, 250 extra. Do all those kinds of games. I do every bit of that. I do everything I can do. I'm 66, but I don't have any debt and hadn't had in 20, 30 years. So I'm just, I'm always maxing that stuff. I don't have any mortgages. It's a baby step seven item to start. Exactly. Going above and beyond all of that. But yeah, you got the backdoor Roth IRA for incomes too high for the normal, and then you get the mega backdoor Roth 401K, which is what he's talking about. Yeah. Where you can do the after-tax contribution and an in-plan conversion. And we have that at Ramsey. Very few people do it around here. Because they're not Baby Step 7. at that point it's a good option to have but again to your point i'd rather have the house

paid off first before i'm adding it Because they're not baby step seven. But at that point, it's a good option to have.

But again, to your point, I'd rather have the house paid off first before I'm adding extra to retirement.

Because likely he's going to be a multi, multi, multi-millionaire in that retirement account. Exactly.

So in the meantime, until we get there and can access it, let's have it paid off home.

And because that is an element of the typical data point of the typical person in their first

$1 to $5 million in that worth.

Now beyond that, people do other things.

They don't borrow to do it, but beyond that, they're doing more than just 401K and a paid

for house.

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