Zip Codes and 401(k)s

EPISODE SUMMARY

In this episode of Your Business, Your Wealth, Paul and Cory break down one of the most common and critical tools for retirement, the 401(k). While investing in your 401(k) can be a great way to start planning for retirement, it should not be viewed as the only tool. Paul and Cory discuss maximizing your match, penalties and limitations of 401(k)s, and reasons to have other investments in place as a high-income earner. Finally, Paul and Cory provide advice to the audience on ways they can look to seriously save for life after work. 

WHAT WAS COVERED

01:37 – Introducing today’s topic, maximizing the use of your 401(k)

02:00 – This Week In Planning

08:27 – Maximizing your match

11:54 – Penalties and limitations associated with 401(k)s

15:05 – Why Paul and Cory always suggest a Roth 401(k)

17:04 – The shared elbow space metaphor

18:55 – Reasons taxes might go up in the future

19:53 – Paul interrupts the podcast to provide the audience with a special offer

21:01 – Is the 401(k) enough for high-income earners to retire?

22:37 – Calculating what it would look like to maximize your 401(k)

23:56 – Paul provides advice for those who are seriously looking to put away money for retirement

25:38 – Paul reads this week’s featured review

26:13 – Paul encourages the audience to leave a review on the podcast 

TWEETABLES

You don’t need to predict where the wind is blowing, just the zip code it’s blowing to.

Once you put the money in [to your 401(k)], you’re making an irrevocable decision to pay the taxes on that account at future tax rates, whatever they are.

With the Roth 401(k), you put the money in after tax and now the money is 100% yours as the investor and retiree.

For most people, it’s not until their early forties that they really start going to town (on retirement).

We have to be setting aside money above and beyond the 401(k) because you, as a listener of this podcast, are likely in that top one percent income realm. And, as a result, the 401(k) just doesn’t do enough heavy lifting to replace the income that you're earning prior.

To listen to the full episode, and read show notes, which includes a FREE PDF of the transcription, visit: https://sfgwa.com/ep161.

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