How to sequence HSA, Roth IRA and 401(k)

Andrew outlines an allocation order: get employer match, use HSA and Roth, then return to maximizing 401(k), adjusting for tax-deduction needs.

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#606 We're back with Part 2 of our three-part series on the seven rules of creating wealth! In this episode, Justin Williams and Andrew Giancola of The Personal Finance Podcast dive deeper into investing — where to start, how to maximize your employer’s 401(k) match, the power of HSAs, Roth IRAs, and why keeping fees low is critical to long-term wealth building. Andrew also breaks down the step-by-step process of investing in index funds and ETFs, plus tips for setting up investment accounts for your kids. If you haven’t listened to Part 1 yet, be sure to go back and check it out. And stay tuned for Part 3 tomorrow, where we’ll wrap up the series!

(Original Air Date - 3/5/25)

What we discuss with Andrew:

+ Maximize 401(k) match – Best guaranteed return

+ HSA benefits – Triple tax advantages

+ Roth IRA strategy – Tax-free growth & backdoor option

+ Minimize fees – Avoid costly advisor & fund fees

+ How to invest – Open accounts & automate contributions

+ Lump sum vs. monthly – Best way to invest large amounts

+ Time in market – Long-term growth power

+ Investing for kids – Roth IRAs & brokerage accounts

+ Stocks vs. real estate – Passive vs. active wealth building

+ S&P 500 advantage – Outperforms most funds