The IRA vs. 401(k). You’ve heard of these retirement accounts before, but do you know the difference between the two? Maybe you have a 401(k) at work and have been diligently getting your employer match but struggle to describe what you’re investing in. You’ve heard top financial experts talk about how a Roth IRA is crucial for saving on taxes long-term, but are you eligible to invest in one? Today, we’re discussing top retirement accounts and how to start investing with just $100.
CFP (Certified Financial Planner) Kyle Mast joins Mindy on today’s show to answer common questions about 401(k)s, IRAs, Roth IRAs, and HSAs! We’ll first describe when you should invest in a 401(k) vs. an IRA, why their Roth equivalents are so valuable, especially if you’re itching to save on taxes in retirement, and the best account for beginners that (most) Americans will get free money from.
What happens after you leave a job and your 401(k) remains? Kyle discusses the options to ensure your money stays invested, even after leaving an employer. We’ll also get into the triple-tax benefit HSA (health savings account) that you should take advantage of IF you qualify, which accounts to invest in first, and what to do once you’ve maxed out your retirement accounts!
In This Episode We Cover
401(k)s vs. IRAs and which to invest in first (especially if you’re employed!)
Roth IRAs and 401(k)s explained and when to choose a Roth over a traditional account
The best retirement account for beginners and how to get free money for retirement
How to take control of a 401(k) after leaving an employer
Health Savings Accounts (HSAs) and who qualifies for these extremely tax-benefited accounts
Which accounts to invest in first when maximizing retirement savings
How we would start investing for retirement if we only had $100/month extra
And So Much More!
Links from the Show
BiggerPockets Money Facebook Group
Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums
Finance Review Guest Onboarding
Join BiggerPockets for FREE
Mindy on BiggerPockets
Scott on BiggerPockets
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Apply to Be a Guest on The Money Show
Podcast Talent Search!
Find an Investor-Friendly Agent in Your Area
Find Investor-Friendly Lenders
BiggerPockets Money Group
Buy Scott’s Book “Set for Life”
See Mindy and Scott at BPCON2024 in Cancun!
BiggerPockets Money - Episode 549: Is FIRE Dead? No, But Here’s Why Most WON’T Achieve It
See Mindy at BPCON2024 in Cancun!
Traditional 401(k) vs. Roth IRA: Which One Wins?
00:00 Intro
02:17 401(k)s vs. IRAs
05:07 Roth IRAs and 401(k)s
11:21 Best Account for Beginners
14:31 401(k)s After Ending Employment
19:58 Health Savings Accounts (HSA)
26:46 How to Invest $100
32:00 Connect with Kyle!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-558
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com
Learn more about your ad choices. Visit megaphone.fm/adchoices
