Money Guy Show How To Maximize Your 401(k) Strategy!
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Jan 15, 2025 This discussion covers the ins and outs of optimizing 401(k) contributions, particularly the choice between Roth and pre-tax options. It emphasizes the importance of early contributions for long-term financial health. Listeners learn humorous insights on how fashion intersects with finance and how to manage mortgages while prioritizing investments. The talk wraps up with strategies for maximizing tax efficiency in investment returns, making it clear that a well-thought-out approach can alleviate financial stress.
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Roth vs. Pre-tax 401(k)
- Prioritize Roth contributions in your 20s and early 30s for tax-free growth.
- Consider pre-tax if your combined tax rate exceeds 30%, aiming for lower rates in retirement.
Tax Implications for High Earners
- High earners should analyze their tax situation before deciding on Roth or pre-tax 401(k) contributions.
- Consider factors like current and projected income, and the potential for Roth conversions later.
Members Only Jacket
- Brian Preston bought a Members Only jacket as an adult, fulfilling a childhood desire.
- His wife teased him about looking like a Gen Xer, prompting him to change for their date.