1 00:00:40,330 --> 00:00:44,349 Suze: January 14th, 2024. Welcome everybody to the Women and Money 2 00:00:44,360 --> 00:00:49,750 Suze: podcast as well as everybody smart enough to listen. Today 3 00:00:49,759 --> 00:00:53,119 Suze: is Suze School. But you know what else today is 4 00:00:53,220 --> 00:00:56,840 Suze: today is the day that four of my friends from 5 00:00:56,849 --> 00:01:01,569 Suze: grammar school are coming for the very first time in 6 00:01:01,580 --> 00:01:03,360 Suze: just a few hours this morning 7 00:01:03,630 --> 00:01:09,370 Suze: to the island. Leslie Lynn, Laurie Brown Nader, Benjamin Nitka 8 00:01:09,400 --> 00:01:13,989 Suze: and Marsha Nitka Truitt. Oh my God. I'm so excited. 9 00:01:14,000 --> 00:01:17,190 Suze: I can't even stand it. Do you all have friends 10 00:01:17,199 --> 00:01:18,569 Suze: from when you were at grammar school? 11 00:01:19,269 --> 00:01:23,099 Suze: They all say to me, how did this happen to you? Like, 12 00:01:23,110 --> 00:01:27,339 Suze: really Suze? You weren't that smart anyway, I can't wait 13 00:01:27,349 --> 00:01:28,769 Suze: to see them. 14 00:01:29,260 --> 00:01:34,300 Suze: I also can't wait to do today's podcast because it's 15 00:01:34,309 --> 00:01:38,000 Suze: going to be a little bit of a different one 16 00:01:38,010 --> 00:01:41,809 Suze: or a different way that I want you to think 17 00:01:41,819 --> 00:01:47,400 Suze: about your retirement accounts. So you should absolutely get out 18 00:01:47,410 --> 00:01:51,199 Suze: your little Suze notebooks for this one. 19 00:01:52,010 --> 00:01:56,809 Suze: You know, when it comes to planning for your retirement, 20 00:01:57,180 --> 00:02:01,260 Suze: most of you think that the only way you can 21 00:02:01,269 --> 00:02:06,400 Suze: save for retirement is in a retirement account 22 00:02:07,440 --> 00:02:10,199 Suze: and usually you think, oh, my God, I need to 23 00:02:10,210 --> 00:02:12,630 Suze: do it in a 401k if you work for a 24 00:02:12,639 --> 00:02:16,209 Suze: profit corporation or a 403 B, if you work for 25 00:02:16,220 --> 00:02:19,679 Suze: a nonprofit or a TSP, a thrift savings plan, if 26 00:02:19,690 --> 00:02:23,220 Suze: you work for the government or the armed forces, 27 00:02:23,585 --> 00:02:26,755 Suze: or if you don't have a retirement account at work 28 00:02:26,764 --> 00:02:29,904 Suze: for whatever reason, or you don't work for an employer, 29 00:02:29,975 --> 00:02:32,125 Suze: then you think, oh, the only way I can do 30 00:02:32,133 --> 00:02:36,154 Suze: it is with a Roth IRA or a traditional IRA. 31 00:02:36,315 --> 00:02:39,565 Suze: But you can only put so much money per year 32 00:02:39,910 --> 00:02:43,500 Suze: this year. It's 7000 or 8000, if you are 50 33 00:02:43,508 --> 00:02:47,050 Suze: or older, you can only put so much money in there. 34 00:02:47,160 --> 00:02:50,210 Suze: And many of you tend to think that there is 35 00:02:50,220 --> 00:02:55,009 Suze: absolutely no other way for you to save for retirement. 36 00:02:56,070 --> 00:02:59,350 Suze: But do you know that the majority of people out 37 00:02:59,360 --> 00:03:03,288 Suze: there that accumulate massive amounts of wealth, 38 00:03:04,589 --> 00:03:08,339 Suze: they have their money, not just in a retirement account 39 00:03:08,350 --> 00:03:12,080 Suze: if they even have it in a retirement account, but 40 00:03:12,119 --> 00:03:17,779 Suze: they invest in a regular investment account at usually a 41 00:03:17,788 --> 00:03:22,940 Suze: brokerage firm. And that is how they accumulate massive amounts 42 00:03:22,949 --> 00:03:26,948 Suze: of money as well for me personally. 43 00:03:27,639 --> 00:03:31,820 Suze: Yes, I have some money in an IRA and some 44 00:03:31,830 --> 00:03:34,660 Suze: that I converted to a Roth IRA a long time 45 00:03:34,669 --> 00:03:38,970 Suze: ago and I used to have a pension plan where 46 00:03:38,979 --> 00:03:41,339 Suze: I would put money into this knowing that when I 47 00:03:41,350 --> 00:03:44,649 Suze: got older, which I am now, I could take it out, 48 00:03:44,660 --> 00:03:47,779 Suze: but I would be taxed on it as ordinary income. 49 00:03:48,110 --> 00:03:50,860 Suze: I started to think, Suze Orman, 50 00:03:51,309 --> 00:03:55,929 Suze: why would you do that? You are far better off 51 00:03:55,940 --> 00:03:59,399 Suze: not putting money away and taking a tax write off 52 00:03:59,410 --> 00:04:03,690 Suze: right now, like in a pension plan and simply taking 53 00:04:03,699 --> 00:04:07,889 Suze: that money and investing it in an investment account. 54 00:04:08,669 --> 00:04:13,649 Suze: So I want you to understand my way of thinking 55 00:04:13,660 --> 00:04:15,850 Suze: and why you might decide 56 00:04:16,570 --> 00:04:22,429 Suze: that an investment account may be where truthfully the majority 57 00:04:22,440 --> 00:04:29,670 Suze: of your retirement money goes versus a traditional 401k 403b 58 00:04:30,010 --> 00:04:34,420 Suze: or a TSP after the point of the match. 59 00:04:35,670 --> 00:04:36,239 Suze: Now, 60 00:04:37,309 --> 00:04:41,529 Suze: with that said, there is just one caveat to this 61 00:04:42,309 --> 00:04:45,970 Suze: as you already know and you have known forever. Now, 62 00:04:46,730 --> 00:04:51,149 Suze: there is no better investment or retirement account that you 63 00:04:51,160 --> 00:04:56,868 Suze: can have than a Roth IRA backdoor, Roth. If you 64 00:04:56,880 --> 00:05:02,890 Suze: can do one or a Roth 401k 403b or TSP, 65 00:05:03,079 --> 00:05:07,909 Suze: if you can invest that way, that should be your 66 00:05:07,920 --> 00:05:10,109 Suze: number one priority 67 00:05:10,779 --> 00:05:19,269 Suze: for this podcast here. I'm talking about pre-tax traditional 401Ks 68 00:05:19,738 --> 00:05:27,808 Suze: or 403bs or TSPs especially after the point of the match, right? 69 00:05:27,820 --> 00:05:31,010 Suze: And a match for those of you who don't know 70 00:05:31,019 --> 00:05:34,959 Suze: is where you put a dollar into your retirement account 71 00:05:35,269 --> 00:05:38,890 Suze: and your company matches it and puts maybe 50 cents 72 00:05:38,899 --> 00:05:41,760 Suze: or so for every dollar you put in up to 73 00:05:41,769 --> 00:05:45,529 Suze: usually 6% of your base pay. 74 00:05:46,500 --> 00:05:49,269 Suze: So I just wanna tell you why 75 00:05:50,380 --> 00:05:53,118 Suze: I think this way and 76 00:05:53,970 --> 00:05:57,659 Suze: for you to write down the eight greats, I call 77 00:05:57,670 --> 00:06:03,029 Suze: them the eight great reasons why in a 401k that 78 00:06:03,040 --> 00:06:06,409 Suze: is pre taxed after the point of the match. And 79 00:06:06,420 --> 00:06:09,130 Suze: when I say 401k, I'm referring to all the others 80 00:06:09,140 --> 00:06:12,299 Suze: as well. OK. Just so you know why 81 00:06:13,350 --> 00:06:18,010 Suze: investing in a 401k after the point of the match 82 00:06:19,380 --> 00:06:24,959 Suze: may not be as great as a regular investment account. 83 00:06:25,260 --> 00:06:29,079 Suze: If you have the discipline to every single month, put 84 00:06:29,089 --> 00:06:30,750 Suze: money away. 85 00:06:31,410 --> 00:06:35,428 Suze: So are you ready for this one a different way 86 00:06:35,519 --> 00:06:38,589 Suze: for you to think about your future? 87 00:06:39,339 --> 00:06:43,609 Suze: I want you on a piece of paper to write 88 00:06:43,619 --> 00:06:48,190 Suze: down two columns right now. Get out your paper and 89 00:06:48,200 --> 00:06:49,070 Suze: do this 90 00:06:49,970 --> 00:06:53,329 Suze: and I want you on to the left side to 91 00:06:53,339 --> 00:06:55,868 Suze: write pre-tax 401k. 92 00:06:56,720 --> 00:07:00,540 Suze: On the right side, I want you to write an 93 00:07:00,549 --> 00:07:04,140 Suze: investment account. Have you done that? Good. 94 00:07:04,869 --> 00:07:11,670 Suze: The very first difference between the 401k pre-tax and an 95 00:07:11,679 --> 00:07:14,730 Suze: investment account is that it's true 96 00:07:15,690 --> 00:07:21,619 Suze: in a 401k, that's pre-tax. You do get a taxable 97 00:07:21,630 --> 00:07:23,359 Suze: income write off 98 00:07:25,000 --> 00:07:29,880 Suze: in the investment account since you're doing it with after 99 00:07:29,890 --> 00:07:35,809 Suze: tax money, there is no write off whatsoever. That's a 100 00:07:35,820 --> 00:07:38,929 Suze: kind of an advantage for many of you. Maybe in 101 00:07:38,940 --> 00:07:41,690 Suze: your heads for the 401k. 102 00:07:42,760 --> 00:07:48,828 Suze: The second reason, however, is that within a 401k, you 103 00:07:48,839 --> 00:07:55,540 Suze: have limited investment options. Usually you have mutual funds that 104 00:07:55,549 --> 00:08:01,380 Suze: you can invest in possibly your employer's stock. But that's 105 00:08:01,390 --> 00:08:05,018 Suze: usually it. And it is possible 106 00:08:05,510 --> 00:08:10,769 Suze: that that account may also come with high fees. Just 107 00:08:10,779 --> 00:08:13,130 Suze: depends on your company 108 00:08:13,790 --> 00:08:20,029 Suze: in an investment account. You can invest in absolutely anything 109 00:08:20,040 --> 00:08:24,589 Suze: you want and in most cases do it absolutely With 110 00:08:24,600 --> 00:08:26,929 Suze: no fees whatsoever. 111 00:08:27,850 --> 00:08:32,090 Suze: You could invest in treasuries, you could invest in certificates 112 00:08:32,099 --> 00:08:37,150 Suze: of deposits, you could invest in individual stocks, mutual funds, 113 00:08:37,159 --> 00:08:40,590 Suze: you could do option strategy, you could do anything that 114 00:08:40,679 --> 00:08:42,030 Suze: you wanted. 115 00:08:42,690 --> 00:08:44,450 Suze: So that is number two, 116 00:08:45,159 --> 00:08:49,059 Suze: therefore, an investment account wins there. 117 00:08:49,840 --> 00:08:52,500 Suze: Number three, it is true 118 00:08:53,609 --> 00:08:59,030 Suze: that when you invest in a 401k, your money is 119 00:08:59,039 --> 00:09:04,510 Suze: tax deferred. So you get a tax write off for it. 120 00:09:05,020 --> 00:09:10,369 Suze: When you invest while it's in there, you do not 121 00:09:10,380 --> 00:09:13,530 Suze: pay any taxes on it no matter whether you sell, 122 00:09:13,539 --> 00:09:18,439 Suze: buy whatever it is tax deferred until you go to 123 00:09:18,450 --> 00:09:22,950 Suze: take it out. However, in an investment account, 124 00:09:23,419 --> 00:09:28,439 Suze: the truth of the matter is when you make investments, 125 00:09:28,690 --> 00:09:34,549 Suze: let's just say you buy individual stocks, you buy an exchange 126 00:09:34,559 --> 00:09:38,919 Suze: traded fund or index funds, maybe the same funds that 127 00:09:38,929 --> 00:09:43,320 Suze: you would have invested in within your 401k 128 00:09:44,229 --> 00:09:48,169 Suze: while the money is in those, you don't pay any 129 00:09:48,179 --> 00:09:52,549 Suze: taxes on it. So in its own way, it's tax deferred. 130 00:09:52,909 --> 00:09:57,098 Suze: There are many of you out there that have purchased 131 00:09:57,109 --> 00:10:00,329 Suze: and maybe you do it monthly, whatever the Standard and 132 00:10:00,340 --> 00:10:04,319 Suze: Poor's 500 index fund and, or the Vanguard Total Stock 133 00:10:04,330 --> 00:10:07,179 Suze: Market Fund, whatever it may be or the ETFs, 134 00:10:08,299 --> 00:10:11,010 Suze: you don't buy it and sell it and trade it 135 00:10:11,109 --> 00:10:13,770 Suze: while the money is in there. 136 00:10:14,469 --> 00:10:19,020 Suze: Essentially, it is tax deferred because you don't pay taxes 137 00:10:19,030 --> 00:10:22,549 Suze: on it unless you sell it. And again, the majority 138 00:10:22,559 --> 00:10:28,330 Suze: of you buy something and truthfully you hardly ever sell it. Now, 139 00:10:28,340 --> 00:10:33,130 Suze: while it is true that if you are getting dividends 140 00:10:33,580 --> 00:10:39,010 Suze: on your exchange traded funds and, or stocks, you will 141 00:10:39,020 --> 00:10:39,799 Suze: pay 142 00:10:40,419 --> 00:10:46,030 Suze: taxes on that, but that might not be that much money. 143 00:10:46,309 --> 00:10:50,880 Suze: So that is a difference there in this case, advantage 144 00:10:50,890 --> 00:10:54,238 Suze: to the 401k, but just by a little bit, 145 00:10:55,039 --> 00:11:00,919 Suze: number four in your 401k, if you invest in things 146 00:11:01,080 --> 00:11:04,789 Suze: and they go all the way down, maybe something has 147 00:11:04,799 --> 00:11:07,630 Suze: happened and you don't want to be invested in it 148 00:11:07,640 --> 00:11:10,710 Suze: anymore and you have lost money on it 149 00:11:11,349 --> 00:11:14,280 Suze: when you go to sell because remember, you don't lose 150 00:11:14,289 --> 00:11:16,409 Suze: or make money till you actually sell. 151 00:11:17,099 --> 00:11:22,159 Suze: You need to understand in a 401k or really any 152 00:11:22,169 --> 00:11:26,299 Suze: retirement account for that matter, there are no tax write 153 00:11:26,309 --> 00:11:32,010 Suze: offs for losses. What so ever in an investment account, 154 00:11:32,599 --> 00:11:34,229 Suze: if you buy something 155 00:11:34,919 --> 00:11:38,260 Suze: and you have a loss in it, you can sell 156 00:11:38,270 --> 00:11:42,609 Suze: it and take that off your taxable income up to 157 00:11:42,619 --> 00:11:48,390 Suze: $3000 per year or if you have something in your 158 00:11:48,400 --> 00:11:52,488 Suze: investment account that you've made a lot of money on 159 00:11:52,750 --> 00:11:56,359 Suze: and maybe you want to offset those gains with losses. 160 00:11:56,369 --> 00:12:01,090 Suze: You can do so in an investment account. 161 00:12:02,299 --> 00:12:06,820 Suze: So really, that's an advantage for an investment account. 162 00:12:07,919 --> 00:12:08,739 Suze: Five. 163 00:12:09,520 --> 00:12:12,419 Suze: When you have money in a 401k, 164 00:12:13,330 --> 00:12:18,780 Suze: there is a penalty to withdraw that money in most 165 00:12:18,789 --> 00:12:26,669 Suze: cases before the age of 59.5. And it's usually a 10% 166 00:12:26,679 --> 00:12:31,349 Suze: federal tax penalty and whatever the penalty will be for 167 00:12:31,359 --> 00:12:34,140 Suze: the state that you live in as well. 168 00:12:34,789 --> 00:12:41,429 Suze: So the pre-tax retirement accounts also come with a lot 169 00:12:41,440 --> 00:12:43,640 Suze: of restrictions on them 170 00:12:45,250 --> 00:12:48,630 Suze: in an investment account. It is your money. 171 00:12:49,419 --> 00:12:52,549 Suze: You can take it out whenever you want, you can 172 00:12:52,559 --> 00:12:55,750 Suze: access it, you can do anything you want with it, 173 00:12:56,000 --> 00:12:59,228 Suze: no limitations whatsoever. 174 00:12:59,940 --> 00:13:05,839 Suze: So the investment account wins in this scenario, number six, 175 00:13:06,289 --> 00:13:10,640 Suze: the money that you have in a 401k. 176 00:13:11,510 --> 00:13:15,700 Suze: When you go to take it out, you will pay 177 00:13:15,710 --> 00:13:19,369 Suze: ordinary income tax on it 178 00:13:21,039 --> 00:13:23,719 Suze: and you may not think that you will be in 179 00:13:23,729 --> 00:13:27,140 Suze: a high income tax bracket at retirement. 180 00:13:28,140 --> 00:13:34,440 Suze: I think given the extraordinary debt that the United States 181 00:13:34,450 --> 00:13:35,840 Suze: is carrying, 182 00:13:36,630 --> 00:13:41,770 Suze: we are coming to the crossroads of having to do 183 00:13:41,780 --> 00:13:43,510 Suze: something about it 184 00:13:44,229 --> 00:13:48,530 Suze: and whether that is reducing the budget, which we should 185 00:13:48,539 --> 00:13:52,719 Suze: absolutely be reducing. But I don't think that is going 186 00:13:52,729 --> 00:13:55,530 Suze: to take care of the problem. One of the only 187 00:13:55,539 --> 00:14:00,819 Suze: solutions really will be to raise income tax brackets. I 188 00:14:00,830 --> 00:14:04,539 Suze: have said this forever. I will continue to say it. So, 189 00:14:04,549 --> 00:14:08,530 Suze: don't count on being in a lower income tax bracket 190 00:14:09,239 --> 00:14:11,190 Suze: when you retire 191 00:14:12,320 --> 00:14:16,900 Suze: in an investment account, when you do go to take 192 00:14:16,909 --> 00:14:19,820 Suze: money out. And if it's been in there for over 193 00:14:19,830 --> 00:14:23,260 Suze: one year and whatever it is that you're selling, that 194 00:14:23,270 --> 00:14:27,419 Suze: you may have a gain in where you've made money, 195 00:14:27,679 --> 00:14:32,380 Suze: you will be taxed as capital gains tax on that. 196 00:14:33,179 --> 00:14:39,030 Suze: That can be a very, very big difference. So again, 197 00:14:39,200 --> 00:14:43,229 Suze: the investment account wins here as well. 198 00:14:44,150 --> 00:14:49,830 Suze: Number seven, if you die and it's not an, if 199 00:14:49,840 --> 00:14:55,760 Suze: it's a win any money that is in your 401k plans, 200 00:14:55,770 --> 00:14:59,020 Suze: when it goes to your beneficiaries and they go to 201 00:14:59,030 --> 00:15:02,809 Suze: take it out, they will be taxed on it as 202 00:15:02,820 --> 00:15:08,049 Suze: ordinary income as well. And while you might not be 203 00:15:08,059 --> 00:15:10,650 Suze: in as high of an income tax bracket, 204 00:15:11,140 --> 00:15:15,330 Suze: maybe your children will be in a higher income tax 205 00:15:15,340 --> 00:15:21,809 Suze: bracket because why now they're working? Maybe they've been very successful. So, 206 00:15:21,820 --> 00:15:25,289 Suze: what kind of burden are you passing down to them? 207 00:15:25,669 --> 00:15:28,530 Suze: Where number one, they won't get what they see in 208 00:15:28,539 --> 00:15:30,679 Suze: the account? And number two, 209 00:15:31,500 --> 00:15:35,440 Suze: how many podcasts have I done on the new inheritance 210 00:15:35,450 --> 00:15:41,739 Suze: laws when you get a pre-tax retirement account that has 211 00:15:41,750 --> 00:15:44,880 Suze: to be wiped clean within 10 years? I mean, it 212 00:15:44,890 --> 00:15:49,059 Suze: is a mess as to how you figure out all 213 00:15:49,070 --> 00:15:49,719 Suze: of that 214 00:15:50,570 --> 00:15:52,549 Suze: with an investment account. 215 00:15:53,330 --> 00:15:55,679 Suze: There are no rules like that. 216 00:15:56,630 --> 00:16:01,119 Suze: When you die, you leave it to your beneficiaries, hopefully 217 00:16:01,130 --> 00:16:05,450 Suze: through a revocable living trust everybody. So there are no 218 00:16:05,460 --> 00:16:10,890 Suze: probate fees. However, they will all get a step up 219 00:16:10,900 --> 00:16:16,169 Suze: in cost basis as to whatever is in that account 220 00:16:16,190 --> 00:16:18,530 Suze: at that time. 221 00:16:19,119 --> 00:16:24,690 Suze: So if you happen to invest, let's just say $50,000 222 00:16:24,700 --> 00:16:26,580 Suze: in an investment account 223 00:16:27,369 --> 00:16:31,739 Suze: and now it has grown to be worth a million dollars. 224 00:16:31,750 --> 00:16:33,690 Suze: Let's just say that's true. 225 00:16:34,690 --> 00:16:39,090 Suze: You die. Your beneficiaries get it. Their cost basis on 226 00:16:39,099 --> 00:16:43,809 Suze: that now is $1 million. If they turn around and 227 00:16:43,820 --> 00:16:49,450 Suze: they sell it, they don't pay one penny of income tax. 228 00:16:49,619 --> 00:16:54,030 Suze: Going back for a second to the 401k. You invest 229 00:16:54,039 --> 00:17:00,090 Suze: $50,000 it's now worth $1 million. 230 00:17:00,700 --> 00:17:04,790 Suze: You die, your beneficiaries get it. They will have to 231 00:17:04,800 --> 00:17:10,389 Suze: pay ordinary income tax on that million dollars. They may 232 00:17:10,400 --> 00:17:12,500 Suze: have 10 years to withdraw it, 233 00:17:13,290 --> 00:17:18,839 Suze: but that would be $100,000 a year. Approximately. They're going 234 00:17:18,849 --> 00:17:22,069 Suze: to pay ordinary income tax and have to pay it 235 00:17:22,079 --> 00:17:28,800 Suze: on a lot of money. Hands down the investment account 236 00:17:28,810 --> 00:17:33,829 Suze: wins over a 401k plan. In this scenario, 237 00:17:34,790 --> 00:17:40,689 Suze: 8. Two things here, I'm gonna combine two into one. 238 00:17:41,750 --> 00:17:50,680 Suze: There are required minimum distributions on a pre-tax 401k, 239 00:17:51,619 --> 00:17:56,119 Suze: which means once you turn the age of 73 currently, 240 00:17:56,839 --> 00:18:01,020 Suze: you are required to take out specific sums of money 241 00:18:01,030 --> 00:18:05,409 Suze: from your retirement accounts even if you do not need 242 00:18:05,420 --> 00:18:09,540 Suze: them this year. I have to make my first withdrawal 243 00:18:09,550 --> 00:18:13,329 Suze: from my retirement accounts that I did have, 244 00:18:14,219 --> 00:18:18,359 Suze: even though I don't need that income and that income 245 00:18:18,369 --> 00:18:22,329 Suze: will go and be ordinary income tax to me. And 246 00:18:22,339 --> 00:18:26,439 Suze: that brings up everything for me. It will add to 247 00:18:26,449 --> 00:18:32,899 Suze: Medicare B premiums, social security taxes, all of that 248 00:18:33,660 --> 00:18:37,189 Suze: when you have a Roth retirement account, just so, you know, 249 00:18:37,290 --> 00:18:42,170 Suze: there are no required minimum distributions. So you don't have 250 00:18:42,180 --> 00:18:43,239 Suze: to worry about that 251 00:18:43,979 --> 00:18:47,159 Suze: in an investment account. You do not have to take 252 00:18:47,170 --> 00:18:52,920 Suze: out required minimum distributions also with number eight because I'm 253 00:18:52,930 --> 00:18:54,839 Suze: combining these two together. 254 00:18:55,569 --> 00:18:58,930 Suze: If you leave your place of employment, 255 00:18:59,880 --> 00:19:03,060 Suze: what do you do with the money that is in 256 00:19:03,069 --> 00:19:04,650 Suze: your 401k? 257 00:19:05,390 --> 00:19:07,770 Suze: You can either just have to leave it there or 258 00:19:07,780 --> 00:19:10,579 Suze: you have to do an Ira rollover with it. There 259 00:19:10,589 --> 00:19:13,329 Suze: are things you have to do with it 260 00:19:13,989 --> 00:19:16,560 Suze: in an investment account. 261 00:19:18,219 --> 00:19:21,060 Suze: If you leave your place of employment, it has nothing 262 00:19:21,069 --> 00:19:25,280 Suze: to do with the money that is in your account. 263 00:19:26,119 --> 00:19:31,560 Suze: So these are eight great comparisons for you to just 264 00:19:31,569 --> 00:19:37,540 Suze: think about when it comes to traditional 401k money after 265 00:19:37,550 --> 00:19:42,389 Suze: the point of the match. And by the way, for 266 00:19:42,400 --> 00:19:46,020 Suze: those of you who maybe were keeping score 267 00:19:46,790 --> 00:19:51,169 Suze: as to which one had the most advantages. It was 268 00:19:51,180 --> 00:19:56,030 Suze: six wins for the investment account, one win for the 269 00:19:56,040 --> 00:20:01,169 Suze: 401k and one where they both tied. 270 00:20:03,319 --> 00:20:08,430 Suze: Now, who should not be doing this strategy. Well, obviously, 271 00:20:08,439 --> 00:20:11,479 Suze: for those of you who are investing in Roth retirement 272 00:20:11,489 --> 00:20:16,119 Suze: accounts just keep doing that after you've maxed out, you 273 00:20:16,130 --> 00:20:17,959 Suze: might want to do an investment account. 274 00:20:18,829 --> 00:20:24,030 Suze: But if you're somebody that only can save money because 275 00:20:24,040 --> 00:20:27,909 Suze: they withdraw money directly from your paycheck before you ever 276 00:20:27,920 --> 00:20:31,300 Suze: see it, otherwise you spend it and you are not 277 00:20:31,310 --> 00:20:36,770 Suze: disciplined to invest and save money on your own. Forget 278 00:20:36,780 --> 00:20:41,609 Suze: about this. Or if investing on your own confuses you 279 00:20:41,859 --> 00:20:44,369 Suze: and you just want to invest in the few mutual 280 00:20:44,380 --> 00:20:46,969 Suze: funds maybe, or the mutual funds because maybe there's a 281 00:20:46,979 --> 00:20:47,689 Suze: lot of them 282 00:20:48,030 --> 00:20:53,000 Suze: that your employer offers. All right, you can do that. 283 00:20:54,589 --> 00:20:56,890 Suze: However, for those of you 284 00:20:57,750 --> 00:20:59,750 Suze: who are disciplined, 285 00:21:00,510 --> 00:21:04,329 Suze: who really are investing up to the point of the 286 00:21:04,339 --> 00:21:10,750 Suze: match in your 401 Ks or even after your Roth IRAs, 287 00:21:12,359 --> 00:21:17,978 Suze: it's something that you just might want to think about. 288 00:21:18,849 --> 00:21:22,629 Suze: I will always tell you that you should always invest 289 00:21:22,880 --> 00:21:26,109 Suze: up to the point of the match in any retirement 290 00:21:26,119 --> 00:21:26,669 Suze: account 291 00:21:27,510 --> 00:21:28,239 Suze: bar none. 292 00:21:29,719 --> 00:21:33,089 Suze: I will always tell you to choose a Roth retirement 293 00:21:33,099 --> 00:21:38,739 Suze: account at work versus a traditional retirement account at work. 294 00:21:39,109 --> 00:21:45,709 Suze: And if you choose a Roth 401k, you are absolutely 295 00:21:45,719 --> 00:21:48,739 Suze: to invest up to the max in that, get as 296 00:21:48,750 --> 00:21:52,790 Suze: much money in that as you can before you do 297 00:21:52,800 --> 00:21:56,250 Suze: an investment account. However, 298 00:21:56,530 --> 00:22:00,469 Suze: if for whatever reason, you are not doing a Roth 299 00:22:00,479 --> 00:22:07,930 Suze: retirement account and you keep choosing to do a pre-tax 401k. 300 00:22:08,439 --> 00:22:11,750 Suze: If you continue to put money in after the point 301 00:22:11,760 --> 00:22:15,109 Suze: of the match, you really need 302 00:22:16,040 --> 00:22:21,579 Suze: to listen to this podcast over and over again. 303 00:22:22,930 --> 00:22:27,949 Suze: Did I just make your entire head swim? Very possibly. 304 00:22:28,739 --> 00:22:31,520 Suze: These are the things that I want you to just 305 00:22:31,530 --> 00:22:33,170 Suze: start to think about. 306 00:22:34,280 --> 00:22:39,270 Suze: It's these little changes that you can make to how 307 00:22:39,280 --> 00:22:41,060 Suze: you are doing things 308 00:22:41,829 --> 00:22:45,899 Suze: that can make an entire world of difference to your 309 00:22:45,910 --> 00:22:51,050 Suze: true bottom line when you get older. 310 00:22:51,949 --> 00:22:57,389 Suze: All right. So until Thursday, when it is another ask 311 00:22:57,400 --> 00:23:02,069 Suze: KT and Suze, anything, my God, my friends are going 312 00:23:02,079 --> 00:23:05,280 Suze: to arrive in just a few hours here. Oh, I'm 313 00:23:05,290 --> 00:23:09,729 Suze: so excited. Anyway, until next Thursday, there's really only one 314 00:23:09,739 --> 00:23:11,770 Suze: thing that I want you to remember when it comes 315 00:23:11,780 --> 00:23:16,660 Suze: to your money and it is this people first take 316 00:23:16,670 --> 00:23:20,728 Suze: care of yourselves. People. You yourself need to be first 317 00:23:21,319 --> 00:23:26,989 Suze: people first, then money, then things now you stay safe 318 00:23:27,650 --> 00:23:31,339 Suze: and you stay unstoppable.