Invest your 401(k)

7 Dec 2023 · 1 min

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1:01

In this short video, Jerry Taylor explains what a 401(k) retirement account is, emphasizing its tax advantages and the distinction between traditional and Roth 401(k)s. He warns against leaving contributions as cash, urging viewers to invest early and maximize contributions, especially since many employers match a portion of the employee’s contribution. He also notes that most plans are administered by large providers such as Vanguard and Schwab, and encourages listeners to start investing as soon as possible in their careers.

Chapters

Let's talk about investing and your 401. Let's go ahead and admit it. Most of you out there couldn't tell me what a 401 is if you had to. If you're one of those people, this is for you. 401 is a retirement investment account offered by your employer. It has really good tax advantages, so the money that you contribute lowers your taxable income. You've probably also heard about Roth 401s, but they're offered by many fewer employers, although the tax benefits with those are incredible. Once you've contributed money to your 401, it has to be invested. If you just let the money sit there as cash in your 401, you're missing an opportunity to turn this money into millions of dollars if you get started early. There are limits on how much you can invest each year based on your income and many other factors, but you should invest as much as you possibly can. Start doing this as early in your career as possible, and many employers will match your contributions. Although your employer offers these, most of these are handled by companies like Vanguard and Schwab. Now, if you're just getting