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I don’t think this guy know what his plan offers. I would recommend he reach out to his employers HR team and discuss his options. Things can go very wrong when you follow advice blindly without additional research

@AB-wy7dr

Жыл бұрын

Agreed, I don’t even think he knows how much of his $60k is his contribution vs. employer match. He kept saying “they match 50% so that’s $30k”, but I’m assuming his plan, like most plans, is matching 50% OF WHAT HE PUTS IN. Which would make him wrong, by a good amount. Guy just sounds like he needs a clue.

This is interesting. I left my job with a 401(a) and my plan was 100% employer contribution and the employees weren’t allowed to contribute; however, I was able to take it with me and roll it into my new plan. He couldn’t vest until age 50. Crazy!

Jesus, the "a" in 401(a) doesn't mean that it's after-tax as Dave flippantly states.

@brandonk1097

2 жыл бұрын

Exactly, most people don’t know what they are because they’re not very common, but I would expect Dave to know. I work for the state and have one

It takes ten years to be vested in our pension plan. If you take it before then you only get your contributions. We get No say in the amount or options for our contributions. It does not earn well.

Wow! I've never heard of a company not let you keep your matching. That sucks.

This is why Dave recommends advisors. I think this guy just doesn't know anything. Vesting requires you to be working for the company. You can't quit and leave your money in company plan and still be vesting.

@aaront936

2 жыл бұрын

Dave recommends advisors because his list of advisors pays him commissions. Everyone would be better off in the long run using low cost index funds.

More and more companies are doing LOOOONG term vesting requirements regarding the match.

@youngjedi5599

2 жыл бұрын

Five years for mine. January will be 5 years and I will be 100% vested.

@LeonardoGrigio

4 ай бұрын

As I see these comments as well as Dave it appears Dave should not take this call unless he understands what 401a is. Like other types of plans, i.e. 401ks, some and some not so good.

I have been in the Wisconsin retirement system since 2019. I can tell you for certain there's a five-year vesting period. If you leave before the five years you don't get any of the employer contributions

The biggest fear is the fear of failure. So what we need to agree upon together, and on a personal level, is to discipline our mindset into realising that there are no failures, there are only results or outcomes. You never fail in life, you always succeed. You succeed in getting results of some sort. The key is what we do with those results.

@taralewellen1979

2 жыл бұрын

You don’t have to study the roots of a plant to be able to pick the fruit! In my opinion experiential learning is far more powerful

@michaelhaaland735

2 жыл бұрын

You need to ascertain where the value lies, in order to minimize your risk.

@martinharval8465

2 жыл бұрын

@@michaelhaaland735 been online doing some research Bit coin and stocks has been in the news lately, quite acknowledged wanted to trade Crypto but the fluctuations in price gave me another bewildered look.

@mihaelabivoltimus9846

2 жыл бұрын

@@martinharval8465 as a abecedarian investing in crypto will be best for you, but you can't do that on your own without having a guidelines or strategies I know of a portfolio/investment manager, Mr Robertson smelser an expertise in trade investment as you don't have to under go any stress about the fluctuations in the trading market he has been manage ing my trade for 4years now.

The 401k where the company picks the stock fund for you is probably a target date fund so the returns will be more conservative vs what dave prefers.

@scmsean

2 жыл бұрын

Those funds also have very high fees.

@mrstinky2421

2 жыл бұрын

@@scmsean untrue

@scmsean

2 жыл бұрын

@@mrstinky2421 Yes, it is true. Targeted funds usually have a 1%-2% fee. That is huge. When you can get an index fund with a .04% fee. Go into a retirement calculator and enter 1.5% less and see the difference. For me that would be millions. I do max out my 401K every year though.

@mrstinky2421

2 жыл бұрын

@@scmsean vanguard is .13 lol

If he was in the WRS retirement plan they vest after 5 years of employment with a local government, state or school district employer. It's a pension not a 401k plan. The plan is extremely successful in the investment options the Board chooses because of knowledge advice.

The math is wrong...if 30 = 60 = 120 = 240; then 60 = 120 = 240 = 480; Not they're "exactly the same"

I am 99% confident this man does not know much about his 401K plan. He need to research his plan. Many 401k plans are pretty decent, not all of them stink.

@kpeggs82

2 жыл бұрын

I agree. Also this could complicate other investments now or in the future. I am the naughty person that has both a pervious tsp and a 401 l from another job but if I roll it I can no longer back door IRA until I move all of it into a Roth. I am able to choose the. Investments so there is no reason to move at the moment.

@Northdallasguy00

2 жыл бұрын

I agree, the majority of people don’t understand and or know much about their 401(k).

@harrychufan

2 жыл бұрын

It’s not a 401k, it’s a 401a which are through government agencies and nonprofits and can only contribute pretax dollars.

@brandonk1097

2 жыл бұрын

He has a 401a, not 401k. I also have one because I work for a public employer, and everything sounds correct that he said. Cant choose the investment, except mine is 100% employer contributions and I can’t contribute any extra. But mine is 100% vested immediately

@LeonardoGrigio

4 ай бұрын

Dude. Pay attention. You’re addressing the wrong plan type!

No way would I take the money - who is to say the current plan wont do 10% and takeing a 30k hit hoping for a better result. It's only 30k let it ride and start fresh

So true. Hanging on to that bag of bones for 20 years is bad karma. A 20 year reminder of the old stinkin' job that gave you a horrible retirement option.

This was cringe, and hard to watch. It’s what all of these garbage venture capitalists companies do to get that catchy “employee owned” slogan for the marketing team. They use ESOP/profit sharing to make the “match” contribution, they do contribute and invest these funds quarterly. Then they categorize you as an “owner” or “chair holder” of the company, all while making it impossible to get any answers on the slush fund. Also having language buried in the BS fine print stating if you “succeed your ownership in the company” or “voluntarily forfeit your position” you loose everything the company contributed, plus the interest. All while also having arbitrarily added stipulation like needing 40+ years of service or minimum age needed to receive 100% of the funds, and having “fund managers/boards” that can completely deny your “request” to Your funds. So if you try to leave or get fired and roll your remaining 50% funds to an IRA it was never considered a retirement account by the Government and they ste…..take its 20% and you wind up loosing

Has the money not gained or lost a single penny? Or is he not allowed to take the earnings on the match either?

If he doesn’t move it he can’t add to it to make it grow faster. I may be wrong with my thinking, if so let me know I’m new to this. And if he does roll it over should it go into a Roth? Thanks, Joshua

@Gibb591

2 жыл бұрын

I'll clear it up a bit. He can't keep adding to that plan but he can start a different 401k to add too while still keeping the old one. Next point, a Roth is a term that denotes an IRA as already having paid taxes. If he rolls it, this must stay in a 401k and not IRA to avoid penalties, but since he has already paid taxes on it, yes it will be in a post tax 401k, some still call this a Roth 401k

@Northdallasguy00

2 жыл бұрын

Well whether he keeps that plan the old one or rolls it into a new IRA, he can only put the same amount in both funds or just one fund total. So $6000 can go into one IRA or it can be spread across two or more IRAs.

@aaront936

2 жыл бұрын

@@Northdallasguy00 the contribution limit for a ira is 6k. 401k's allow an additional 19500

@damondiehl5637

10 ай бұрын

When you stop working for an employer, you have the option to leave your money where it is, roll it into your new 401k, or roll it over to an IRA. Old 401k to new 401k has to happen in the first 60 days of employment at the new employer. You can roll it over to the same type of IRA (Traditional to Traditional, Roth to Roth). If you want to roll a Traditional 401k to a Roth IRA, you will have to pay the taxes, as you are moving from a pre-tax plan to a post-tax plan, and the government wants their cut. You can pay the taxes out of pocket or sell some of the stock that would otherwise be transferred.

Cash it out

If the funds in your old plan are good and the fees are low leave it there. Dave only recommends rolling it to a traditional ira so his smart vestors make more and dave gets a bigger cut.

30, 601 120, 240. I can do it in my head without any paper. He's been forgetting a lot of things lately.

These companies dont care about any of us. Please have your money invested into other places, so you can retire.

@LeonardoGrigio

4 ай бұрын

It’s not a company, but a nonprofit or a government entity. There are similarities, of course.

Keep it there. The return you need to match to pull ahead will lead to unnecessary risk.

@Northdallasguy00

2 жыл бұрын

I agree. Not sure it would be worth risking for 1-2%

@damondiehl5637

10 ай бұрын

It's gotta sit there for 20 years? I think Dave is right, he can take his $30k and double it every 7 years, so that is almost three doublings (2.777 times).

@evardmuts

9 ай бұрын

what about fees? I had to take my roth 401K out since it had like 0.4% yearly fee and rolled it to my roth IRA with 0.35% plus in my control and clear on what I invest on

Boomer, he said 3 times that he is 30.

@musicpro7278

2 жыл бұрын

Boomer u can't even tell its a he not a her

@Gibb591

2 жыл бұрын

Saul why do you even watch these videos

@musicpro7278

2 жыл бұрын

@@Gibb591 this dude has something negative to say in every video and its sad

@saulgoodman2018

2 жыл бұрын

@@musicpro7278 People have to learn to take a joke. And stop taking everything so seriously all the time.

@musicpro7278

2 жыл бұрын

@@saulgoodman2018 a joke is once or twice. U do it on every video

First!

@catlady2795

2 жыл бұрын

Don'tcha just love it! 😁