I Know at some point we've all thought about retirement. Maybe it was at a family gathering where your uncle told you to save for your retirement. Maybe it was when you landed your first professional job. or maybe it was when you were fresh out of college.

So you go into Google to start looking up the different retirement accounts. Ira 401K 403 b457b even a 805 D Just kidding that last one was just a random number. but the other ones I said are real. Listen I've been there, it's been confusing, but with something as important as your future retirement.

this information here is so worth you knowing because you are building for your future self. Like come on guys, we need to take care of our future self so we don't have an instance like this happening to us in the future. So in this video Let's Start by answering two very important questions. Number one: when should you start planning for retirement? So the earlier you start, the better it's going to be.

And this is because of a concept called Compound Interest. Larger companies like Fidelity even recommend that most people should start invest testing into their retirement Accounts at the age of 25 because this is when you start seeing a lot more higher income levels. Compare this to someone trying to invest into their retirement account. At 18, when you're making like 500 a year, it's not really going to move the needle.

Now when we talk about Compound Interest, think of it like this. So if you invest a thousand dollars a year for 50 years and your investment grew Say by just 10, you might think you'd have just fifty thousand dollars by the end of those 50 years. But that's actually not the case. because of compound interest, you'd actually have over 1.25 million dollars.

So how does this happen? You may ask. Well, it's because compound interest grows your investment exponentially over time. This is also why the great Albert Einstein even claimed that compound interest is the greatest Eighth Wonder of the world, because he who understands it earns it and he who doesn't pays it all right now. The second question is, well, Brian can't I Rely just on Social Security And by the way, if you don't know what Social Security is, this is pretty much a dedicated payroll tax that you get with drawn out of every single paycheck.

I actually didn't know how much Social Security took out of our paycheck until I transitioned our company Jung Media over into an S corp and then we're paying for Social Security and I was like, what the heck is this? Look, it's a lot I'm not going to go into the politics of it, but here's what you need to know. If you think you can rely solely on the Social Security that we're paying, you might want to think again. So for Social Security the money that we're paying now for this fund that we're not even sure how it gets managed. We do not get access to that until we turn 62.

compare that to a IRA or a 401k where we'll talk about that soon. In this video, you'd be paying fees on withdrawals until 59 and a half years old. What's worth noting though is that you are still able to take that amount of whatever you put into your account out. And the main emphasis I want to put on this is the fact that unlike Social Security where you cannot pull it out anytime you want to, even though it is technically your own money, you could go into your other retirement accounts and pull it out before a certain age and just pay a small penalty, but you still have the ability to cash it out.

On top of that, it is reported that Social Security is on Pace to run out of money in about 12 years. This means we might not even get the great benefits by the time we ourselves watching this video. Get To Retire Now I Don't know about you, but I don't like the sound of that, especially when you hear out that most social Security has an average payout of just sixteen hundred dollars a month. Look, if you're living in the US and you're paying a mortgage or apartment rent of just 1600 a month I'ma say y'all are blessed.

Okay, because ever since, even at least in my area, within Maryland rent is anywhere from 2 000 to even three thousand dollars or more if you're living in a one bedroom apartment. and if you live somewhere nicer like in a big home or even somewhere closer to DC where you just want an extra bedroom for your home office, you can be paying anywhere from four to even ten thousand dollars a month. So if you want to take control of your own retirement and make sure you can live at the lifestyle level you want, it's time to start taking advantage of different retirement accounts to really focus here because this is for your future. I'm gonna do my best to make sure you guys at least get the knowledge and teach you what colleges and businesses and schools will not.

So we're going to go over five of the most popular accounts. We're going to talk about how you can maximize them all the rules you need to know and then what it can do for your own future. By the way, I Also have some free gifts lined up for you just for watching. You know, boring educational videos like this.

I'm gonna hook you guys up with some free stocks and I'll also get you guys some more information on a retirement account that I've been using for the past few years that allows me to do some special things like invest into Crypto all tax free using my Roth IRA or even taking advantage of things like buying into precious metals that some of you guys might not even know about. So first of all, let's talk about IRAs More specifically, the traditional IRA. Now an IRA is going to stand for individual retirement account meaning that these accounts are designated to be set up by people looking to increase their savings and also save on tax. With the traditional IRA, your contribution can be tax deductible, which means your total income for the year will be decreased on your tax return.

Now why is any of what I said useful? So right now, if you happen to be in a higher tax bracket or you just want to push the taxes aside for the future, this is where you can put your money into this account. You can trade it like you would with any ordinary stock account. So say as an example, you open up your account with Robinhood Weibull Public I mean any one of these brokerages that exists, you can trade within it and you still get all the tax benefits as if it was any just regular account you use. So the tax advantages you get is that it just defers the taxes on that income until you withdraw it in retirement.

So if you expect to be making less money, then by the time you retire, this account is definitely one of the ones you want to consider as an example. I Know for me personally, I'm going to be making way more money here in my prime years. between my 20s, my 30s and my 40s and I expect to be making way less money by the time I'm 50, 60, 70. But even by that time I'm going to be worried it much less about taxes because I know I'll have money that I've saved up over the last 20 to 30 years.

Now keep in mind that you still pay taxes and all the income that you withdraw in your retirement account. So this means even the exponential compound interest would require you to pay taxes, but you would have the tax advantage of not paying it on the principal of what you invest. Now there are a couple of other things to keep in mind with this type of account. So there's a total contribution limit of sixty five hundred dollars a year or 7 500 if you're over 50.

as an added boost, now, this year applies to both your Roth and traditional IRA combined. so your income will impact how much of a tax deduction you can get by contributing if you have a retirement plan at work. Now, if you have no retirement plan at all, you'll receive a full deduction up to the contribution limit. And if you do have that retirement plan in the works, if you make less than seventy three thousand dollars, you'll get a full deduction.

But if you make seventy three thousand eighty Three thousand dollars, you'll only get a partial deduction based on your income. And if you make anywhere over eighty three thousand dollars, you have no deductions. Allowed By the way, at the age of 59 and a half, this is when you can start withdrawing your tax free from this account. So I would even like go into your Google calendar and put it 59 and a half years out from when you were born and you can make like a little celebration.

Woohoo! I'm able to pull out my IRA money. Now if you're not really earning a lot of money, this account probably won't be very useful. Instead, the ideal person for a traditional IRA is someone with a higher income level but no retirement plan through work. By the way, I mentioned earlier, a couple of those free gifts and I Want to let you guys know about that? Now check out the link Down Below in the description where you can also set up your IRA account through one of my favorite apps that I've been using for the last three to four years.

With hundreds of thousands of dollars that I've had inside of this app and this is Weeble By creating your account with them, you can get funding and get up to 12 refractional stocks. and while you're at it, you can also pick up some free stocks with MooMoo which will give you up to 16 free stocks at the time of filming this video. Taking advantage of these free get promotional offers, it's literally just free money Ladies and gents. And then from there you can also begin your journey in starting exponential compound interest gain.

Now going back into the video, if the traditional IRA isn't for you, the next option is a Roth IRA. Now this is an alternative to the traditional with just a few key differences to know. So first, instead of getting a tax deduction and funding the account with pre-tax dollars with the Roth IRA, you'd be funding the account with after tax dollars. Meaning you pay full income tax on whatever amount you want to contribute and then you get the benefits much later on.

Now this year might not sound that appealing, but when you hear what happens after retirement, you'll like it a bit more. So you know how we talked about the exponential growth that comes with compound interest? Well, any income that you put into the Roth IRA can grow 100 tax-free Now this year benefits people who are in a lower income tax bracket now than they expect to be in during the retirement phase. What this means is if you're just getting started out within a career where you can climb that corporate ladder if you happen to be making like thirty thousand dollars right now. but by the time you are planning to invest, you're making a hundred to three hundred thousand dollars a year because now you're like a senior instead of a junior applicant.

This is gonna be a bit more beneficial and this is probably the account that I would take full advantage of. so in very similar conditions to the traditional IRA you can start withdrawing without penalties at 59 and a half years old. If you do withdraw early, you're gonna have to pay a 10 fee. And there are exceptions though when this could be waived.

but you want to make sure that you still try to follow it to the best of your ability. Now when it comes to the Roth IRA there are also eligibility requirements, meaning if you make too much money, the government pretty much said, nah, you're not going to be able to utilize one of our tax-free saving retirement accounts. So if you're making under a hundred thirty eight thousand dollars a year, you can contribute up to sixty five hundred dollars. If you're making less than 138 000 a year and you're over 50 years old, you can contribute 75 500.

By the way, these limits change every single year, so if you're watching this video in the future like 2028, this is gonna probably be different from what the rates are. now. Now, if your income is anywhere between 138 000 to 153 000 a year, your limit is decreased. and if you make any income over a hundred fifty three thousand dollars per year, you are not allowed to contribute into this account.

Now It's recommended that you have one of the two Ira accounts if you're eligible and that you maximize this every single year. Next up, this is an account that you've probably heard about since you're a kid, but you actually never understood what it meant. and this here is a 401k account. so very similar to the traditional Roth IRA There's also a traditional and Roth 401k account, so we'll start with the traditional 401K This right here is an employer sponsored retirement account and these accounts have a predefined contribution that is taken out of each paycheck and given towards your retirement account and it gives your employer a chance to also, so match those contributions.

So an easy example here is say you're about to work for me under Jung Media welcome to the Squad I Would say something like by the way, if you work for us, we'll do an employer contribution match on 50 for your 401k account. So if I'm paying you a hundred thousand dollars a year, this means you can contribute four thousand dollars a year into this account and I'd be matching 50 of that four thousand dollars which is an additional two thousand dollars on top of your investment. So if this is something that your employer offers, it's a fantastic way to grow your retirement account without doing any additional work. If you do have this as an option, I Would highly recommend that you take full advantage of it because it is in essence free money.

It's also one of those easy, passive ways that you can build wealth long term. And this is why if you ever hear from your company saying oh, we do a 401k match and you don't know what it means I would hop on it. It is a good deal for a majority of the people. Now when it comes to traditional 401K accounts, these are going to be more common than those Roth 401k case and this is for a lot of Reason.

First of all, much is the same with the IRA You invest pre-tax dollars and you defer the taxation until you begin your retirement. Now, the combined contribution limit for 401k accounts is much higher than IRAs where employee contributions are limited to 22 500 a year and if you are over the age of 50, this would be thirty thousand dollars. Now if we go into the talks of employers matching those contributions, here are the numbers. So combined employee plus employer contributions are going to be limited to sixty six thousand dollars.

And if you're over the age of 50, this is going to be 73 500. Now by the way guys, if you're wondering Brian why are you even mentioning the 50 do you even have 50 year olds watching your videos and the answer is yes, look guys, it may not be a lot of people who are in that age demographic, but even if it's one to two percent, still got to give love to everyone. Now by the way, with all those numbers that I mentioned, you just have to realize that there's going to be more room to contribute, especially for a higher income earner within a company. Also, if you work for your yourself, this is also one of those like secret Little Tax Strategies that people can take advantage of of where you can defer your taxes by setting up these type of accounts within your own business.

And you get paid for your business too this year because it has a much higher limit than what we noticed. With the traditional IRA account, you can be subject and higher tax advantages. So basically, if you're just looking to get a head start on your retirement, especially if you're in your early 20s, you just enter the workforce. I Definitely recommend that you set up your 401k account.

I Think one of the best strategies is just that you maximize any additional contribution your company is going to do. If that's four percent, then hit that amount and then you can look towards something like the traditional or Roth IRA and then when that becomes fully tapped, that's when you know you're maximizing a lot of the great tax deductions that are available today. Now moving on, the next option is going to be the Roth 401k account. So kind of like the Roth IRA, you'd be contributing after tax dollars instead of pre-tax dollars and all the contributions that you make will grow tax-free and by the way, 88 of 401k accounts will actually give you the option to set up a Roth 401k account.

but they are not as popular and most people and their employers will not share that information with people working for them. So if the biggest plus of the traditional also applies to the Roth version, which one is the right one to pick, Well, it just comes down to how much you're paying in taxes now versus how much you expect to pay in taxes down the road. The reality is is that most people only spent about 70 to 80 percent of their pre-retirement income once they retire. This is because at this point your kids have grown up.

If you want kids, you know you've probably already gone to college, your house has already paid off, and you probably don't have any other debts holding you down. So at that point you require less to live off of, and that usually means you'll be in a lower income tax bracket, making less money after retirement than you are during your current working years. This is the reason why traditional 401K accounts are so much more popular, and it's because it applies to your general Working America American in this capacity. Now, if you're just starting your career and making very little income, let's say thirty thousand dollars a year, you can consider a Roth 401k account to let that investment grow as much as possible over the many, many years before your retirement and not pay any taxes on it.

It really just comes down to personal preference and there's no one-size-fits-all solution here. Now last but not least, I Want to take a look at some accounts that are similar to the 401K, but they have some subtle differences that are still very important to know. Now these accounts are going to be all employee sponsored. They have all their own rules and features that make them special.

Let's talk about the three most common: Alternatives So we have the 403b, the 457b and also the Thrift Savings Plan. First of all, with the 403b sounds technical. It's pretty straightforward. Now, this here has the same rules on contribution limits and withdrawal age as the 401K and you also have access to both a traditional and Roth version of this account.

But the main difference is this: the account is designated for people who work for public schools or other tax exempt companies. Non-profit and Church employees usually also have access to these accounts and these accounts usually have a lot fewer investment options in a 401k would. But where the advantages come from is that the fees tend to be a bit lower and also these accounts are exempt for some rules that 401ks have to follow. As an example, some accounts will offer you an additional three thousand dollars in contribution after you've been with a company for 15 years, and some companies will offer you both a 401k and 403 B, so just keep that into consideration depending on what field you're in.

Next up, we have the 457b. Basically, this is the exact same thing as the 401K and 403b account, but this is more designated for government employees and civil servants. The biggest difference here is the extra contribution room you get, so within three years of the usual retirement age at your organization, you get to double the limits for your contribution on top of that. Unlike the 403 B and 401K accounts that we mentioned, this account also lets you start withdrawing as soon as you leave the organization.

So this account is probably one of the best ones that offers Flex ability with your investment and withdrawals, but it also has a pretty limited array of Investments to choose from. Just keep that in mind and just know that if you are within any of the fields that I mentioned, that you at least ask about it to see if it's available and do your further research. Now last but not least, this is the Thrift Savings Plan and this year is specifically meant for Armed Force employees of the public sector. The biggest difference here is that you're going to receive an immediate tax break on every paycheck if you use the traditional Thrift Savings Plan.

On top of that, you have the ability to also roll a 401k or IRA into your Thrift Savings Plan also known as a Tsp. Now like I said, this stuff is very custom tailored so make sure that you at least do your research to see if you can qualify for these. Now Ladies and gents, That is everything you need to know about the top five retirement accounts within the United States. By the way, the retirement account platform that I've been using over the past few years is I Trust Capital is not sponsored.

It's something I genuinely use. And by the way, they also had a welcome bonus I'm not 100 sure if it's still around, but back a few months ago, if you use my link, you'd be getting 500. but this is a very legitimate company. They do seven billion dollars in transactions.

They have over 200 000 accounts created. They have a ton of five star reviews on Trustpilot Google and on top of that, it's very simple. So the process of this is you just sign up using the link Down Below in the description. You fund your IRA so it can be cash rollover or transfer from wherever you're holding it now and then you can start investing it into different assets.

What? I Love about I Trust Capital? And a feature that a lot of these other retirement account firms don't have is that you can have access to buying silver, Gold, Cryptocurrency, and other major assets. By the way, it's completely free to use I Trust Capital Uh, where they make their money is a small transaction fee whenever you buy and sell a certain asset. Now if you're buying gold and silver, they also take a flat cash fee that they State on their website here. Now if you guys did enjoy this video, be sure to drop a like down below.

Thank you all so much again for watching! Stay blessed I Love you all and I'll see y'all soon! Peace.