Summary of Becoming a Millionaire: Roth IRA vs 401K (What makes the MOST PROFIT)

00:00:00 - 00:10:00

The video discusses the differences between Roth IRA and 401K accounts, and argues that a Roth IRA should be chosen if a person is young and in a low tax bracket, while a 401K is better if a person is making a lot of money now and expects to make less money in the future.

• 00:00:00 The Roth IRA is a retirement account where you can contribute up to six thousand dollars per year, with post-tax money, and after the age of fifty-nine and a half you can withdraw all of that money without paying any taxes. The Roth IRA has some advantages over the traditional 401k, such as the fact that all profit is tax-free, and the ability to withdraw money before the age of fifty-nine and a half with no penalty. However, there are some disadvantages to the Roth IRA, such as the fact that you must contribute what's called pre-tax money, and the smaller amount of money you have left over after you pay taxes.
• 00:05:00 The video discusses the differences between Roth IRA and 401K accounts, and argues that a Roth IRA should be chosen if a person is young and in a low tax bracket, while a 401K is better if a person is making a lot of money now and expects to make less money in the future. The presenter's own personal recommendation is to contribute to a Roth IRA first, followed by a traditional 401K if the person is in a high tax bracket.
• 00:10:00 This video explains the differences between Roth IRA and 401K plans, and provides information on how much money each option would leave you with after taxes. The presenter also includes a calculator to help you decide which option is best for you.