558: How to Start Investing for Retirement: 401(k), IRA, Roth?

The IRA vs. 401(k). You’ve heard of these retirement accounts before, but do you know the difference between the two? Maybe you have a 401(k) at work and have been diligently getting your employer match but struggle to describe what you’re investing in. You’ve heard top financial experts talk about how a Roth IRA is crucial for saving on taxes long-term, but are you eligible to invest in one? Today, we’re discussing top retirement accounts and how to start investing with just $100.

CFP (Certified Financial Planner) Kyle Mast joins Mindy on today’s show to answer common questions about 401(k)s, IRAs, Roth IRAs, and HSAs! We’ll first describe when you should invest in a 401(k) vs. an IRA, why their Roth equivalents are so valuable, especially if you’re itching to save on taxes in retirement, and the best account for beginners that (most) Americans will get free money from.

What happens after you leave a job and your 401(k) remains? Kyle discusses the options to ensure your money stays invested, even after leaving an employer. We’ll also get into the triple-tax benefit HSA (health savings account) that you should take advantage of IF you qualify, which accounts to invest in first, and what to do once you’ve maxed out your retirement accounts!

In This Episode We Cover

401(k)s vs. IRAs and which to invest in first (especially if you’re employed!)

Roth IRAs and 401(k)s explained and when to choose a Roth over a traditional account

The best retirement account for beginners and how to get free money for retirement

How to take control of a 401(k) after leaving an employer

Health Savings Accounts (HSAs) and who qualifies for these extremely tax-benefited accounts

Which accounts to invest in first when maximizing retirement savings

How we would start investing for retirement if we only had $100/month extra

And So Much More!

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BiggerPockets Money - Episode 549: Is FIRE Dead? No, But Here’s Why Most WON’T Achieve It

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Traditional 401(k) vs. Roth IRA: Which One Wins?

00:00 Intro

02:17 401(k)s vs. IRAs

05:07 Roth IRAs and 401(k)s

11:21 Best Account for Beginners

14:31 401(k)s After Ending Employment

19:58 Health Savings Accounts (HSA)

26:46 How to Invest $100

32:00 Connect with Kyle!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-558

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