401k Strategies that will Blow your MIND

[Music] welcome everybody to this week's podcast in the main street business podcast excited to be here with you my name is mark kohler i'm here with the illustrious matt sorensen that's a that's a new adjective i haven't yeah thank you i'll take it i'll take it i've been called worse um well i'm excited to be here we're talking about a huge topic about how to get the most out of your 401k this is the retirement account many of us have as we or we experienced as an employee at a company or maybe even if you small business owners that want to do it for yourself so we're going to dive into this and talk about how to get the most out of the 401k and and i loved the title because maybe i chose the title 401k strategies that will blow your mind so if you're catching us on youtube or you're a regular podcast listener either format grateful you're here we hope to wow you today and we're going to go through the fundamental basic strategies and kind of build upon each one until we blow your mind now your mind might be blown earlier on than others or you may have to wait for the very end i don't know we'll see okay everybody's mind blows at a different spot yeah we're not on the same spectrum of mind blowing that's right all right some of you are also more work yeah and now one thing we're trying to do better in our podcast is get into the topic hit some bass hits right out of the gate uh and then well just you know throwing a little spattering of some insightful jokes and commentary that we think are a huge part of this wonderful tax and legal podcast do i yeah that's our plan right i want to make sure we're on the same page okay yeah so so in other words don't make any jokes right now about signals for later oh god i'm moving on all right basics number one you want to choose basic number one yeah let me say 241k okay here's my basic is a 401k has to be created by a business or an employer so like iras are individual accounts like congratulations you're an individual you can have an ira but 401ks if you're just an individual you can't go set up a 401k a business has to create it for you so think of dunder mifflin you know dunder mifflin has their 401k plan dwight schrute couldn't go just set up a 401k plan for himself maybe he could have done it in schrute farms we'll come back to that but you know michael thought michael scott couldn't even do a 401k right the company has to create it for the benefit of its employees that's the first thing it's the employer adopts it now if you're self-employed we got some awesome strategies stay tuned i like that first basic point and let's stick with dunder mifflin today we're gonna do our best you know for any of you office fans out there we might you know disappoint but we're going to do our best for even the just the moderate office viewer i think everybody's seen an episode of the office so they know dunder mifflin great little intro jingle okay i would add this basic point remember at any income level you can always have an ira so that's a myth we've been dispelling for years now that's not the topic today but what it relates to is you can have an ira and a 401k which a lot of people have thought well i have a 401k at work i can't do an ira no you can't you can do both that's a very important basic principle too because as we blow your mind today we want to maximize the the 401k by at the same time maximizing your roth ira or individual ira they really work hand in hand when you you get efficient so having a 401k at work great thing um you can have both that's another basic yeah do you have another basic point i have one other one but okay the other basic point is when you put money into a 401k and this is you know you've had a 401k somewhere else before most people are familiar with this you're going to put money in as an employee and then the company typically does a match so there's two different calculations and way money goes into a 401k it's the employee putting in some of their pay themselves and then it's the company usually throwing a match in that's that's the company's dollars that you wouldn't get if you didn't throw in a little bit of money yourself to kind of get that match so it's kind of an incentive for the company to say hey we want you to participate and save for retirement and if you do we're going to throw a little money in now for those of you that are self-employed you can get super creative on that and since you're such a great employee why not just you know do a huge match on the company side and we'll get to that yeah we're going to come to that because you can have your own company with your own 401k and you can have your day job 401k you can have multiple 401ks right another basic principle and then i'm going to lay out the first strategy another basic principle is the 401k is the investments within that 401k options investment options are typically dictated by the company and the broker dealer they chose to set up the 401k so if you work at dunder mifflin they're going to have their little hr meeting in the in the office and and uh within the office should be they're going to kobe is going to run it yep toby had run it and he'd say he's going to say here's your options you got these five mutual funds to choose from or whatever the freak and they're usually pretty pathetic but that's okay i'm gonna disclose my first strategy here but the 401k plan adopted by a larger company of which you're just a w-2 minion you're not going to have any choice to self-direct it your investment options will be limited now you can have that second 401k in your individual small business which we're going to come to in a moment but number one for any of you that have a day job 401k it's not the end-all game so here's strategy number one matching out i call it the matching out they're gonna match you up to say three grand worth of your country they usually say your first three percent of contributions based on your salary that's kind of the given average so if you make a hundred thousand dollars and you put in three thousand dollars in your 401k they're going to match that the company will match they're going to put in 3000 themselves so you'll have six now yep that's 100 return people yeah no matter what you crap that's a good thing yeah even if it isn't a crappy mutual fund that has you know four percent return year after year that's free money you just got that that's 3 000 every year in that example that the company's thrown in so yep so i like that match and then you're like get the heck out that's it that's strategy one okay now the reason why some you're like well hold it i want to maximize my 401k oh we want you to maximize a 401k contribution it may just not be at the 401k at work yeah do the match and get the hell out and then we got other now yeah now everybody's in a different spot so you might be like well that's all i got going i mean i'm i'm i got a good job i got the income i may want to max out i may not want to match and go out i may want to max out yeah okay as a w-2 because i don't have a small business i have no other options that we're going to go through to do some other creative things and so and you know i could put in 19 500 per year into a 401k that can be traditional or roth and this is your day job 401k this is solo k2 is an employee so see and if you're over 50 by the way you're going to put in an extra 6 500 so you put in 26 grand um so if you're looking to save get some tax deductions on traditional or grow roth tax coming out tax free you could max out and stay in the company plan okay for now yep all right now let's move quickly because many many of you that listen to our show are small business owners so you're like what the freak let's get off the company plan but if you're married or have a partner they may be doing the company plan uh so you want to know these rules you want to kind of know the strategy you may give advice at a dinner party and be a hit this weekend we want you to be a hit so uh believe it or not matt and i as dorky as we are we're kind of like uh moran what was it in ghostbusters um he threw the party down the hall from sigourney weaver morales oh dick moranis rick moran rick moranis he kept the accountant he's an accountant that's matt and i to party we're like oh come on in we're going to be talking about 401ks everybody's you know belly's up to us at a party because they're like i might actually get something out of this damn party so uh we're the rick moranis of your party we'll come in you know all right now note strategy number two is if you have a small business and you're making some money that's kind of the concept here step one is we always want you maxing out your roth ira your hsa but if your small business is making money you are your spouses we're going to come to the the couple thing in a moment but let's just focus on the basic one you're single day job or not you're going to match and get out but if you have a small business realtor consultant selling crap on ebay internet marketing mlm whatever you're doing you can set up your own company 401k and that opens a whole new world just come and see don't you dare close your eyes you don't even know the words i don't think you have to say no that's the lyrics from jasmine that's yeah the magic carpet ride oh no that's aladdin aladdin sings that part but you know whatever whatever okay um okay matt so tell us what's cool about the solo 401k which is our special this month once a year yeah yeah we do a special once a year for you small business owners when you've got the side hustle you can do the solo okay here's why it's cool i mean i've got like four reasons it's cool but let me just hit one you can put 58 000 a year into it so for a lot of you that are like man i'm really wanting to save for retirement i'm self-employed a lot of our self-employed clients are the worst at having any retirement accounts because they've been the one that has to set it up it's not just at the company where you work where you just fill out some paperwork and you're enrolled and they take it out of your paycheck automatically and it's easy peasy so a lot of small business owners and those self-employed i think are behind in many instances and so we need to get more money in how can we do that the solo k is going to get you bang for your buck 58 grand a year um is how much you can get in if you got your spouse involved in your business they can do 58 000. oh yeah that's good that's another strategy okay you can get way more money in than you could in an ira or at your company 401k yeah and and here's it to add to strategy number two of being a solopreneur is a 401k is like a honeycomb you can have roth pieces of that honeycomb and you can have traditional pieces of that honeycomb you can convert pieces of it to roth after your own company does the match so you can go to your day job put in your money get a match make your 100 come over to your personal 401k plan put in the remaining portion of your 19500 or 26 000 if you're over age 50 get a match from your own freaking company and you can convert it all to roth or make it roth so remember the 401k strategy goes hand in hand with the roth strategy and i think that really is kind of almost number three get the solo 401 k set up and then sit back and go how much of this do i want it to be roth and really all of it could be i mean yeah i love it yeah good and we got we got shows on just traditional versus roth in general um to kind of dive into that if you want that that's a that's a takes a while can i have a roth ira and a roth 401k yes you can at any income level yeah i mean yeah we'll see what happens to the backdoor roth ira with legislation but yeah any income level and the the 401k just so you know on the broth the roth 401 case if you're doing the solo can you're just doing the employee roth contributions there's no income restriction on that whereas iras make you do this little back door shuffle for if you're high income so um so on the roth you go on the front door on the roth accounts for the roth 401k now this is why this show is pg-13 at times so i don't you know where some of you were at today in your personal life but all this talk of front door and back door i i know it's tough stay focused okay all right i'm just going to leave it at that so your kids have no idea what you're talking about in the car you know they're in the back seat but i'm just saying they were they were tuned into all this roth conversation ira 401k match they were like they were loving that yeah they're very focused on what you're saying mark yeah so let me just say there's there's front door options and back door options there's always an option to find the sweet spot with your 401k okay what were you thinking i'm sorry what were you gambling about i was okay yeah i mean i know and you know okay now here's the next stretch i gotta be careful there's nothing i can say that would yeah i don't know there's no good follow-up for that one okay that just left that let that fly okay now if we go to strategy four if we're on our sequence here you've done your single you're you're single you've done the 401k you may have the matching out at work you're doing your solo uh 400k as well as your individual roth ira i'm thinking i'm looking up if you're watching on youtube now i think we get to the partner strategy so if you're married now we can go to another level and add the spouse to the 401k what are our restrictions their thoughts matt what do you think so first does your spouse work so your spouse may have a job at an existing 401k that they're putting into and let's say that's happening and this could even be you too it's just to think this through let's say that your spouse put in 10 grand at the 401k where they work but you're like wow we want to throw more in we got more we can save we want to build these accounts maybe we're doing traditional we're chasing tax deductions for year-end we're trying to save um all right let's add your spouse onto payroll in the small business because they got to be an employee a lot of times we don't like adding a spouse on the payroll in your small business unless they're really working in it and we want to make 401k contributions so like a lot of clients like should i have my spouse on the payroll to get social security and all this no it's not worth it don't don't don't chase that but to make 401k contributions yeah yeah so let's say your spouse had put in 10 at the company 401k all right come over here on the in the solo k and you know we can do another nine five of employee contributions and another thirty eight thousand five hundred and company match um on the employer side so um so there's a lot of uh options in adding a spouse over now if your spouse isn't working you don't need to worry about that subtraction of what they've done at their day job for when can you just start at 19.5 of course yeah i um again think there's a lot of variables here depending on what your goals are in in obviously what you want to invest in uh do i want a self-directed 401k usually a solo 401k has so much flexibility because you're the trustee and your company adopted it the tpa or third party administration fees are so affordable uh to have your own company 401k uh this month we do our special every november where if you want a 401k this year and want to make a contribution to it for a tax deduction this year or put money in for a roth this year you have to have the 401k set up before december 31st now you don't have to put the money in until next year and i know that dr puts the hair up on many of you financial advisors next and cpas freak out going yes you do by january that's in a 401k where you're the fiduciary for employees and there's a lot of big-time rules but when you're the only employee and the only one that's going to complain is you against yourself no one cares because you're only screwing yourself over the pro the only problem would be the irs if you lie on the forms or trick the irs into some deduction you never made so it's very easy to get the 401k set up this year get it adopted and then you can contribute to it next year uh matt what are the prices just so people can think see now this is a self-directed 401k where you're the trustee if you want yeah so right now the special is so we generally charge 4.95 to have one of our paralegals basically our docs only paralegal setup and there's 50 bucks off for the month of november which puts it down to 445. and so that's a very affordable plan for a law firm we have our plan is pre-approved with the irs it's got all the self-directed provisions in it you can do the roth account you can do roth conversions you can do after tax contributions i mean it's like it's like the cadillac it's got it's got everything you know power windows locks you know i don't know what they doubt on the cadillac oh you've got power windows that's a nice feature um but you know what i mean you know what i mean okay it's got it's it's uh we have all the stuff in there that you're gonna want but um now if you need a consult with an attorney it's more and you gotta bump up to the attorney console but we push this in november because we get bombarded with everyone in december who's like i need to set up i got 10 days left and it's like yeah and it's christmas and we want our employees to have some days off and uh so we try to incentivize everybody let's get it going in november so we all have enough time to get it done you're gonna have to review and sign some stuff too um and the irs notoriously closes between christmas and new year's and has their annual system maintenance in the last week of the year so you can't get anything done when all these deadlines hit so we like to stay ahead of it um but yeah we're here for if you need help on getting that set up okay now let's hit another 401k strategy that's very important uh to blow your mind let's say you're like okay guys i've been doing it i've set up my solo 401k or um i've been doing the matching out i've got my spouse on payroll or not i've been funding the 401k guys i'm loving the roth idea i'm getting on more and more on board on the fact i never want to pay tax again on my investments inside my 401k roth conversions inside your 401k have to also be completed paperwork wise by december 31st so if you're thinking of doing a roth conversion there's no income limit it's all good you do conversions all day long but you are going to pay tax on some of that conversion and mountain what are some math what's the math people need to worry about there when they start doing conversions or timing any suggestions on that conversion on on traditional to roth within the 401k correct um i mean just the biggest issue is you're just going to have tax you know so like how much you want to convert just know you're going to have tax now if you just put traditional contributions in because sometimes we have that clients will just throw in some traditional contributions because the company does the match and the match from the company are traditional dollars because the company takes an expense for it but we're going to convert that to roth which means you pick it back up into income so those two wash out because you took a deduction but then you had to pick it back in income to convert it so just keep that in mind if now if you have existing traditional dollars because we see this too people because you know let's say you set up a solo k and you have other retirement accounts you can roll those funds into the solo k a traditional ira that's been sitting out there somewhere else an old employer 401k i can roll that in if these are traditional dollars i get into the solo k i can convert them over to roth but i pay the tax on the amount i'm converting over yeah okay and i love it now blowing your mind everyone this is a an add-on to matt's strategy that he just talked about is if you're a part of a larger company 401k plan or have a solo with no employees there's a technique called an after tax contribution where you may put additional money in your 401k and not take a write-off for it and those monies when you convert to roth inside your 401k you don't have to pay tax on because you never got a deduction in the first place so if you kind of do the 19 thousand so an example would be everybody think okay focus focus let's say you're under age fifty you put in 19 500 in your solo 401k as roth contribution there's no tax there's no conversion and you didn't get a write-off but it has to go on your w-2 on your little s corp and and you're going to be doing your little 401k documents at the end of the year on your payroll but you put in 195. now if the company matches let's say 5 grand when you convert that 5 grand to broth you'd pay tax on that well on top of that you could do an after tax contribution to the traditional portion of the 401k it's a very unique strategy you'll want to understand it get a consultation with the lawyers or your accountant before you do it it's in your solo 401k binder but you could make that contribution and then turn around and convert it to roth and there's no tax that allows us to start opening the door to what we call the mega back door roth because now you're combining roth ira money 1905 roth money and match or after tax contribution money to get into sixty or seventy thousand dollars worth of roth money very very complex but matt would you add to that [Music] yeah so the only thing i would add is that that takes some gymnastics so when when mark says talk to your attorney account you're going to have to engage your account this is all going to happen on your tax return because what happens is when you do that after tax contribution let's say you're an s corp that's got to be on your w-2 that's got to get recorded on your w-2 as an employee after tax contribution and then when you convert it there's got to be a 1099. now we know there's no tax on it but this all stuff has to happen in order for this to work so now i got a 1099-r and if you're doing it at directed we have a form for this that we have a custodial account here where we're holding your money we're gonna pick this up and throw it into your solo k account here as an after tax contribution which you're immediately electing to convert to roth so now it's just regular roth 401k dollars just like the rest of your roth 401k that you have but we're going to send you a 10.99 i've had clients like why do you send me a 10.99 because i have to you have to pick it up on your 1040 and say that the taxable amount from the 1099-r is zero because it was an after-tax contribution they didn't take a deduction on and they're gonna look and make sure it was on your w2 and so so this stuff all has to loop so just know there's some mechanics to it and a lot of solo k clients are kind of do-it-yourselfers and they do their own taxes and i can't we're not doing this piece for you this is a little sophisticated if you're going this route you haven't used an account before it's probably time you start having an accountant do your tax return so make sure this is getting done right i love it and and the moral of the story here that i like to joke about is if you're going to launder money you got to follow through with it you got to go through the steps you can't just say you did it or check a box and think it's all gonna get done and the and i joke about that but it's really true the irs if you just do a part of this they don't know what's going on they're out in the cold you know you took them on a date you whined and dined them and then you disappeared they're like where's the closure here are we going to stay in touch uh what really happened did you ghost me for a reason do i need to go key your car i mean there's a lot of parallels in life here you do not want to leave the irs wondering what the hell happened because yeah they're not going to stay silent they want to they want closure yeah they could be the they could be the the worst ex-girlfriend ever i mean they can lean your property i think it's the pina you i mean an ex-husband they could be a stalker ex-husband they just don't leave you alone they you know come over and break your windshield i mean they're gonna take you to court yeah it's genderless it's it's basis it's scary so anyway follow close the loop out all right now high-end strategy but it's not that complicated that's how you say it's cool it's a high-end strategy because i have lots of clients that call in front i'm like okay you're ready you can treat no i actually don't have that much money to contribute okay all right yeah let's get the 19 5 in you can do that roth easy let's get that 19.5 then let's talk about maxim yeah now let's go back to dunder mifflin here for a minute because i think there's an important question some of you might be having as you're listening yeah i want to go back to dwight schrute and schrute farms okay ooh yeah yeah yeah okay well i'll say this then you can go to street farms so my point is to remind all of you that at dunder mifflin's 401k plan you're going to have a limited buffet of choices on what you can invest in remember with these solo 401ks i wouldn't call it a buffet i'd call it like high school cafeteria that's true you just get whatever's on the menu that day this is not brunch like we got a taco bar over here no sunday this is 7 11 at 2 a.m you know okay you're like a crusty old chili dog maybe some nachos with some goopy nacho sauce it's been there for 48 hours of simmering okay so not a lot of choices 711 or dunder mifflin for your investments but this is the beauty of the solo 401k on the side because this can be fully self-directed and you can set up llc's you can buy real estate you can buy crypto we have crypto solo 401ks you can set up immediately you can buy do loans first trust deeds tax liens so many different investments that you dream of doing in your retirement account at work but you can't but that's why we set up this 401k on the side and some you say well i don't have a big enough business to do that or do you shrut farms you see how i set that up for you i teed that up i walked out on the mound i just set that little ball right up on the tee for you matt and you can just swing your little heart out with that helmet three sizes too big for your body go ahead okay so just think of dwight schrute remember dwight schrute okay he he's assistant to the regional manager of dunder mifflin yeah that's a big deal he's pretty big bill over there he's he's throwing his money in the 401k but he's like looking at his investment options he's like man i got a bunch of crappy mutual funds here i don't even know what they are and they're they feed me to death and my account just isn't growing much but dwight knows he's listened to the main street business podcast and he's like i have a small business i got shrut farms right he does like events there and um and i forget his little his like i think it's like his cousin or someone that that works on the farm with him but anyways so he's got his own business okay solopreneur okay just dwight here he can go set up his own solo 401k even though we got he has the day job 401k at dunder mifflin he can set up his own solo 401k he can contribute to it so again let's go back to the the 1905 here let's say you put in 10 grand in the dunder mifflin 401k okay well he can do 9 500 now of employee contributions into schrute farms dwight's under 50. and then he can throw in another 38 500 to get up to the 58 000 total that from shrew farms so now he has to have the income from that from shrew farms if he was making ten thousand bucks in shrew farms he could only throw in the 9 500 but if he's making some good money he could possibly throw in and and really max out this 401k which the solo 401k could be self-directed now dwight can go out and buy some real estate dwight can go out and buy crypto you know dwight's more under real estate and crypto than mutual funds i mean so so those investment options now are on the table in this solo k that he's got right well i have one last strategy i wanted to kind of finish with the mega backdoor roth because that's freaking awesome and i can combine my 401k at work my 401k at schrute farms my personal roth ira and i can get my spouse on if i'm married in the 401k i can help my kids set up their own roth iras freak you can put away a hundred thousand dollars or more of roth money in your little family circle potentially yeah and and start investing in some amazing things so when people come to our summit and they see that it blows their mind and so super cool but at the summit which i think we're almost available for those tickets i mean people can buy access to the recordings of the summit and you'll get an email if you're on our newsletter please make sure you're on our newsletter list um in a breakout session i brought up what is now coined the side door 401k you ready for the side door yeah yeah and we covered front door and back door but the side door the side door okay all right i don't know some of you were already thinking of all the options here i know okay ah boy this is such an exciting show it covers so much ground um okay with the side door 401k what we have is clients uh you're just a dirty birdie today matt i don't know what you're thinking about on youtube yeah that's just grinning over there what are you i'm innocent okay i am in a son of a yeah it's totally inappropriate i don't know when you're guilty okay all right all right let's say some of you were like mark i don't have of a shroot farms i don't have an operational business i'm not selling crap on the side or i'm not a consultant or a coach or a team this or selling on ebay or blah blah blah i don't have a business but i do have rental property i guess i can't do it ooh no no no no my dear friend we have an option for you it's called the side door so for those of you that have rental property that have also dreamed about maxing out maxing out roth 401k money is we which you'd never do you would never do this and there's crazy companies out there that recommend wyoming c-corps and bulls crap like that be careful but well let me let me interject too that the the rental doesn't qualify as a business to make solo kick contributions itself so just know that that like this is why the front door was kind of shut to you for the rental property owners they're like the irs is like nah rental property businesses that's rental income it's not like employee wages or self-employment income so we're not gonna let you put that in a 401k so the front door got thrown at you yeah but mark kohler has found a side door yeah and i'm glad matt clarified it because i was making an assumption all of you know well i have rentals i can set up a 401k no you can't it's passive income you don't have a day job or a side job you're passively managing your rentals so so what we do is we would which i say you would never normally do is we would set up an llc to manage your rental property which i think is far far far overkill for asset protection purposes i've written about in my books but we're not doing this for asset protection and any asset protection benefit would be minimal in my opinion but if you set up an llc to manage your own rental property and pay a management fee to that new llc you just create an ordinary income which again you'd never want to do because you just created self-employment income i want to do the opposite typically right i want to take all day long give me passive income but by creating this management llc that has its own ein and adopts its own solo 401k you transfer over a management fee just enough to contribute the perfect amount you want in your 401k whatever that amount is so you zero out the management company income by deducting your 401k contribution unless you want to go roth then you would pay some some tax on that but the beauty is you're now converting passive income into 401k qualifying income and funding a 401k through the side door sorry let me grab a pen there you go just want to make sure we don't drop mics here they're too expensive this is a pilot g210 i mean that's yeah i'm not dropping mont blanc's over here people i mean this is just there we go okay yeah yeah corey's like do you not drop that mic damn you yeah uh that's we're not the rock stars smashing guitars either um yeah i love that that's side door analogy because it it really is kind of it takes a little shuffle we're not getting in the front door we're not going around the back either it really is just kind of a little side step to get over to the solo k and a lot of you are rental property owners um and i think this is a great way and you may be like because i run into clients like this that are like i'm not really looking to contribute that much in the solo k but i want the solo k because of all the other benefits of it you know i want to i've got some other traditional ira money to roll into it maybe or i've got an old employer 401k i'm gonna roll into it i like the solo k because i can take a loan out for it to myself for up to half the balance not to exceed 50 grand or i can buy real estate with debt and not have to pay udfi tax which is unique in a 401k that iras have to deal with so so these are literally perks that you have on a sole okay and so a lot of people are always trying to find a way to get to the solo k over an ira and this could be one of the ways just just a little uh see if the side door is open for you yep you got the right property now i know it's distracting when matt brings up the word shuffle many of you are thinking of the truffle shuffle from the wonderful movie classic goonies uh so you're thinking of the truffle shuffle but uh really this is uh another method of taking control of your future this is your 401k people you're the captain your ship and some of you know i know are blown away in the fact that your accountant or tax advisor whatever whoever they may be your sister-in-law you make spaghetti dinner for once a year and she knocks it out on turbo tax that may not be your best tax advising relationship so take control this is yours you can do it there's all sorts of strategies out there you may not be aware of it's so so fun so powerful um and so hopefully i don't know i don't have anything else man this is it i mean i just i sold it this is it yeah we have a lot of content on solo case strategies specifically how it works how you contribute some qualification rules what if i got employees matt there's some tricks and things you got to know there so just get into that other content we've got webinars videos on on directed ira.com if you go to the soloq page also if you get to the special page for kqs lawyers we've got a lot of content there to just get educated on it there's a chapter in my book the self-directed diary handbook on the solo case chapters in mark's book on this strategy as well so it's a big one for those self-employed um because it i love it because you really do get all the power of a 401k that the government did to incentivize savings but you get a supercharge it because it's just you as the employee so you make it as generous as the law would ever allow you to do and if it's just you why not oh oh and i just remember one last strategy is once your solo 401k through the side door the front door the back door wherever you go once your solo 401k is set up you can roll into it any old 401k money from a prior job any old ira money you cannot roll in roth money once it's a roth ira it's stuck as a roth ira but you can roll in traditional then convert to roth inside the 401k um just again so much flexibility and the sky's the limit you can self-direct it invest it um so i don't know anyway i just want to tell all of you thank you for letting us be a part of your lives and talk about such an important principle because the more financial freedom you have i just think it just makes life a little more richer and i'm not talking about the financial richness of life just a little bit more flexibility a little more a little less stress in your life maybe so please well i'll just say this yeah i'll just say this too if i can you know riff off of that for a moment here is that i like it because there's this sense of satisfaction in doing it you know and doing it for yourself and taking control when we take a back seat on our money and our finances in particular our retirement accounts which for so many of americans is their largest stash of money is a lot of people just taking a passive view on it and they've just left it to a financial advisor or they literally set up a 401k at their work and they pushed a few buttons 10 years ago i don't even know what the frick it's set into default invest into um but when you take control of it there's so much satisfaction and enjoyment it gives you better peace of mind it's actually fun you're in control of your future um and then you get rewarded for that of course um down the line when you get to retirement so yeah okay well thanks everybody for listening we'll be here next week and you can catch us on youtube or on your favorite podcast platform please if you feel so inclined give us a like give us a five star a share whatever you can to help spread the good word and thank you so much for listening watching and we'll see you next week [Music] you

Channel: Mark J Kohler

Views: 137,948

Keywords: tax, legal, entrepreneur, asset protection, wealth building, cpa, attorney, lawfirm, Mark J Kohler, Mark Kohler, Crypto, Bitcoin, taxes, taxation, stock market news, compound interest, personal finance, how to make money, 401k, Strategies, Retirement, SelfDirecting, Self-Directing, Solo K, Solo 401k, ROTH 401k

Id: YL5eYfRnnjA

Length: 38min 39sec (2319 seconds)

Published: Wed Nov 10 2021