This episode topics are:
- 401k vs Roth IRA
- Best Way To Spend Your Money
- Side Hustles
- Cathie Wood How To Start Investing? Get sign up bonus https://www.webull.com/ko-yield/1688979845038-cf9f4e?__app_cfg__=%7B%22supportTheme%22%3Atrue%7D&inviteCode=ozzS1UBcA35g&source=twos5https://join.robinhood.com/dorianh Couponing sign up https://ibotta.onelink.me/iUfE/8cc13c64?friend_code=dacbrih.https://referral.fetch.com/vvv3/referraltext?code=4T4QP
401k offers several benefits, including:
1. Tax Advantages: Contributions are typically made with pre-tax dollars, reducing your taxable income. You only pay taxes when you withdraw the funds during retirement.
2. Employer Matching: Many employers match a portion of your contributions, effectively giving you free money to boost your retirement savings.
3. Automatic Savings.
4. Investment Growth.
5. Creditor Protection.
6. Discipline and Long-Term Focus: 401(k) plans are designed for long-term savings, encouraging financial discipline and a focus on retirement goals.
Remember that there are rules and limits associated with 401(k) plans, and it’s important to understand them to maximize the benefits.
Roth IRA A Roth IRA (Individual Retirement Account) offers several advantages:
1. Tax-Free Withdrawals: Qualified withdrawals from a Roth IRA, including both contributions and earnings, are tax-free. This can provide significant tax advantages during retirement.
2. No Required Minimum Distributions (RMDs): Unlike traditional IRAs, Roth IRAs don’t require you to take mandatory withdrawals at a certain age, allowing your funds to continue growing tax-free for as long as you want.
3. Flexibility in Contributions: You can withdraw your contributions (not earnings) at any time without penalties, making Roth IRAs more flexible in case you need access to the money before retirement.
4. Diverse Investment Options: Roth IRAs offer a wide range of investment options, allowing you to choose investments that align with your risk tolerance and financial goals.
5. Estate Planning Benefits: Roth IRAs can be passed on to heirs, and the beneficiaries typically receive the funds tax-free.
6. Tax Diversification: Having both traditional and Roth retirement accounts provides tax diversification, allowing you to manage your tax liability in retirement more effectively.
It’s important to note that Roth IRAs have income eligibility limits, and there are contribution limits that you should be aware of.
In closing, both 401k and Roth IRA are great options for retirement accounts. The main advantage is when you have to pay taxes 401k is in retirement and Roth IRA is right now. There’s an argument for both sides like they say that 401(k) people because they’re in retirement their taxable income should be lower. While others say that paying right when you start out should be better because people rarely have more income at the start of their careers.
Cathie Wood CEO of Ark Invest
- Investing strategy
- Bitcoin
- Cathie Wood portfolio
Cathie Wood focus on disruptive technologies could be a winning strategy over the long term 5 year horizon or greater which made her the top EFT in 2020-21 beating S & P 500 by 167% she sees 5 areas that will make a lot of money in the future such as Artificial Intelligence, Energy Storage, Robotics, DNA Sequencing, Blockchain Technology. She bought Tesla, Zoom, Robinhood before they increased.
Where Cathie Wood prediction for Bitcoin is on the bear case$600,000 and on the bull case $1,500,000 by 2030. She sees ETF approval By the federal government to increase Bitcoin but not be the main factor for Bitcoin to go up. Cathie Wood portfolio is mostly technology stocks such as Tesla, Zoom and many more.
I personally remember hearing about Cathie Wood before 2020 where the news anchors or interviewers would talk with her and they all had this look on their faces like she’s crazy for thinking Tesla price would go to $2,000 a share by 2027. I thought she was and still is a visionary investor and very smart. I watched many interviewers with her and saw very nuanced questions being asked of her and her answering them perfectly. I wish Joe Rogan would have her on his show. I look at investors like Cathy Wood as a example of what I want to be as a fund manager.
Sources
The Story of Cathie Wood – Founder of Ark Invest https://youtu.be/Cz2Eh5ukEVE?si=uRr1GqB8wv5oCtWs
The Rise and Fall of Cathie Wood https://youtu.be/HxUzurKr-vk?si=KjNo_HVpVJwhlUtC
Cathie Wood predicts only 3 spot bitcoin ETFs will survive
https://youtu.be/sg95JNLdfC8?si=UlIVRLuB5Akrd0Wj ARK Invest CEO Cathie Wood: Our base case for bitcoin is $600,000, bull case $1.5 million by 2030 https://youtu.be/K5NB8MHe3Nw?si=VMJQ-7uzIXU7DnkP
