Maxing Out Employer-Sponsored Retirement Account: Milestone Achievement

Maxing out the employer-sponsored retirement account shows intentional saving behavior, accelerates financial independence, and secures inevitable wealth accumulation.

### Maxing Out Your 401K: Achieving a Major Financial Milestone
* 💰  Maxing out your employer-sponsored retirement account means saving **$23,000 annually if you're under 50**, or **$30,500 if you're over 50**.
* 📈  The power of **compounding growth** in retirement accounts allows your money to work harder and create **automatic wealth**.
* 🏦  401Ks offer significant benefits, including **tax deductions**, **tax-free growth**, and often **employer matches**, which are considered "**free money**".
* 🎯  Behaviorally, **maxing out your 401K** demonstrates **intentional saving for a secure financial future**.
* 💼  Research shows that 401Ks are often the first accounts to reach **seven figures for millionaires**, highlighting their **importance in wealth accumulation**.
* 🚀  Achieving this milestone allows you to move up in the financial order of operations, progressing towards **hyper accumulation** and building **after-tax assets** for Financial Independence.

[Music] All right, bro, let's talk about our next milestone. This one, again, is one that you likely might not hit early on in your financial journey, and that's okay. But when you do hit it, it's worth celebrating, and that is maxing out, we said, your 401K, but maxing out your employer-sponsored retirement account, because what that means is that this year, if you're under 50, that means that in this single account, you're saving $23,000. If you're over 50, it's $30,500. So if you were to break that down into monthly terms, if you're under 50, that's almost $22,000 a month. It's $1,917, and for those over 50, it's over $2,500 a month. If you're doing this, that immediately puts you into a substantial savings position. Well, I mean, look, these numbers are big, but that's why this is so powerful is because we're going to show you all the elements that

make money so powerful and investing so powerful is that compounding growth letting your money work harder than you can with your than your back your brain and your hands. When you have a you sharpen up your determination and your earning potential and put more and more of it to work for you guys this is what creates that automatic inevitable wealth that we're talking about. This is why we actually love 401ks but walk them through the big benefits of 401ks. Yeah there are three things we think that make them huge. One is that when you put money in you either get a tax deduction on that employer sponsor retirement plan today or you don't get a tax deduction but the dollars can grow tax-free. You get to choose do I want my tax benefit today or do I want it in the future well then while the dollars are investing the entire time they sit in the account you don't pay taxes as they grow so all of the assets will grow tax deferred and then our favorite thing maybe the single

best thing about employer-sponsored plans is that a vast majority of them have some component of free money. They have an employer match in there that you can go grab. It's so important, that's why we made it step number two. Brian, can you know the thing up? Oh yeah, it's why we made that step number two of the financial order of operations because employer free money is so so sweet that you have to be capitalizing on it. Well, if you're maxing out your 401K, if you're putting $23,000 into it, you are certainly maximizing that employer tax-free benefit. You're walking towards inevitable wealth. It's that automatic consistent behavior. Doesn't matter what's going on in the stock market, doesn't matter what's going on in the political world, doesn't matter what your fear or greed meters internally are doing. You're going to always be buying into that retirement plan, and that's going to create inevitable wealth for your future self. So we love the 401ks.

talked about why they're special, but why for you behaviorally is this milestone important? Like why is it significant? Well, the first is this is not easy. It's not easy to save $23,000 into a single account, but what it does show is that behaviorally you are being intentional. You have chosen that I'm going to defer this much of today for some great big beautiful tomorrow, and it shows that you are doing the behaviors necessary to have a bright financial future. Well, and also think about all the research on millionaires. A lot of it shows that the first account that crosses into seven figures is the 401K. This is one, and even when we do a survey of our own millionaires, the 401K, the employer-provided retirement account, is one of the biggest accounts because not only is it your consistent behavior that creates that inevitable walk, but it's also that free money when you can get a 50 to 100% guaranteed rate of return from your employer. These things all on top of each

other you're really accelerating the journey. And then the third thing that we love about this is now you're actually continuing to move up in the financial order of operations. You're no longer in Step six when it's max out your employer sponsor retirement plans. Now get to go to step seven. You get to move to hyper accumulation. You get to move to building up those after-tax Bridge assets. You are continuing to move along the financial path towards Financial Independence. So once you do that, once you've crossed this Milestone, it's certainly one that is worth celebrating.

Why Maxing Out Your 401(k) is Such an Important Milestone

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

Subscribe today to stay up to date with our latest episodes, livestreams, and highlight videos: https://www.youtube.com/c/MoneyGuyShow?sub_confirmation=1

Are you ready to go beyond common sense when it comes to your money? Check out all the free resources The Money Guy Show provides: https://moneyguy.com/resources/



The Money Guy Show

The Significance of Maxing Out Your Employer-Sponsored Retirement Account

Maxing out your employer-sponsored retirement account allows you to save a significant amount of money, either $23,000 or $30,500, depending on your age, and puts you in a substantial savings position.

The big benefits of these accounts include tax deductions on your contributions and tax-free growth of your investment, leading to inevitable wealth through compounding growth.

The Power of Employer-Sponsored 401K Plans

Employer match programs provide a valuable source of free money for employees.

Maxing out 401K contributions can lead to significant tax-free benefits and long-term wealth.

Consistently investing in a 401K, regardless of external factors, is a powerful strategy for building a secure financial future.

The Significance of Saving $1 Million in a 401K

Saving $1 million in a 401K shows intentional and disciplined financial behavior, crucial for a secure future.

Research indicates that the 401K is often the first account to reach seven figures for millionaires, highlighting its importance in building wealth.

The employer-provided retirement account offers not only consistent growth but also a valuable opportunity for a high guaranteed rate of return, contributing to its significance.

Advancing to Hyper Accumulation in the Financial Order of Operations

You are now progressing from step six to step seven in the financial order of operations, focusing on building after-tax bridge assets.

This advancement is a significant milestone on the path to Financial Independence and is worth celebrating.