[Music] all right this's next question. This is from Logan. Uh, all right. Logan said, Is there any recommendation for is this Wolverine? I don't think it's Wolverine. It might be. It could be. Um, is there any recommendation for where best to hyper accumulate after 25%? Is it fine to continue in my 401k as 25% does not max it out? In other words, I'm hitting 25% before I get fully out of Step six, or is there an advantage of holding or investing it elsewhere? We get this question all the time, Bri. How do we think about that? I know that only if only there was an easy solution by way you too should go to moneyguy.com resources, download this solution, but also subscribe to the channel. This is an order, a financial order of operations question without a doubt. How do you graduate Beyond step six, which is Max out retirement? You've already heard Logan share that he can reach 25% but still not max out the full what the government allows you to put into the 401K. That

means that he's extremely disciplined in actually maximizing his saving opportunities, but his income hasn't quite reached a point where it actually loads up when you get to 25% to the full $23,000 that the government allows you to maximize. So, I would tell you, Logan, you are officially graduated from Step six once you hit that 25%. However, once you get to step seven, hyper accumulation, it's got the funny little name because what hyper accumulation is exactly that was the name applies. You are now Beyond 25%. So, what do you do? Well, what do you do? You can't be a rudderless ship not knowing where you're going to go. You have to start thinking about what are you navigating to, what are your goals, because all steps 1 through six was like maximize the future by, you know, taxes, making sure you have emergency reserves. Step seven is the one that says, wait a minute, we actually need to think about where we're going to use this money, how we're going to use it, because when you

answer the why question. It is going to streamline. Okay, if I'm retiring in my 50s, I might need some after-tax brokerage account because that's going to be so much easier to get a hold of, especially if I'm retiring before 55, than any other retirement accounts are. However, if you're a person who says, I absolutely love what I'm doing, and I love tax savings, and I'm starting to get into a higher income tax situation because Logan might get some promotions in the future, then you, if you're working until 70, you might say, Yeah, let's go ahead and let's load up, especially that Roth 401k or something like that. So, it all depends. Don't skip step seven because that is where you get into the three-bucket strategy and also how you're going to use your money for the future. Yeah, we tell people all the time, and this is an important thing to say, If you're saving 25% for the future, you're doing what you're supposed to be doing.

like that's the goal. I feel like because of the way the financial order of operations is designed, people think, I have to get out of my 401k. I have to get out of my 401k. And while there are advantages to getting out of your 401k, and there are advantages to having an after-tax account, and there are advantages to having that liquidity, it is also okay if you just happen to be in the situation where, Hey, I live a modest lifestyle. I have a modest income. I'm saving 25%, and it's in my 401k. And when I retire, I'm going to be in probably the same tax bracket, or I may even be in a little bit of a lower tax bracket when my earned income goes away. That's okay. I feel like people, they feel like, Oh, if all I'm doing is saving 25% and it's all going into retirement accounts, I'm doing it wrong. That's not true. You're still doing

an amazing thing. Yeah, there's some other flexibility that could take place, but just because you can doesn't mean that you should and doesn't mean that you have to. You have to figure out what is the right plan for you. If you're going to retire at age 67 and as soon as you retire, you're going to begin drawing Social Security, and then you're going to have this big qualified bucket sitting out there, that's okay. That's okay. Don't feel like you have to mold to something else just because you think that's what everyone else is doing. Make sure you have a plan in place that makes the most sense for your situation. And for a lot of folks, Logan, they fall into this, Hey, I'm doing 25%. I'm not planning on retiring early. I'm building up an emergency reserve. I have cash. I can go buy a car if I have to buy a car. I'm going to keep doing the 401K thing. That's okay. There's two things I notice the team tried to put up that there

great resource. You know what will 25% do for you. So, if you go to money.com resources, we do have a great resource. So, you can actually see by your age what your savings rate is, what type of income replacement you can kind of anticipate in the future. The other thing I think when I think about step seven of the financial order of operations, it's very misunderstood because it has that title to it. That's, you know, I talked about you can go download the free resource, but I'd be a crazy person if I didn't tell you about Millionaire Mission, my book that came out, my New York Times bestselling book that came out, um, because I think I put a master class on one of the chapters that I was very proud of, was that I took the step of hyper-accumulation, and I really do think I gave you the details and the understanding that if you ever have questions of how am I supposed to be using my money, how am I supposed to be putting it between all the different

savings buckets, the after-tax, tax-deferred, and even the tax-free Roth accounts. We loaded you up when I put together the millionaire mission.

Where Should You Invest After Reaching 25%?

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