Episode 343: I've Maxed Out My 401(k), Now What?

In this episode of the Power of Zero Show, host David McKnight discusses the scenario in which you have maxed out your 401(k) and are wondering where you should invest the rest of your money. The episode kicks off with David addressing the type of 401(k)s you should be investing in first. There are two types of 401(k)s: the traditional pre-tax 401(k) and the Roth 401(k). Should you go for a traditional 401(k) or a Roth 401(k)? It all depends on whether you think your tax bracket is likely to be lower or higher in retirement… With the national debt set to hit $62 trillion by the year 2035, David believes that, “There isn’t any way the Federal Government can service that type of debt without increasing taxes.”  Planning on retiring past 2035 and you’re currently in the 24% tax bracket? Then, David recommends opting for a Roth 401(k). This year, you can put $23,500 into your Roth 401(k) if you’re younger than 50, and $31,000 if you’re over the age of 50. David talks about what to do if yo...