Shownotes
The underlying framework of knowing where to invest your money is first knowing your desired outcome.
In today's Better Wealth Episode, I continue my series of episodes “Where Should I Invest My Money” as I discuss the framework of how to analyze the best places to invest your money. In the last episode we discussed how to identify and compare different assets. Listen as I define the Roth IRA and the Roth 401K and then take you through the framework of evaluating these two accounts.
- Safe (Low Risk): Your money suffers little to no risk of loss.
- Liquidity: Your money is accessible for emergencies or opportunities.
- Growth: Your money multiples at a competitive rate of return.
- Passive Cash-Flow: Your money produces income on it’s own.
- Leverageable: You can use your money as collateral.
- Private: Your money grows without restrictions and has creditor protection.
- Tax Deductible:You can subtract any money you put into the account from your taxable income.
- Grows Tax-Free: Your money grows without being taxed.
- Tax-Free Distribution: You can access your money without paying taxes on it.
- Protection/Legacy: You are provided for in the event of tragedy and are self completing.
- No Contribution Limits: You have no limits on how much you can fund in the asset.
Episode Links & Resources:
Episode #279: The 11 Attributes of a Perfect Investment
Episode #284: Should I Invest In My 401K
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