Maxed Out My 401k, Now What

Have you maxed out your 401(k) or 403(b)? What should you do now? There are a lot of different options—what do those look like, what might be a good out, and what to pass on.  In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about  401(k)s and what to do after you max those out. Topics Discussed: Max Contribution Amount: $20,500 for an employed physician Financial Plan: Allows you to match your goals with dollars to put them to work Is the 401(k) enough? If not, how much do you need to save? Assume more What’s the next best option? Maximizing tax shelters for added tax benefit HSA: Use as healthcare savings account instead of healthcare spending account Backdoor Roth IRA: Fund a traditional IRA and then convert it into a Roth More Options: 457(b), cash balance, deferred compensation, and after-tax 401(k) What to consider? Complexities, different structures, expenses, and side jobs Tax-Loss Harvesting: List of things you can do to minimize taxation Alternative: Investing in real estate business can be active or passive income Short- vs. Long-Term Capital Gains: Which are least and most tax-efficient? Links: E*TRADE Robinhood Using Your HSA To Build Wealth Why the HSA is a Hidden Gem Everything You Need To Know About Backdoor Roth IRA with Jennifer Quire Are You Saving Enough For Retirement Digging Into Tax Loss Harvesting Before You Buy Into Passive Income Why is Permanent Life Insurance Such a Terrible Short Term Investment Contact Finance for Physicians Finance for Physicians Full Episode Transcript: Hey, guys. Hope you’re having a great day. I am planning to talk about 401(k)s and what to do after you max those out. That’s a pretty common question that comes up, and I think there are a lot of different options after that, so we’ll talk through what those might look like, what might be a good out and what might be options to maybe pass on. Before we get into that, I want to give you guys a quick update on just the podcast in general and tell you a couple of things we’ve been working on. If you’ve listened awhile, you know my goal is really to help physicians (in general) use money to live better. I think what’s different about us is we’re focused on the ‘live better’ part and not necessarily the ‘more money’ part. That’s been great to focus on that in this avenue. In my day job, I work with a lot of individuals. It’s more of a one-on-one basis. Our planning firm—Wrenne Financial Planning—have several financial planners, including myself, working one-on-one with physician families. This has been a really great way for me to work more in a one-to-many avenue. It seems like, so far, we started to gain some traction. Surprisingly, it’s been almost two years. I think it was October of 2020 when I started this, maybe more like a year-a...