Table of Contents

• Retirement Planning for The Great Wealth Transfer

• Solo 401k: The Ultimate Retirement Hack for the Se …

• Roth IRA: The Cool Kid of Retirement Savings

Retirement Planning for The Great Wealth Transfer

In an era where the gig economy, startups, and personal branding are the new norms, millennials are rewriting the rules of career success and financial independence. For the ambitious millennial cohort, often dubbed "High Earners, Not Rich Yet" (HENRYs), savvy financial planning isn't just an option; it's a necessity. Enter the Solo 401k and Roth IRA—two retirement planning powerhouses that offer more than just a nest egg for the future. They are tools for building financial freedom with flexibility, high contribution limits, and tax advantages that speak directly to the millennial ethos of smart, personalized investing.

Solo 401k: The Ultimate Retirement Hack for the Self-Made Millennial

In the world of entrepreneurship and side hustles, the Solo 401k shines as the ideal retirement savings plan. Designed for the self-employed and small business owners flying solo (or with a partner in crime/spouse), this plan is about maximizing your savings while giving you the reins to invest in what you believe in.

Why It Rocks:

• Sky-High Contribution Limits: With the ability to stash away up to $66,000 (or $73,500 if you're embracing your 50s), the Solo 401k lets you accelerate your savings journey.

• Tax Flexibility: Choose between upfront tax breaks or tax-free retirement money with traditional and Roth options. It's about saving smart now and enjoying later.

• Invest Your Way: From stocks to real estate to crypto, diversify your portfolio your way. It's the ultimate freedom to align your investments with your values and interests.

Roth Solo 401k & Mega Backdoor Strategy: The Millennial's Secret Weapon

The Roth Solo 401k component is your ticket to tax-free growth and withdrawals, perfect for those planning a prosperous future. And with the mega backdoor Roth strategy, you're looking at an elite hack to supercharge your tax-free retirement savings, way beyond the usual Roth IRA limits.

Solo 401k vs. SEP IRA: Why Settle for Less?

While both plans offer a way to save, the Solo 401k comes out on top with its higher contribution possibilities, catch-up contributions for the wise and worldly over 50, and the all-important Roth option. It's about getting the most bang for your buck and not leaving any tax-advantaged stone unturned.

Getting Your Solo 401k Rolling

Setting up your Solo 401k is easier than swiping right. Digital platforms have made registration and account funding as simple as setting up your latest streaming service subscription. If you're self-employed with no employees (spouse exempt), you're in. This is your green light to start funding your dreams.

Roth IRA: The Cool Kid of Retirement Savings

Not to be overshadowed, the Roth IRA is the go-to for tax-free growth and withdrawals. It's ideal for millennials who believe their best earning years are ahead. With straightforward rules and the freedom to withdraw your contributions (but not earnings) anytime, it's as flexible as your lifestyle.

Why It's a Must-Have:

• Tax-Free Goodness: Pay taxes now at your current rate, and enjoy tax-free withdrawals when you're living your best life in retirement.

• Accessibility: With income limits to keep in mind, the Roth IRA is a gem for those who qualify, offering an easy way to save for the future.

• Investment Choices Galore: Like the Solo 401k, you're not limited to bland investment options. Stocks, bonds, ETFs, and more are all in play.

Integrating Solo 401k and Roth IRA: The Dynamic Duo

For the millennial HENRY, combining the Solo 401k's high contribution limits and investment freedom with the Roth IRA's tax-free withdrawals creates a formidable retirement strategy. It's about leveraging the best of both worlds to craft a personalized path to financial freedom.

• Max Out Savings: With these tools, you're equipped to save aggressively, ensuring that your future self will thank you.

• Embrace Tax Diversification: By balancing between pre-tax and Roth contributions, you hedge against future tax rate changes.

• Invest with Purpose: Use the freedom these accounts offer to invest in what matters to you, aligning your portfolio with your passions and beliefs.

The Bottom Line

For millennials navigating the complexities of modern career paths and financial landscapes, the Solo 401k and Roth IRA aren't just retirement plans; they're lifelines to a future where financial freedom is the norm. By embracing these tools, you're not just planning for retirement; you're investing in a lifestyle that values flexibility, smart tax planning, and the freedom to pursue your passions on your terms. It's time to take control of your financial destiny, and with the Solo 401k and Roth IRA, you have everything you need to make it happen. Let's redefine retirement on our terms.

*Bonus Content* - Comparison of Roth IRA providers

Curated For You

These articles are a precursor to next week’s insights and opinions when I talk more about the massive consequences of the Great Wealth Transfer.

• Lord of the Roths: How Tech Mogul Peter Thiel Turned a Retirement Account for the Middle Class Into a $5 Billion Tax-Free Piggy Bank 

• Some HENRYs are saving too much for retirement — and it may backfire

• Are Millennials on Track for a Secure Retirement?

Read past editions here

Noyack Wealth Weekly is the leading wealth management newsletter published by CJ Follini & Noyack Wealth Club, a nonprofit dedicated to free financial literacy for younger generations. Feel free to tell us what you think of our little newsletter.