When Should You Stop Contributing to Your 401(k)? Here’s the Real Number

Take control of your retirement with the FREE BEGINNER’S GUIDE to self-directing and learn how to invest beyond Wall Street! https://bit.ly/self-directed-ira-begi... Want help putting these strategies to work? BOOK A FREE CALL with DirectedIRA and build a retirement plan around the investments you actually want to own! https://bit.ly/directed-ira-appointme... The internet loves to warn that your 401(k) is a ticking tax bomb, but the actual math tells a very different story. Wealth lawyer and real estate investor Mat Sorensen breaks down the retirement account balances where required minimum distributions can truly become a tax problem, why the traditional 401(k) still works for most investors, and how to determine where your next retirement dollar should go. What the numbers reveal: • The 15-second calculation that estimates your account balance and first required minimum distribution at age 75 • Why a married couple may not hit the real 401(k) tax problem until roughly $5.1 million in traditional retirement accounts • How $250,000, $500,000, $1 million, and $2 million balances today could grow by retirement • Why deducting contributions at your marginal tax rate and withdrawing later at a lower effective rate can create significant tax savings • When Roth 401(k) contributions, brokerage accounts, real estate, or other investments may make more sense • Why getting the employer match and then redirecting additional dollars to a lower-cost IRA can be a smarter move • Four situations where you should consider redirecting your next dollar instead of adding more to a traditional 401(k) The goal isn’t to optimize your retirement around one account or one tax projection decades into the future. Building multiple buckets — traditional, Roth, taxable investments, real estate, business interests, and alternative assets — gives you more flexibility to manage taxes, income, and changing rules throughout retirement. This strategy is especially valuable for high-income earners, investors with large retirement balances, early retirees, and anyone deciding between traditional and Roth contributions because it helps you make the decision based on your actual tax brackets instead of fear-driven headlines! CHAPTERS: 0:00 Intro 3:31 Why the Tax Bomb Is Smaller Than the Internet Says 4:59 What That Gap Is Actually Worth 6:29 What Your Balance Today Becomes at 75 11:10 So Where Does the Next Dollar Actually Go? 13:49 When You Actually Should Redirect Your Next Dollar 18:11 Recap 19:25 Outro Mat Sorensen is the Founder and CEO of Directed IRA & Directed Trust Company, an INC 500 company with over $3.5B in assets and 1,134% growth in the last three years. He leads one of the fastest-growing custodians for self-directed IRAs, helping investors deploy retirement dollars into real estate, private funds, and alternative assets. Mat is the author of The Self-Directed IRA Handbook, the industry’s most widely used guide with over 50,000 copies sold. He also holds advisory roles with KKOS Lawyers and Main Street Business Services and co-hosts two top-ranked podcasts for investors and entrepreneurs. My Social Media: Instagram:   / matsorensen   TikTok:   / sorensenmat   LinkedIn:   / matsorensen   Facebook:   / mat.sorensen.1   Websites: https://directedira.com/appointment https://kkoslawyers.com https://mainstreetbusiness.com https://matsorensen.com Disclaimer: This podcast is for educational purposes only and does not constitute financial, tax, or legal advice. Consult with a qualified professional before making any investment decisions. The Self-Directed IRA Handbook: https://shop.matsorensen.com/products...