Tony Robbins reveals simple secret to 401(k)s, IRAs | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Planning for retirement is a multifaceted endeavor that requires more than just financial preparation — it demands a thoughtful alignment between monetary resources and the kind of lifestyle one hopes to maintain.

It’s not simply about having enough money saved; it’s about ensuring those funds can support a life that remains meaningful, comfortable, and enjoyable over the long term.

As individuals transition into retirement, they encounter a wide range of decisions that shape their financial future. From managing everyday expenses to choosing appropriate investment strategies, each choice plays a vital role in securing lasting financial well-being.

These decisions are not one-size-fits-all. They require careful consideration of personal goals, risk tolerance, and evolving needs.

Tony Robbins, the well-known author and motivational speaker, is a strong advocate for incorporating Roth 401(k)s and Roth IRAs into retirement planning. He frequently highlights their long-term advantages, particularly the potential for tax-free growth and withdrawals.

These features, he argues, can provide retirees with greater flexibility and security, especially in an environment where tax rates and healthcare costs may fluctuate unpredictably.

Tony Robbins explains the importance of Roth 401(k)s

In his book, “Money: Master the Game,” Robbins discusses the importance of contributing to 401(k) plans, and then explains why Roth 401(k)s are key to amassing income for retirement.

The secret to the 401(k) is simple: You have to do it. But you have to do it within a cost-efficient plan and take advantage of the Roth 401(k) (especially if you believe taxes will go up for you in the future) … Most people won’t make the commitment to save more today, but they will make the commitment to save more tomorrow.

Robbins gives an example of how to approach increasing contributions to 401(k) plans on a yearly basis.

Let’s say today you save 3% of your salary. Then next year you agree to go up 1% (for a total of 4%.) And then you keep “auto-escalating” your savings amount until you reach a certain cap … (You) have an opportunity to set yourself on an accelerated path to financial freedom.

Robbins explains another key fact about 401(k)s: Employers who match an employee’s contributions are covering the taxes for you. This is especially important because, in Robbins’ view, your taxes are expected to increase over time.

“And if you think taxes are going up, checking the box so that your contributions receive Roth tax treatment is the way to go,” he wrote.

Personal finance author and motivational speaker Tony Robbins sends a strong message to Americans on the importance of Roth 401(k)s and Roth IRAs..

Image source&colon; Getty

Robbins says American workers should also set up a Roth IRA

Asking the question about whether to invest in a Roth IRA, Robbins has a one-word answer.

“Yes!!” he wrote.

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For the 2025 tax year, the Roth IRA contribution limits remain unchanged from 2024, the Internal Revenue Service (IRS) explains.

You can contribute up to $7,000 if you’re under age 50.
If you’re 50 or older, you’re eligible for a catch-up contribution, bringing your total limit to $8,000.
However, your ability to contribute depends on your modified adjusted gross income (MAGI).
Single filers can make the full contribution if their MAGI is less than $150,000. Contributions phase out between $150,000 and $165,000, and above that, you’re ineligible.
Married couples filing jointly can contribute the full amount if their MAGI is below $236,000. The phase-out range is $236,000 to $246,000, and contributions aren’t allowed above that threshold.

Tony Robbins clarifies Social Security, other retirement expectations

Among the most critical financial factors to evaluate are projected Social Security benefits, anticipated healthcare expenses, and the adequacy of current savings and investments.

Robbins emphasizes that these elements form the foundation of a retirement strategy that is both realistic and sustainable. Without a clear understanding of these variables, retirees may find themselves facing unexpected shortfalls or compromises in their quality of life.

Equally important is the role of daily living expenses in shaping a retirement budget. Routine costs such as groceries, utilities, transportation, and leisure activities must be accounted for to preserve one’s preferred standard of living.

Robbins points out that while these expenses may seem minor in isolation, their cumulative impact over time can significantly influence financial stability. Thoughtful budgeting and regular reassessment are key to ensuring that retirement remains not only financially secure but personally fulfilling.

Robbins educates Americans on 401(k) plans with past employers

Older plans can either be left with a previous employer or rolled over into an IRA, Robbins wrote.

One would leave it with an old employer only if the plan itself was low cost and had favorable investment options. By rolling over the plan into an IRA … you will have greater control. You can invest in nearly any investment, not just a limited menu the custodian offers. And with this great control, you will be able to hire a fiduciary advisor and implement some exciting strategies and solutions.