Ask Paula: Should I Sell My Rentals to Buy More Stocks?
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Can a Backdoor Roth Contribution Really Reduce the Taxes?
Paula Navarrette: Liz is trying to cover up the cost of her house sale. She wants to come up with that type of cash to pay that tax, she says. But at this point, you're just trying to reduce the pain, right? You can't reduce the tax. The tax is going to happen,. So she needs to reducing the pain of the tax by covering it up in another area and making a backdoor Roth contribution or a larger backdoor Roth contribution feeds that goal. Right. Like I often find that investors let the tax tail wag the more money dog.
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