In the lower right, this is where money goes in pre tax when you're saving it. And then when you pull it out in retirement in the middle, you pass through this portal to spend it and pay tax on it. So that's the lower right for a lot of people, specially older people. In the top left, we have no great tax treatment, but supreme flexibility. The two most important things are: 1) To diversify your assets so they don't get taxed as much; 2), to keep them from getting into trouble by making bad decisions with their investments or taking too many risks at once.
#370: Kristen is 32, and she and her husband want to retire in less than 20 years. They make too much to contribute to a Roth IRA. Should they use back door Roth conversions to speed along their path to early retirement?
Michelle makes $190,000 and is going to switch to a career that pays $40,000 on average. To prepare for this lower salary, she's selling her current home and buying a different one. Should she pay off her new home with the proceeds from the old one? Or should she invest her profits?
Anonymous lives in a high cost-of-living area and is wondering where to keep her down payment and emergency funds. Should she use I-bonds, TIPS, or some combination of these two?
In today's episode, former financial planner Joe Saul-Sehy and I tackle these tough situations.
Enjoy!
Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it at https://affordanything.com/voicemail and we’ll answer them in a future episode.
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