Ask KT & Suze Anything: Revisiting Can I Afford to Have a Baby?
Mar 27, 2025
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Dive into financial insights as Suze tackles listener questions on RMDs and Roth conversions, revealing long-term benefits. Explore Mike's journey from debt to an impressive $6 million retirement fund, showcasing achievable wealth-building. Get the scoop on new RMD laws and the importance of early planning. Plus, find out whether investing in art and wine is a smart move or just a luxury. With practical advice and personal anecdotes, this discussion aims to transform your financial future!
Converting from a traditional 403B to a Roth 403B can optimize tax implications and boost long-term retirement savings.
Recent RMD law changes provide retirees with flexibility, necessitating early planning to manage retirement income effectively.
Deep dives
Investing in Retirement Accounts
When considering how to utilize a $10,000 investment, converting funds from a traditional 403B to a Roth 403B can be a strategic move. This conversion allows individuals to invest tax-free, offering potential long-term benefits as they prepare for retirement. It is advised that individuals consult with a CPA to ensure that this decision aligns with their overall financial strategy. This approach not only optimizes tax implications but also enhances the value of retirement savings over time.
Changes in RMD Regulations
Recent changes to Required Minimum Distribution (RMD) laws offer more flexibility for retirees, pushing the age from 72 to 73 and further to 75 for those born in 1960 or later. Individuals nearing retirement are encouraged to start planning for these changes well in advance rather than waiting until the required age. Converting traditional IRA assets to Roth accounts can significantly reduce future RMD amounts, allowing for better management of retirement income. Understanding these evolving regulations is crucial for effective retirement planning and ensuring financial security.
Art and Wine Investments
Investing in art and wine can be appealing for those who have the financial means, yet it is essential to approach such investments with caution. The costs associated with storing and insuring these assets can add up quickly, potentially offsetting any gains realized from the investment. Additionally, many investors are motivated by personal enjoyment rather than purely financial returns, adding another layer of complexity. Proper research and guidance are critical before committing to these types of investments to ensure they align with financial goals and expectations.
On this episode of Ask KT and Suze Anything, Suze answers questions about RMDs, ROTHs, investing in art and wine. Plus, a baby sized “Can I Afford It?” quizzy and so much more!
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