Ask KT & Suze Anything: Can I Afford to Have a Baby?
May 30, 2024
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In this podcast, Suze answers questions about RMDs, ROTHs, investing in art and wine. They also discuss the financial preparation for having a child, suggesting saving $72,000 in a year. The hosts provide financial advice on home renovations, retirement accounts, and reflect on evolving financial trends. Plus, there's a quiz opportunity for listeners to win $5,000.
Consider creating a 'baby fund' by saving before expanding your family.
Diversify investments between Roth IRA and traditional 403b accounts for tax advantages.
Prioritize early financial planning and educate yourself on RMD requirements for retirement.
Deep dives
Planning a Safari Adventure in Africa
The podcast hosts describe their unforgettable safari trip in Africa where they visited Zimbabwe and the Kruger National Park. They share their experience in encountering the 'Big Five': elephant, leopard, lion, African buffalo, and the elusive white rhino. The hosts emphasize the authenticity of their colonial safari experience at Tinswalo camp and highlight the knowledgeable guide who enriched their understanding of wildlife behavior.
Financial Considerations for Starting a Family
The podcast addresses the financial concerns of starting a family, particularly focusing on the high cost of daycare in their area, estimated at $3,500 a month. The hosts discuss an audience member's situation where they analyze income, emergency fund, retirement investments, and monthly expenses to determine financial readiness for having a baby. They suggest creating a 'baby fund' by setting aside additional savings before making the decision to expand the family.
Investing in Certificates of Deposit and Retirement Accounts
The podcast delves into the topic of investing in certificates of deposit (CDs) and retirement accounts based on audience questions. The hosts advise on the limitations of modifying a CD once opened, highlighting the need to open multiple CDs for additional contributions. They also discuss the benefits of balancing contributions between Roth IRA and traditional 403b accounts, focusing on optimizing tax advantages and investment growth.
Considering Art and Wine Investments
The hosts engage in a lively discussion on investing in art and wine, emphasizing the importance of affordability before delving into such investments. They caution the audience member to carefully select reputable companies or apps for art and wine investments. Sharing personal anecdotes, they illuminate the hidden costs associated with storing and insuring valuable art and wine collections, suggesting a cautious approach towards these investments.
Evaluating Retirement Planning and Required Minimum Distributions
Listeners are enlightened on retirement planning intricacies, particularly focusing on required minimum distributions (RMDs) and strategic financial preparation before retirement. The hosts address inquiries on RMD planning and direct the audience towards educational resources on RMD requirements. They stress the significance of early financial planning and the potential benefits of converting traditional accounts to Roth accounts for tax-efficient retirement strategies.
On this edition of Ask KT and Suze Anything, Suze answers questions about RMDs, ROTHs, investing in art and wine. Plus, a “Can I Afford It?” quizzy and so much more!
