How to Money Ask HTM – Sinking Funds for BIG Purchases, PTO Advances, & Investing for Early Retirement #1054
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Oct 27, 2025 Listeners pose intriguing questions about personal finance. Discover how to accurately count VA disability payments in your savings rate calculation. Learn what to do with a hefty settlement before early retirement. Uncover the fix for a 401k overcontribution mishap without the tax headaches. Explore strategies for saving for a new car using disciplined sinking funds. Plus, find out how to tackle credit repair after a missed auto-payment. Tune in for practical insights and some beer tasting fun!
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Count All Reliable Income In Savings Rate
- Include recurring VA disability payments when calculating your savings rate to reflect total available income.
- Track a consistent metric so raises or new income don't erode your target savings percentage.
Savings Rate Shows Behavior Not Wealth
- Savings rate is a behavior metric, not a pure wealth or net-worth metric.
- Focus on lifestyle goals and expenses instead of blindly chasing a percentage.
Prioritize Cash, Roth, Then Brokerage
- With a large lump sum and no debt, first fund 3–6 months of cash, then max tax-advantaged accounts like a Roth IRA if eligible.
- Use taxable brokerage accounts for remaining funds with low-cost providers if you don't need immediate access.