Rich Habits Podcast

Q&A: Mega Backdoor 401(k), Medical School Debt, & Losing a $50K Investment

15 snips
Nov 27, 2025
Explore the essentials of mega backdoor Roth contributions and how to prioritize your retirement savings. Discover the best strategies for balancing student loan payments and investing simultaneously. Learn the pros and cons of Roth vs. traditional accounts, especially for those considering retirement abroad. Get tips on managing a delayed private REIT and the benefits of using home equity to tackle credit card debt. This Q&A covers practical financial advice for building a solid financial foundation while navigating big life choices.
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ADVICE

Prioritize Match, Then Roth, Then Taxable

  • Follow the hierarchy: get employer match first, then Roth, then taxable accounts.
  • Use the mega backdoor Roth but avoid overfunding retirement if it leaves you illiquid for life goals.
INSIGHT

Mega Backdoor Roth Can Be Huge — But Illiquid

  • A mega backdoor Roth can let you and your employer contribute up to roughly $70,000 a year.
  • Such large contributions are powerful but can trap funds until age 59½, so balance liquidity needs first.
ADVICE

Use A Hybrid: Pay Loans While Investing

  • Don’t lump-sum pay student loans if it drains your investment base; instead use a hybrid approach.
  • Accelerate monthly savings and attack higher-rate loans first while continuing to invest for compound growth.
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