Money Guy Show "Can I Pay My Car Off in Four Years?"
Feb 5, 2025
A listener grapples with financing a car using a 0% interest offer, leading to a discussion about making the right financial choices. The talk emphasizes the importance of timely repayments and balancing aspirations with reality. Additionally, budgeting for weddings comes into play, highlighting the need for disciplined financial planning. The hosts also touch on hyperaccumulation and financial education, promoting smart consumption and effective saving strategies to enhance overall financial well-being.
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Handling Ineligible Roth Contributions
- Contact your custodian/broker to remove ineligible Roth contributions and earnings if you exceed the income limit.
- Consider a backdoor Roth conversion if you have no other IRAs or roll them into a 401k/403b.
Net Worth Targets and Income Changes
- Net worth targets based on income multiples are rough guides, not strict rules.
- Smoothing income over 3-5 years provides a better assessment, especially with variable income.
Quantifying Hyperaccumulation
- Aim for a 25% savings rate before considering hyperaccumulation.
- This allows for strategic planning of asset use and future goals.
