What Percentage of Net Worth Should be in Stocks, Old 401(k), Books for Buying Businesses and More! - Money Q&A
Nov 27, 2024
Dive into the financial frontier with discussions on the ideal percentage of net worth to allocate to stocks. Learn what to do with that old 401(k) and how to strategically pay off high-interest debts like car loans. Explore recommended books for buying businesses and innovative tools for emerging entrepreneurs. Discover the nuances of international index funds and valuable investment services, while hearing inspiring success stories of individuals achieving significant financial milestones. Get equipped with actionable insights for navigating your financial journey!
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volunteer_activism ADVICE
High-Interest Car Loan
Prioritize paying off high-interest debt, especially on depreciating assets like cars with interest rates above 6%.
Consider investing instead if interest rates are lower, as returns may outweigh the interest payments.
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Roth 401(k) Rollover
Roll over Roth 401(k)s into a Roth IRA when changing jobs to control investment options and maintain tax-free growth.
Use a direct rollover to avoid mandatory withholding and ensure a smooth transfer.
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International Index Fund Taxes
No need to file multiple tax returns for international index funds; the fund handles foreign tax obligations.
Claim a foreign tax credit on your US tax return to reduce your tax liability.
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In 'The Simple Path to Wealth,' JL Collins provides a clear and accessible roadmap to financial independence. The book, written in a conversational style, emphasizes the importance of living below your means, avoiding debt, and investing in broad-based index funds, such as Vanguard's Total Stock Market Index Fund. Collins discusses key financial principles like the 'F-You Money' concept, the 4% rule, and the dangers of engaging investment advisors. He shares his personal journey and investment mistakes, making the book relatable and inspiring. Although the book is heavily focused on the U.S. market, its underlying principles are applicable to a wide range of investors.
Buy Then Build
How Acquisition Entrepreneurs Outsmart the Startup Game
Walker Deibel
In 'Buy Then Build,' Walker Deibel provides a comprehensive guide for acquisition entrepreneurs. The book explains how to skip the startup phase and generate profitable revenue immediately by buying an existing company. It covers topics such as finding great brokers, generating 'deal flow,' uncovering opportunities and risks, navigating the acquisition process, and transitioning into the role of a CEO. Deibel argues that buying a business is often more lucrative than starting one from scratch, especially with the current market trends and the retirement of baby boomers who own many small businesses.
In this episode of the Personal Finance Podcast Money Q&A, we're going to talk about what percentage of your net worth should be in stocks, what to do with an old 401k, books for buying businesses and so much more.
Today we are going to answer these questions!
Question 1: Should I pay off my 7.72% Car Loan?
Question 2: What to do with my Old 401(K)?
Question 3: What taxes are associated with international index funds?
Question 4: Books For Buying a Business
Question 5: Stock Lending and Investment Services
Question 6: Back Door Roth & % of Net worth in stocks?
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