Money Guy Show How to Buy a House in 2025!
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Jan 20, 2025 Discover essential financial strategies to navigate home buying in 2025. Learn how to maximize your Roth IRA contributions and avoid tax pitfalls with backdoor conversions. Explore the critical difference between price and value in investments, and the importance of collaboration in managing finances as a couple. Dive into the significance of understanding expense ratios and how they affect your investment choices. Get practical tips to ensure that your income management aligns with your housing expenses for a stress-free financial future.
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Maintaining Savings with After-Tax Brokerage
- Dollar cost average into an after-tax brokerage account if you're nearing the Roth IRA income cap.
- This avoids penalties for exceeding the limit and maintains your savings rate.
Backdoor Roth Conversion Prep
- Ensure your account structure is suitable for a backdoor Roth conversion.
- Clear out existing IRAs by rolling them into your 401(k) to avoid tax complications.
Scaling Savings with Income
- Increase your investments and savings proportionally with your income growth.
- Don't limit yourself to previous savings habits if your income significantly increases.