1782: Ask Farnoosh: Midlife Investing Goals, Inheritance Strategies, and More
Jan 31, 2025
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Discover savvy investment strategies for midlife individuals, focused on making impactful financial decisions. Learn how to wisely handle inherited assets, including the intricacies of REITs and minimizing tax implications. Explore the evolving real estate landscape and the challenges posed by rising interest rates. Delve into the implications of tech on education and career paths while emphasizing financial literacy. Plus, gain insights into emotions surrounding inherited wealth and the importance of starting retirement savings at any stage.
Midlife investing requires a focus on employer-sponsored retirement accounts and diversification to enhance financial security and wealth building.
Navigating inherited investments necessitates careful evaluation of options, tax implications, and long-term strategy for maximizing financial benefits.
Deep dives
Mealtime Inspiration and Savings
Shopping for ingredients can spark mealtime creativity, offering countless options for delicious meals at affordable prices. Utilizing resources like digital coupons allows consumers to save significantly, with the potential for over $600 in savings each week. Additionally, customers can benefit from discounts on fuel, emphasizing a dual approach to cost savings on both groceries and transportation. This combination of tasty ingredients and savings enhances the overall value for shoppers.
Managing Inherited Investments
Navigating inherited investments can be complex, especially when deciding what to do with a real estate investment trust (REIT) worth around $60,000 inherited from a parent. It's important to evaluate the REIT's performance over time and understand the associated fees before making a decision to either retain or sell the investment. Considering how this REIT fits into an overall investment strategy is crucial, as diversification plays a key role in managing risks. Understanding the tax implications of selling inherited investments can also inform the decision-making process.
Midlife Investment Strategies
Investing in midlife, particularly in one's 40s, is an important step toward financial security and wealth building. Accessing employer-sponsored retirement accounts like a 401(k) can simplify the investment process, especially if the employer offers matching contributions, which can aid in catch-up strategies. Exploring options like IRAs, particularly the Roth IRA for its tax-free growth, can further complement retirement planning. However, it's beneficial to branch out with additional accounts, such as a brokerage account, to ensure sufficient growth to meet retirement goals.
The Impact of AI on Employment
The rise of artificial intelligence is reshaping the job market, with entry-level positions increasingly at risk as employers turn to automation. This trend raises significant concerns for job seekers and current students about the relevance of their education and skills in a rapidly changing workforce. Strategizing on how to adapt to these advancements, such as focusing on unique human skills that cannot be easily replicated by AI, is essential. Additionally, the ongoing dialogue about the future of education and career paths for younger generations reflects the need for adaptability in a world where technology significantly influences employment.
In this Ask Farnoosh episode, Farnoosh tackles your most pressing money questions, including strategies for managing investments in midlife. Also: How to decide what to do with an inherited investment—evaluate options, minimize taxes, and make the most of the windfall. Plus, we explore other listener questions on building financial security for the long haul.