Q&A: Investing OR Paying Off Mortgage, Passing Wealth To Children, & Paying For College

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Oct 16, 2025

The hosts dive into the nuances of retirement accounts, breaking down options for self-employed individuals. They tackle the dilemma of investing extra mortgage payments versus paying down the loan, showcasing investment benefits. The discussion shifts to the importance of emergency funds and the difference between those and sinking funds for predictable expenses. Parents are advised on the balance of supporting college costs while securing their own retirement. Finally, listeners get practical tips on monetizing marketing skills as a flexible income source.

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ADVICE

Choose Retirement Account By Goal

If you prioritize tax-free long-term growth, set up a solo 401(k) with a mega backdoor Roth conversion via a provider like Carry.
If you prioritize current tax deductions, consider a SEP IRA but focus first on increasing taxable income to qualify for bigger contributions.

INSIGHT

Don't Let Paper Losses Block Growth

Reporting paper losses can limit your ability to qualify for loans and retirement contributions, so balance tax-saving strategies with showing healthy income.
Focus on increasing real income first, then optimize tax strategies and retirement contributions.

ADVICE

Convert Small IRAs And Capture Employer Match

Convert small traditional IRAs to Roth early to lock in decades of tax-free growth and pay the modest conversion tax from outside funds.
Prioritize employer match first, then max Roth IRAs, then taxable investing (Match beats Roth beats taxable).

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