How to Money Ask HTM - Is a 25% Savings Rate Overkill, Avoiding State Minimum Insurance Requirements, & Eliminating 401k Loans #1030
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Sep 1, 2025 Listeners dive into intriguing financial dilemmas, exploring whether to take a higher-paying job with a 401k loan hanging over them. The discussion shifts to the differences between 401k and Roth accounts for young investors aiming to boost savings. There's a deep dive into insurance claims and the risk of increased premiums, alongside practical tips for cutting grocery and dining expenses. With personal anecdotes sprinkled throughout, the hosts blend finance with relatable stories, making complex topics engaging and accessible.
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EV Rental Wins And Charging Pains
- Matt rented Teslas and other EVs on trips and found charging logistics sometimes worse than gas stations.
- He still rented an EV when it was substantially cheaper and used long-range options to avoid charging stops.
Prioritize Paying Off 401(k) Loans
- Pay off a 401(k) loan before leaving a job or you may face taxes and a 10% early withdrawal penalty.
- Consider draining emergency funds or borrowing temporarily to avoid the tax hit, then replenish savings quickly.
Replace A Missing 401(k) With Other Accounts
- If a new employer lacks a 401(k), still invest via IRAs, HSAs, and taxable accounts and automate contributions.
- Use part of a raise to max a Roth IRA and HSA, then add taxable investing if you can save more.