Daan is wondering if he should stake or lend his current cryptocurrency portfolio to make additional gains on assets he plans to hold long-term?
C wants to know what tax implications she should consider before working remotely from abroad?
Russell’s job offers the option to contribute to a 457 plan. Since he’s in the highest tax bracket, should he take advantage of the tax deferral offered through the 457 or invest within a taxable brokerage account?
Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.
Anonymous asks (at 4:55 minutes):
I’m 31 years-old living in a medium cost of living area, making $78,000 a year. I currently max out my Roth IRA, HSA, and 401(k). I also contribute $400/month to a taxable brokerage account.
I have about $81,000 invested across all of my accounts and $41,000 in student loans, which are currently in forbearance due to Covid.
My primary goal is to have enough money so that in 14 years I have the flexibility to stop working and spend time with and/or take care of my mom. My secondary goal is to fully live life by embracing the change and freedom that financial independence provides.
I’m on track to be financially independent within 14 years. Although my current job pays well and offers flexibility and autonomy, it’s so boring. I can’t imagine doing this for the next 14 years. I’m compensated appropriately, but could be making more in other roles.
Those would come with higher stress and longer hours, but I could retire quicker and with higher income.
I don’t feel like I’m living up to my potential. I’d like to do more, but I’m not sure what that is. Any advice?
Daan asks (at 26:20 minutes):
My portfolio contains 90% index funds; 4-5% is in cryptocurrency. I plan on holding my crypto long-term, and they are currently in the broker in which I bought them. I’ve heard it’s possible to either stake or lend them to earn interest.
I’m not looking to gamble this money, but if it’s possible to earn 8-16%+ on the crypto I already hold, why shouldn’t I do that?
C asks (at 40:53 minutes):
Over the last year, many people have liked having the option of working from home. I am interested in working not just remotely, but from abroad.
As an employee in a traditional working environment, what tax implications should I consider if I were to work abroad?
Russell asks (at 49:26 minutes):
I work for a large healthcare organization that offers its employees a 457 plan. I’ve been hesitant to invest through it, as it won’t be my money until withdrawal. However, my employer seems to be financially stable and offers great investment options within the account. I’m in the highest tax bracket for W-2 income.
If I invested $20k annually for the next 15 years in a taxable account vs. the 457 account, what would be the difference after 15 years in the money accumulated? By how much would I be losing out by not taking advantage of the tax deferral?
- The Girls Who Stepped Out of Line | Book
- Keep Going | Book
- The E-Myth | Book
- Big Magic | Book
- Bitcoin for Beginners | Podcast episode
- Crypto Casey | YouTube Channel
- Federal Tax Withholding for Persons Employed Abroad | IRS Article
- Foreign Earned Income Exclusion | IRS Article
- Interactive Tax Assistant | IRS Article
- Instructions for Form 1116 | IRS Article
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