Micheal’s parents just sold their home to pay off debt and fund their retirement. How should he invest the profits?
Ryker would like to understand what it would take for cryptocurrency to be considered as a good investment option for a diversified portfolio.
Megan has qualified for her employer’s 401k and needs help deciding between investing in a Roth 401K and a Roth IRA.
In today’s episode, former financial planner Joe Saul-Sehy and I tackle these tough questions.
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.
Micheal asks (at 3:25 minutes): My mom is 66 and my dad is 69. They’ve always struggled with money and debt. I convinced them to move in with me and to sell their house to pay off their debts and help fund their retirement.
They currently have about $10,000 saved in a 401k. My dad is a retired logger and draws about $1,250 a month from social security, while my mom is still working and drawing social security of about $1,500 a month. She grosses about $30,000 annually and plans to retire in about a year.
They’ve already moved in with us and their house is under contract. They only need enough money for living expenses, since I’m taking care of their housing.
How should we invest the money they make from the sale? Can I be more aggressive with their retirement allocation so that I can grow their funds AND allow them to start drawing 4% when my mom retires?
Ryker asks (at 28:05 minutes): I listen to alot of financial podcasts, and it seems like there’s a lot of uncertainty and doubt in regard to cryptocurrency. My interpretation is that it’s not really recommended to be held in a portfolio; it seems to be regarded as “play money”.
What would cryptocurrency need to achieve in order for it to be a recommended hold in a diversified portfolio?
Megan asks (at 47:46 minutes): I’m 30 years old, I have no debt and I have $9,000 in non-retirement savings. I also earn about $60,000 pre-tax in a meaningful, nonprofit job that I love.
Still, it is work and I want to at least partially retire by age 50. This is my first-year eligibility for an employer sponsored 401k.
This 401k is through Guideline. It has a 4% match and a 0.08% expense ratio. I chose a Roth option due to my current low tax bracket.
Should I put all of my savings in my Roth 401k, or should I also put in a portion in my Roth IRA?
My Roth IRA has an expense ratio of 0.25%, has tax loss harvesting, and currently holds my retirement savings of $30,000.
Is the lower expense ratio a reason to prioritize funding my 401k or is there an advantage to the IRA that I’m missing?
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