By Paula Pant
Austin and his wife are worried about moving to a single-income household while supporting two kids. Should they free up cash flow by paying off a car loan, or tighten up and stay the course?
Paul has been retired for seven years, but still can’t shake his anxiety about not having enough. Is there a […]
By Paula Pant
Eva is finally closing in on her financial independence goals, but she’s grappling with how to make a smooth transition from accumulation to decumulation. What should she consider?
John has noticed a game-changing omission from recent discussions about traditional versus Roth IRAs. Is this as big of a deal as he thinks it is?
An anonymous caller is excited to convert his primary residence into a rental property. But he’ll only make a profit if he first sells some equities to pay down the mortgage. Is this a good idea?
Former financial planner Joe Saul-Sehy and I tackle these questions in today’s episode.
Enjoy!
By Paula Pant
An anonymous caller is brooding over a mistake he made in 2023 when he decided to contribute to his Roth instead of a pre-tax account. How does he get over this?
June is annoyed that she triggered short-term capital gains and wash sales when she sold assets in her taxable brokerage last year. How does she avoid these issues in the future?
Zerai wants to add mid and small-cap exposure, but his 457 plan has a limited selection of mutual funds. What’s the proper way to select the best fund among the available options?
Former financial planner Joe Saul-Sehy and I tackle these questions in today’s episode.
Enjoy!
By Paula Pant
Ever wondered if you’re making the right choice between a Traditional and Roth 401(k)? You’re not alone.
In this episode, Katie Gatti Tassin, host of MorningBrew’s Money with Katie podcast, joins us to tackle this common retirement savings dilemma.
We deep-dive into the debate between using Traditional vs. Roth 401(k) accounts for retirement savings, in the context of:
Future tax rates
Tax complexities for small business owners and high earners
Social Security uncertainty
Stock-based compensation
Incentives for business owners vs. employees
Katie explains her strategy for maximizing retirement savings while minimizing taxes. She suggests that for some people in higher tax brackets, maxing out a traditional 401(k) and then investing the tax savings elsewhere might be the way to go.
But as we dig deeper, it becomes clear that there’s no one-size-fits-all answer.
We explore the Traditional vs Roth question, discussing how your current income and expected retirement spending can affect your choices.
It’s not just about the math, though. The unpredictability of future tax rates and policies adds another layer of complexity to the decision.
Social Security plays a major role, as well. We discuss its current funding situation and the challenges it might face in the future.
This leads to a fascinating discussion about how AI might impact future costs and lifestyles. Could things actually get cheaper in the future?
Taxes for high earners and small business owners is another focus. We break down some misconceptions about who falls into high tax brackets. It’s not always as simple as it seems.
Stock-based compensation is another hot topic. We discuss how it affects corporate decision-making and the wider economy. This leads to an interesting comparison of the incentives for business owners versus employees.
Throughout the episode, we keep coming back to one key point: no matter which type of account you choose, the most important thing is to contribute as much as you can.
Your contribution amount has a bigger impact on your retirement savings than the type of account you use.
By the end of this interview, you’ll have a better understanding of the factors that go into choosing between a Traditional and Roth 401(k). More importantly, you’ll see how this decision fits into the bigger picture of retirement planning and overall financial health.
By Paula Pant
Melissa and her partner are preparing for the best earning years of their lives. Could they benefit from automated tax-loss harvesting and transition from DIY investing to a robo-advisor?
An anonymous caller just learned something surprising about their Roth 401k and feels squeamish about making future contributions to this account. What’s Paula and Joe’s advice?
Hampton is following up on a question from Episode 524 to spark an intriguing discussion on the generational tax advantages of a Roth IRA.
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
By Paula Pant
Rob wants to retire early, but a real estate investment led to $30,000 of credit card debt. Should he take on more debt to pay it off?
An anonymous return caller took Paula’s advice and ran with it, doubling her income within a few years. Should she update her investment strategy now that she’s in a higher tax bracket?
Humaira is tired of paying rent with nothing to show for. Can she leverage some benefits by using her credit card to pay the bills?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
By Paula Pant
Kristen’s financial advisor charges a 1.3 percent fee on her investments. They also sold her term life, whole life, and long-term disability insurance. Do they have her best interests at heart?
Casey has $290,000 in student loan debt. He committed 10 years to one employer for a chance at public service loan forgiveness. But five years in, Casey questions what he’s missing out on.
Sara feels like it’s time to move to a more conservative asset allocation but she’s torn between buying bonds from Vanguard or Treasury Direct. What’s the difference anyway?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it here.
By Paula Pant
Today we’re featuring a special episode recorded LIVE in front of an audience at Podcast Movement, an industry conference in Denver.
Former financial planner Joe Saul-Sehy and I tackle two questions in today’s episode. Our first question comes from a soon-to-be-single-mother on the precipice of divorce. How should she navigate this financially?
Our second question comes from the spouse of a Purple Heart veteran of the war in Afghanistan. She and her husband would like to take a one-year sabbatical from work when they turn 40, which is in five years. They’d also like to pivot into lower-paying but more enjoyable careers. How should they map out their money for this transition?
Joe and I dedicate this episode, recorded live on stage, to answering these two questions. Enjoy!
By Paula Pant
Andrey is a savvy 10-year-old wondering what’s the best way to save up for his first car.
Ingrid wants to know if her parents’ preference for Retiring on Dividends is a better approach compared to the 4 Percent Rule.
Erica’s part-time work schedule will place her in an unusually low tax bracket this year. Should she take this rare chance to execute a Roth conversion? Or is it better to prioritize debt payoff?
Chloe is worried about the end of student loan forbearance. Should she pull back from making retirement contributions to focus on debt payoff?
Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode.
Enjoy!
By Paula Pant
Amy says she hit “rock bottom” with her finances. She says she struggled to ask for help before her situation became an emergency. How can others ask for help sooner?
Rebecca is a mother of four, which means she’s juggling four distinct college timelines and 529 plans. How does she make a withdrawal plan when there are so many unknowns?
Anne Marie switched jobs. What should she do with her old retirement accounts?
And Dylan wonders if the IRS Rule of 55 applies to Roth 401k accounts.
Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode.
Enjoy!
