Roth IRA Tax Benefits Explanation
Play • 15 min

On this episode of DIY Money, Quint and Daniel go in-depth to explain the tax benefits of a Roth IRA. 

BiggerPockets Money Podcast
BiggerPockets Money Podcast
BiggerPockets
175: Staying Flexible in Early Retirement with A Purple Life
Last time we talked to Purple from A Purple Life, she told us about her plan to retire at the end of 2020. If you haven’t listened to that interview, you can listen to it here to get the full scoop on Purple’s journey from a $5,000 net worth to hundreds of thousands within only a few years.  Like many financially savvy early retirees, Purple put a lot of time into planning, saving, and investing her capital in order to retire in her early 30s. Well, she did it! As of October 2020, Purple is financially independent and retired! So, how’s it going so far with financial independence in Purple’s world? Purple talks about her hobbies, interests, and most importantly, how the final month of her employment went with her former employer. She also gives some great insight on taking advantage of her employer’s health insurance for the last month of work, making sure that she was able to keep her quarterly bonus, and how she ended up breaking the news to her boss.  It’s all worked well for Purple, but she did have some big plans to cancel. Purple had lined up 4 months worth of travel that all had to be canceled when COVID-19 hit and shutdowns began. She would have been snorkeling in Australia and scootering in Thailand right now! Thankfully, Purple has been able to adapt and take advantage of this off time to assess her financial situation and what she wants out of early retirement.  In This Episode We Cover * The importance of planning for early retirement even if you love your job * Having a lean FI number and low monthly expense so you can live comfortably in retirement  * How long a cash cushion should last you when you decide to retire  * Taxable vs. Non-taxable retirement accounts (and which to leverage) * Ending your employment in a respectful and polite way  * Being flexible with your retirement plans  * And So Much More!
52 min
Retirement Answer Man
Retirement Answer Man
Roger Whitney, CFP®, CIMA®, RMA, CPWA®, AIF®
On Your Mark, Get Set, Go! What to Do in the 5 Years Before Retirement - Start Your Engines
Do you want to have the confidence to truly rock retirement? Are you within 5 years of retirement? If so, this is the series for you. Over the next 5 episodes, we’ll explore what you should be focused on in the years leading up to retirement. Today we’ll explore the opportunities and risks that come within this time frame. Next week, we’ll start setting the stage to prepare you for retirement. After that, we’ll explore the financial and non-financial aspects of preparing for retirement. In the 4th episode of this series, you’ll learn how to put it all into a plan. And lastly, you’ll hear an episode full of wisdom from people who are a bit ahead of you in this retirement journey. Are you ready to get started? Press play now! Preparing for retirement is much like prepping for an adventure In the 5 years leading up to retirement, you need to get ready. It’s as though you are preparing for an adventure. I liken it to a backpacking trip I took a few years back. First, my partner and I had to decide where we wanted to go. Then we had to arrange the logistics. Next, we had to assess whether we had the right equipment for our journey. Then we had to consider both our physical and mental readiness. After that, we had to acquire the things we needed. Once we finally got to our destination we had to assess the trail ahead. We even had to add extra supplies based on those trail conditions. We had to remain agile throughout the course of our journey. The opportunities and barriers to preparing for retirement At this point in your career, you are probably making more money than you ever have before. You have a reputation and a vast professional network. You may even be at the tail end of the various financial engagements that come with raising a family. Now is a good time to evaluate your life. There are some barriers that you may need to overcome as you prepare for retirement. I often refer to the 50s as your not-so-thrifty 50s. It’s easy to save more and spend less now that you are earning more. It’s also easy to create a financial cage for yourself. Be careful of financial obligations like 2nd mortgages, RV or boat payments, or even that adult child that you continue to subsidize. These obligations could force you to work longer than you would like. Listen in to hear about more barriers you might face as you prepare for life in retirement. What can you do now to set yourself up for retirement? There are several steps you can take to begin to set yourself up for retirement. * Start to assess your risks and opportunities by dialing in your income, expenses, and savings. Think about your expenses. What does it really cost to live your life? Separate your discretionary and non-discretionary spending to realize what it takes to live a good baseline life. * Create your net worth statement listing your assets and liabilities. * Assess your boundaries at work. You have worked hard to build your career, but have you built up boundaries between work and home life? * Assess your social life. Who would you call to have coffee with tomorrow? Do you need to broaden your social network? * Assess your purpose. If you had 2 weeks to not think or talk about work what would you do each day? It’s a great time to join the Rock Retirement Club! Are you signed up for the 6-Shot Saturday newsletter? You’ll want to make sure that you are so that you can get our free net worth and expense worksheets. Have you been on the fence about joining the Rock Retirement Club? Now is a great time to join because on March 16 we are starting a 3-week sprint to assess your needs, wants, and wishes. You can try it out for 30 days with a money-back guarantee. Go ahead and join now to see whether it is right for you. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT * [3:30] A Rock Retirement Club update * [4:04] The five years leading up to retirement is much like prepping for an adventure * [7:27] You have opportunities that you don’t want to miss in the 5 years * [11:37] What can you do now to set yourself up for retirement? Q&A SEGMENT * [21:51] Using a Roth IRA to fund long term care * [27:11] Roth IRAs and the 5-year rule * [30:04] Roth IRAs and Game Stop TODAY’S SMART SPRINT SEGMENT * [31:57] Start to dial in your expenses and update your net worth statement Resources Mentioned In This Episode Share your wisdom with future retirees! RogerWhitney.com/askroger Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement by Roger Whitney Work with Roger Roger’s Retirement Learning Center
34 min
BiggerPockets Real Estate Podcast
BiggerPockets Real Estate Podcast
BiggerPockets
447: Create Your Dream Life in 3-5 Years Using Vivid Visions with Cameron Herold
What do you want out of life? What do you want to accomplish in the next 3-5 years? When asked this question, most entrepreneurs give a pretty simplistic answer. Something like “Oh, we’ll get more clients by this time next year” or “I’ll buy two more houses and then I’ll be happy”. How often do we sit down and paint a picture of what we want our life to look like? Today we’re discussing Vivid Visions with their creator Cameron Herold. Cameron is a veteran in the business world, he likes to say that he was “groomed” by his entrepreneurial grandparents and father to become a success story. By the time Cameron was 21, he had a full-on business that had 12 employees, and at 22 he bought his first rental property. He later became a franchisee for College Pro Painters and was so successful that he went on to coach new franchisees. He’s partnered with hundred-million dollar companies, grown and sold businesses for millions, coached the CEO of Sprint, a monarchy in the middle east, has written 5 books, and runs the Second in Command Podcast, where he talks to successful COOs. Cameron is someone who clearly has accomplished a lot and has a TON of wisdom to share. Cameron has serious knowledge on business management and talks about the importance of the CEO and COO relationship. Cameron describes how a COO needs to be a partner to the entrepreneur (the CEO) and operate as the ying to the CEO’s yang. If you’ve heard the terms “the visionary and the innovator” from books like Traction, this is exactly what Cameron is talking about. If you’ve been wondering where the idea of a “plan” or “vision” comes into play, Brandon, David, and Cameron all discuss their “Vivid Visions” and how it’s led them to success in their life. Cameron coined the term “Vivid Vision” because most entrepreneurs were simply writing down a 1-2 sentence mission statement instead of creating a vision of what they wanted their company and future to look like. This vision not only helps you build a life you want by design, it also entices great executives, employees, and partners to join you on your path to that clear and decisive “Vivid Vision”. In This Episode We Cover: * How Brandon found out about the “Vivid Vision” and how it has changed his worldview since creating one * Why Cameron decided to coach COOs as opposed to CEOs * The importance of having a COO or 2nd in command that you trust and believe in * Why your job postings should scare those who aren’t ready to take risks and grow * Why entrepreneurs have such a hard time when letting go * How to create your “Vivid Vision” in 7 steps * What a great “Vivid Vision” looks like, what it includes, and how to structure it * And So Much More! Links from the Show * BiggerPockets Podcast * BiggerPockets book store * Brandon's Instagram * David's Instagram * BiggerPockets Business Podcast 39: Creating Your Vision and Achieving Massive Success with Cameron Herold * BiggerPockets Podcast 230: Real Estate Investing as a Side Hustle with Grammy-Winning Producer Seth Mosley * Brandon's Vivid Vision (photo) * Second-In-Command Podcast * Vivid Vision Website Click here to check the full show notes: https://www.biggerpockets.com/show447
1 hr 21 min
ChooseFI
ChooseFI
The Unstuck Network
300 | Relationships and Money | Jillian Johnsrud
* Money is one of the top three things people struggle to communicate with, falling right below sex and above our reasons and motivations for work. * In her coaching practice, Jillian finds clients will be very open in one-on-one sessions, but when working with couples, it becomes much more uncomfortable. * Jillian believes this discomfort is because discussions of things like sex and money happened behind closed doors and weren’t modeled for us growing up. * In response to a call put out for questions in Brad’s FI Weekly newsletter, listeners submitted their questions for Jillian about relationships and money. * The first comes from Jonesy who had a question about keeping the lines of communication open about money with a significant other when they are at different stages. He is working and beginning to build his portfolio and savings, while his significant other is still in school and struggling to make ends meet. * Jillian suggests first trying to find common ground to discuss money. You can start with telling your own money stories, like how your parents spent money or what you wish they had spent money on. It’s important to feel seen and heard. Sharing childhood stories are opportunities to start having conversations to begin learning about each other financially. * Help make the conversation not feel like a trap by being genuinely curious about your partner’s life and experience. You can approach discussions about money much in the same way couples talk about the parenting they witnessed and experienced. * Pick one or two questions to open up the conversation and put your partner in a relaxed state. Ensure they feel seen and heard before transitioning into conversations on budgets or debt payoff. * Taking the small step of sharing money stories can help the couple come away with positive feelings, feel closer, and know just a little bit more about each other. * Jillian and her husband did not communicate about money well during the first few years of their marriage. They had very different money stories and didn’t know how to explain why they were reacting or felt the way they were. * Breaking the big scary stuff down into bite-sized non-intimidating questions is something Jillian guides users through in her latest workbook, part of which asks us to examine our parents’ patterns, whether or not we have copied or rebelled against them, if what was inherited is serving you well, and do you want to take it forward. * Because Jonesy and his partner aren’t married, Jillian says it’s okay to skip the specifics in the middle, like savings rates and budgets, and discuss the outcome, like a common goal to work toward together. * If you work on learning to talk about money, understanding each other financially, and can work toward a common goal, by the time you are on the same page, the middle stuff will be easier. * Listener Sam wants to know if it can work when one half of a couple is excited about being on the FI path but the other half says FI is not for them. Sam has been on her journey for three years and has a 50% savings rate and plans to retire early, but recently married and her husband’s savings rate is far from the same and he plans on working until 60. They currently keep their finances separate. * Jillian thinks Sam and her husband could benefit from having conversations about work, its role, and how it ties to identity. It’s feasible for one person to retire while the other works, but it can create a rift unless they understand each other’s stories and mindsets. * Brad wonders how Sam and her husband keeping their finances separate could work logically in the long-term. Jillian thinks on the surface it cold work so long as they work on everything below the surface and sure each is truly comfortable with the situation. * Listener Titan wants to know how to make the monthly chart tracking their progress toward FI more fun and exciting for his significant other. Unfortunately, Jillian thinks Titan’s partner will never be excited about it. In any relationship, it seems like there’s one who likes worksheets and graphs and one who prefers to talk about things. She suggests not focusing on the numbers on the graph and instead make it about the amazing life they are creating or whatever is exciting for them. * Jonathan can sympathize with Titan’s situation but says what were are looking for is trust that you are building an awesome life together and moving forward in the same direction. * Jillian’s course, One Hour Millionaire, is a 21-day program with the premise that it should only take you one hour a month to set your trajectory to a million-dollar net worth. * Website:  JillianJohnsrud.com * Podcast: Everyday Courage Resources Mentioned In Today’s Conversation * Download the Stereo app and join us on Tuesdays for the live show! * Compare home and auto rates from top insurers at Policy Genius. * Explore Season 2 of Rebel Entrepreneur and make money doing something you love. * Register for Jillian Johnsrud’s, One Hour Millionaire Course, and get a $30 discount during the month of March with code ChooseFI30. If You Want To Support ChooseFI: * Earn $1,000 in cashback with ChooseFI’s 3-card credit card strategy.  * Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence.
44 min
Money! with Stacy Johnson
Money! with Stacy Johnson
MoneyTalksNews.com
Talking Money with Your Honey: How to Do It Painlessly
When my wife and I joined households 11 years ago, we combined our kitchen stuff, our furniture, our linens and just about everything else. The one thing we didn't combine? Our money. When it comes to money, she does her thing and I do mine. About the only time our money meets is on our joint tax return. This is the system that works for us, although it likely wouldn't work for everyone. That's the thing with money and relationships; there's no right answer. Anyone who tells you there's only one correct way to mix money and marriage, and there are plenty of "experts" who do, is just plain wrong. The one thing that's universally true is that money secrets are bad. My wife and I don't combine our money, but we do discuss it. Often. Whether you've been together for 30 months or 30 years, avoiding talking money puts your relationship at risk. This is especially true if you combine your finances and have different money "personalities" (spender or borrower vs saver or investor) and even more critical if finances are tight. To nobody's surprise, money routinely surveys as a major source of stress. So when, and exactly how, can we discuss money with our significant others without causing friction? How do we get on the same page and stay there? Or are differences about money just something couples have to learn to live with? In this week's "Money" podcast, we're going to find answers to these questions, as well as many more. Our guest is best-selling author and award-winning speaker Tarra Jackson, also known as Madame Money. Want more information? Check out these resources: 10 Things You Should Know about Joining Finances in Marriage 8 Key Steps to Planning for Retirement as a Couple 6 Ways to Get Your Spouse to Save More Money Living Together but Not Married? 5 Important Things to Know Business Insider: 8 ways to talk to your partner about money, according to experts Money Under 30: How To Have 'The Talk': 6 Tips For Couples Discussing Finances Mint Life: How to Talk Money in a Relationship: Dos and Don'ts NBC News: The 3 money conversations you and your partner need to have Subscribe to the Money Talks News newsletter Take our The Only Retirement Guide You'll Ever Need course Take our Money Made Simple course Hosts: MoneyTalksNews MirandaMarquit.com Ask us a question Become a member: https://www.moneytalksnews.com/members/ See omnystudio.com/listener for privacy information.
42 min
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