Thanks so much for everyone who joined us, and congrats to the three tumbler winners, Joe B, Garrett S, and Casey! You will all be emailed shortly. I had a lot of fun, and I hope you all did as well!
Sorry to ask such a hard hitting question, but how excited does Bo really get? Is he typically that cheerful and excited on the day to day? Once again sorry for asking the real questions but we need answers!
I'm about to buy Treasury I-bonds given their fantastic rate of return for the next 6-12 months. Are there other bonds or commodities that I'd be wise to consider given the market?
With Biden hinting at some student loan forgiveness. Would it be more wise to hold off on refinancing student loans to a lower percent now? Rates from private lenders have already increased by .5% since he announced the last pause on student loan interest in March and I would hate to miss a chance to lock in a 3.5 percent interest rate on my loans but also don’t want to miss out on potential forgiveness. Would love to know your thoughts
Where does Employee Stock Purchase Plan (ESPP) fall into the Financial Order of Operations (FOO)? We have the ability to buy company stock at 15% discount every quarter. Maximum purchase is 10% salary.
I have heard the Money Guy team say that if your marginal tax rate (fed+state) is less than 25%, contribute to Roth. If it's 30% or higher, contribute to traditional. Doesn't this decision really come down to expected marginal tax rate in retirement? Do you have any tips for estimating taxes in retirement, or rules of thumb?
My question comes from this situation. Take a person who makes a steady income during their whole working life, but is never ultra high income. They pay a marginal rate of 24% while working, so they contribute to Roth as you suggest. When they retire, they will have a ton of Roth money and a bit of traditional from their employer match. In retirement now, most of their income will be coming from Roth assets. Depending on their state, they might not be paying taxes on social security income. In this situation, they will likely be in a much lower tax bracket in retirement than while working. With this in mind, shouldn't they actually have invested more heavily in Traditional to minimize taxes?
I have IRA's, 401K's and a taxable account with other mutual funds. Every year I get hit by large Capital gains in my taxable investments that I have to pay taxes on (a first world problem). Can you make any suggestions on how to do tax planning to ensure I don't find myself on the bad side of the IRS?
For my monthly investing, is it better to use a mutual fund instead of an etf, so that all of my money is invested? I'm unable to buy fractional etf shares through my brokerage firm.
With interest rates being so low for so long, we may have forgotten how to make money on our money with low risk. As the market evolves what should a good financial mutant be doing to maximize the return on our cash allocation?
Daniel, I have a question regarding money and marriage. Can you explain briefly about prenuptial agreements, specifically what is commonly included in them and do these legal contracts hold up when going through a divorce?
Good Morning Daniel! With the current inflation making I-Bonds and TIPS look great right now, should investors be looking to add more to their long-term (10+ years) portfolios now, or do equities still seem like the better long term option?
My wife and I want to retire in our 50's. We are in our 20's (I'm 29 she is 24) right now. At the moment we are close to maxing out our employer sponsored accounts and are completely maxing out our Roth accounts. We are investing around 40% of our gross to these accounts. How do we know when to start putting money into a taxable account to bridge the gap between beginning retirement and being able to access those tax advantaged accounts?
My wife and I are both 35, and both have pensions, 403bs, and Roths, with the 403b and Roths funded maximally each year. She qualifies for a 457 and I do not. We both are unsure we sent to stay at our companies for the long term and would like to retire around age 45-50. Are there any downsides to hyper-saving after these accounts in her 457 instead of a brokerage account? Is this money that only she can access if I retire early and she does not?
I currently max out a Roth IRA, HSA and contribute to a Roth 401k. Does it make sense to just contribute to those tax free buckets or should I have a taxable account even though I’m not maxing out my 401k? I currently contribute about 30% gross to retirement
Financial advice often recommends investing in an index fund, but financial advisors spend a lot of effort creating and recommending diversified portfolios. What gives?
I'm moving to a HCOL area and will want to buy a house. Houses may be out of my price range, but condos won't. Can condos be treated the same way in the FOO as houses? Is it a good idea to hold onto it later and rent it out when I upgrade?
Covid gave me a chance to reevaluate our retirement planning. I have recently realized how “retirement rich” I am but how little I have access to for the next 10 years or so. After reading more (and listening to MG podcasts) I finally opened a brokerage account to start filling that bucket. I still have my employer retirement and Roth going strong…would it make sense to back off on those and focus more on the brokerage account to even out these buckets a little more?
Loved the Clark Howard show. What kind of investment should a person make with rollover money from previous jobs that just sits there?. Currently in Target Retirement funds.
Hi Daniel! What’s your super hero avatar? My question, how can i compare between after tax and pre tax, from a reference frame perspective. or how can i calculate the after tax value of my pre tax bucket. Just so that i can troll my co-workers! :)
Hi Daniel! What’s your super hero avatar? My question, how can i compare between after tax and pre tax, from a reference frame perspective. or how can i calculate the after tax value of my pre tax bucket. Just so that i can troll my co-workers! :)
What's a good rule of thumb for how much of one's gross or take home pay one should spend on leisurely things? This is assuming you are already meeting the 25% savings goal.
I like the flexibility regarding the down payment on your 1st house. I understand the Money Guy show says 20% down isn’t needed for your 1st house. What if I have been saving for a while, and I just started watching your show over the past year, and I already have 20% saved? Should I put 20% on the house or invest the excess? I’m 30 years old and about to jump into the messy middle!
I am 33 years old and married. I believe I have a savings addiction. I ran the numbers and found myself saving close to 40% of my salary. By savings I mean my TSP contribution, 2 brokerage accounts with Ally, 1 brokerage account with Fidelity, and 2 savings account. Salary is around $64K.
Any suggestions on getting myself to spend more money and save less?
Hey Daniel, love the FYI by FTE! I am wanting to start investing just a little bit I to my sons college fund, but I am not quite at that step yet. Is it ever ok to skip steps in the FOO? Thanks!
Morning Daniel: Question on my mortgage. I am a 36 year old physician and was lucky enough to buy my first home with no money down and avoided any PMI by taking a 7/1 ARM (30 year) at 2.875%. In my situation, does it make sense to take some of my 25-30% savings rate and start putting it towards the mortgage to balance this for the future likely higher interest rate?
With housing prices at these highs and stock markets dipping I am tempted to cash out the house and move/ rent somewhere that would keep my housing cost in a similar place. Why is this a dumb idea? It probably is but can you tell me some reasoning to not do it?
I'm 37 and would like to retire by 50. How early should I start planning for retirement and the amount of money I will need in after-tax or bank account to bridge the gap between being able to access retirement accounts?
Realizing my EF is a bit inflated, but also have a couple of mid-term maybes on the horizon, OK to trickle money into the market with my normal monthly investments or silly to keep too much on the sidelines in this interest rate environment?
Hi Daniel, I have a question about Social Security. I am 10 years younger than my husband, but my Social Security payment is projected to be higher than his. I understand that if I wait until Full Retirement Age, he can claim the spousal benefit. But how does that work if he will be eligible to claim Social Security before I am?
There have been conversations about I bonds recently. How does the team feel about holding an emergency fund in I bonds? I know it would have to be laddered over several years because of the $10,000 limit per person, but would it be more advantageous over "High" yield savings accounts? Pros/Cons? It seems like a safe place to store your money and protect it against inflation. I know you would have to factor in the first year not being able to withdraw the money, which is why the ladder approach helps, and then the rule about losing the last three months of interest if cashed out before five years.
In this environment, does it make more sense to hold cash to prepare for a potential recession (still dollar cost averaging into tax advantaged retirement accounts) or should that cash be deployed into investments?
Is it ever a good idea to keep your whole life policy? I’ve had a $25,000 policy for over 30 years and the dividends pay the premiums so it’s not costing me anything. I am single with adult children.
I've been escrowing what would be my student loan payments and future expenses(expected auto repairs/insurance, etc) - should I instead invest that knowing that the current Student Loan rate is 0% and in forbearance? I'm already saving more than 25% of my income and maxing my roth IRA/HSA.
I’m switching from public sector to private sector. Alongside a 50% increase in pay, I will now have access to an ESPP. The company is a healthcare organization that I presume will have typical returns for the market over the next few years, but the program only ends up being a 5% discount on the stock. What should I keep in mind when evaluating whether to participate and at what amount?
Hi everyone! I am looking for advice on where to put my deceased mom's pension money. The pension plan is closing and I want to start a fun for my 8 month old. I have already started a 529 for him, but are there other good options? Thank you!
What are the pros and cons of buying bond etfs/mutual funds vs buying an actual bond, say, I-bonds? I have been hearing a lot lately about investing in I bonds.
You’ve Got Questions, I’ve Got Tumblers!
Thanks so much for everyone who joined us, and congrats to the three tumbler winners, Joe B, Garrett S, and Casey! You will all be emailed shortly. I had a lot of fun, and I hope you all did as well!
Daniel, you did an excellent job hosting with Brian this week!! Can you co-host again? Love the show, and I listen every week. Thank you all!
Sorry to ask such a hard hitting question, but how excited does Bo really get? Is he typically that cheerful and excited on the day to day? Once again sorry for asking the real questions but we need answers!
I'm about to buy Treasury I-bonds given their fantastic rate of return for the next 6-12 months. Are there other bonds or commodities that I'd be wise to consider given the market?
Why is there no FTE DAN Tik Tok to follow for exclusive personal finance tips?
With Biden hinting at some student loan forgiveness. Would it be more wise to hold off on refinancing student loans to a lower percent now? Rates from private lenders have already increased by .5% since he announced the last pause on student loan interest in March and I would hate to miss a chance to lock in a 3.5 percent interest rate on my loans but also don’t want to miss out on potential forgiveness. Would love to know your thoughts
How would student loan forgiveness affect the economy?
Is there an option to have an annual checkup and pay an hourly fee with Abound Wealth while in the wealth accumulation phase?
With I bonds becoming relevant again and the rates changing again in May, is this a good semi liquid investment?
Hi FTE. What is the Money Guy Show think of using only dividends to live off of instead of the typical 4% drawdown method?
Where does Employee Stock Purchase Plan (ESPP) fall into the Financial Order of Operations (FOO)? We have the ability to buy company stock at 15% discount every quarter. Maximum purchase is 10% salary.
I have heard the Money Guy team say that if your marginal tax rate (fed+state) is less than 25%, contribute to Roth. If it's 30% or higher, contribute to traditional. Doesn't this decision really come down to expected marginal tax rate in retirement? Do you have any tips for estimating taxes in retirement, or rules of thumb?
My question comes from this situation. Take a person who makes a steady income during their whole working life, but is never ultra high income. They pay a marginal rate of 24% while working, so they contribute to Roth as you suggest. When they retire, they will have a ton of Roth money and a bit of traditional from their employer match. In retirement now, most of their income will be coming from Roth assets. Depending on their state, they might not be paying taxes on social security income. In this situation, they will likely be in a much lower tax bracket in retirement than while working. With this in mind, shouldn't they actually have invested more heavily in Traditional to minimize taxes?
Thanks!
What safeguards can you put into place to protect an investor who might be developing dementia?
I have IRA's, 401K's and a taxable account with other mutual funds. Every year I get hit by large Capital gains in my taxable investments that I have to pay taxes on (a first world problem). Can you make any suggestions on how to do tax planning to ensure I don't find myself on the bad side of the IRS?
For my monthly investing, is it better to use a mutual fund instead of an etf, so that all of my money is invested? I'm unable to buy fractional etf shares through my brokerage firm.
With interest rates being so low for so long, we may have forgotten how to make money on our money with low risk. As the market evolves what should a good financial mutant be doing to maximize the return on our cash allocation?
What are your thoughts around holding bonds in an increasing rate environment? Are there other options for fixed income?
At what point in our financial journey is it worthwhile considering switching from a low cost target date fund to another strategy?
Daniel, I have a question regarding money and marriage. Can you explain briefly about prenuptial agreements, specifically what is commonly included in them and do these legal contracts hold up when going through a divorce?
Good Morning Daniel! With the current inflation making I-Bonds and TIPS look great right now, should investors be looking to add more to their long-term (10+ years) portfolios now, or do equities still seem like the better long term option?
My wife and I want to retire in our 50's. We are in our 20's (I'm 29 she is 24) right now. At the moment we are close to maxing out our employer sponsored accounts and are completely maxing out our Roth accounts. We are investing around 40% of our gross to these accounts. How do we know when to start putting money into a taxable account to bridge the gap between beginning retirement and being able to access those tax advantaged accounts?
My wife and I are both 35, and both have pensions, 403bs, and Roths, with the 403b and Roths funded maximally each year. She qualifies for a 457 and I do not. We both are unsure we sent to stay at our companies for the long term and would like to retire around age 45-50. Are there any downsides to hyper-saving after these accounts in her 457 instead of a brokerage account? Is this money that only she can access if I retire early and she does not?
Is the S&P500 overly concentrated, and if so, how does that impact investors who primarily use an S&P500 index fund for their retirement investments?
I currently max out a Roth IRA, HSA and contribute to a Roth 401k. Does it make sense to just contribute to those tax free buckets or should I have a taxable account even though I’m not maxing out my 401k? I currently contribute about 30% gross to retirement
Financial advice often recommends investing in an index fund, but financial advisors spend a lot of effort creating and recommending diversified portfolios. What gives?
I'm moving to a HCOL area and will want to buy a house. Houses may be out of my price range, but condos won't. Can condos be treated the same way in the FOO as houses? Is it a good idea to hold onto it later and rent it out when I upgrade?
Covid gave me a chance to reevaluate our retirement planning. I have recently realized how “retirement rich” I am but how little I have access to for the next 10 years or so. After reading more (and listening to MG podcasts) I finally opened a brokerage account to start filling that bucket. I still have my employer retirement and Roth going strong…would it make sense to back off on those and focus more on the brokerage account to even out these buckets a little more?
Loved the Clark Howard show. What kind of investment should a person make with rollover money from previous jobs that just sits there?. Currently in Target Retirement funds.
Hi Daniel! What’s your super hero avatar? My question, how can i compare between after tax and pre tax, from a reference frame perspective. or how can i calculate the after tax value of my pre tax bucket. Just so that i can troll my co-workers! :)
Hi Daniel! What’s your super hero avatar? My question, how can i compare between after tax and pre tax, from a reference frame perspective. or how can i calculate the after tax value of my pre tax bucket. Just so that i can troll my co-workers! :)
What's a good rule of thumb for how much of one's gross or take home pay one should spend on leisurely things? This is assuming you are already meeting the 25% savings goal.
I like the flexibility regarding the down payment on your 1st house. I understand the Money Guy show says 20% down isn’t needed for your 1st house. What if I have been saving for a while, and I just started watching your show over the past year, and I already have 20% saved? Should I put 20% on the house or invest the excess? I’m 30 years old and about to jump into the messy middle!
I am 33 years old and married. I believe I have a savings addiction. I ran the numbers and found myself saving close to 40% of my salary. By savings I mean my TSP contribution, 2 brokerage accounts with Ally, 1 brokerage account with Fidelity, and 2 savings account. Salary is around $64K.
Any suggestions on getting myself to spend more money and save less?
Hey Daniel, love the FYI by FTE! I am wanting to start investing just a little bit I to my sons college fund, but I am not quite at that step yet. Is it ever ok to skip steps in the FOO? Thanks!
Morning Daniel: Question on my mortgage. I am a 36 year old physician and was lucky enough to buy my first home with no money down and avoided any PMI by taking a 7/1 ARM (30 year) at 2.875%. In my situation, does it make sense to take some of my 25-30% savings rate and start putting it towards the mortgage to balance this for the future likely higher interest rate?
With housing prices at these highs and stock markets dipping I am tempted to cash out the house and move/ rent somewhere that would keep my housing cost in a similar place. Why is this a dumb idea? It probably is but can you tell me some reasoning to not do it?
I'm 37 and would like to retire by 50. How early should I start planning for retirement and the amount of money I will need in after-tax or bank account to bridge the gap between being able to access retirement accounts?
Realizing my EF is a bit inflated, but also have a couple of mid-term maybes on the horizon, OK to trickle money into the market with my normal monthly investments or silly to keep too much on the sidelines in this interest rate environment?
is it too late to submit a question?
What do you think mortgage interest rates will go to the summer?
do you think it is too late to buy TIPS as the unexpected inflation has already been priced in and now they are no longer a good deal?
Hi Daniel, I have a question about Social Security. I am 10 years younger than my husband, but my Social Security payment is projected to be higher than his. I understand that if I wait until Full Retirement Age, he can claim the spousal benefit. But how does that work if he will be eligible to claim Social Security before I am?
There have been conversations about I bonds recently. How does the team feel about holding an emergency fund in I bonds? I know it would have to be laddered over several years because of the $10,000 limit per person, but would it be more advantageous over "High" yield savings accounts? Pros/Cons? It seems like a safe place to store your money and protect it against inflation. I know you would have to factor in the first year not being able to withdraw the money, which is why the ladder approach helps, and then the rule about losing the last three months of interest if cashed out before five years.
In this environment, does it make more sense to hold cash to prepare for a potential recession (still dollar cost averaging into tax advantaged retirement accounts) or should that cash be deployed into investments?
Is it ever a good idea to keep your whole life policy? I’ve had a $25,000 policy for over 30 years and the dividends pay the premiums so it’s not costing me anything. I am single with adult children.
I've been escrowing what would be my student loan payments and future expenses(expected auto repairs/insurance, etc) - should I instead invest that knowing that the current Student Loan rate is 0% and in forbearance? I'm already saving more than 25% of my income and maxing my roth IRA/HSA.
With international and bond fund lagging behind equities, is it still recommended to invest in international and bond funds?
I’m switching from public sector to private sector. Alongside a 50% increase in pay, I will now have access to an ESPP. The company is a healthcare organization that I presume will have typical returns for the market over the next few years, but the program only ends up being a 5% discount on the stock. What should I keep in mind when evaluating whether to participate and at what amount?
Hi everyone! I am looking for advice on where to put my deceased mom's pension money. The pension plan is closing and I want to start a fun for my 8 month old. I have already started a 529 for him, but are there other good options? Thank you!
What are the pros and cons of buying bond etfs/mutual funds vs buying an actual bond, say, I-bonds? I have been hearing a lot lately about investing in I bonds.