401(k) vs. Roth: Where to Save for Retirement - 480
Your Money, Your Wealth
Your Money, Your Wealth
2.3 • 681 Ratings
🗓️ 7 May 2024
⏱️ 42 minutes
🧾️ Download transcript
Summary
Kyle and his fiancée are in their 30s, have done a great job saving, and are in a high tax bracket. Would it make more sense for them to contribute to their 401(k)s or Roth 401(k)s for retirement? Mick’s wife Pam has both W-2 and sole proprietor income - where should she save for retirement? That’s today on Your Money, Your Wealth® podcast 480 with Joe Anderson, CFP® and Big Al Clopine, CPA. Plus, the fellas spitball for Janet on where junk bonds belong in a portfolio, they untangle the pro-rata and aggregation rules concerning 401(k) to Roth conversions for Nancy, and they spitball on whether Cary and Mark should retire now or work for two more years when pensions will provide them an extra $50K a year. Free financial resources and transcript: https://bit.ly/ymyw-480
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Timestamps:
- 00:00 - Intro
- 00:57 - We're in Our 30s and in a High Tax Bracket. Where Should We Save for Retirement? (Kyle, WI)
- 07:34 - Junk Bonds Explained (Janet, the Bronx)
- 13:19 - Does Pro-Rata Rule Apply When Converting 401(k) to Roth 401(k)? (Nancy, SE Wisconsin)
- 20:37 - We Have $4M. Should We Retire Now or in Two Years When Pensions Provide an Extra $50K/Year? (Cary & Mark, Los Angeles)
- 27:50 - How to Save for Retirement with Sole Proprietor and W-2 Work? (Mick, Davis, CA)
- 36:47 - The Derails
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Kyle and his fiance are in their 30s. |
| 0:02.5 | They've done a great job saving, and they're in a high tax bracket. |
| 0:06.2 | Would it make more sense for them to contribute to their 401ks or their Roth 401ks? |
| 0:11.5 | Mick's wife, Pam, has W2 and sole proprietor income. |
| 0:15.1 | Where should she be saving for retirement? |
| 0:17.1 | That's today on Your Money, Your Wealth Podcast number 480. |
| 0:20.5 | Plus, join Big Al Spitball for Janet on where junk bonds belong in a portfolio. |
| 0:24.6 | They untangle the pro rata and aggregation rules with respect to 401K to Roth conversions for Nancy, |
| 0:30.6 | and they spitball on whether Carrie and Mark should retire now or work for two more years when pensions will provide them an extra 50k a year. |
| 0:39.6 | Visit Your Money, Your Wealth.com and click Ask Joe and Big Al on air to get your own retirement spitball analysis |
| 0:44.9 | or to send in a more unusual money question to keep the fellas on their toes. |
| 0:49.7 | I'm producer Andy Last and here are the hosts of Your Money, Your Wealth, Joe Anderson, CFP, and Big Al Clopine CPA. |
| 0:57.0 | We got Kyle from Wisconsin. Hey guys. Me, 32, Fiancé, 31. Reassessing our retirement accounts. |
| 1:04.8 | Want to get your thoughts. All right. We both started saving early and have account balance as such $400,000 in the traditional 401K. |
| 1:13.6 | A little nice start there. |
| 1:16.6 | You bet. |
| 1:17.6 | Amazing. |
| 1:18.6 | $160,000 in Roth accounts. |
| 1:19.6 | We currently make two 50 a year combined. |
| 1:22.6 | And we both have 401ks that provide Roth and traditional options. |
| 1:28.5 | Since we're in a high tax bracket currently, |
| 1:31.1 | would it make more sense to contribute more to the traditional IRA |
... |
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