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Money Guy Show

"I Have a 14% Car Loan - What Should I Do?"

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Investing, Business

4.73.1K Ratings

🗓️ 3 April 2023

⏱️ 27 minutes

🧾️ Download transcript

Summary

We recently talked to a listener with a 14% car loan! So what should you do in a situation like that? We'll walk you through that question and more in today's Q&A episode! Jump start your journey with our FREE financial resources Reach your goals faster with our products Take the relationship to the next level: become a client Subscribe on YouTube for early access and go beyond the podcast Connect with us on social media for more content Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Next up we've got a question from Joshua.

0:09.3

We're going to go back to rebalancing for a moment.

0:12.5

He says while following a glide path, does it make sense to rebalance particular asset

0:17.2

locations into different asset types?

0:20.2

For example, moving a Roth to a gross growth assets, for example.

0:25.5

While keeping the glide path mixed.

0:27.9

That makes sense.

0:28.9

There was a lot of detail in there.

0:29.9

Yeah.

0:30.9

In a word, Joshua, yes, absolutely.

0:35.7

I'll talk a little about what asset location is that he's talking about.

0:38.7

He said, okay, when I rebalance, when I think about mixing up my mix, is it just okay?

0:43.7

I have my Roth IRA is 6040, my 401K is 6040, my taxable account is 6040.

0:49.2

Well, that is a way to do it.

0:51.6

That may not be the most optimal way to do it.

0:54.4

What you might want to think about is that each one of those three different account

0:57.3

types are taxed differently.

0:59.2

You want different things to happen inside of them.

1:02.6

You want your growth assets to live inside of your Roth.

1:05.8

You want your qualified capital gain or capital appreciation assets to live in your taxable

1:10.8

account.

1:11.8

You want your ordinary income assets, your alternatives, your fixed income, to live inside of your

...

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