What to Do When You Get a Huge Pay Increase - 417

Your Money, Your Wealth

Education, News, Investing, Business, Business News

4.6 • 791 Ratings

🗓️ 21 February 2023

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

How should your financial strategy change when your income increases dramatically? We're talking like $450K one year to a million and a quarter the next? (If you guessed Roth conversions might be in the answer you'd be correct!) Joe and Big Al also spitball strategies for when your income is too high to make Roth contributions, and can you use capital gains to contribute to Roth? Can "Alligator Joe" afford to retire early, or does he need to keep gutting it out at his current job wrestling alligators? Should Catherine contribute to her 401(k) or buy company stock before she quits her day job to start a business? The fellas also spitball retirement planning involving structured settlements, inherited assets, and ACA credits, and they discuss transferring annuities to a CD vs. deferring the interest into another annuity.

Timestamps:

00:58 - Income Increased Dramatically. Should Our Retirement Tax Strategies Change? (Cookie Baron, Texas)
08:59 - Can I Use Capital Gains to Make Roth Contributions? (Aaron)
12:12 - Early Retirement Spitball: Should I Keep Gutting it Out at My Current Job? ("Alligator Joe Frazier", The Sunshine State FL)
18:11 - Contribute to 401(k) or Buy Company Stock Before Quitting to Start a Business? (Catherine, TX)
20:32 - Retirement Spitball: Income is Too High for Roth Contributions (Kelly, Owensboro, KY)
25:10 - Retirement Spitball: Structured Settlement, ACA Credits, & Inherited Assets (Kara from PA)
29:42 - Should We Transfer Annuities to CD, or Defer Interest Into Another Annuity? (Norma, Chula Vista)
34:00 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-417:

The Complete Roth Papers Package
10 Ways the SECURE Act 2.0 Changes Your Taxes and Retirement Planning (webinar)
Episode Transcript
Ask Joe & Big Al On Air

Transcript

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0:00.0	Today on Your Money, Your Wealth podcast number 417, how should your financial strategy change
0:05.2	when your income increases dramatically? We're talking like 450K one year to a million and a quarter
0:11.8	the next. If you guessed Roth conversions might be in the answer, you'd be correct. Joan Big Al
0:17.0	also spitball strategies for when your income is too high to make Roth contributions,
0:26.9	and can you use capital canes to make Roth contributions? Can alligator Joe afford to retire early,
0:30.8	or does he need to keep gutting it out at his current job wrestling alligators?
0:36.6	Should Catherine contribute to her 401k or buy company stock before she quits her day job and starts her own business.
0:38.3	The fellas also spitball a retirement plan involving structured settlements, inherited assets,
0:42.9	and ACA credits, and they discuss transferring annuities to a CD versus deferring the interest
0:48.7	into another annuity.
0:50.2	I'm producer Andy Last, and here are the hosts of Your Money, Your Wealth, Jill Anderson, CFP, and Big AlcoPloPline CPA.
0:58.2	We got Cookie Barron from Cookie Barron, Texas.
1:02.1	Cookie Barron.
1:02.9	Okay, cool.
1:03.9	You ever been Cookie Barron?
1:05.5	No.
1:06.2	I think this is their name.
1:07.9	I think so, too.
1:09.4	There's no city.
1:10.7	Well, if you would think if there was a city named Cookie Barron, it would be in Texas.
1:15.6	Yeah, that's probably true.
1:17.7	All right.
	...

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