Buy a House or Catch up on Retirement Savings? | Afford Anything Podcast (Audio-Only)

Great episode! I really feel like this guest contributed meaningful insight and knowledgable facts. Paula is always awesome so it worked well! Learned a lot. Thanks!

[@adamspful]

Perhaps the title of this podcast is wrong?

[@danielrhouck]

For the discussion about taxes on mega backdoor Roth, I thought that conversions counted as contributions after five years so you could still withdraw the amount of the conversion (but not any gains). That only lowers flexibility a bit; it's still lower, but the tax savings could be worth it.

[@danielrhouck]

For transferring 401(k)s, Vanguard's preferred method of transferring into a 401(k) with them is a direct custodian-to-custodian rollover, where the check is made out to Vanguard FBO you, but they still want the check to be briefly in your hands and you forward it to them along with paperwork. I don't know if that's also true if you're transferring to a Vanguard IRA. They can handle it if you have the other custodian send Vanguard the money, but they recommend against it because it's easier if the paperwork and check arrive together. PS. My current employer's 401(k) custodian is Vanguard. My IRA is with Betterment, and I'm happy with it being there. It uses low-cost ETFs like the Vanguard one but does some rebalancing and stuff automatically. Most of the benefit is for taxable accounts but plenty is still available for tax-advantaged.

[@MrsThollo]

Love love love you two! I could totally live off $600/month in CHICAGO if I had no housing payment...

[@LoveMyAbeshaWomen]

Twana H are you assuming no health insurance and no eating out and no travel? If so, yes I agree I could live off of $600/mo as well. But I need to live up today so I have a travel fund and a “fun” fund 🙂