Casey isn’t happy at her job. If she leaves before her one-year mark, she’ll lose her 401k contributions. Should she stay or find a new job?
Ryan’s investing in his son. If the yield is the same between two mutual funds, can he leave his son with more money if one mutual fund pays dividends more frequently?
Emily already maximizes her 401k contributions. Should she contribute to an after-tax 401k next?
Daan resides in a high-cost-of-living area where real estate appreciates rapidly. But there’s no cash flow. How should he evaluate real estate as an investment?
Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it here.
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Here are the details:
Casey asks (at 01:36 minutes): I work at a nonprofit making $48,000 a year, but my earning potential is $20,000 or more in a different sector.
I like my current job, but management is stressful and disorganized. I want to find a job where I feel respected.
However, I’d lose $2,000 of employer contributions to my 401k if I leave before a year.
When should I find a new job?
Ryan asks (at 14:24 minutes): I’m investing for my son in Charles Schwab’s Total Stock Market Fund (SWTSX), which pays a dividend annually. Vanguard’s Total Stock Market Index Fund (VTSAX), on the other hand, pays quarterly dividends.
The yield is virtually the same, but will VTSAX provide higher returns because it distributes dividends more frequently?
Emily asks (at 18:59 minutes): I have traditional and Roth IRA accounts. I’m also maxing out my 401k.
Should I contribute to my employer’s after-tax 401k plan? I could convert additional after-tax dollars to Roth, making my investment growth non-taxable.
Are the benefits and drawbacks of backdoor Roth IRAs also applicable to Mega Roths?
Would my existing IRA accounts interfere with the Mega Roth?
What are the downsides of an after-tax 401k?
Daan asks (at 29:14 minutes): I live in Asia. Many people invest in real estate here because property prices rise quickly, even though the average income is very, very low, and therefore rents are low.
How can I evaluate properties when there’s no cash flow and the only way to earn a profit is through appreciation?