The Personal Finance Podcast

Should You Stop Using a Roth 401(k) After a Certain Income? (Money Q&A)

Listen Later

In this episode of The Personal Finance Podcast, Andrew answers eight questions on tax strategies and retirement planning, covering when investment moves trigger taxes (depends on account type), tax loss harvesting for high earners, why the 75-80% retirement income rule uses pre-tax numbers but you should plan more conservatively, strategic Roth 401k timing in lower tax brackets, a TransUnion data breach affecting 4.4 million Americans, income thresholds where traditional 401ks beat Roth options (24-30% marginal rates), saving for kids' expenses using the five-year investment rule, emergency fund storage as rates drop, and comprehensive pension planning beyond just relying on guaranteed payments.


Today we are going to answer these questions:

  1. Do you get taxed when moving money from one investment to another inside the same account?
  2. How does tax-loss harvesting work?
  3. Most retirement rules I’ve seen state that you want 75 to 80% of your pre-retirement income. Is that before or after taxes?
  4. Should you max out a Roth 401(k) in the first quarter of the year because of the lower marginal tax rate?
  5. At what annual income should someone avoid a Roth 401(k) and do traditional for tax purposes?
  6. Putting money away for kids’ wedding, cars, etc.—for when they get older. HYSA or brokerage?
  7. What are the best high-yield ways to store an emergency fund?
  8. How to plan for retirement with a pension?

    9.  

    How Andrew Can Help You:

    • Listen to The Business Show here.
    • Don't let another year pass by without making significant strides toward your dreams. "Master Your Money Goals" is your pathway to a future where your aspirations are not just wishes but realities. Enroll now and make this year count!
    • Join The Master Money Newsletter where you will become smarter with your money in 5 minutes or less per week Here!
    • Learn to invest by joining  Index Fund Pro! This is Andrew’s course teaching you how to invest! 
    • Watch The Master Money Youtube Channel! ,
    • Ask Andrew a question on Instagram or TikTok
    • Learn how to get out of Debt by joining our Free Course 
    • Leave Feedback or Episode Requests here. 
    • Car buying Calculator here


      • Thanks to Our Amazing Sponsors for supporting The Personal Finance Podcast

      • Shopify: Shopify makes it so easy to sell. Sign up for a one-dollar-per-month trial period at  shopify.com/pfp
      • Thanks to Policy Genius for Sponsoring the show! Go to policygenius.com to get your free life insurance quote.
      • Indeed: Start hiring NOW with a SEVENTY-FIVE DOLLAR SPONSORED JOB CREDIT to upgrade your job post at Indeed.com/personalfinance
      • Go to https://joindeleteme.com/PFP20/ for 20% off!
      • Shop outdoor furniture, grills, lawn games, and WAY more for WAY less. Head to wayfair.com
      • Get 50% Off Monarch Money, the all-in-one financial tool at www.monarchmoney.com/PFP
      • Chime: Start your credit journey with Chime. Sign-up takes only two minutes and doesn’t affect your credit score. Get started at chime.com/ 
      • Acorns: Start investing automatically with Acorns and get a $5 bonus at Acorns.com/PFP 
      • Go to https://joindeleteme.com/PFP20/ and Use Promo Code PFP for 20% off!

        •  

         Links Mentioned in This Episode:

         tax loss harvesting, 


        Connect With Andrew on Social Media:

        • Instagram
        • TikTok
        • Twitter
        • Master Money Website
        • Master Money Youtube Channel

          •  

          Free Guides:

          • The Stairway to Wealth: The Order of Operations for your Money
          • How to Negotiate Your Salary
          • The 75 Day Money Challenge
          • Get out Of Debt Fast
          • Take the Money Personality Quiz

            • Learn more about your ad choices. Visit megaphone.fm/adchoices

            ...more
            View all episodesView all episodes
            Download on the App Store
            The Personal Finance PodcastBy Andrew Giancola
            • 4.7
            • 4.7
            • 4.7
            • 4.7
            • 4.7

            4.7

            1,387 ratings

            More shows like The Personal Finance Podcast

            View all
            Afford Anything by Paula Pant | Cumulus Podcast Network

            Afford Anything

            3,587 Listeners

            Money Girl by QuickAndDirtyTips.com

            Money Girl

            1,860 Listeners

            Money Guy Show by Brian Preston and Bo Hanson

            Money Guy Show

            3,253 Listeners

            The Stacking Benjamins Show by StackingBenjamins.com | Cumulus Podcast Network

            The Stacking Benjamins Show

            1,996 Listeners

            Your Money, Your Wealth by Joe Anderson, CFP® & Alan Clopine, CPA of Pure Financial Advisors

            Your Money, Your Wealth

            809 Listeners

            ChooseFI by ChooseFI

            ChooseFI

            5,158 Listeners

            The Investing for Beginners Podcast - Your Path to Financial Freedom by By Andrew Sather and Dave Ahern | Stock Market Guide to Buying Stocks like

            The Investing for Beginners Podcast - Your Path to Financial Freedom

            1,428 Listeners

            NerdWallet's Smart Money Podcast by NerdWallet Personal Finance

            NerdWallet's Smart Money Podcast

            893 Listeners

            Stay Wealthy Retirement Podcast by Taylor Schulte, CFP®

            Stay Wealthy Retirement Podcast

            681 Listeners

            BiggerPockets Money Podcast by BiggerPockets

            BiggerPockets Money Podcast

            3,098 Listeners

            Ready For Retirement by James Conole, CFP®

            Ready For Retirement

            834 Listeners

            Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance) by Ari Taublieb, CFP®, MBA

            Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance)

            586 Listeners

            Mile High FI Podcast by Doug Cunnington & Carl Jensen

            Mile High FI Podcast

            204 Listeners

            Catching Up to FI by Bill Yount & Jackie Cummings Koski

            Catching Up to FI

            356 Listeners

            Rich Habits Podcast by Austin Hankwitz and Robert Croak

            Rich Habits Podcast

            507 Listeners