Certified Financial Planner
Mailbag | Backdoor Roth IRA, 4% Rule & 401k Strategies for Retirement Planning | With Rachael Camp | 521
Episode Details
Answering Listener Questions on asset allocation, retirement strategies, and the intricacies of real estate investing. With Brad Barrett and Rachael Camp. Whether you are pondering upon the backdoor Roth IRA strategy or seeking clarity on managing funds without a 401k, this episode is for you!
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Public Service Announcement: Importance of filing the Beneficial Ownership Information form for legal entities by December 31st 00:01:21.
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Mailbag Questions:
- How to Invest Without a 401k: Options include traditional IRAs and Health Savings Accounts (HSAs), while noting contribution limits. 00:03:43, 00:04:12.
- Company Matches in Retirement Accounts: Highlighted as a crucial opportunity to maximize savings 00:09:12.
- Backdoor Roth IRA: A legal way for high earners to sidestep income limits for Roth IRA contributions 00:15:09.
- Asset Allocation: Discussion on the complexities of asset allocation, particularly as one approaches retirement, and the impact of sequence of returns risk 00:24:07.
- Real Estate Investing: Key considerations and the risks associated with real estate investments 00:56:01.
Questions:
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What can I do if my employer doesn’t offer a 401k?
- Consider options like a traditional IRA or a health savings account. 00:04:12
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How do I manage sequence of returns risk in retirement?
- It's crucial to have a cash reserve and bonds as a cushion against market downturns. 00:26:36
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What should I consider when investing in real estate?
- Understand cash flow, assess the market, and account for all potential expenses and vacancies to avoid risks. 00:58:08
Actionable Takeaways:
- Review and potentially set up a traditional IRA if your employer doesn't offer a 401k. 00:04:12
- Consider maintaining a cash buffer for the first few years of retirement to mitigate risks. 00:26:36
- Maximize your retirement account contributions to include any employer matches. 00:09:12
- "Avoid reverse dollar cost averaging by holding onto equities during market downturns." 00:39:28
- "Company matches in retirement accounts offer unmatched returns—don’t miss out!" 00:09:12
- "Explore diverse account types for effective financial management." 00:10:00
**Disclaimer
Please note: Rachael Camp offers advisory Services through Creative Financial Designs, Inc., a Registered Investment Adviser, and Securities are offered through cfd Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S. Goyer Rd., Kokomo, IN 46902. 765-453-9600. Camp Wealth is not affiliated with the CFD companies.
See moreIn this episode of ChooseFI, the hosts engage in an informative mailbag discussion with financial planner Rachel Camp. They delve into a variety of listener-submitted questions that cover broad financial topics such as asset allocation, sequence of returns risk, and the backdoor Roth IRA. Rachel provides expert insights on managing asset allocation as one approaches retirement, emphasizing the importance of maintaining a proper balance between equities and bonds to safeguard against market volatility. Rachel and Brad also tackle specific scenarios, such as a listener looking to retire early using a combination of rental income and brokerage account withdrawals. They explore the complexities of accessing retirement funds before the age of 59.5 and the potential impact of having other income sources like rental income and pensions. Throughout the episode, a recurring theme emerges on the importance of considering holistic financial planning, rather than solely relying on singular strategies like the 4% rule or real estate yields.