Lately, I’ve been thinking a lot about how my various retirement accounts will affect my future income, specifically the taxes I’ll have to pay. That’s because my investments are spread among the three basic account types: taxable brokerages, tax-deferred or traditional retirement accounts, and tax-free or Roth retirement accounts. Since I’m self-employed and always have a hefty tax bill, I’ve enjoyed making deductible SEP IRA contributions that significantly reduce my taxable income for many years. However, as that tax-deferred account grows, it’s a reminder that I’m simply delaying an inevitable tax bill. Roth IRA’s Contributions for High Earners When I…

Today’s topic is courtesy of Neelema, who says, “Hello Laura, I enjoy the Money Girl podcast. I’m an anesthesiologist married to a hospitalist. We wanted to buy real estate and I took a loan from my 401(k) for $40,000 at 4.5% interest. However, we never bought a property. We have $45,000 in credit card debt with a 25% APR, costing $800 per month in interest charges. Should we use the loan to pay off the credit card?” Thank you for the question, Neelema! This show will answer your question and review some 401k pros and cons of taking a loan…

In a recent show, I mentioned that I’m celebrating Women’s History Month by bringing you interviews about women and money. Each one includes diverse financial females sharing their financial expertise and tips for success. Listen as Money Girl host, Laura Adams talks with a panel of female financial experts about their career and personal success. Click the link above or in this player:  Today, I’m joined by Denise Piazza, CPA and managing partner of One Street Capital, a private equity real estate firm focused on acquiring real estate assets in growth markets nationwide. Denise has an impressive background, working in…

You probably know I’m a big financial independence and literacy champion. And March gives me a special opportunity to discuss various financial topics related to women because it’s Women’s History Month! The 2023 theme is “Celebrating Women Who Tell Our Stories.” I’ll bring you several interviews with diverse women who are working for a more equitable world and sharing their financial expertise.  While sound financial advice doesn’t necessarily change based on your gender, women typically face a few more challenges than men. In a nutshell, women live longer and earn less. Plus, they’re more likely to take time away from…

A Money Girl podcast listener named Piper says, “I’m a big fan of your podcast and want some advice before moving forward with my finances. I’m 23 years old, just started my first job, and make $60,000 with an extra $9,250 as reimbursement for traveling full-time. I have student debt and really want to get rid of it. But I also want to contribute to a Roth, save for emergencies, and buy a car. My company matches up to 6% on retirement contributions, so I was planning on contributing that much and paying off my loans at the same time.…

The latest episode of the Money Girl podcast was inspired by an email I received from Dave K. in New York. He says: “I know you generally recommend against closing credit cards so your average credit age isn’t adversely affected. However, is there a downside to opening a credit card to take advantage of a promotion (such as getting $200 for spending $1,000 in the first 90 days) and then closing it a few months later? It seems that strategy would preserve my credit age.  Also, is my credit score negatively affected by having too many credit cards, even if…

Fidelity Investments recently announced that it would be the first major retirement plan provider to add cryptocurrency to its 401(k) investment menu later this year. Over 20,000 employers offer a Fidelity retirement plan, and they’ll have the option to add crypto, allowing workers to invest up to 20% of their account balance, specifically in bitcoin. If employers choose, they can set a lower bitcoin limit, such as 5%. While there are thousands of cryptocurrencies in circulation, bitcoin is called the “king of crypto” because it’s the oldest and most well-known digital asset. However, if the bitcoin 401(k) gets popular, Fidelity…

This Money Girl episode was inspired by several questions I’ve received from listeners about various buy now pay later offers or BNPL at checkout online and in local stores. You’ve asked about whether they really are interest-free, how they compare with using a credit card, and the pros and cons.  So, if you’re ready to understand more about BNPL and whether it’s right for you, stay with me! To chat about everything you need to know, I interviewed Bill Walsh, Chief Customer Officer for Sunbit, a BNPL technology company. Bill and I had a great conversation about the current buy…

Getting a single DUI conviction can negatively affect your life in many ways. Having too many drinks may seem harmless at the time, but the second you get behind the wheel intoxicated, you put yourself and others at risk. If you’re lucky enough to not hurt anyone, you will still face fines, potential jail times, and skyrocketing auto insurance premiums. DUI vs. DWI Depending on where you live, you may get convicted of DUI or a DWI; however, there’s little difference between the two. DUI stands for “driving under the influence,” while DWI is “driving while intoxicated.” Both describe someone…

Prakash U. says, “Your crypto podcast was fascinating, and the interest rates from BlockFi and Gemini for stablecoins blew my mind. You mentioned they don’t have FDIC insurance. So, to get such high rates, what are the risks?” Susan H. says, “I love your podcast and listen to you on my morning walks with my dogs. I’m a 51-year-old married female and have worked as a paralegal for 24 years. My husband is the same age, and we’ve been married for 21 years with no children—just two very spoiled Labrador retrievers. We have $500,000 in 401(k)s and owe about $120,000…