Ask Paula: My Income Is Dropping From $190,000 to $40,000; What Should I Do?

Published: March 16, 2022, 7:40 p.m.

#370: Kristen is 32, and she and her husband want to retire in less than 20 years. They make too much to contribute to a Roth IRA. Should they use back door Roth conversions to speed along their path to early retirement?\nMichelle makes $190,000 and is going to switch to a career that pays $40,000 on average. To prepare for this lower salary, she's selling her current home and buying a different one. Should she pay off her new home with the proceeds from the old one? Or should she invest her profits?\nAnonymous lives in a high cost-of-living area and is wondering where to keep her down payment and emergency funds. Should she use I-bonds, TIPS, or some combination of these two?\nIn today's episode, former financial planner Joe Saul-Sehy and I tackle these tough situations.\nEnjoy!\nDo you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it at https://affordanything.com/voicemail and we\u2019ll answer them in a future episode.\nLearn more about your ad choices. Visit podcastchoices.com/adchoices