Show Notes
1061. Worried about locking your money away in a retirement account? Host Laura Adams answers a question about choosing investments without losing sleep over liquidity. You’ll learn the pros and cons of taxable brokerage accounts versus retirement accounts, the surprising Roth IRA "loophole" for penalty-free withdrawals, and a simple strategy for choosing diversified investments. Key Takeaways Taxable brokerage accounts offer complete liquidity with no withdrawal penalties or deposit caps, but require paying annual taxes on dividends and capital gains. Retirement accounts offer tax savings, but carry strict annual limits and early withdrawal restrictions. Roth IRA contributions can be withdrawn at any time, for any reason, with no tax or penalty, giving you a built-in safety net. Stick to broad-market index ETFs (like S&P 500 or Total Stock Market funds), which are diversified and rarely generate unexpected annual tax liabilities. Build an emergency fund as a top financial priority, then maximize any free matching for a workplace retirement plan, and then fund a Roth IRA. Consider using a taxable brokerage account for non-retirement or mid-term financial goals. Investing consistently is key to building wealth with the least effort possible.
Discover more from Money Girl! Facebook Newsletter Transcripts available at QuickandDirtyTips.com. Email: [email protected] or leave a voicemail: (302) 364-0308. Hosted on Acast. See acast.com/privacy for more information.
More from Money Girl
1060. Dreaming of retiring early or taking an extended career break, but worried your money is locked away until age 59.5? Host Laura Adams explains a powerful strategy to retire early and avoid expensive penalties.
1059. Host Laura Adams sits down with Courtney Alev, Consumer Financial Advocate for Intuit Credit Karma. They discuss real listener questions about budgeting, tax refund strategies, and paying down debt. You’ll learn strategies and tips for saving more, managing debt wisely, adjusting tax withholding, and curbing impulse spending to improve your financial life.
952. Not sure whether you need a financial advisor, or which kind to look for? Laura Adams explains the seven types of financial professionals: bankers, insurance agents, tax accountants, estate attorneys, stockbrokers, registered investment advisors (RIAs), and certified financial planners (CFPs). She covers what each one does, how each is paid, and which are fiduciaries legally required to act in your best interest. You'll learn the difference between fee-only, fee-based, and commission-based advisors, and how to spot conflicts of interest. Laura also shares where to search for and verify credentials, including LetsMakeAPlan.org, FINRA.org, AdviserInfo.SEC.gov, the IRS preparer search tool, and the National Association of Personal Financial Advisors. She closes with a list of questions to ask in a first meeting. These are especially helpful after a windfall, a new business, a divorce, a growing family, or when you're planning for retirement. This episode originally ran in August 2025.
1058. With 10-year U.S. Treasury yields above 5.3%, many investors are asking if they should ditch stocks and play it safe with fixed income. Host Laura Adams answers a listener’s question about investing when retirement is ten years away. You’ll learn the basics of bonds and how to use a three-bucket strategy to lower risk without giving up long-term growth. Key Takeaways A bond is a loan an investor gives an entity (like the federal government, a local municipality, or a corporation) in exchange for interest payments over a period. 10-year U.S. Treasury bond yields have climbed above 5.3%, their highest rate in decades, providing an inflation-adjusted return of about 2%. The longer the maturity of a bond, the higher its interest rate will be. You can buy individual bonds or bond funds, which are diversified and an easy way to buy a preset portfolio of bonds from brokerages and investment platforms. Owning individual bonds to maturity eliminates price fluctuation risk, where a bond’s price shifts based on interest rates. Retirees can benefit from structuring their portfolio into three buckets: cash, bonds, and stocks, to protect against potential market losses.
1057. Few things are more frustrating than learning your flight has been canceled. But do you know what you’re legally entitled to when an airline grounds your plane? Host Laura Adams breaks down your rights as an air traveler and explains how to protect your wallet when flights get disrupted. Key Takeaways If an airline cancels your flight or changes your schedule by more than three hours domestically or six hours internationally, you’re entitled to a full refund if you choose not to rebook. Research your options using airline apps, by calling their domestic or international customer service, or by messaging their social media. Airlines are not required to issue vouchers for delays caused by factors they can’t control, such as severe weather, air traffic control shutdowns, cyberattacks, or unscheduled safety maintenance. Paying for your flight or award ticket taxes with a card that offers travel protections can help offset unexpected hotels, ground transportation, meals, and toiletries when your flight is canceled or significantly delayed. To claim credit card travel protections, request a "Statement of Delay" from the airline and keep itemized receipts for every expense. Discover more from Money Girl! Facebook Newsletter Transcripts available at QuickandDirtyTips.com. Email: [email protected] or leave a voicemail: (302) 364-0308. Hosted on Acast. See acast.com/privacy for more information.