Apar’s income has more than doubled after he started his own business. His advisor recommends Roth contributions but he’s skeptical due to his high income. Who’s right?

Keith is frustrated by the conflicting advice he’s heard about Roth conversions. Is it better to do it while he’s young and earning a lower income, or should he wait until closer to retirement?

Krish is fascinated by cryptocurrency and its impact on global investing. What opportunities should he capitalize on, and how?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

P.S. Got a question? Leave it here.

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Apar asks (at 03:26 minutes): My income recently increased from $300,000 to $700,000 after starting my own business. I expect to maintain this income for at least five to ten years. Should I invest my solo 401(k) contributions in Roth or traditional (pre-tax) dollars?

I’ve been a listener since my first year of residency, about seven years ago. I’m now an attending physician and I’ve come a long way financially. I recently opened a solo 401(k) and made a large contribution.

The advisor connected to the plan suggested I make all Roth contributions. However, I’ve always thought that during peak earning years, it’s better to prioritize pre-tax contributions to take advantage of the tax savings now.

My wife and I have $400,000 in pre-tax retirement accounts and $250,000 in Roth accounts, mostly from contributions I made during residency. I plan to continue with contributions, but I’m unsure whether to prioritize Roth or stick with pre-tax during these high-income years.

What’s your take on this?

Keith asks (at 06:58 minutes): I’m 34 years old and have some traditional money in my TSP (Thrift Savings Plan). I’ll be allowed to make Roth conversions in a couple of years, and I wonder if it’d make sense for someone my age to begin converting.

I currently earn a gross income of $60,000. I’ve heard different perspectives: some say it’s better to start early so the Roth money has more time to grow tax-free, while others recommend waiting until closer to retirement when your income might be lower.

What’s your take on the best time for a Roth conversion, and why? Is it a complicated process that requires professional help, or is it straightforward enough to handle on my own?

Krish asks (at 59:48 minutes): I’d like to know about opportunities in the American, Indian, and Singaporean markets. What are the best apps or platforms for investing in these markets?

Additionally, I’m curious about the future of cryptocurrency and how blockchain technology could impact investing globally.

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#575: Q&A: The Roth Decision at Every Income Level (And Why It Matters Now!)

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