"How Do I Buy an RV?"

Summary

Money Guy Show: "How Do I Buy an RV?" – Detailed Summary

Podcast Information:

• Title: Money Guy Show
• Hosts: Brian Preston and Bo Hanson
• Description: Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.
• Episode: "How Do I Buy an RV?"
• Release Date: December 30, 2024

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1. Introduction to Financial Planning for Service Members

The episode begins with Brian Preston addressing a question from Tucker, focusing on retirement planning for service members who retire earlier than the traditional age. Tucker emphasizes the importance of planning for a longer retirement period due to the early exit from service:

Tucker [00:22]: "If you're a service member and you're going to be exiting in your 40s or 50s...you might be having 40 to 50 years you have to plan for."

He further elaborates on the necessity of asset accumulation and leveraging benefits such as pensions and VA benefits to achieve financial independence.

Bo Hanson adds to the discussion by highlighting the critical steps service members should take post-retirement:

Bo Hanson [02:25]: "Expenses drive the process. You have to write down, once you leave service, what do you anticipate your budgeted burn rate is going to be."

Bo also touches on the importance of securing necessary insurance before retirement, particularly life and disability insurance, to protect against potential health issues stemming from military service.

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2. Main Topic: Treating an RV Purchase in Financial Planning

The core of the episode centers around R. Paris's question regarding the financial treatment of purchasing an RV:

R. Paris [05:55]: "How should I treat the purchase of an RV? Does this count as a luxury vehicle and I need to pay cash like the 238 rule says, or pay it off in a year?"

Tucker's Perspective: Tucker clarifies that an RV should not be classified similarly to a traditional luxury vehicle:

Tucker [06:38]: "This is not something to get you to your job. In my experience...an RV falls more in the category of like, a home purchase, like a second home."

He advises buyers to assess their financial stage to determine if purchasing an RV aligns with their "financial order of operations." Specifically, he references their nine-step financial process, identifying RV purchases as "step eight."

Tucker [06:38]: "Am I at the stage of my financial career where buying a second home makes sense? If not, then maybe I am thinking about adding a second home prematurely."

Bo Hanson's Input: Bo agrees with Tucker's classification, reinforcing that RVs are lifestyle decisions rather than necessities:

Bo Hanson [09:03]: "I will get some hate for saying this, but this definitely falls in the category of what I consider boats, RVs, off-road vehicles."

He further categorizes RV ownership as an "abundance goal," emphasizing that such purchases should align with one’s financial readiness and long-term plans.

Brian Preston's Agreement: Brian concurs, highlighting that RVs should be treated similarly to second homes in financial planning:

Brian Preston [09:09]: "It's not a vehicle. This is not a requirement living in it, maybe."

He underscores the importance of integrating the RV purchase within the broader context of one’s financial goals and step-by-step planning.

Key Takeaways:

• Classification: RVs should be considered akin to second home purchases, falling under "abundance goals" rather than essential or luxury vehicle expenditures.
• Financial Readiness: Ensure you're in the appropriate stage of your financial journey (step eight) before committing to such a purchase.
• Depreciation and Lifestyle Choice: Recognize that RVs depreciate over time and represent a lifestyle decision that should align with personal financial stability and goals.

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3. Personal Anecdotes and Stories About RVs

The hosts and Tucker share personal experiences to illustrate their points, adding relatability and depth to the discussion.

Bo Hanson's Story: Bo recounts a childhood experience with an RV during a Boy Scouts trip:

Bo Hanson [09:57]: "...we take a whole group...snowed up in the mountains...some friends slept in the RV while others endured harsh conditions in tents."

This story underscores the practical challenges and unpredictability associated with RVs, reinforcing the notion that they are significant lifestyle choices rather than mere vehicles.

Tucker and Bo’s Light-Hearted Banter: The conversation takes a humorous turn as Bo jokes about the disadvantages of RV living, prompting laughter and a relatable exchange:

Bo Hanson [11:00]: "Those that were in the RV know who they are. So maybe there is a bias."

This segment humanizes the hosts and provides listeners with an engaging, personable aspect of financial discussions.

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4. Handling RSUs and Diversification

While the episode's main focus is on purchasing an RV, the hosts also address a secondary question from "sinking potato" regarding the diversification of Restricted Stock Units (RSUs):

sinking potato [15:00]: "Should I diversify my granted RSU's? How should I approach this?"

Tucker's Explanation: Tucker explains the nature of RSUs and the risks of over-concentration in a single company's stock:

Tucker [15:12]: "A lot of folks...are sitting there saying hold, holy cow, I have a ton of RSUs...you've actually inserted a ton of risk into your overall financial picture."

Bo Hanson's Strategy: Bo recommends creating a diversification plan that aligns with the vesting schedule of RSUs:

Bo Hanson [16:36]: "...create diversification just through the passage of time and creating a system that lets you sell these."

He advises selling RSUs upon vesting to minimize tax impact and reduce concentration risk, reinforcing disciplined financial strategies.

Brian Preston's Anecdote: Brian adds that employee stock purchase plans can be beneficial but should be balanced with diversification efforts to mitigate risks associated with holding too much of one company's stock.

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5. Conclusion and Final Thoughts

As the episode wraps up, Brian and Bo reiterate the importance of aligning financial decisions with personal goals and stages in one's financial journey. They emphasize the ethos that:

Brian Preston [21:18]: "True wealth is the ability to focus on what really matters to you and your family."

Bo Hanson echoes this sentiment, highlighting that financial tools and strategies should serve to enhance personal fulfillment and security.

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Key Quotes with Timestamps

• Tucker [00:22]: "If you're a service member and you're going to be exiting in your 40s or 50s...you might be having 40 to 50 years you have to plan for."

• Bo Hanson [02:25]: "Expenses drive the process. You have to write down, once you leave service, what do you anticipate your budgeted burn rate is going to be."

• Tucker [06:38]: "Am I at the stage of my financial career where buying a second home makes sense? If not, then maybe I am thinking about adding a second home prematurely."

• Bo Hanson [09:03]: "I will get some hate for saying this, but this definitely falls in the category of what I consider boats, RVs, off-road vehicles."

• Bo Hanson [16:36]: "...create diversification just through the passage of time and creating a system that lets you sell these."

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Final Thoughts

In "How Do I Buy an RV?", Brian Preston and Bo Hanson provide a comprehensive analysis of integrating significant lifestyle purchases like RVs into one's financial planning. They stress the importance of aligning such decisions with one's financial stage and long-term goals, treating RV ownership as an abundance goal comparable to purchasing a second home. Through personal anecdotes and practical advice, the hosts offer listeners actionable insights to make informed financial choices that enhance their wealth-building journey.

For more detailed strategies and personalized advice, listeners are encouraged to visit moneyguy.com and explore their extensive range of free calculators and resources.

Transcript

[Brian Preston]

We do have another question from Tucker, if you're ready for it.

[Bo Hanson]

Okay.

[Brian Preston]

How should service members that have retirement at a much lower age than normal look at retirement and the amount needed at retirement?

[Tucker]

Yeah, so service members are really, really interesting. Your first question is how should people that are retiring early think about their retirement? Well, I think one of the very first things you have to think about is longevity. Most folks, if you think about traditional retirement, they're going to retire at age 65 and they're going to live to somewhere between 85 to 95. So it's like 20 to 30 year retirement period. If you're a service member and you're going to be exiting in your 40s or 50s and you're considering that retirement, then what you're doing is instead of only having 20 to 30 years you have to plan for, you might be having 40 to 50 years you have to plan for. So you better make sure your planning is pretty jammed up. Now, what I have seen in my experience with a lot of service members is that when they leave the service, it's not really full retirement. It is stage one retirement, step to the next thing. It's like the next endeavor. And so one of the things I would figure out is, okay, based on my service, what have I done from an asset accumulation standpoint? Have I built up TSP assets? Have I built up investment assets? And then what sort of guaranteed sources of income will I have later in life? Am I going to have pensions? Am I going to have VA benefits? Like, what are the things that from my service career are going to carry through to later in life? And then from where I am today to where I ultimately want to be one day. So I know where I'm at today and I know the life I want to live. When I'm living my most abundant life, are there steps I need to take to get from where I am today to get there? And what most people find is, yeah, that's when I'm going to shift and I'm going to do some career 2.0. And maybe I do this for 10 years, or maybe I do it for 15 years, but that's going to be a different stage of my career. But because of my service, because of the assets I've built, because of the low lifestyle I was able to have, because of the pension that I have, it's going to give me opportunities to be a lot more flexible. I don't have to go out and make a gazillion dollars a year. I might just need to go out and make enough to cover my expenses and be able to save reasonably. And if I can do that for seven, eight, nine, 10 years, then I'm going to be set off to the races, ready to financially be independent.

[Bo Hanson]

I wrote down some quick notes here. Tucker, by the way, thank you for your service. I love that the Guy show connects with a lot of people in the military. We even have studio tours come through and it's kind of cool. It really makes it really exciting. So that's what. And one of the tours we did last week actually shaped my answer a little bit. So here's what I wrote down. Expenses drive the process. You have to write down, once you leave service, what do you anticipate your budgeted burn rate is going to be? Because now you have the opportunity once you know the expenses you can lower. Because that's the second thing is what fills the gap, the difference between your anticipated pension from what that budgeted burn rate is. And then you have to figure out, how am I going to fill this gap? For a lot of people, it's exactly what both said. They might transition to another opportunity. That's a new job. I've got a cousin that did the same thing, but then that, you know, realize he didn't love that as much. And then you have to kind of lean back on do I have enough assets slash investments to fill it so I don't have to work so hard with my back, my brain and my hands, just like we always talk about with our army of dollar bills. So those are the two, you know, meat and potato parts of the answer. But here's a third one that I thought this was definitely something that service members ought to know. Make sure you get all the insurance you need before you retire. I'm talking about life insurance, I'm talking about disability insurance because there's this weird dance with service members. Is that. And I even saw this with my cousin. Is that a lot. You guys are doing unique jobs and it's really hard on the body in a lot of ways. So a lot of times when you leave service, even though, you know, outward looking you look very healthy, you might have some pretty gnarly, you know, damage to you somewhere else, whether it's your ankles or your knees from doing or your ears and all these unique things from just being in the military. So you're going to have some discussions with the VA to figure out if you qualify for additional benefits because of some of that damage from your, your time of service. Get your, you know, some of that might make you considered uninsurable. So that's why you have this weird dance where you have to get. I would encourage you before you have to kind of start, you know, doing that part of it. Don't do insurance fraud. Don't mishear me. But I'm just saying make sure you have time that out to understand. Maybe it's easier to get my disability in my life, you know, before I have to have those unique conversations with, you know, veteran Affairs.

[Tucker]

Ruby, I think there's another thing that we've been working on, but I don't know, is it something we. Oh, can we talk about the thing that we've been working on? Is that not a thing we can talk about as it relates to service members and military families and a special tool that they can use as they're trying to figure out the stuff that they have going on in life? I know we've been building it. I just don't know if we've released it yet.

[Brian Preston]

Yeah, we actually do have a military ebook that we've kind of like pre released to some of you through some ways. So we're excited that you kind of have your hands on it. And we are excited to release more of that in the future because we know that our military moneyguy family is such a huge part of what we're doing. And so we're excited to just release even more good content and hopefully just helpful resources for you as time goes on. Hopefully pretty soon.

[Tucker]

I love it.

[Brian Preston]

Yeah.

[Tucker]

Great answer.

[Brian Preston]

All right, our Paris has a question for you next.

[Tucker]

Our parents.

[Bo Hanson]

Our Paris.

[Brian Preston]

Our parents.

[Tucker]

The letter. I heard the letter. R. Parents, Paris. Oh, you are parents.

[Bo Hanson]

Okay, you might be getting old.

[Brian Preston]

That's it.

[Tucker]

I'm out of here.

[Brian Preston]

He's really roasting you today. But he also put you in the same category as Arnold Schwarzenegger, Mr. Grumpy Girls over here.

[Bo Hanson]

So I don't know.

[Brian Preston]

I don't know what's going on. A little of everything. Okay. R. Paris has a question. He says, how should I treat the purchase of an rv? Does this count as a luxury vehicle and I need to pay cash like the 238 rule says, or pay it off in a year? What do you think?

[Tucker]

Well, let me tell you. Let me tell you what it's not. RV is not like a 238 type purchase.

[Bo Hanson]

That's just cause it has wheels on it.

[Tucker]

Yeah. This is not something to get you to your job. In my experience, generally when I think about recreational vehicles and something you're going to travel and something you're going to sleep in this, in my mind, falls more in the category of like, a home purchase, like a second home. A lot of people treat an RV as their second home. So when you're thinking about, can I do this one? I would think about it in that realm. Okay. Am I at the stage of my financial career where buying a second home makes sense? If the answer to that question is no, meaning that I'm like, early on in the food, I'm on three. I'm on four. Oh, Brian, you have the thing. Can you hold the thing up? We have a nine step, tried and true process that'll walk you through what to do with your next dollar. RVs. Not step one, not step two, not step three, not step four, not step five, not step eight, not step seven. Or you could just jump right to it. They are a step eight things. So the first question I would ask is, am I in step eight of the financial order of operations? And if I am, then I can start thinking about buying an rv. But if I'm not, then maybe I am thinking about adding a second home prematurely. Agree? Disagree. Want to fight over this one? What do you think about RVs?

[Bo Hanson]

I look at RVs now. Look, a financial associate here in the office wrote a funny thing up on the board, and this question actually breaks their theorem. Now, they were trying to be funny. They said, you can. You can live in your car, but you can't drive your house to work. They were trying to be funny. It's not a very good joke, but. But I saw it on one of the whiteboards as I was walking by. And then this actually breaks it, though, because you literally could drive this to your job, you know? Well, but. But I just know if you guys have ever rented an rv, these things, I don't, I don't think they. They age well over the. They depreciate as well. I mean, it is. It definitely depreciates. And this is one of those lifestyle decisions, y'all. I will get some hate for saying this, but this definitely falls in the category of what I consider boats, RVs, off road vehicles. These are all things that, you know, are different than what's required for life. So that's why this is step eight of the financial order of operations.

[Tucker]

But you agree it's not an automobile. It's not like I'm thinking about upgrading to a luxury car.

[Brian Preston]

It's not a 23A.

[Tucker]

It's not a.

[Brian Preston]

This is not a vehicle.

[Bo Hanson]

Unless this is the plot of Christmas vacation. This is not.

[Brian Preston]

This is not a requirement Living in it, maybe.

[Tucker]

So I think it's okay. Like, if this does fit into your financial order of operations, we say all the time that money is nothing more than a tool to allow us to achieve our goals. And if one of our goals is to own an rv, I do not. I'm not gonna be so stringent. Say, hey, to buy an rv, you got to pay cash for it. I'm okay if you finance it, same way that you might finance a second home, if that was what you were doing. Assuming you're at the stage of your journey where that makes sense. Oh, you want to fight now? You saw that.

[Bo Hanson]

It's just.

[Brian Preston]

Very reasonable answer.

[Bo Hanson]

It's just. This is an abundance goal. You just have to be careful because RVs can get really expensive.

[Tucker]

So can beach houses.

[Bo Hanson]

So. Yeah. Yeah. It's just that they.

[Tucker]

So can lake houses.

[Bo Hanson]

They age a little differently. I've seen a lot of people make some. Some decisions in step eight for vacation property, and somehow, even though it was less than ideal, they've actually been rewarded for it. Whereas I don't know if I think the. The come out on the other side is as rewarding. Sometimes on an rv, it sounds like you're anti rv.

[Tucker]

I'm not anti RV guy.

[Brian Preston]

I mean, I'm not an rv.

[Tucker]

There was a time in your life, I don't know if you remember.

[Bo Hanson]

I tried. I tried to My family to. I was like, look, let's drive from Tennessee would be to a national park in an rv. We'll rent one.

[Tucker]

And you were so excited about this.

[Bo Hanson]

And then we'll fly home, because we'll probably be tired of the RV by the time we get to the national park, so we'll fly home. And my oldest daughter, you know, at the time, she was. She was in high school, I think at the time, she goes, dad, I'll blow through your data before we leave the state line. And I was like, okay, so I guess we're not doing this.

[Tucker]

You see what happened here? Brian was an RV guy. His child crushed his RV dreams, and now he's an anti RV guy.

[Bo Hanson]

It wasn't just my child.

[Tucker]

Oh, his family.

[Bo Hanson]

My spouse is like that.

[Tucker]

See, they. They robbed you.

[Brian Preston]

That makes sense, because I was like, this is interesting. Like, I get that.

[Tucker]

Okay, maybe I got.

[Bo Hanson]

Maybe I got a blind spot.

[Brian Preston]

Property is different than a vehicle. Like, I think that's fair to say. And depreciation. But, like, especially for step eight behavior, like Bo said, like, if that's what you like to die, that's what you. That's what you've taught me.

[Bo Hanson]

Yeah.

[Brian Preston]

Maybe that's how you want to deploy your dollars, bringing some happiness.

[Bo Hanson]

I'm a girl, dad, and I'm sure there's girls out there that love camping. But I know when we ever had those father, daughter or father kids, you know, sleepovers in the backyard with tents, my kids were always the ones that wanted to go home at night. So we just.

[Brian Preston]

Maybe I'm not an RV person, but.

[Bo Hanson]

It is definitely an abundance goal.

[Tucker]

It's a step eight. That's what it took us six minutes to say. It's not a car, it's step angle.

[Brian Preston]

I love it. All right, well, our Paris, hopefully that helps you out. And thanks for helping us get to the bottom.

[Bo Hanson]

So do you think your family would go on an RV trip?

[Brian Preston]

No.

[Bo Hanson]

But you don't have a desire to go on an rv, even though with that shirt would say otherwise.

[Tucker]

I have zero desire to go on an RV trip. But you know what? If you invited me, you're like, hey, Bo, let's take this show on the road. Let's get an rv. Let's go for a week or two. I'd be down.

[Brian Preston]

Interesting.

[Tucker]

The only other rv, quickly, he didn't jump all over.

[Brian Preston]

He didn't like that.

[Tucker]

I just don't see an rv.

[Bo Hanson]

The only other RV story I have is that back when I was. This is back when I was a wee below when I was thought of my going to Boy Scouts, they took us on a hike in the Appalachian Trail in North Georgia mountains. And I don't know who was in charge of this trip, but somehow we take a whole group of guys, young, young men or I mean, we were kids and he had a few parents as chaperones. And it snowed. I mean, dumped snow upon snow upon snow up in the mountains. And we were staying from the Korean War tents like surplus tents from the Korean War. And I had a sleeping bag that was not built for sub zero. And I'll never forget, I woke up and my sleeping bag was soaking wet because there was a little tiny hole in the tent that soaked my sleeping bag. And meanwhile, three of my friends, one of the fathers brought an RV and a group of the better halves got to sleep in the rv. But all of us that weren't in the cool kid camp at that time slept in the tents and about died.

[Tucker]

There's some drama.

[Brian Preston]

There's a lot of RV related.

[Bo Hanson]

Out of the mountains. I mean, I was still. I can visualize how hard it was coming out of those mountains in the cars Trying to get home because I was so it just shows you how we talk about Generation X. It's almost like the parents back then just like, oh, screw it, let's do it. It'll be all right. It'll just work out. I mean, it's just because I look back on some of the decision making of my childhood and I'm like, who was the one saying, yeah, because you know, that snow was forecasted and they're like, it'll be all right, we'll be okay.

[Tucker]

I'm just admit I'm just imagining the.

[Bo Hanson]

Person in the RV. I'm just saying.

[Tucker]

7 year old Brian with tattered clothes walking out of the woods, hair disheveled, full beard from the three days coming out of war.

[Bo Hanson]

All my friends that were in the RV now thinking about this, they all got Eagle Scouts. I think this is the dividing line. You at look at life and you go fork in the road moments. Me in the leaky tent probably is what kept me from becoming an Eagle Scout. And then all my buddies who were sleeping in the comfort of the RV actually became Eagle Scout. So I think that that was the dividing line.

[Brian Preston]

That was a good piece of history.

[Tucker]

This how I'm glad that came out right there.

[Brian Preston]

Me too.

[Bo Hanson]

The ones that that were in the RV know who they are. So maybe there is a bias.

[Tucker]

I think we just had therapy.

[Bo Hanson]

Sending me the bill.

[Tucker]

Send me that bill.

[Brian Preston]

Oh, man. All right, we've got a couple more questions. Are you ready for them?

[Tucker]

Yes, ma'am.

[Brian Preston]

Sinking potato says I'm 26 and on step seven.

[Tucker]

Nice.

[Brian Preston]

Should I diversify my granted RSU's? How should I approach this?

[Tucker]

So, stinky potato, sounds like you work for a company that part of your compensation isn't just the W2 wage that you receive, but you receive some stock compensation in the forms of restricted stock units. For those of you that don't know, this means that, hey, I'm going to, as an employer, I'm going to give you shares in this company, but you're not going to get them all today I'm going to give you X number of shares and they're going to vest over a certain period of time. Often, you know, maybe you get a third next year, a third the year after, and then the final third in the following year. And so that's great. You get vested in this and when these shares vest, they're immediately taxable to you and then they're your shares. You get to choose what you do with it. Well, a lot of folks, this is kind of out of sight, out of mind. Like I get my paycheck, it's my checking account, I've got these things happening in the background. And before you know it, after you've worked through a number of vesting cycles, you're sitting there saying hold, holy cow, I have a ton of RSUs, I have a ton of exposure. And while that may be exciting, certainly if you're working for a company whose stock price has done well, what you may not realize is that you've actually inserted a ton of risk into your overall financial picture. Because now not only is all of your human capital tied up in this singular company, right, they are your job, they're where did I was just start.

[Bo Hanson]

Stealing when we're going to play the word game here, whenever you steal my answers, I'm just going to check them off and say okay, there it is.

[Tucker]

All of yours capital is tied up in this company. Well now the majority of your financial capital can also be tied up in it. So what you want to make sure you do is you don't become over concentrated to that singular company. So you ought to think about a strategy on how you divest RSU's. Brian, we think about people divesting RSUs. What are some of the ways that we often see people do this and what are as a tax guy, what are the tax, the good tax ways to think about this?

[Bo Hanson]

Well, there are several things to consider here is that you likely you're getting RSUs every year. So it's almost like a ladder in the fact that you know, you got some coming in, you got some coming out, you got some coming in, you got some coming out. So it really creates a cool system to where you can create diversification just through the passage of time and creating a system that lets you sell these now you can figure out how optimistic you are about the company you're with, with keeping in that delicate balance that Beau was talking about of human capital versus investment capital. But I mean a lot of people just turn them over. I mean that's, that's the typical thing, you know, with options. Sometimes you exercise them, then you hold them for 12 months and then you wash and repeat. On the diversification, RSUs are a little.

[Tucker]

Different because when they vest it's taxable to you on that day. So if you sell them immediately, there's no additional tax consequence. It's the point of minimal tax impact if you sell when the RSU is vest.

[Bo Hanson]

So I definitely agree with Bo. Make sure you're diversifying your human capital from the Investment capital. The other thing I was going to say is it's not uncommon. When you see, when I see this type of stuff for these companies, these public companies, they also offer employee stock purchase plans where they will offer like 15% discounts and they do the lower of at the beginning of the quarter or at the end of the quarter. We look at this as like step two on the financial order of operations because it literally is free money. But you have to walk this delicate balance of maximizing these employer benefits but getting out of them or diversifying them as fast as you possibly can because there is obviously risk of concentration. But man oh man, what an awesome wealth building opportunity. If you understand the risk, you understand the opportunity and you execute a plan that lets you leverage and build on this to maximize your wealth building journey.

[Tucker]

That's great.

[Brian Preston]

Awesome sinking potato. Thanks for the question. Scott's question is up next. He says I have about 60k in my thrift savings plan. New retirement tells me the most efficient thing to do tax wise in converting to Roth is to convert to Roth as soon as possible. Any recommendations?

[Bo Hanson]

Well, I think that's, that's taking in account the time component of it. But where's the tax component? Bo?

[Tucker]

Yeah. What I would argue is anytime you read something that tells you, you this thing is absolutely the number one thing that you should do and is best for you, my spidey senses would immediately go off because personal finance is personal and so what's best for you may not be what's best for the person that sits next to the office. So we love Roth conversions. It's an idea of I take pre tax assets and I convert them into Roth and I pay tax now and then those dollars grow tax free. But with the tsp, I think isn't there like a Roth ability to do contributions to your TSP and Roth? So maybe instead of you converting, maybe switching how your contributions go in might make sense. It is unclear based on your unique circumstances what would be the best answer? Because ultimately Brian, when you, when you think about Roth conversion decisions, you have to make some tax assumptions, right. Based on like where you are today versus what you think in the future to drive which one might make the most sense. Right?

[Bo Hanson]

Yeah. The quick things I wrote down was tax rates and when matters because I want you to write down your life timeline or anticipate a lifetimeline is because what we always are looking for are their arbitrage opportunities to get the lowest tax rates for the income that you got coming in. Obviously if you're in your peak earning years, you're paying the highest marginal rates for ordinary income tax opportunities like a Roth conversion. But if you look ahead and you say, hey, there's going to be a season, maybe I'm taking a sabbatical, or maybe I'm changing careers or I'm retiring early and I'm going to have a year or two where I'm living off of after tax assets and my taxable income for my return purposes is going to be very low. By all means, use those years to convert assets that are in those traditional type of tax deferred assets into Roth assets. But you got to do the work, you've got to do the timeline, you got to do the tax projections and you got to measure twice, cut once.

[Tucker]

I love it.

[Brian Preston]

Fantastic. As always, these were great questions. Thank you for being here. Thank you for asking. Thank you for showing up during our premieres and live streams every week. We just want to hopefully be helpful and help you feel more confident about your wealth building journey. So keep tuning in here on YouTube, subscribe if you haven't already and be sure to check out moneyguy.com resources for our abundance of free calculators and downloads just to help you continue these conversations about personal finance. So as always, thanks for being here.

[Bo Hanson]

You know, as we get to these time of year of the year, I always get somewhat more sentimental, if you can believe that's even possible. And that's why it's always worth repeating that true wealth is the ability to focus on what really matters to you and your family. I'm your host, Brian Preston. Mr. Bo Hanson money guy Team out.

[Ruby]

The Money Guy show is hosted by Brian Preston. Abound Wealth Management is a registered investment advisory firm regulated by the securities and Exchange Commission. In accordance and compliance with the securities laws and regulations, Abound Wealth Management does not render or offer to render personalized investment or tax advice through the Money Guy Show. The information provided is for informational purposes only and does not constitute financial tax, investment or legal advice.