#575: Questions and Answers: The Roth Decision for All Income Levels (And Its Current Importance!)

      Apar’s income has significantly increased since he launched his own business, growing from $300,000 to $700,000. His advisor suggests making Roth contributions, but he has doubts because of his elevated earnings. Who is correct in this situation?

      Keith is feeling confused by the mixed advice regarding Roth conversions. Should he do them while he’s young and earning less, or wait until he is nearing retirement?

      Krish is intrigued by cryptocurrency and its influence on global investing. What opportunities should he explore, and how can he go about it?

      Former financial planner Joe Saul-Sehy and I address these three inquiries in today's episode.

      Enjoy!

      P.S. If you have a question, feel free to leave it here.

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      Apar inquires (at 03:26 minutes): My income recently rose from $300,000 to $700,000 after starting my own business. I anticipate maintaining this income for a minimum of five to ten years. Should I invest my solo 401(k) contributions using Roth or traditional (pre-tax) funds?

      I’ve been a listener since my residency began about seven years ago. Now an attending physician, my financial situation has improved considerably. I recently opened a solo 401(k) and contributed a substantial amount.

      The advisor linked to the plan recommended that I make all contributions in Roth. However, I have always believed that in high-earning years, it’s wiser to focus on pre-tax contributions to benefit from tax savings immediately.

      My wife and I hold $400,000 in pre-tax retirement accounts and $250,000 in Roth accounts, primarily from contributions I made during residency. I intend to keep contributing, but I'm uncertain whether to emphasize Roth or continue with pre-tax contributions in these high-earning years. What are your thoughts on this?

      Keith asks (at 06:58 minutes): I’m 34 and have some traditional funds in my TSP (Thrift Savings Plan). I’ll be able to make Roth conversions in a couple of years, and I’m curious if it’s advisable for someone my age to start converting.

      I currently earn a gross income of $60,000. I've heard varying opinions: some suggest starting early so that the Roth funds have longer to grow tax-free, while others recommend waiting until closer to retirement when income may be reduced.

      What do you think is the ideal time for a Roth conversion, and why? Is it a complex process that necessitates professional assistance, or can I manage it independently?

      Krish asks (at 59:48 minutes): I would like to learn about investment opportunities in the American, Indian, and Singaporean markets. What are the best applications or platforms for investing in these regions?

      Additionally, I’m interested in the future of cryptocurrency and how blockchain technology might affect global investing.

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