Roth IRA or 401(k): Which One Is Right For You?
I hear it all the time, “Should I invest in a Roth IRA or a 401(k)?” To help you answer that question, first we need to know what they are and what some of their benefits are. From there, I will make several suggestions to help you think about your own situation. Ultimately, the answer will largely depend on your current tax bracket, your future retirement tax bracket, and when you plan on retiring. One thing I will say is that no matter how high your income is, it’s possible for you and your spouse to each use both!
Why I Decided to Buy Instead of Rent
Many of us grew up dreaming of owning our own house some day for a variety of reasons. Maybe somewhere along the way, a seed was planted in your mind that buying a house is part of the American Dream. Or maybe your parents owned their own house, and you simply assumed it must be the best path for you, too. Well, maybe. Maybe not. To help you make the right decision (and it’s a big one), let’s put those societal factors aside for a moment and focus on the financial aspect of buying versus renting.
Why I Decided to Invest in Out-of-State Real Estate
I live in San Jose, right in the heart of Silicon Valley, where median home prices exceed $1 million. Yes, $1 million. As a real estate investor, my primary focus is on cash flow. So if I were to buy a property in my local real estate market for a $1M price tag, I’d need to receive a hefty rent check from my tenant if I want to be at all profitable! Let’s dive into this conversation in more detail by using some rough numbers.