Q&A: $10M Inheritance, Living In A Trailer, & 403(b) vs 457(b)

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Rich Habits Podcast 45 min 2 speakers 8 chapters transcribed 13 days ago
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What is the purpose of the Rich Habits Q&A episode and how can listeners submit questions?

Austin Hankwitz 0:00
Hey everyone and welcome back to the Rich Habits Podcast question and answer edition. These are our Thursday episodes where every Thursday we sit down and we answer your questions as if we were going through whatever you're going through. You can ask us questions on Instagram at Rich Habits Podcast, or you can email us your questions at rich habitspodcast at gmail.com. We've got a ton of emailed questions today, but we also answer those Instagram questions all the time. So don't feel like we're favoring one medium over the other. We love your questions, however, you get them to us, including inside of the Rich Habits Network.
Robert Croak 0:36
And be patient, everyone, because we do get hundreds of messages a month. And we just go through 'em and try to pick the ones that move the needle the most, not just for the person asking it, but for everyone watching these episodes. So just be patient with us. I promise we're going through them and we hope to answer your question very soon.
Austin Hankwitz 0:56
Now, our first question comes from Riley B. Riley says, Hey Austin and Robert, I have a couple questions and I'm looking toward y'all for some advice. I just turned 19 years old and I plan on redoing a trailer that was just given to me. It'll cost about $5,000 to completely renovate it. I also want to get married in May of 2027, and that should cost $3,000. But my fiance's family said they'll help out with some of the money. I'm also About to start Fire Academy in September, which is 10 weeks long with no income. I make between $2,400 and $3,200 a month at the moment. I have $7,600 in a savings account and plan on putting at least half of that into a high-yield savings account on public. And I just start investing into stocks this month because of you all.
Austin Hankwitz 1:42
I'm buying VOO. I have $700 invested and I plan to put In $400 a month toward the S P 500. I'm also still figuring out my Roth IRA, putting in about $400 a month over there. Funny enough, I also have $5,000 in a CD that matures in March of 2027. After I get the CD, I plan on putting all of that into my stocks. So my question is: what direction should I take with my money, knowing that I want to run a This RV so I can live in it while also getting married in May of 2027. Really cool question. Congrats on being 19 years old, Riley, and caring about money to begin with. You are certainly in a just league of your own because you are so young thinking about money. A couple pieces of advice I'd give you. I would pause on the contributions toward your public taxable brokerage account and in
Austin Hankwitz 2:36
Instead, redirect that money all toward maxing out your Roth individual retirement account. The reason why is the Roth IRA is tax-free growth, where your taxable brokerage account on public is not. So right now I'm seeing $400 a month toward the Roth IRA. Let's get that to $625 a month in the Roth IRA, which will annually max out that Roth IRA at $775. $2,500 a year. And at 19 years old, maxing out your Roth IRA. I mean, dude, you're gonna have like three or four million dollars of tax-free money in this account if you consistently contribute and invest into this every single year for the next call it 40 years. I mean, oh my goodness. The other thing I'd consider doing is figuring out what to do with this, you know, 10 weeks of no income.
Austin Hankwitz 3:26
Weeks is about two and a half months. You're making between let's call it $2,400 and $3,200 a month. You're saying that I'm assuming you can live off of that $24 to $3,200 a month. You have $5,000 in the CD. You have $7,600 in the savings, right? You've got you've got some money floating around here. Let's call it $10,000, $12,000 that you can tap into to sustain your life and sustain your, you know, your lifestyle while you You go with no income. I love the idea of working at the fire academy. I have a close friend that's a firefighter. You know, he's making $70,000, $80,000, $90,000 a year doing that. If I were you, I'd figure out: okay, can this $7,600 that I have in my savings account be enough to sustain me for 10 weeks with no income?
Austin Hankwitz 4:10
Knowing that on the other side of that 10 weeks, I'm gonna now be making $4,000, $5,000, $6,000.

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