Business owners face a ticking deadline that could cost them $500 per day—yet many have never heard of it. The Beneficial Ownership Information form, due December 31st, is just one of the under-the-radar compliance issues that can derail even the most careful financial plans. In this mailbag episode, Brad Barrett and certified financial planner Rachael Camp tackle this and a stack of listener questions on retirement accounts, asset allocation, backdoor Roth IRAs, and real estate investing—covering what to do when your employer doesn't offer a 401k and how to protect yourself from sequence of returns risk in early retirement.
Chapters
- Introduction
- Public Service Announcement
- Mailbag Questions
- Asset Allocation Discussion
- Real Estate Investing
- Conclusion
Key Topics
How to Invest Without a 401k: Options include traditional IRAs and Health Savings Accounts (HSAs), while noting contribution limits. ,
Company Matches in Retirement Accounts: Highlighted as a crucial opportunity to maximize savings
Backdoor Roth IRA: A legal way for high earners to sidestep income limits for Roth IRA contributions
Asset Allocation: Discussion on the complexities of asset allocation, particularly as one approaches retirement, and the impact of sequence of returns risk
Real Estate Investing: Key considerations and the risks associated with real estate investments
Key Quotes
"Avoid reverse dollar cost averaging by holding onto equities during market downturns."
"Company matches in retirement accounts offer unmatched returns—don't miss out!"
"Explore diverse account types for effective financial management."
Action Items
- Look up the beneficial ownership information form if you own a legal entity
- Review and potentially set up a traditional IRA if your employer doesn't offer a 401k
- Maximize your retirement account contributions to include any employer matches
- Consider maintaining a cash buffer for the first few years of retirement to mitigate risks
- Consider your asset allocation strategy as you approach retirement
Resources
Related Episodes
- Episode 513: Make Your Own Dividend
- Episode 176: The 3.5% or 4% Rule
- Episode 475: Accessing Retirement Accounts Early
Terminology
Backdoor Roth IRA: A method for high-income earners to fund a Roth IRA by first contributing to a traditional IRA and then converting it.
Sequence of Returns Risk: The risk of receiving lower or negative investment returns early in retirement, which can adversely affect the portfolio's longevity.
401k: A tax-advantaged retirement savings plan sponsored by an employer that allows employees to save and invest for retirement.
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