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
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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!"
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"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.
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401k: A tax-advantaged retirement savings plan sponsored by an employer that allows employees to save and invest for retirement.
