Erik | Debt Free Living

Financial coaching is a passion aimed to motivate & teach. I provide guidance to achieve financial confidence & freedom like I have in my personal life!

[Erik | Debt Free Living @erikfinancehelp]

@DividendBreeder I had a 2.75% rate at one point and then we moved for a new job. Now it’s over 5 and a focus of mine to pay off.

[Erik | Debt Free Living @erikfinancehelp]

While on vacation, we were able to drive through the Black Hills of South Dakota and not lose signal. @Starlink is a game changer for road trips!

[Erik | Debt Free Living @erikfinancehelp]

@FranWalsh73 @RomanPuglise This is one of the reasons just looking at today’s taxes and trying to save now is short sighted. A 401k Roth and Roth IRA are extremely powerful accounts

[Erik | Debt Free Living @erikfinancehelp]

Day 158: Conduct an energy audit at home. Implement savings tips. Lower bills free up funds.

[Erik | Debt Free Living @erikfinancehelp]

@BriansBeacon No it definitely doesn’t. Was sad to leave it behind yesterday.

[Erik | Debt Free Living @erikfinancehelp]

Spent a week relaxing in the black hills. Booked this Airbnb 9 months ago and budgeted for the trip since then. It’s great to spend time with Family and relax.

I could retire to a place like this. What type of water source would you want to live by?

[Erik | Debt Free Living @erikfinancehelp]

Spending a week with family and having fun is what it’s all about. Getting to financial freedom takes time and enjoying moments on the journey is key. I didn’t realize this until a few years ago but consumer debt is an anchor holding you back. Taking a vacation when you have to consumer debt just sits different.

[Erik | Debt Free Living @erikfinancehelp]

Day 157: Feel the urge to pay off your home quicker? Hustle a side gig for mortgage attacks. Direct all earnings there. Effort pays down the balance quicker.

[Erik | Debt Free Living @erikfinancehelp]

@money_cruncher You do have to be careful to follow all the rules of the 72t plan or you’ll end up paying lots of penalties.

Regardless I’d still max the 401k Roth and at some point when you have what you believe is enough start a regular brokerage account to use as a bridge account.

[Erik | Debt Free Living @erikfinancehelp]

@lindsay__stamp I may take on bitcoin after I get settled with a decent amount in my non retirement account.

@grok gave a projection that bit coin could be worth a lot in 10 years. What do you think?

It’s definitely a long term play but could be a risk as with any investment.

[Erik | Debt Free Living @erikfinancehelp]

Day 156: Pay off debt smallest to largest balances. Get those phycological wins!

[Erik | Debt Free Living @erikfinancehelp]

@rodcoffman @ducksays @grok It’s definitely not black and white and advice is definitely needed. Just looking at tax rates isn’t the whole story either.

The next congress could change the rules and we’d all be starting over.

[Erik | Debt Free Living @erikfinancehelp]

Yup everyone’s situation is different. Just watch out for those RMD in the future and look at your projections.

It also depends on if you are going to go conservative in retirement and move funds around.

I plan to leave it all in growth stocks and have a 1-2 year emergency fund for down years if needed to alow the funds to continue to grow nicely

[Erik | Debt Free Living @erikfinancehelp]

@rodcoffman @ducksays @grok an inherited Roth IRA is tax free and doesn’t count towards income correct?

[Erik | Debt Free Living @erikfinancehelp]

This is why imho you go Roth from the start. This changes if you don’t start in your 20’s. But once a portfolio hit a million it starts to get harder and harder to convert to a Roth over time.

That compounding continues to add up. Also don’t forget RMD’s kick in and your heirs loose the biggest advantage of all 10 years of growth tax free in a Roth after you pass away.

[Erik | Debt Free Living @erikfinancehelp]

@grok @ducksays @grok assume I’m still working income of 250k married filing jointly. How long to convert if I try to be tax advantaged starting at 55. Assume I will have 0 income at 62.

[Erik | Debt Free Living @erikfinancehelp]

@ducksays Yes but for a 22 year old it is. And then if they get married in 4-6 years they’ll probably be around 160 or so. A few years later in the 200’s.

The point is get some taxes back now doesn’t really make sense long term if you start investing early imho.