This week, Andrew and I answer your money questions, starting with Andrew’s own real-time question: should he invest a lump sum all at once, dollar-cost average, or hold onto it in an attempt to time the market? We also answer other listener questions, including how to calculate your net worth, how to account for a pension in your retirement calculations, how to roll over a 401k from a previous job, thoughts on accessing retirement funds during a market downturn, tips for lowering bills, and tax and savings recommendations as you start to reach higher incomes.
Andrew joins this week’s podcast as we talk about:
– Why we don’t recommend trying to time the market
– The mental challenges of deciding whether to invest a lump sum at once or to dollar-cost average.
– What we include and exclude in our net worth calculation
– The difference between total wealth and liquid retirement assets
– How to incorporate pensions and other non-liquid income sources into the standard 25X math or the 4% rule
– Our approach to managing finances during a market downturn.
– The best way to handle an old 401(k) after a layoff and the implications of the prorata rule
– Actionable tips for lowering fixed costs like cable and internet
– Whether Andrew has six or seven bathrooms in his home and the reasons behind it
– Tax and savings strategies for those reaching the $200K income milestone for the first time
Show References:
- Inside Out Money episode #111 – How to handle a windfall – protect your future fortune
- Inside Out Money episode #022 – How much do you need to retire? Flaws in the 4% rule
- Inside Out Money episode #067 – Two investment metrics you should understand – CAPE ratio and SORR
- Inside Out Money episode #003 – How and why to invest in index funds
- Inside Out Money episode #071 – Listener Q&A – Boring middles, making FI friends, investment strategies, kids, and more
- Inside Out Money episode #088 – Listener Q&A with Greg – managing difficult financial convos, FI feels unattainable, raising kids to spend intentionally, stress levels post retirement, and more!
- Inside Out Money podcast #112 – Withdrawal strategies in early retirement – A flexible strategy and account playbook to fund your retirement
- Inside Out Money episode #115 – Mind over money: How Stoicism can transform your finances with Kathleen from Minimalish Mom
- Kathleen’s podcast: The Reframe podcast
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