Bogleheads On Investing Podcast Episode 058: Mike Piper on ”More than Enough,” host Jon Luskin
8 snips
May 29, 2023 AI Snips
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Episode notes
Five Buckets Frame What To Do With Extra Money
- Financial decisions always map to five buckets: spending, gifts to people, charity, bequests to people, and bequests to charity.
- Mike explains focusing on spending (bucket one) is common, but nuts-and-bolts choices matter even more as wealth grows because impact shifts to others.
Start Giving With An Amount That Feels Comfortable
- Start charitable giving small and increase as you experience the positive feelings and impact of giving.
- Mike recommends beginning with an amount that feels comfortable and notes earlier, smaller gifts (e.g., to college-age relatives) often have big effects.
Keep Funding Retirement Accounts Especially Roths
- Continue contributing to Roth accounts if you have earned income because tax-free growth is low-risk and flexible.
- Compare current versus expected future tax rates to decide between Roth and tax-deferred contributions.