Money Guy Show Should I Stop Investing to Save for a House?
Jun 24, 2024
This podcast discusses the dilemma of balancing retirement contributions and saving for a house, analyzing the option of financing a Tesla Model Y, benefits of paying cash for reliable transportation, and navigating vesting periods and employer match in retirement plans.
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Budget Base Salary First Then True Up With Bonuses
- Do budget using guaranteed income to cover core expenses and savings, then allocate bonuses to true-up goals.
- Design lifestyle so base salary covers essentials and use annual bonus to boost savings and discretionary spending.
Estimate Taxes Before Spending Big Bonuses
- Do plan for taxes on irregular compensation before spending your bonus.
- Big bonuses, RSU vesting, or irregular pay often have underwithheld taxes, so estimate tax liability first to avoid surprises from your accountant.
Minimize Retirement Pauses To Preserve Compound Growth
- Do minimize the time you pause retirement contributions to save for a house.
- Use creative budgeting and target a 3–5% down payment so you return to full retirement saving faster and keep compound growth working for you.