Ask Paula: My Income Is Dropping From $190,000 to $40,000; What Should I Do?

<p>#370: Kristen is 32, and she and her husband want to retire in less than 20 years. They make too much to contribute to a Roth IRA. Should they use back door Roth conversions to speed along their path to early retirement?</p> <p>Michelle makes $190,000 and is going to switch to a career that pays $40,000 on average. To prepare for this lower salary, she's selling her current home and buying a different one. Should she pay off her new home with the proceeds from the old one? Or should she invest her profits?</p> <p>Anonymous lives in a high cost-of-living area and is wondering where to keep her down payment and emergency funds. Should she use I-bonds, TIPS, or some combination of these two?</p> <p>In today's episode, former financial planner Joe Saul-Sehy and I tackle these tough situations.</p> <p>Enjoy!</p> <p>Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it at <a href= "https://affordanything.com/voicemail" target="_blank" rel= "noopener">https://affordanything.com/voicemail</a> and we’ll answer them in a future episode.</p>