Money Girl

1032. Do you have extra side hustle income that’s pushing you into a higher tax bracket? In this episode, Laura answers a listener’s question about whether new self-employment earnings mean it's time to switch from a Roth to a traditional 401(k) or IRA. You’ll learn how to use retirement contributions to lower your taxable income today, the fundamental tax differences between these accounts, and how to choose the best strategy for your small business income.

Key takeaways

Traditional retirement accounts allow tax-deductible contributions, but withdrawals in retirement are fully taxed.
Roth retirement accounts don’t have an upfront tax benefit, but allow your investment growth and future retirement withdrawals to be entirely tax-free.
Choosing between a traditional and Roth account depends on guessing about your future tax rate, but could also be a preference for having taxable or tax-free income in retirement.
If you believe your tax rate is lower today than it will be in retirement, choose a Roth. If your income increases so that your current tax rate is higher today than you expect in the future, choose a traditional retirement account.
Using a hybrid approach and splitting retirement investments between traditional and Roth in the same year can be wise.
When you have self-employment income, you qualify for small business plans, such as a solo 401(k) or a SEP-IRA.

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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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1031. Are you curious about hiring a wedding or event planner? Amanda Savory from Amanda Savory Events (ASE), a premier agency in New York City, joins Laura to discuss tips for working with a planner, ways to cut costs, and how to have an unforgettable wedding day.

Find Amanda Savory on Instagram @amandasavoryevents.

Key Takeaways
A wedding planner should help you clarify your top priority, such as food, music, or location, and create a realistic budget to achieve it.
Taxes and gratuities are a couple of expenses that are easy to forget, but that an event planner should automatically incorporate into a budget.
A destination wedding could save money, but the number of attendees is likely the primary factor that affects the cost.
Modern weddings can mean splitting the cost between the couple and their families in any way that makes them comfortable.
Working with a wedding planner is an investment; however, their experience can save time, prevent mistakes, and help you spend your budget efficiently.
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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
Hosted on Acast. See acast.com/privacy for more information.

1030. If you have federal student loans or plan to use them to finance higher education, you must understand significant upcoming changes to the program. Find out the benefits and downsides of new legislation and how it could affect your finances if you’re a current or future student loan borrower.

Key takeaways
Due to the One Big Beautiful Bill, massive changes to federal student loans will roll out on July 1, 2026, including annual and lifetime borrowing limits
The SAVE repayment plan is shutting down, and those currently enrolled must choose a new repayment plan within 90 days of notification from their lender.
Borrowers who miss the SAVE deadline will be automatically enrolled in standard repayment, which could spike their monthly payments.
Federal student loan repayment plans will be cancelled or phased out and replaced by the new Repayment Assistance Plan (RAP), which launches on July 1, 2026.
RAP sets payments at 1% to 10% of your adjusted gross income, waives any unpaid monthly interest, matches up to $50 per month toward your principal balance, and extends loan forgiveness to 30 years.
If you want to shorten your loan forgiveness, enrolling in a legacy repayment plan may be a better option to discuss with your loan servicer.

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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
Hosted on Acast. See acast.com/privacy for more information.

1029. Does the cost of a summer vacation mean you have to stay home this year? Rising prices for travel, gas, food, and lodging can make a family getaway feel out of reach. But with the right strategies, you can enjoy a memorable summer trip without overspending or going into debt.
In this episode, Laura shares practical ways to stretch your travel budget, from choosing affordable destinations closer to home to saving money on fuel, food, accommodations, and entertainment. Whether you're planning a road trip, a weekend getaway, or a staycation, you'll learn how to create meaningful family experiences while keeping costs under control.

Key Takeaways
Consider destinations closer to home to reduce transportation costs and maximize family time.
Save money on road trips with smart planning for fuel, meals, and routes.
Cut lodging expenses by traveling during shoulder season and choosing accommodations with kitchen access.
Find free or discounted activities that deliver fun without straining your budget.
Build an affordable vacation around destinations that offer both low-cost attractions and reasonably priced accommodations.

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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
Hosted on Acast. See acast.com/privacy for more information.

Do you know the difference between good and bad debt? Laura explains why it's a critical concept for saving money, building wealth, and creating more financial security. Plus, she covers a simple 7-step plan for paying off debt fast.

Encore Episode: This episode originally aired on Wednesday, March 6, 2024.

Money Girl is hosted by Laura Adams and is part of the Quick and Dirty Tips Network.

Hosted on Acast. See acast.com/privacy for more information.