Too much cash?
A cash cushion, or emergency fund, serves as a foundational component to any well designed…
Congratulations! You’ll be starting full-time as a graduate student. You’ve seen the average salary numbers and know a nice, six figure income likely awaits you upon graduation. The only trouble is you’ve been working hard to save and now you’re concerned your finances are taking a step back as you have a temporary wage loss.
Is there anything you can do now or during school to improve your long-term financial situation?
Here is an idea to make the most of this unique window in your financial life:
You are likely about to enter the lowest income years of your foreseeable future. If you have been working and already made pre-tax contributions to a traditional 401k or IRA, this could be an incredibly powerful opportunity to convert those assets to Roth.
Try this helpful Roth conversion calculator to see if the opportunity may be a fit for you.
Interested in learning how to maximize every dollar you’ve made?
Talk to a financial planner or CPA to prepare tax estimates so that you can appropriately “fill your tax buckets” to make sure you are converting the optimal amounts and have the ability to pay the tax liability.
Disclaimer: Every situation should be analyzed on an individual basis. This is an attempt to showcase the concept and potential benefits.