Root Collective member Gary asks how to fund a $40K home remodel before retiring—should he use a taxable brokerage account, tax-deferred 401(k), Roth IRA, or cash?Ari and I break down how to handle big one-off expenses into a three-part framework:
- Portfolio Sustainability – Can your investments handle both recurring and one-time expenses?
- Investment Allocation – Ensure your assets are positioned to avoid selling at a loss.
- Tax Optimization – Withdraw strategically to minimize lifetime taxes.
The key? Plan ahead, align financial decisions with long-term goals, and make the most of your retirement funds.
Submit your request to join James:On the Ready For Retirement podcast: Apply Here)On a Retirement Makeover episode: Apply Here)
Timestamps:0:00 - Gary R's question2:52 - Can your retirement support it?4:43 - How should investments be allocated?6:28 - Have a tax strategy8:54 - A caution; a reminder about sleep12:03 - Intentionally set aside14:23 - Mental hang-ups and biases16:37 - The Collective Community
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