{"id":202519,"date":"2025-04-24T10:48:34","date_gmt":"2025-04-24T10:48:34","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/601-qa-the-stock-market-sucks-is-private-equity-any-better\/"},"modified":"2025-04-24T10:48:34","modified_gmt":"2025-04-24T10:48:34","slug":"601-qa-the-stock-market-sucks-is-private-equity-any-better","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=202519","title":{"rendered":"#601: Q&A: The Stock Market Sucks. Is Private Equity Any Better?"},"content":{"rendered":"


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\"\"Nick and his wife have $100,000 to invest, but they\u2019re worried about the volatility of the current stock market. Should they look into alternative investments such as private equity?<\/p>\n

Even though Roth IRAs come with tax-free withdrawals in retirement, Josh is worried about his tax bracket going up and neutralizing the benefits. Is he right to be concerned?<\/p>\n

The retirement portion of Cindy\u2019s financial three-legged stool is set, and she\u2019s now focused on her taxable brokerage. What investment strategy will allow her to be work optional in 10 years?<\/p>\n

Former financial planner Joe Saul-Sehy and I tackle these questions in today\u2019s episode.<\/p>\n

Enjoy!<\/p>\n

P.S. Got a question? Leave it here<\/a>.<\/p>\n

_______<\/p>\n

Nick asks (at 01:31 minutes<\/strong>): \u200aMy wife and I are 36, both working full-time, with a combined income of $260,000. We want to invest half of our $200,000 emergency fund, but we worry about the current market volatility of equities. What other investment opportunities should we consider?<\/p>\n

We\u2019ve built up $550,000 in investments\u2014mostly in our 401(k)s, along with Roth IRAs and brokerage accounts. Our monthly expenses are $7,000 and our only debt is our home, with a 3.5 percent mortgage and 22 years left.<\/p>\n

We looked into real estate but feel it would require too much hands-on management alongside our jobs. An option we\u2019re considering is private equity, such as EquityZen. But do we even have enough capital to make private equity a viable option?<\/p>\n

What are the benefits, risks, and potential blind spots of this approach? And, are there other types of investments outside the stock market that we should look at?<\/p>\n

Cindy asks (at 23:27 minutes<\/strong>): \u200a\u200a My husband and I are in our mid-40s, debt-free, and have over $900,000 saved\u201490 percent of which is in retirement accounts. Our goal is to be work-optional in 10 years, so my focus now is building our taxable account.<\/p>\n

I\u2019ve seen differing opinions on whether it\u2019s better to invest in growth assets now and convert to income-yielding assets later when we\u2019re ready to retire, or if we should start with income-generating investments and reinvest the earnings.<\/p>\n

I know there are tax implications with both approaches. What are your thoughts on the best strategy to take?<\/p>\n

Josh asks (at 39:00 minutes<\/strong>): \u200a\u200a\u200a\u200a\u200a Should I be concerned about the additional tax burdens of pulling from a Roth account versus a traditional 401(k) in retirement?<\/p>\n

I know that 401(k) withdrawals are taxed, while Roth IRA withdrawals are not. But how does income from a Roth IRA affect tax brackets during retirement?<\/p>\n

Resources Mentioned:<\/strong><\/p>\n

Finding Hope and Happiness in a Confusing World<\/a> | Website<\/p>\n

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Thanks to our sponsors!<\/p>\n

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