In this episode of Mindful Money, we explore the choice between paying off low-interest debt and building taxable savings. While paying down high-interest debt is crucial, once that’s done, the focus should shift toward maximizing retirement savings and investing in taxable accounts. We'll discuss how the power of compounding can make investing more beneficial than paying off low-interest debt. We'll also touch on the flexibility that taxable accounts provide, especially in retirement, where they allow for tax-efficient withdrawals. Ultimately, financial planning is about building a life well-lived, not just accumulating wealth.

In this episode:
(00:00) - Intro
(02:27) - Reaching financial basecamp
(04:18) - Three steps on the way to the summit
(04:36) - Debt management vs. investment
(06:08) - Optimizing your financial decisions
(09:03) - The power of compounding
(10:33) - Investing vs. paying off debt
(12:09) - Taxable accounts and their benefits
(13:12) - Tax strategies for retirement

Get full show notes and links at https://mindful.money.

ABOUT MINDFUL MONEY:
Do you struggle with money? You’re not alone.

Money is a means, not an end. It’s a necessity of life for sure, but more money does not always guarantee a “good life”. Money enables many aspects of modern life, but as a dominant consideration, it becomes destructive.

The paradox is that more time and energy spent on personal finance does NOT create better outcomes. Unlike many other parts of life, we can’t create better outcomes by being smarter, spending more time, or putting in more effort.

Join Mindful Money author and experienced 40-year investor Jonathan DeYoe as he shares stories from artists, authors, entrepreneurs, and other advisors about how they mindfully minimize their need to think about money and get more out of life.

If you aren’t happy with your finances, feel like money takes more time than it should, or want to place your financial decisions into the broader context of your life, this show is for you.

Each episode will draw the line between the “enough” activities that the academics tell us are additive to family outcomes, and those “little bit more” efforts that take time and sap energy but do NOT improve outcomes.

MINDFUL MONEY RESOURCES:
Website: https://mindful.money
Jonathan DeYoe on LinkedIn: https://www.linkedin.com/in/jonathandeyoe
Mindful Money on X / Twitter: https://x.com/MindfulMoney_Ed
Mindful Money on Facebook: https://www.facebook.com/MindfulMoneyPlan
Mindful Money on Instagram: https://www.instagram.com/mindfulmoneyplan
Mindful Money on YouTube: https://www.youtube.com/@MindfulMoney

🎙️Podcast Production by Turncast: https://turncast.com.