Afford Anything

  • Start Here
    • About
    • Team Afford Anything
    • Media
    • Questions?
  • Blog
    • Binge
  • Podcast
    • Binge
    • Sponsors
    • Ask a Question
    • Guest Guidelines
  • Community
  • TV
  • Explore
    • Your First Rental Property
    • Travel
    • Start a Blog
    • Earn Extra Income

December 18, 2017By Paula Pant

#108: Ask Paula – I Don’t Know How to Invest

Ask Paula and Joe - Afford Anything Podcast #108 - I don't know how to investFormer financial advisor Joe Saul-Sehy joins me to answer audience questions about investing strategies, early retirement, and tax planning.

Whitnee asks:

I’m 31, and my husband and I save half of our combined income. We’ve maxed out our H.S.A. accounts and we’re getting an employer match in our 401k. We have $80,000 stashed as cash in a checking or low-yield savings account.

We’re paying nearly $2,000 per month for insurance policies, most of which is a whole life insurance policy. We have a rental property that cash flows $210 per month; we pocket $150 and use the other $60 as an extra principal payment.

What should we do differently? How can we learn about investing? What funds should we focus on? Should we sell our rental property and invest the proceeds, or hold onto this? If we hold, should we focus on repaying the mortgage as quickly as possible?

Kim asks:

My question is about the 4 percent withdrawal rule in early retirement. When you’re calculating your savings goal, do you need to account for the tax implications of this withdrawal? Any tips on how to optimize this?

Susan asks:

I loved your explanation about how to use a Roth Conversion Ladder to avoid paying stiff early-withdrawal penalties in retirement.

Here’s my follow-up question: How long should my money sit inside of a Traditional IRA before I convert it to a Roth IRA?

We tackle these three questions on today’s episode. Enjoy!


Resources Mentioned:

Whitnee’s question:

Books:

  • Investing Made Simple by Mike Piper
  • Can I Retire? by Mike Piper
  • The Simple Path to Wealth by JL Collins
  • The Little Book of Common Sense Investing by John Bogle
  • The Wealthy Barber by David Chilton
  • The Truth About Money by Ric Edelman

Websites:

  • Oblivious Investor by Mike Piper
  • FINRA Broker Check
  • Afford Anything article: I Don’t Know How to Start Investing and I’m Afraid of Expensive Mistakes

Kim’s question:

Two articles critiquing the 4 percent withdrawal rule:

  • “Can I Really Retire at 40?” What to Tell Clients
  • The 4% Retirement Rule is Broken

Susan’s question:

  • Episode 94 – The Early Retirement Episode


listen to afford anything on itunessubscribe on android afford anything

 


Thanks to our sponsors!

Credit Sesame

Maintaining healthy credit is important if you want to buy houses (residential or investment properties). So if you want to check your credit score for free, plus get personalized tips about managing your finances, check out Credit Sesame.

This website is absolutely free — and as a bonus, with your membership, you also get free identity theft insurance worth up to $50,000. Check ’em out!


Freshbooks

Save time by using Freshbooks, an easy-to-use, cloud-based accounting system that takes the stress and hassle out of bookkeeping and, especially, invoicing. You can create an invoice in a few seconds, and Freshbooks’ automated system will handle the rest. They’ll help you get paid faster, with less hassle.

Wanna try them for free?

Visit Freshbooks.com/paula for a free 30-day trial. Please mention this show when they ask how you heard about them.


Storyworth

StoryWorth makes it easy and fun for your loved ones to share their stories with weekly emailed story prompts. All they have to do is reply to the questions (via email or phone), and at the end of the year, they’ll get their stories bound in a beautiful hardcover book.

It’s an awesome way to get to know your family history and preserve stories for generations to come, which is why I’m excited to get a subscription for my parents.

For $20 off, visit storyworth.com/paula.

#109: How to Create a Complaint-Free World -- with Will Bowen
Next Newer Episode »
#107: How Scott Harrison Brought Clean Water to 7.3 Million People
Next Older Episode »

Posted in: EpisodesTagged in: 4 percent rule, ask paula, investing in the market, joe saul-sehy, mortgage payoff, roth conversion ladder, sell or rent out, tax strategies, whole life insurance

Most Popular

Inflation, Illustrated
How Much is Enough?
What if We Quit Setting Goals? (Seriously?)
The Incredible Power of 10x Thinking
  • Binge
  • Questions?
  • Contact
Join 70,000+ subscribers who get free email updates.

© 2021 Afford Anything. Designed By Wilnau Design. Built by Zach Swinehart. Disclosure

© Copyright 2011 – 2025 Afford Anything. All Rights Reserved.

Website by Zach Swinehart.

  • Start Here
    • About
    • Team Afford Anything
    • Media
    • Questions?
  • Blog
    • Binge
  • Podcast
    • Binge
    • Sponsors
    • Ask a Question
    • Guest Guidelines
  • Community
  • TV
  • Explore
    • Your First Rental Property
    • Travel
    • Start a Blog
    • Earn Extra Income

Afford Anything

  • Start Here
    • About
    • Team Afford Anything
    • Media
    • Questions?
  • Blog
    • Binge
  • Podcast
    • Binge
    • Sponsors
    • Ask a Question
    • Guest Guidelines
  • Community
  • TV
  • Explore
    • Your First Rental Property
    • Travel
    • Start a Blog
    • Earn Extra Income