Andy from Michigan loved the episode with charity:water founder Scott Harrison. After the episode, he and his 6-year-old daughter started watching videos about charity:water, and now they’re both inspired to give.
Andy’s question is on the topic of giving. His is to reach financial independence within 5 to 10 years. He and his wife are debt-free, including mortgage-free, and their retirement accounts are well-fueled. Now they’re working on building passive income. In the meantime, though, they’d like to add a bigger charitable slice to their budget. He’s not an overly religious guy, but he feels a calling to make more charitable donations than he does. What advice could we offer about how to boost his giving?
JR’s wife, before they got married, purchased two timeshares at a 17.9 percent interest rate. When the couple met, and she confessed, they immediately paid off the debt. They’re now paying $160 per month in timeshare fees. JR is trying to figure out how to get rid of their timeshare, but he can’t find any good options. How can he get rid of this?
Angela’s husband is turning 50, and she is 43. They’re on-track to have $1 million in investments within 7 years. They have two rental properties plus a primary residence, all of which will be paid off in around 7 years, as well. They’re active and healthy, but they know this can change quickly. What type of long-term care insurance do they need?
Joelle works in the public sector. She has a 457(b) retirement account. How does this differ from a 401(k)? She plans to career-change in the next few years, and she’s considering whether to keep her funds inside of her 457(b) or rollover her funds into an IRA. What are the pro’s and con’s of both?
Ines from Portugal wants to start a podcast about financial independence, early retirement and real estate investing, specifically for people who live in Europe. The issues that affect people in Europe are different than those that impact people in the U.S., and she sees a need within the marketplace. What advice would I offer to anyone who wants to start a podcast in this niche?
**Update: 6/5/2018:
We received this email from a listener, Terran, after airing the show, and we’d like to publish it to provide more insight into 457 plans:
Resources Mentioned:
Andy’s Question:
Angela’s Question:
- Episode 84 – in which we answered a previous question about long-term care insurance
- Forbes article on the cost of long-term care
- LongTermCare.gov – National average costs
- AARP calculator on the cost of long-term care
- Genworth Cost of Care Survey
Joelle’s Question:
Ines’s Question:
- USB Microphone for recording a podcast
- AffordAnything.com/startablog
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Terran
I emailed Paula about this, and her assistant Erin suggested I also leave a comment here so other people can benefit.
I have a small, but important correction to a point Joe made about 457(b) plans. While he’s correct that non-governmental 457(b) plans are subject to the creditors of the institution that sets them up, governmental 457(b) plans must be held in a trust that is not subject to the creditors of the plan sponsor.
Since the caller said she works for a city, this would mean she has a governmental plan. Another key difference between governmental and non-governmental 457(b) plans is that assets in a governmental plan can be rolled over, while those in a non-governmental plan cannot. Since the caller said her plan would allow her to rollover to an IRA when she leaves her job, this would also indicate that she has a governmental 457(b) plan.
Here’s some more information on the differences (and similarities) between non-governmental and governmental 457(b) plans if you’re interested: https://www.ntsa-net.org/Industry-Intel/MarketBeat/The-Different-Flavors-of-457-b-Tax-Exempt-and-Governmental-Employers
It’s an easy mistake to make as the plans act very differently despite being called the same thing, but the distinction between governmental and non-governmental 457(b) is an important one. A governmental 457(b) is one of the best accounts for an aspiring early retiree as it offers all the benefits of a 401(k) or 403(b) with the added benefit of no early withdrawal penalty (and is often offered in addition, not instead of, a 403(b)). A non-governmental 457(b) is something best approached with caution, with the full knowledge that it could be taken by the institutions creditors, and that it generally has more restrictive withdrawal requirements and no rollovers.
Erin @ Team Afford Anything
Thanks, Terran! We’ve also added your comment to the show notes, in case someone misses the comment here. =)
Chris
Hi Paula. I love your podcast. Your audio quality this week was very poor, however. Have you had a chance to listen after exporting it? It sounds like something is muffling your mic. Joe’s audio sounds fine, as do the calls. It was just your audio.
Your audio in the ads sounded great as usual. I checked the episode notes, but I didn’t see anything acknowledging it. It was hard to listen to since I had to crank the volume up for you and then back down when Joe was talking.
I hope that doesn’t come across as overly critical. The content was great as usual, and the audio only sounds bad due to how great it normally sounds. Thanks again!
Erin @ Team Afford Anything
Hi Chris – thanks for the feedback! Paula’s aware of the audio quality; unfortunately, her laptop’s mic got picked up instead of her usual mic. We decided to roll ahead despite the technical difficulties since the content was valuable regardless. Glad you thought that as well. =) We definitely don’t intend on this being the norm!