Our first anonymous caller is getting married. What are the financial considerations the couple should be thinking through since there is a large income gap between them?
Our second anonymous caller is concerned about her ability to continue working due to major depression. Should she consider disability insurance?
Carly is an accidental landlord and would love to keep her rental property. The problem? It’s losing money right now and she’d probably take a loss if she sold it. What should she do?
Shelby has an amazing opportunity to relocate to Tokyo for work, but she’ll have to take a pay cut. How should she think about her investment options?
Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode.
P.S. Got a question? Leave it here.
Here are the details:
Anonymous Caller asks (at 03:04 minutes): My partner and I are getting married. We are wondering what we should be thinking about because there’s a sizable difference between our respective incomes.
My annual salary is $71,000 per year, and my fiancé makes $250,000.
Our only debt is federal student loans, which we expect to have forgiven under the public student loan forgiveness program in the next three years.
I’ve saved $83,000 in retirement accounts; I max out my Roth IRA and contribute 10 percent of my salary to a 403B. My fiancé is maxing out her 403B at $20,000 per year, and she thinks that I should max out my 403B contribution so that we’re able to retire at the same time.
We’re saving to buy our first home in the next year or two and would like to have two kids.
We won’t have a prenup, but we’re still deciding how to combine finances and plan a life together.
What sorts of models would you consider? What are the pros and cons of combining our income into a single account? Should we keep our individual accounts and set up a joint account for shared expenses?
We are also thinking about how we should file our taxes. Would you recommend filing jointly? Should there be additional considerations, because of the gap in our incomes?
Another Anonymous Caller asks (at 27:28 minutes): I’m 25, I make $70,000 a year, and I rent in North Florida.
I don’t have kids, a spouse, or dependents. I’m debt-free, and I own my car. I have a 5-month emergency fund and about $18,000 in investments spread across Roth IRAs, Roth 401ks, and brokerage accounts.
I have major depression that was undiagnosed and unmedicated until I graduated college. I couldn’t work for a year after college and the only way that I wasn’t in a box under a bridge was because I was able to live with my parents.
My dad doesn’t think I need disability insurance because I’m 25, but I have an uncomfortable relationship with my parents. Accepting money or support from them isn’t a backup plan that I desire. It’s not a good family relationship.
There’s a disability plan provided through my workplace that’s 100 percent employee paid. Should I consider this? What should I look for in a policy and what are the questions I should ask? I’m afraid.
Carly asks (at 41:52 minutes): I bought a condo in 2017 for around $195,000. Two years ago, we moved across the country for our military posting. We decided to rent the condo because we would’ve taken a big loss if we’d sold it.
However, we’re taking a cash flow loss of $500 to $600 per month by renting it.
I have $98,000 in student loans, $5,000 in an emergency fund, $3,000 in a tax deferred retirement account, $4,000 in a tax advantaged account, and $25,000 in a taxable brokerage.
The condo market in that city is not great.
Would you recommend selling it after the market improves? Or should I keep it as a rental?
Shelby asks (at 53:22 minutes): I have the opportunity to relocate to Tokyo for work. I’m excited for this incredible experience, but I’m struggling with the pay cut.
I’m 28 and debt-free. I have $200,000 in a taxable brokerage, $90,000 in my 401k and Roth IRA, and a $15,000 emergency fund. My current salary is $145,000, and my salary will be approximately $105,000. I’ll also have about $80,000 of Restricted Stock Units vesting each year over the next two years.
When I move, I’ll no longer be eligible to contribute to my 401k. However, I could contribute to a pension through the Japanese government.
I recently opened a traditional IRA for a backdoor Roth conversion. Should I continue to contribute this way despite the poor exchange rate, or would I be better off saving this money in yen until the exchange rate improves?
My next question: should I exchange my yen to US dollars and continue investing in my Vanguard taxable brokerage account, or should I look at foreign investment opportunities?
If so, do you have any resource recommendations?
Finally, my company provided a tax consultation with the provider who will support my tax returns while I’m abroad. Are there any questions that I should ask in our next discussion?
Couples Who Combine Finances Are Happier | Wall St. Journal
Thanks to our sponsors!
Go to policygenius.com for free quotes and comparisons across more than 30 insurers. With Policygenius, you can find life insurance policies that start at just $17 per month for $500,000 of coverage.
Mint Mobile has plans starting as low as $15 per month. All plans come with unlimited talk and text and high-speed data delivered on the largest 5G network. For a limited time, buy any 3-month plan and get 3 months free by going to mintmobile.com/paula.