D is worried that she’s going to suffer from her parents’ poor financial choices. Is it time to confront them about it?
In a world of rising inflation, Nick wants to know if it’s time to change the way he saves for his future.
An anonymous caller and her fiance both own a house. Which one do they move into after the wedding?
Another anonymous caller wants to buy a second home within a decade. How does she start planning now?
Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it here.
_______
Here are the details:
D asks (at 01:09 minutes): I’m a 35-year-old working mom. My father and mother-in-law are in their mid-60s and have a lot of credit card debt.
Is this something that my partner and I will be saddled with when they pass?
What are the conversations we should be having with parents and next of kin when their affairs can deeply affect our lives?
Nick asks (at 10:49 minutes): How do I save for a rental property in an inflationary environment?
The current inflation rate feels like a game-changer. In the past, I kept my short-term savings goals in cash.
Home prices in my market will appreciate 5 percent over the next year. The best I can achieve in a high-yield savings account is 3 percent.
If inflation remains at 8 percent, what are my best options to hedge inflation while I save for my next rental property?
Anonymous asks (at 24:13 minutes): My fiance and I both own our houses and we’re not sure which one to live in after we’re married.
I bought my house in 2021 for $172,000 at a 1.375 percent interest rate. The mortgage payment is $755. The remaining principal is $163,000, and it’s worth $244,000.
My fiance bought his house in 2020 for $168,000 at a 3.8 percent interest rate. The mortgage payment is $1,000, the remaining principal is $150,000, and it’s worth $280,000.
We’d like to start trying for kids shortly after our wedding next year. My house has two bedrooms while his house has three, and we both work from home.
We’d love to keep both, but my loan prevents me from renting my house out until I sell or pay off the mortgage.
How do we choose which house to keep?
Anonymous 2 asks (at 46:01 minutes): My husband and I bought our first home in 2021. We’re happy with it but we’d like to prepare for an upgrade in 7 to 10 years.
We’d like to keep our current house as a rental and we have questions:
- What would our financial situation need to look like when we buy the next house?
- Do we need to save a separate 20 percent down payment in cash for the next home, or is there a way to leverage our first house without being underwater in mortgage debt?
- How much should we be making to float two mortgages?
- How much additional cash should we have to safely cover both mortgages in the event that we can’t find a renter?
We’re in our mid to late 30s with a toddler and a baby on the way.
Our townhouse in the DC area is worth $500,000 with a 2.5 percent interest rate.
Resources mentioned:
- #249: How to Talk to Your Parents About Retirement and Beyond – with Cameron Huddleston – Afford Anything | Podcast
- Comparison of TIPS and Series I Savings Bonds | Website
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