Author: Paula Pant

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    #325: Bitcoin for Beginners

    ByPaula Pant
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    Okay, so everyone and their dog is talking about Bitcoin — but what exactly is it? And what’s Ethereum?

    There’s a famous adage that you should never invest in something that you don’t understand.

    Today’s episode is intended to help you understand WTF is going on. Here’s what we cover:

    • We explain the history and purpose of blockchain, which is the technology underlying cryptocurrencies such as Bitcoin
    • We introduce Bitcoin, which is a use case of blockchain and currently the most popular digital currency. We explain how Bitcoin is created, what “mining” means, what “halving” means, and why some people believe that Bitcoin will continue to  increase in value
    • We discuss Ethereum, which is about use case of blockchain, and is a software platform on which developers build decentralized apps
    • We discuss the environmental impact of Bitcoin, including a discussion about the difference between proof-of-work vs proof-of-stake protocols

    If you’re feeling lost in the topic and confused by the jargon, start with this episode in which we cover the basics about blockchain technology and cryptocurrencies.

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    #324: Ask Paula – I Make $50,000; How Can I Buy a House?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA324.mp3" title="Ask Paula - I Make $50,000; How Can I Buy a House?" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Nick is curious: how have my views on wholesalers changed over the years, and why?

    Rob and his fiancé are grappling with what to do about her $400,000 of federal student loan debt. Should they pay it off immediately, or bank on a 20-year dismissal?

    Daniel recently discovered the financial independence retire early (FIRE) movement and got a job earning $50,000 per year. He wants to househack a duplex to get closer to FIRE, but how the heck can he find anything in this seller’s market?

    “Nurse Dreaming of FI” isn’t sure what her family’s next financial move should be. She’s torn between investing extra money into index funds, or using it to buy a fix-and-flip. Her goal is to make work optional. Which path will lead her there?

    “Phoebe” and her husband have 457s with the City of Chicago. However, they found out that Illinois has a horrible credit rating. How can they – and should they – protect their funds? How much should they rely on their pensions?

    My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions today.

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    #322: Ask Paula – I Want to Retire at 50; How Do I Bridge the Gap?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA322.mp3" title="Ask Paula - I Want to Retire at 50; How Do I Bridge the Gap?" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Jess wants to reach financial independence by the time she’s 50. But she’s worried that she doesn’t have enough money in cash or taxable brokerage accounts to bridge the gap in her first few years of retirement. What moves should she make, if any?

    Yisell wants to invest money now. Should she cash out her $70,000 pension in hopes to generate more than the $1,000 per month she’s guaranteed from it?

    Abbey is 22 and she would like to go back to graduate school for nurse anesthesia. Should she save up and pay for it in cash, or invest her money and take out federal loans?

    Eliana enjoyed our interview with Paul Merriman on the two-fund portfolio. She’s curious about what growth stocks and value stocks are, and how they fit into a passive index fund investing strategy.

    Finally, Sneezy wants to know: why aren’t stocks a good hedge against inflation?

    My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s episode. Enjoy!

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    #320: Ask Paula – Thinking about Money from First Principles

    ByPaula Pant
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    Rob hopes to retire at age 60, but he has a pesky mortgage balance he wants to eliminate beforehand. He and his wife expect to inherit $300,000. Should they use this money to pay off their mortgage or should they bulk up their retirement accounts?

    “Billy” has two questions. One is about the tax efficiencies of ETFs vs. mutual funds, while the other is about Ginny Mae funds and whether there are bond funds that have an inverse relationship with equities.

    Priya is looking for information on home equity loans: where can you get the best terms, and what are the disadvantages? Additionally, she’d like to know which city is best for rental investing: Atlanta, Dallas, or Raleigh?

    My friend and former financial planner, Joe Saul-Sehy, joins me on the show to answer your questions. Let’s dive in!

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    #318: Ask Paula – How to Think About Finances at the 30,000-Foot Level

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA318.mp3" title="Ask Paula - How to Think About Finances at the 30,000-Foot Level" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Kim is newly divorced and celebrating the freedom to make her own financial decisions. She’s struggling to make a living — also as a new realtor — and wants to get started with real estate…but how can she do that on limited funds?

    Kim also wants to know: should she move her funds from an actively managed Fidelity IRA to a Vanguard Roth IRA?

    Chaz is 22 and has $2,100 – $2,500 left each month to put toward savings. Where should he keep this money if he’d like to move out-of-state in the near future?

    Joe is a new real estate agent and he’s looking for ways to save. Is opening a SEP IRA a good account when you’re no longer a W2 employee?

    Grace has a similar concern: she’s a tutor, but she’s paid as a contractor. Should she forget about her Vanguard brokerage account and open a SEP IRA or Solo 401k?

    Anonymous just got a raise, and while awesome, it might push her income to a level that prohibits her from making full Roth IRA contributions. Should she make a partial contribution this year, or start adding money to a Traditional IRA to do a backdoor conversion?

    My friend and former financial planner, Joe Saul-Sehy, joins me to tackle these questions. Let’s dive in!

  • #316: Ask Paula – I Doubled My Investments During the Pandemic. What Should I Do Next?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA316.mp3" title="Ask Paula: I Doubled My Investments During the Pandemic. What Should I Do Next?" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Michele wants to reach financial independence (FI), and her grandparents are leaving her their house. She already owns a home, and she’s torn between six potential options that will propel her toward FI. What should she do?

    Fred doesn’t have access to a workplace retirement plan. Besides opening a Roth IRA, what else can Fred do to juice up his retirement savings?

    Pauly from Portland doubled the inheritance money he received from $50,000 to $100,000 during the pandemic. Now he’s wondering if it’s okay to use this $100,000 as a downpayment on a home in Portland. Is that a wise use of the money?

    Preethi accidentally withdrew funds from her Roth IRA as an excess distribution, and she’s already filed her taxes. What should she know for tax time next year?

    Casey is in the market for a second rental property and wants to know: would we recommend purchasing a rental in a complex where she already owns a condo? Or should she diversify into a different complex in a different, nearby, more stable town?

    My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s show. Enjoy!

  • #314: Ask Paula – I’m Worried About My Parent’s Retirement. What Should I Do?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA314.mp3" title="Ask Paula: I’m Worried About My Parent’s Retirement. What Should I Do?" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Briale opened a Variable Annuity inside a 403b at work when she was 23. She has 17 years to go before retirement. As an elementary school teacher, her pension will be $6,000 per month. Should she stop contributing to the annuity and contribute to a Roth IRA instead?

    Debi has an extra $1,000 each month and isn’t sure where to save it. She also has $10,000 in a CD which will reach maturity in August 2021. Her goal is to buy a residence in the next five years. Should she save this all for a downpayment?

    Dominique is concerned about her parents retirement portfolio. Their advisor charges a fee of 1.5 percent assets under management. Her parents are frugal and they don’t realize how much they’re paying. Should she talk to them, or drop the issue?

    Sarah isn’t sure whether she should put more of her savings towards a Roth 401k or a 529 fund for her future kids. Which option is best if she wants financial flexibility?

    Hunter put a credit freeze on his two children’s credit, which required sending each credit union documentation via mail. Experian and TransUnion confirmed the credit freeze, but Equifax didn’t. Upon calling, the representative gave Hunter a different mailing address for the documents. What should he do?

    My friend and former financial planner Joe Saul-Sehy joins me once again to tackle these questions. Enjoy!

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    #312: Ask Paula – How Should I Invest $5,000 Per Month?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA312.mp3" title="Ask Paula - How Should I Invest $5,000 Per Month?" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    After paying basic living expenses and maxing out their 401k’s and Roth IRAs, Caroline and her partner have $4,000 – $5,000 left each month. Where should they put this money if their goal is to simply have their money work harder for them?

    Sanjay is torn between selling his townhome or renting it out. The rental numbers don’t work on his 15-year mortgage — should he refinance to a 30-year mortgage instead?

    “Olivia” has two unrelated questions: what are our thoughts on the housing market in relation to the moratoriums on mortgage payments and emergency bans on evictions? What will happen when they go away? Additionally, what tools, questions, or resources do we recommend to have a productive financial conversation with your partner?

    Kyle wants to construct a portfolio with the highest Sharpe ratios and wants to know: would the risk parity model work? What are the downsides?

    “Priyanka” wants to know: do you need to submit receipts for the HSA contributions you make?

    G is curious: does the stimulus check received for their children count as earned income for the kids? If so, can they put it toward the Roth IRAs they opened for their children?

    My friend and former financial planner, Joe Saul-Sehy, joins me as usual to tackle these questions. Enjoy!

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    #310: Ask Paula & Joe – What Should I Do With $25,000?

    ByPaula Pant
    [smart_track_player url="http://traffic.libsyn.com/forcedn/paulaandjaymoney/AA310.mp3" title="Ask Paula - What Should I Do With $25,000?" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Greta is tired of financial modesty. She wants to achieve financial independence through diversified income streams, and has her eyes set on owning local duplexes. What should she focus on to make this happen?

    Jeannie wants to know: should you scale back 401k contributions so you can invest in something else, like real estate?

    Steph and her husband came into $25,000 and aren’t sure what to do with it. Should they pay off their student loans, save it towards a house and starting a family, or purchase her company stock options?

    J from California is curious: how do you strike a balance between optimization and simplicity in your financial plan?

    Dawn has $65,000 in a 403b through Ameriprise and the fees associated with it are outrageous. Should she take the money out and put it elsewhere, or leave it?

    My friend and former financial planner, Joe Saul-Sehy, joins me to answer these five questions. Enjoy!

  • How Kelsey Bought a Rental Property in Joshua Tree, California

    ByPaula Pant

    Kelsey Kaszas loves numbers.

    But crunching numbers too much can be a crutch, rather than a tool.

    Before she enrolled in Your First Rental Property (YFRP), Kelsey found herself stuck in analysis paralysis. She wanted to invest in rental property, but she kept crunching theoretical numbers without taking action.

    “When people talk about how difficult it is to get over analysis paralysis, that is me, that is absolutely me, because I’m such a numbers person,” she said. “I love to analyze every single aspect of something new.”

    She’s not alone.

    Analysis is great. But analysis paralysis, when overthinking or overanalyzing leads to inaction, is one of the most common obstacles new investors face.

    When you’re putting significant savings on the line, analysis paralysis is a normal fear-based response.

    But it sidelines you. It shortens your time in the market and the compounding gains that follow.

    Kelsey recognized this and enrolled in the course to learn how to rigorously analyze properties without succumbing to analysis paralysis.

    She learned how to transform analysis into action.