Afford Anything

Author: Paula Pant

By Paula Pant

#270: Ask Paula – Buy a Home, Buy Investments, or Pay Off Debt? How Do I Decide?

Briana and her husband want to buy a home, but they don’t have enough saved for a downpayment. They also have student loan debt and a car loan. Which should they prioritize?

Javier is sick of being in debt. What can he do to put himself in a better situation?

Tracie wants to buy her first rental property, but she has student loans and a car loan to pay off. If she receives $20,000 from a cash-out refi, how should she use this money?

Vanitha wants to start a non-profit organization in memory of her uncle. She wants to know: what does this process look like?

Margie went under contract on a primary residence listed as a six-bedroom property. She found out that, legally, it’s a four-bedroom home. Should she re-negotiate the price, or ask for credits at closing?

I answer these questions in today’s episode. Enjoy!

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By Paula Pant

#267: This Year’s Financial Reckoning, with Farnoosh Torabi

This week, one of the most acclaimed names in the world of personal finance journalism joins us to reflect on the events of 2020.

Farnoosh Torabi started covering personal finance in 2003 as a reporter for Money Magazine. She later became a correspondent for Jim Cramer’s The Street and the host of CNBC’s primetime show Follow the Leader. She’s the host of the award-winning So Money podcast and the author of several bestselling personal finance books, including When She Makes More: 10 Rules for Breadwinning Women.

She’s a contributing editor to NextAdvisor, a personal finance platform in partnership with TIME, as well as a financial columnist to O, The Oprah Magazine and a contributing editor for Bloomberg Business.

She joins us to discuss how the events of 2020 have led to a great financial reckoning.

You’ll enjoy this if:

  • You want to hear candid discussion about race, privilege, and the wealth chasm
  • You’re curious to hear about how the personal finance landscape has changed in the last two decades
  • You’re wondering if, in fact, “this time it’s different”

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By Paula Pant

#266: Ask Paula – Your Real Estate Questions, Answered

Ali is a travel nurse and wants to get into real estate investing. Should she buy a duplex that needs fixing up or a cheaper apartment that’s rent-ready?

Max is torn between investing in a rental property or taking advantage of a mega backdoor Roth 401k through his company. Which is the better option?

Paul’s parents own a property worth $100,000, and they owe $80,000 on the mortgage. If he wants to buy this property from them, how should he do it?

Kate and her husband own a townhome that has appreciated substantially, but they need a bigger house. They’re wondering: is it wise to keep it, rent it out, and use a cash-out refinance as a downpayment on their next property?

I answer these questions on today’s episode. Enjoy!

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By Paula Pant

PSA Thursday – The Sordid History of the PPP — and 4 Extra Relief Opportunities for Small Biz Owners

Welcome back to PSA Thursday, a mostly-weekly segment in which we talk about how to handle money, work, and life in the middle of a pandemic.

This week, we’re covering the Paycheck Protection Program, or PPP, a popular program that awarded forgivable loans to small businesses and freelancers, has officially ended. The program closed on Tuesday, June 30, with an astounding $130 billion remaining in unclaimed funds.

In today’s PSA Thursday episode, we cover the sordid history of the PPP — including it’s ill-fated first round of funding, in which $349 billion ran dry in just 13 days — and share tips for entrepreneurs and small business owners who are still looking for economic relief.

Spoiler alert: the four options for economic aid for small businesses that we cover include the Economic Injury Disaster Loan program, or EIDL, which offers advance loans of up to $10,000 that don’t need to be repaid; the Employee Retention Tax Credit; the Small Business Association 7(a) loan, and the Federal Reserve’s Main Street Lending Program, which opened two weeks ago.

Enjoy!

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By Paula Pant

#262: Ask Paula – I’m Taking a Mini-Retirement in a Pandemic. What Should I Do?

Tyson is taking a year off of work and plans to devote some of his time to domestic travel, volunteer work, and bolstering his rental property portfolio. He originally planned to travel internationally, but won’t due to the pandemic. How does this plan sound?

Jace is wondering whether she should take advantage of the low stock market prices or keep a larger emergency fund due to the pandemic. Which is the better option, given her goal of financial independence?

Jace also wants to know: where do you park your money after maxing out a 401k and Roth IRA?

Venkat had to relocate after living in a condo for one year. He rents out the condo, but he’s in the red. Should he sell this condo? If so, when? 

TW has $250,000 in cash that he can use to either pay off his rental property or purchase two more properties. Which is the better option? 

I answer these questions in today’s episode. Enjoy!

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By Paula Pant

#261: Why I Quit My Job in the Middle of a Recession — Interview from Lessons from a Quitter

We’re in an economic collapse.

We have the highest unemployment since the Great Depression.

There are many more people who want jobs than there are jobs available.

Yet, you want to quit your job.

Maybe you planned to change careers this year, maybe you wanted to take a sabbatical, or maybe you wanted to retire early.

Regardless of your plans, you might feel as though this recession ripped them to shreds and blew them out the window.

But…what if you could still make your plans work?

What?! Quitting your job at the beginning of a recession is INSANE, isn’t it?

Maybe. Maybe not.

You’re kidding. Right? …Right?? Isn’t that equivalent to career suicide?

Nope. It worked for me.

Since we’re in the middle of another recession and many of you want to voluntarily leave your job at some point in the future, I’m re-airing an interview I did on Lessons From a Quitter two years ago. The host, Goli, interviewed me about quitting my job at the beginning of a recession.

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By Paula Pant

#260: Ask Paula – Should I Fire My Financial Advisor During a Pandemic?

Katelyn wants to fire her financial advisor and move her investments from mutual funds into Vanguard index funds. Should she do this during the pandemic? Or should she wait?

Marisa asks: can you invest in a Roth IRA if your income is inconsistent and might exceed the cap?

Anonymous “Flo” had a Simple IRA at her old job that she can no longer contribute to. She also can’t contribute to a 401k until she’s been at her new job for a year. Where should she put her money in the meantime?

Mary received an $80,000 grant of RSUs from her employer when she started. These RSUs began to vest after one year, and the price per share has increased 44 percent. What should she do with the shares?

Anonymous “Olivia” is interested in a Roth conversion ladder, but wants to know: does the pro-rata rule apply here as it does with a backdoor Roth conversion?

My friend and former financial planner Joe Saul-Sehy and I tackle these questions in today’s episode. Enjoy!

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By Paula Pant

PSA Thursday – Actions Speak Louder Than Words

This has been an exceptionally painful week. 

We have muted the podcast thusfar this week, in support of the #amplifymelanatedvoices movement, the #amplifyblackvoices movement, and in support of the #theshowmustbepaused movement. 

We have assembled a list of resources that highlight a variety of books, websites, podcasts, nonprofit organizations and GoFundMe campaigns that I would like to direct your attention to in lieu of our normal programming. These resources can be found below.

This podcast, as I say in every episode introduction, is dedicated to two questions: first, what are your priorities? Second, how do you align your limited resources — including your time, money, energy and attention — to the things that matter most? 

If dismantling systemic racism and social and economic injustice is a priority to you, as it is to me, then the challenge that we as a community face is answering that tough question. We’ve identified the priority. How do we align our money and time to support that priority?

I have intentionally designed Afford Anything to be a nonpartisan platform. All major party affiliations are welcome here. All religions are welcome here. All people who have love in their heart are welcome here. 

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Afford Anything