Afford Anything

Author: Paula Pant

Written By Paula Pant

I’m 36 and I tested positive for coronavirus. My so-called “moderate” case is brutal.

You’ve probably heard people say that if you’re young, healthy and you contract Covid-19, you’re likely to only experience mild or moderate symptoms. I’m 36, a non-smoker, in shape, fit and healthy, with no chronic conditions. No asthma, no diabetes, no cancer, no high blood pressure, no history of any type of organ disease. I’m the poster child, the ideal candidate, of someone who would only experience a “mild or moderate” case.

My experience of coronavirus was sheer brutal hell. It was the most intense prolonged physical agony I’ve ever felt.

Here’s what coronavirus feels like.

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By Paula Pant

#249: How to Talk to Your Parents About Retirement and Beyond — with Cameron Huddleston

I’m recovering from Covid-19 at the moment, so I couldn’t put together a new episode this week. But in honor of the First Friday of the month, I wanted to re-air this interview with Cameron Huddleston, which we originally aired in August 2019.

In this interview, we discuss how to have those important but awkward conversations with your parents and grandparents about estate planning, wills, trusts, power of attorney, and more.

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By Paula Pant

#248: Covid-19 and the Bear Market

We are living in a time of extreme uncertainty.

Many of us are questioning how we can best use the funds we have to survive it.

“Should I sell the funds I have invested in the market, or keep contributing?”

“Should I continue with my plans to invest in real estate?”

“Should I hoard all of my cash in case this gets worse?!”

My friend and former financial planner Joe Saul-Sehy joins me on today’s show to shed light on the answers and how to handle the stock market collapse.

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By Paula Pant

PSA Thursday: Social Distancing is Social Solidarity

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‪My chief overriding mission is to use this platform to do everything in my power to help slow the spread of coronavirus. I’d also like to provide as much guidance as possible in this turbulent bear market and potential recession.

To do that, I’m introducing a new segment to the podcast: PSA Thursdays.

In this special weekly segment, I’ll talk about how we can:

— Flatten the curve
— Manage our finances in a turbulent market
— Work from home more productively
— Help friends and neighbors who are affected by economic stress

Here’s today’s episode, below. Enjoy from a safe distance six feet away.  🙂

P.S. Wash your hands! 🙂

PSA Thursday – 3/19/20: Social Distancing is Social Solidarity

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By Paula Pant

#247: Ask Paula – Is the Stock Market Going to Crash in 2020? How Should I Invest in a Bear Market?

Caroline wants to buy her first home in Denver, CO. How can she calculate how much mortgage she can comfortably afford?

Anne plans to retire later this year on rental income (woohoo!). She’s saved up a hefty emergency fund for her properties, and she wants to know 1) if she should invest a portion of this in index funds, and 2) whether she should rebalance her portfolio to account for this huge cash allocation.

Anonymous Nurse has over $100,000 in debt, not including their mortgage. They want to invest in rental properties, but with so much debt, they’re thinking of selling their home or renting it out. Which option is best given their interest in real estate?

Joy wants to know if she should put $50,000 towards her primary residence mortgage, or use it as a downpayment on her first rental property. What are the pros and cons of each option?

Anonymous owns a cash-flow positive condo…on leased land. The land will revert back to the owners in 32 years. When is the best time to sell this property?

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

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By Paula Pant

#243: Ask Paula – How Can I Retire in 10 Years with Rental Properties?

Adam is 23 years old and wants to achieve financial independence as quickly as possible. However, he’s nervous about investing in the stock market and real estate. How can he overcome his fears?

Paris, age 35, has a similar question. She earns $150,000 per year, is debt-free, and doesn’t own a home. How can she reach financial independence in less than 10 years?

Paul wants to househack his first home, but none of the properties he’s seen meet the one percent rule. He doesn’t want to rent forever. Does he need to compromise on his commute time, or wait until he finds an undervalued gem?

Anonymous Househacker rents an apartment with three bedrooms, two of which he rents out on an inconsistent, short-term basis. They want to know: does the money they earn count as rental income if they aren’t making a profit on it?

Ben is a real estate investor who’s curious about growing his portfolio from four units to 20 units. What’s the best approach to take?

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

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By Paula Pant

#241: Ask Paula – Should I Raid My Retirement Savings to Pay for School?

Anton wants to accelerate his flight training so he can get hired within two to three months, rather than two to three years. He has to raid his retirement savings to achieve this. Should he?

Linda and her husband have their eyes on early retirement, but they aren’t sure what their post-retirement lifestyle will cost. How can they budget for unknown expenses that include travel?

Joseph contributes 15 percent of his income to both a Roth 457b and Roth IRA. He wants to retire before age 59.5. Given his early retirement goal, should he focus solely on his Roth 457b?

Henry wants to know how rebalancing and dollar cost averaging interact with each other. Should he rebalance his all-equities portfolio? If so, what approach should he take?

Joe maxes out his 401k and IRA each year. He can make after-tax 401k contributions, or fund his Vanguard taxable brokerage account. Which should he prioritize?

As usual, my friend and former financial advisor, Joe Saul-Sehy, joins me on the show to answer these five listener questions. Enjoy!

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By Paula Pant

#239: Ask Paula – Should I Put My Student Loans in Forbearance? Should I Buy a Vacation Rental in the Mountains? and More

Lo is in a good spot with her career, but she’s struggling with a ton of student loan debt, and consequently, credit card debt. What should she do to manage it?

Anonymous wants to know how to set up a backdoor Roth IRA.

Eric and his wife own a property in Savannah, GA that brings in more money as an Airbnb than a traditional rental. They want to invest in more properties and are wondering if this model is the best path to take.

James wants to own a vacation rental in the Vermont mountains that he can use when it’s vacant. What features or qualities would make a profitable vacation rental? What red flags should be on his radar?

Ayesha is looking at buying a rental property that has a partial HUD claim on it. What kind of complications should she anticipate? Or should she let this property go completely?

Shelbi and her husband own a rental property that they purchased for $178,000 that’s now valued at $300,000. They’re looking at a multitude of options – sell it, move into it, or keep it. What’s best given their FIRE goal?

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Afford Anything