Afford Anything

Author: Paula Pant

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#588: First Friday: The Economic Maze We’re Navigating Together

Jobs are growing, interest rates are holding, and your student loan options just hit pause. Welcome to this month’s economic rollercoaster.

The economy is sending mixed messages this month. We added 151,000 new jobs in February, slightly better than January’s 143,000. But unemployment ticked up to 4.1 percent.

Health care is booming (52,000 new jobs). Restaurants and bars? They’re hurting (lost 27,500 jobs). Federal government shed 10,000 positions while state and local governments added 21,000.

The Fed isn’t making any sudden moves. They’ll likely hold interest rates steady at 4.25 – 4.5 percent when they meet March 18-19. Fed Chair Powell made this clear: “We do not need to be in a hurry and are well-positioned to wait for greater clarity.”

Meanwhile, Treasury Secretary Scott Bessent is working a different angle. He’s targeting 10-year Treasury yields instead of pressuring the Fed on short-term rates. His strategy? Use fiscal and regulatory reforms to convince markets that inflation will be controlled long-term.

Energy costs are a key part of his plan. Bessent believes lowering gas and heating oil prices does double duty: saves consumers money and boosts economic confidence. This matters because consumer spending is 70 percent of our economy.

Speaking of confidence – it’s plummeting. February saw the largest monthly decline in consumer sentiment since August 2021. People across all age groups and income levels are increasingly pessimistic. They expect inflation to hit 6 percent in the coming year (significantly higher than current rates).

Got federal student loans? Applications for income-driven repayment plans are temporarily on hold. This affects all plans, even the older ones not being challenged in court.

The pause came after a federal appeals court expanded a suspension of the SAVE plan. About 8 million borrowers had enrolled in this program, with more than 400,000 having their debts erased. If you’re working toward Public Service Loan Forgiveness, this is particularly important since income-driven plans are a key requirement.

In crypto news, bipartisan legislation for stablecoins is moving forward. The Senate has the GENIUS Act while the House has the STABLE Act (yes, that spells “stable genius”).

These bills would establish clear rules about who can create stablecoins and require them to be fully backed by high-quality assets like U.S. dollars or Treasury bills. They would also officially classify stablecoins as payment instruments rather than securities – a significant regulatory distinction.

The housing market? It varies dramatically by location. In DC, some zip codes are seeing prices climb rapidly while others face steep declines. The lesson: real estate is hyper-local. Success comes from becoming an expert in just a couple of specific zip codes rather than trying to understand entire metropolitan markets.

As Fed Chair Powell wisely put it, the key is “separating the signal from the noise as the outlook evolves.” That’s solid advice for navigating our current economic landscape.

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#587: Q&A: Should You Cash Out Your ETFs? The Hidden Consequences of That Decision …

Debi is stressed about saving a down payment to buy a house in her high-cost-of-living area. Should she cash out her brokerage account to speed up the process?

Lucas and his wife are high earners, but they’re tired and ready for a change. What strategies can they use to maximize their investments and confidently step away from their jobs?

Grant is thrown off by recent discussions about the efficient frontier. It sounds a lot like market timing to base an investment strategy on an arbitrary set of historical dates. What’s he missing?

Former financial planner Joe Saul-Sehy and I tackle these questions in today’s episode.

Enjoy!

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#586: Money Doubles Every 10 Years (and Most People Never Notice!), with Scott Yamamura

If you are a complete beginner at finances, or if you know someone who is, this episode is for you.

The biggest hurdle for beginners? Money seems complex and intimidating. But Scott Yamamura, author of Financial Epiphany, explains personal finance doesn’t have to be complicated. He breaks compound interest into three easy-to-grasp frameworks:

1. Money as a Multiplying Ability: Just like athletes have peak physical abilities in their 20s, your money has its greatest multiplying power when you’re young. At age 22, every dollar invested can multiply 16 times by retirement (assuming a 40-year career and 7.2 percent returns).

2. The Doubling Framework: Money can double approximately every 10 years with average market returns. This explains why a dollar invested at 22 becomes $2 by 32, $4 by 42, $8 by 52, and $16 by 62.

3. The Halving Concept: With each decade that passes, your money’s multiplying power gets cut in half. This is the inverse of the above idea.
Scott shares how these simple frameworks helped him front-load his son’s college savings. “We can stop now because it’s going to double,” he said.
For beginners struggling with analysis paralysis, Scott offers a Rubik’s Cube analogy: You don’t need to understand all 43 quintillion possible combinations to solve it — you just need one simple method to get started.

Similarly, you don’t need to master every financial concept to begin investing.

The most important step is just to get started. You can learn the complexities later, but starting early gives your money more time to grow.

Scott also emphasizes finding your “why” — a purpose bigger than just accumulating wealth. He shares a moving story about a man named Ernie who funded his mission trip to Sierra Leone, showing how money can be used to make a profound difference in people’s lives.

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#585: Q&A: The Hidden Tax Drain in Your Investment Strategy

Michael rebalances his portfolio every year. But he’s worried that triggering capital gains taxes on his brokerage account will cancel out the benefits of reallocation. Is there a better approach?

Sam has an opportunity to switch jobs, but she’s confused about how an Employee Stock Ownership Plan stacks against her current employer’s 401(k). Is she […]

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#584: Sahil Bloom: Which of the Five Wealth Types Are You Neglecting?

Think about how you spend an average day. Would the 10-year-old version of yourself be impressed? What about the 90-year-old version?

These two powerful questions frame our conversation with Sahil Bloom, founder and managing partner of an early-stage venture fund with investments in over 60 startups and author of The Curiosity Chronicle, a newsletter that reaches more than a million readers worldwide.
Sahil shares the story of his own wake-up call. While living in California and earning massive money as a venture inventor, he had a drink with an old friend who asked how often he saw his parents. When Sahil answered “about once a year,” his friend asked how old they were. Learning they were in their mid-60s, his friend calculated: “So you’re going to see your parents 15 more times before they die,” assuming they’d live to about 80.
That gut-punch realization led to massive change. Within 45 days, Sahil had left his job, sold his house, and moved across the country to be closer to family.

This shift represents the core of Sahil’s philosophy about the five types of wealth:

1. Time wealth: Control over your calendar and priorities
2. Social wealth: Deep, meaningful connections with others
3. Mental wealth: Curiosity, purpose, and personal growth
4. Physical wealth: Health and vitality
5. Financial wealth: Traditional money and assets

Most of us focus exclusively on financial wealth because it’s easily measurable. But Sahil argues that true wealth encompasses all five domains, and we should intentionally invest in each one.

Sahil shares practical exercises for building each type of wealth:

– For time wealth, create an “energy calendar” by tracking which activities energize versus drain you
– For social wealth, map your relationships based on how healthy and frequent they are
– For purpose, ask yourself what your world (family, community, etc.) needs from you
– For physical wealth, focus on movement, nutrition, and recovery through simple practices
– For financial wealth, clearly define what “enough” looks like for you

These five domains aren’t meant to be balanced perfectly every day. Instead, Sahil suggests thinking in seasons — some periods might emphasize financial growth while others prioritize family time.

Sahil also discusses powerful concepts like goals versus anti-goals (what you’re unwilling to sacrifice to reach your goals) and “Memento Mori” — the ancient Roman practice of remembering one’s mortality to inspire present action.

The conversation ends with a reminder that “your life has seasons” just like the weather — you don’t expect to experience all four seasons in a single day, so don’t expect perfect balance in every area of life simultaneously.

For more from Sahil Bloom, find him on major social platforms or visit fivetypesofwealth.com.

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The 60-Year-Old Who Lost Everything | “Trust, But Verify”

Picture this: You’re in your 60s.

You’ve been married for more than 40 years.

You raised six children full-time, while your spouse built their career, earning $200,000 annually.

All those years, you believed you were building a comfortable retirement together.

Then the divorce papers arrive, alongside a devastating revelation — there are no retirement savings.

 […]

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#583: Q&A: Everyone Is Arguing About Roth IRAs And We Have Thoughts

Contrary to recent discussions, Jesse has concluded that a traditional IRA is the smarter way to go for most people once marginal tax rates are factored in. Is he missing something?  

An anonymous caller is four years away from early retirement but she’s unsure if her portfolio allocations are in the right place. How and when should she start converting equities to cash?

Luz is confused about how to handle company stock options. Is there an ideal spread between the exercise price and the stock price? And, what should she do once the stocks are exercised?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

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#582: The Marriage Contract You Never Saw (But Can’t Escape), with Harvard Law Alum Aaron Thomas

They had it all. Six thriving children. A 40-year marriage. A household income of $200,000.

Then in her 60s, she discovered a shocking truth: he had gambled away their entire retirement savings in penny stocks.

She had no access to their financial accounts during the marriage. After divorcing, she was left with nearly nothing. Today, she relies on her adult kids for support.

Harvard-trained family law attorney Aaron Thomas joins us for a Valentine’s Day discussion about prenuptial agreements — not just as divorce insurance, but as a framework for building stronger marriages.

Thomas is a three-time winner of Atlanta’s Best Divorce Attorney and a leading expert in family law. He’s the founder of prenups.com and authored The Prenup Prescription.

Thomas explains that every married couple already has a prenup by default: their state’s laws. In 41 states, judges have broad discretion in dividing assets “equitably” — which might mean a 70-30 split rather than 50-50. The remaining nine states are community property states, where assets are typically split equally.

But even in community property states, determining what qualifies as joint property can spark fierce debate. For example: if you entered marriage with $100,000 in a 401(k) and continued contributing during the marriage, how much belongs to you vs. the marriage? What about a home you owned before marriage, but your spouse helped pay the mortgage?

To prevent financial surprises, Thomas recommends couples hold “annual shareholder meetings” to review finances together. He suggests creating three buckets — yours, mine and ours — with clear agreements about spending. For example, his prenup requires both spouses to approve joint account purchases over $500.

Beyond asset division, prenups can include requirements like marriage counseling before filing for divorce, or mediation if custody disputes arise. While prenups can’t determine child custody or support payments, they can establish frameworks for working through conflict.

The biggest benefit, Thomas argues, isn’t protecting yourself in case of divorce — it’s creating clarity and communication during marriage. By having difficult conversations upfront about money, expectations and conflict resolution, couples build stronger foundations for lasting partnerships.

Listen to this episode to hear our full conversation about how prenups can strengthen marriages, prevent costly court battles, and help couples align on money management from day one.

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The Counterintuitive Truth About Inflation — and the Only Asset Class with QUADRUPLE Protective Power

Well, this morning’s inflation report shocked — *checks notes* — absolutely no one who’s been grocery shopping lately.

The Bureau of Labor Statistics released its latest inflation report this morning, and it’s the worst report since August 2023.

The consumer price index rose 0.5 percent last month, and the bulk of the rise — 30 percent — comes from […]

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#581: When Disaster Hits Home – Literally

Enrollment for Your First Rental Property is open! affordanything.com/enroll
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Today’s question is different.

There’s something special about it — and you’ll understand why in a moment.

An 84-year-old listener left us a voicemail about his struggle to break free from mortgage debt. He and his 83-year-old wife need to move from their two-story townhouse because they can’t climb the stairs any longer.

They found a single-story ranch house that fits their needs perfectly — except for one detail: it carries a crushing $4,200 monthly mortgage payment.

They do have one potential escape route from this debt: selling their Florida condo, a vacation retreat that they haven’t visited in years due to mounting chronic health challenges.

But Hurricanes Milton and Helene ravaged their building last year. The storms spared their unit but destroyed the lobby and submerged their car in floodwater. The devastation slashed $100,000 from their property’s value overnight.

Now they face an agonizing decision: Should they accept this massive loss and sell the condo to free themselves from debt? Or would selling now, after such a steep drop in value, mean locking in their losses?

Joe and I have answered hundreds of questions from our listeners over the years. But this question is special. It comes from my Dad.
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Here’s the transcript of my father’s full question:

Hi Paula and Joe,

My name is Prahlad. I am 84 years old, and my wife is 83. We live in a two-storied townhouse in Atlanta and also own a two-bedroom condo on the beach as a second home in Clearwater, Florida.

Recently, we purchased a one-storied ranch home in Atlanta so that we don’t have to go up and down the staircase at this old age.

Our condo in Clearwater is on the 9th floor of the 14 storied building. We love the condo with views of the Gulf of Mexico and the Bay. However, we have not been able to visit it for a long time due to our underlying health conditions.

We purchased the condo for $400,000 in 2015 and it was estimated to have appreciated to $800,000 in 2022. Since then, the price was estimated to come down to $775,000 in the Spring 0f 2024.

As you know, this area was hit by two major hurricanes Helene and Milton in September and October last year. The lobby of the building was flooded with extensive damage and it is still under construction. The parking area under the roof was also flooded and our car was totaled. Fortunately, our condo did not suffer any damage.

There has not been any significant real estate buy and sell activities in this neighborhood since it was hit by the hurricanes last year. My real estate agent estimates that the current value of the condo is $700,000.

This building has been preparing for a major renovation of the plaza deck for the past few years, and we or the future owner anticipate to be assessed a large amount – maybe $30,000 – for the renovation.

We were hoping that we could sell the condo and pay off the mortgage for the ranch home we recently purchased in Atlanta, and be debt free.

What do you think – should we sell it now or wait until some later time – maybe until next year?

Your advice would be highly appreciated. Thank you both for what you do.

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