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  • The Lamborgurus, driving their Scamborghinis …

    ByPaula Pant

    You know those flashy “real estate seminar” types, the ones who wear $10,000 wristwatches and flash cheesy Powerpoint slides of their Lamborghini at you? ?

    Don’t trust them. (I reaaaalllly hope I’m stating the obvious.)

    I call them Lamborgurus, driving their Scamborghinis. They can be found lurking in the spotlight, dispensing a blend of platitudes and high-leverage, high-risk speculative strategies from the stages of big hotel chains.

    They can be forgiven for being tacky. But not for destroying peoples’ retirements with their shoddy ‘investment’ advice.

    Here’s the thing:

    Be careful about choosing who you take advice from. This is true in any arena — health, fitness, personal finance, business, real estate, travel. Some teachers are better than others. The slick, sentient-infomercial Scamborghini types offer the most dramatic cautionary example.

    But there’s another reason.

  • “Invest in real estate during a pandemic? Are you crazy?”

    ByPaula Pant

    “Invest during a pandemic? Are you crazy?”

    That’s a reasonable question. Why would anyone want to invest in a volatile market and in the midst of economic uncertainty?

    But recessions create opportunities. Yes, it’s terrible that millions have lost jobs and suffered huge portfolio losses, but the unfortunate reality is recessions happen. Like it or not, this is our current situation. By looking at the market and asking “what opportunities can I find?,” we contribute to the recovery. 

    We contribute to the recovery in all types of investments: stocks, real estate, side hustles. 

    When we buy stocks, we infuse capital into companies that we believe in and/or into the market as a whole. 

    When we buy, renovate and rent properties, we create jobs for contractors, agents and property managers and we offer our tenants a safe, comfortable and well-maintained home. 

    When we start a side hustle, we build products or services that thrill our clients and create jobs for our team. 

    When we invest, we participate in the recovery. Recessions are an unfortunate fact of life, but they carry a silver lining. And for newbie investors in particular, recessions can open the door.   

    Unfortunately, during times of uncertainty, many people surrender to their fear of investing. They sit in cash until it’s too late.

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    #257: How to Stop Screwing Up Our Finances, Even in a World That Leads Us Astray — with Dr. Dan Ariely

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/paulaandjaymoney/AA257.mp3" title="How to Stop Screwing Up Our Finances, Even in a World That Leads Us Astray -- with Dr. Dan Ariely" 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" ]

    “The checking account is like the trash can of personal finance.”

    Today’s podcast guest, the famed behavioral economist Dr. Dan Ariely, is not a fan of checking accounts. Or supermarket end caps. Or anything that distracts us from our financial goals.

    In this episode, he explains why.

    Dan Ariely is one of the world’s most renowned behavioral economists. He’s the James B. Duke Professor of psychology and behavioral economics at Duke University.

    His TED Talks have been viewed more than 15 million times. In 2018, he was named one of the 50 most influential living psychologists in the world.

    He’s the New York Times bestselling author of many books, including Predictably Irrational, a book that challenges our assumptions about our ability to make rational decisions. He also wrote Dollars and Sense, a book about our cognitive biases, and The Honest Truth About Dishonesty, a book about how we lie to everyone, including ourselves.

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    PSA Thursday: How Can I End 2020 in a Stronger Position Than I Started It?

    ByPaula Pant
    [smart_track_player url="http://traffic.libsyn.com/paulaandjaymoney/AA256b_PSA_Thursday_May_14.mp3" title="PSA Thursday: How Can I End 2020 in a Stronger Position Than I Started It?" 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" ]

    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.

    Today, our discussion focuses on work. 

    How can you find business and investment opportunities in today’s tough pandemic bear market? 

    What should you do to emerge from 2020 stronger than you started?

    We tackle this question in today’s PSA Thursday episode. Here are 7 specific, immediate actions that can set you up to succeed in this recession.

    #1: Keep your plans intact.

    Don’t rewrite your life plans based on fear or anxiety. 

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    #256: Ask Paula: Bonds Are Tanking. Should I Switch to Real Estate Instead?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/paulaandjaymoney/AA256.mp3" title="Ask Paula: Bonds Are Tanking. Should I Switch to Real Estate Instead?" 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" ]

    Jon is wondering if now is a good time to move his RRSP into a tax-free savings account, given the market downturn. He knows you can’t time the market, but the opportunity is tempting. What should he do?

    Laurel’s question revolves around the CARE Act and early withdrawal from a 401k. She needs to rebalance her 401k and wants to buy a rental. Instead of selling stocks, should she sell bonds as a form of rebalancing and to withdraw for a rental property?

    After seeing so many businesses experience financial hardship, Rebecca and her husband are curious: why don’t companies have emergency funds?

    Salome sees the stock market downturn as an opportunity for tax-loss harvesting, but does this hold if you’ve held stocks for less than a year?

    Josh and his wife have funds in Vanguard and Betterment, and they own their apartment in Queens, NY. Does the equity they have in their apartment count as real estate, or should they invest in something else for more diversification?

    Jenny and her husband earn $220,000, max out their 403b and HSA, and have an extra $4,000 per month to invest. Where should they put this money?

    Sheena has the option to purchase company stock at a 15 percent discount through an Employer Stock Purchasing Plan. However, it’s volatile right now. Should she contribute the maximum amount, or nothing?

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

  • Um, yeah – so what’s happening with the real estate market in 2020?

    ByPaula Pant

    The economy is tanking; unemployment claims have topped 30 million; even optimistic analysts say it’ll take years for jobs to fully recover. So what’s happening with the housing market?

    To fully understand the residential real estate market, let’s break this down into three sub-questions:

    How strong was the housing market before the pandemic struck?
    What’s happening now?
    Where might it be going?

    Here we go!

    How strong was the pre-pandemic housing market?

    Home values rose steadily after the Great Recession ended. From 2012–2020, home prices rose 5.8% annually, according to the US Housing Market Health Check report from Thomvest Ventures. (All stats in this article come from that report unless otherwise indicated.)

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    PSA Thursday: How Is The Pandemic Affecting the Housing Market?

    ByErin @ Team Afford Anything
    [smart_track_player url="http://traffic.libsyn.com/paulaandjaymoney/AA255b_PSA_Thursday_May_7.mp3" title="PSA Thursday: How The Pandemic is Affecting the Housing Market?" 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" ]

    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.

    Before the pandemic, the U.S. housing market was strong. Home prices were at historic highs. Borrowers were more qualified than ever, with two-thirds of mortgage originations going to borrowers with excellent credit. As of January 2020, delinquencies (borrowers more than 30 days late on a payment) reached a 20-year low.

    How has the pandemic affected the market? Are we due for another spate of foreclosures? What’s going to happen to housing supply? What about demand? Are buyers still buying? Are sellers still selling? And if you’re thinking about buying a home — either as an owner-occupant or as a rental property investor — what do you need to know about the new pandemic landscape?

    We dig into depth in this short, researched-packed PSA Thursday episode.

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    #255: How Your Personality Affects Your Finances, with Dr. Sarah Stanley Fallaw

    ByErin @ Team Afford Anything
    [smart_track_player url="https://traffic.libsyn.com/paulaandjaymoney/AA255.mp3" title="How Your Personality Affects Your Finances, with Dr. Sarah Stanley Fallaw" 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" ]

    When a crisis hits, do you stay calm and collected, or do you launch yourself down a rabbit hole of worry and worst-case scenarios? 

    When the stock market spirals downward, do you shrug and stay the course, or do warning bells explode in your brain? 

    When news of the pandemic hit, was your first instinct to form a calm and reasoned action plan, or rush to the store to buy months of supplies?

    Your personality influences your reactions to these scenarios. 

    Personality traits influence our thoughts, feelings and responses, which affects how we manage our money and investments. 

    What personality traits are we talking about?

    The Big 5 Personality Traits are conscientiousness, agreeableness, introversion/extraversion, openness, and emotional stability. 

    Once we understand how the Big Five personality traits influence us, we can make better-informed, less harmful financial decisions.

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    #254: Ask Paula – Should I Invest During a Pandemic?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/paulaandjaymoney/AA254.mp3" title="Ask Paula - Should I Invest During a Pandemic?" 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" ]

    It’s our First Friday bonus episode!

    Lydia earns income as both a 1099 contract worker and a part-time W2 employee. She filed for unemployment as a W2 worker, but can’t find information on how to file as a contractor. Is there a process contractors can follow to file for unemployment?

    Florina and her husband have $70,000 in cash to invest. Where should they put this money in light of the current market?

    Ali and his wife saved eight months of living expenses in their emergency fund in case they get laid off during the pandemic. Is this too excessive?

    Danielle wants to take advantage of pandemic stock prices – what should she invest in?

    Anonymous in Real Estate wants to buy a multifamily property with the equity in their first rental as a downpayment. Their husband doesn’t want three mortgages. Should they accelerate mortgage pay-down and be one mortgage down in four years?

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

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    PSA Thursday: How Bad Is the Stock Market Crash?

    ByErin @ Team Afford Anything
    [smart_track_player url="http://traffic.libsyn.com/paulaandjaymoney/AA253b_PSA_Thursday_April_30.mp3" title="PSA Thursday: How Bad Is the Stock Market Crash?" 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" ]

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

    The majority of us have experienced a rapid change that’s affected every aspect of our lives, from work to our wallets to our health. We’re living in a world that was completely unimaginable two months ago. And we’re trying to handle increased responsibility in a time of high anxiety and high uncertainty.

    These weekly PSA episodes are one of many ways in which we hope to help our community make sense of how to manage our limited resources – our money, our time, our energy – in the context of these rapidly changing circumstances. 

    Today, our focus is on money – specifically, the stock market. 

    Why did it crash in March? What effect did that have on us as a society? Why has it rebounded in the middle of a shutdown, and what does that mean? Are valuations too high relative to earnings? 

    How can we handle our investments and retirement savings at a time when the movements of the market seem irrational and unpredictable?

    We explore these questions in today’s episode.