Afford Anything

Category: Episodes

By Erin @ Team Afford Anything

#315: The Science of Behavioral Change, with Katy Milkman

Do you ever grapple with the differences between your present self and your ideal self? 

Your ideal self might eat healthy meals 80 percent of the time, save 50 percent of their income with ease, set boundaries without apology, or exercise and meditate four out of seven days a week. 

Yet, your present self might struggle to ward off temptation when it comes to food and spending. Your present self may struggle to set boundaries, period. And your present self much prefers sleeping in and watching Netflix over going to the gym. 

You desperately want to bridge the gap between your present self and your ideal self, but no matter what you do, construction stops halfway. 

If that resonates with you, today’s guest, Katy Milkman, is here to share the science of getting from where you are now to where you want to be. 

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By Paula Pant

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

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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By Erin @ Team Afford Anything

#313: The Unspoken Rules that Could Cost You Thousands, with Gorick Ng

Portrait photo of Gorick NgAre you aware of the unspoken rules that govern your workplace or industry?

…the rules that determine how you’re perceived by your managers?

…the rules that no one teaches us?

Yeah, those rules.

            “Um, well, if they’re unspoken rules, then…probably not?”

Case in point.

So, how the heck are we supposed to land the right jobs for our career trajectory, succeed in those jobs, and advance, without knowing what these rules are?

Today’s guest is here to pull back the curtains.

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By Paula Pant

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

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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By Erin @ Team Afford Anything

#311: The Surprising Solution to Overthinking, with Jon Acuff

Do you ever feel like there’s a voice inside your head that insists on repeating all of your fears, insecurities, or mistakes?

Does this voice craft invisible scripts that then govern your life in the most limiting way ever?

Are you just sick of this voice having a home inside your head?

You’re not alone.

Today’s guest, bestselling author, Jon Acuff, found himself suffering the same fate. It wasn’t until he silenced this voice and replaced it with a kinder, gentler one that he began to wonder if this was common.

He commissioned a study to find out, and the results were clear: 99.5 percent of 10,000 people said they were overthinkers.

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By Paula Pant

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

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!

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By Erin @ Team Afford Anything

#309: Are We Due For Another Housing Market Crash?

Are we in a housing bubble?

Are we going to see a repeat of 2006 all over again?

Are there any good investment deals to be found right now?

These are the questions playing on many people’s minds, and we seek to explore the answers in today’s First Friday bonus episode.

We start by exploring some of the forces that are at play in today’s real estate market. What separates the market of 2006 from the market of today?

In the second half of the episode, Paula explains how and why she chose to buy a duplex in Indianapolis, despite being in a seller’s market. There are deals to be had if you know where to look and what to look for.

Enjoy!

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By Paula Pant

#308: Ask Paula – I Want to Travel After I Retire; How Much Should I Save?

Anonymous in Virginia wants to travel after retiring, which will increase her expenses for the first seven or so years of her retirement. How can she plan for a higher withdrawal rate at the beginning of retirement, and a lower withdrawal rate in the middle of her retirement?

Given the talk around student loan forgiveness, Jess wants to know: should she pay the minimum on her student loan debt and save the payments she would otherwise make? Or should she keep throwing extra at her higher interest loans?

Ziggy purchased an $890,000 property in San Mateo, CA in 2016. After living there for a year, he had to move, so he rented it out. Unfortunately, it’s cash flow negative. Is this property worth holding onto, or should he sell?

Vivek has a paid-off primary residence that he’s interested in renting out for a few years, before selling. He’s worried about capital gains tax – does turning the home into a rental impact the amount he’ll pay?

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

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By Paula Pant

#307: The Tax Risks That Could Blow Up Your Retirement Plan, with Ed Slott

“Taxes are the single biggest factor that separates people from their retirement dreams.”

That’s a quote from today’s guest, Ed Slott, a nationally recognized IRA distribution expert, CPA, and bestselling author.

If you’re like most members of the Financial Independence Retire Early (FIRE) community, you understand the massive tax challenges inherent in retirement planning. Strategies such as the mega-backdoor Roth are popular because the FIRE community loves to optimize for taxes.

Ed does, too.

His book, The New Retirement Savings Time Bomb, is about how we can diversify and manage our tax risk so that we can achieve our financial independence and early retirement dreams.

So … what should we do?

Ed is a big proponent of Roth accounts because they’re an easy, widely-available solution. His Traditional IRA has a balance of $0.

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By Paula Pant

#306: Ask Paula & Joe – How to Shift From Financial Independence to a Mini-Retirement?

Jake and his wife want to retire in five years, at which point they’ll have 14 years before they can access their 401k funds. To help bridge that gap, Jake wants to know: what should their asset allocation look like for their taxable brokerage account?

This year, Kim’s employer enrolled all employees into a “fully funded indemnity program combined with a nationwide direct primary care membership.” What the heck is this program, and how might it impact Kim’s finances?

Burnt Out in Boston is switching their focus from financial independence to taking a mini-retirement. How can they financially and mentally prepare for this leap?

Matthew is torn: should he and his wife – both 26 – max out their Roth IRAs and then save up for a rental property, or simply save cash for the rental and worry about their Roth later?

Finally, Deva and her husband are fed up with their messy tenants. They’re kind and responsible, but they’ve left the yard a mess. They have a clause in the lease that addresses this, so beyond that, what can they do?

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

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