Afford Anything

Category: Episodes

By Paula Pant

#297: Ask Paula – Should I Househack or Pay Off My Student Loans?

George is torn between paying down his student loan debt (which he deferred) or buying a househack. Which is better for his long-term goal of reaching financial independence?

Hanan wants to figure out if a backdoor Roth IRA conversion will work for her. She also wants to investigate whether a Vanguard Institutional 500 Index Trust and a Vanguard Institutional Total Bond Market Index Trust are ideal. Are trusts different from index funds or mutual funds and if so, how?

June and her husband netted $400,000 from the sale of some golden parachute ISOs. They want to help their children pay for college and are trying to figure out how to strategically use this money. Should they pay off their home, buy rentals, fund 529s, or Roth their 401ks?

Mario is curious to know: is his two-fund portfolio at a 90/10 split is a good asset allocation for his Roth IRA?

Vivian is worried about bridging the gap between when she retires and when she claims Social Security. Will her plan of doing a Roth conversion ladder work out the way she hopes?

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

#296: Investing is the Art of Probabilistic Thinking

There’s a lot happening in the market.

The Dow is at a new high, there are runaway stocks causing irrational exuberance, and yet, unemployment claims are on the rise. How can this be?

To make sense of this, we’re dedicating today’s show to discuss how improving judgment and using mental models can protect us against risks and short-term thinking. We also touch on the so-called death of cities, and what this means for real estate investors.

This episode is for you if: you’re confused about why the stock market is doing so well while the world definitely isn’t, you’re getting caught up in market trends and wondering if you should make a risky investment, or you’re curious about whether cities will make a comeback after this is all said and done.

Continue reading for a quick preview of everything discussed in this episode.

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By Erin @ Team Afford Anything

#295: What Your Childhood Taught You About Money, with Rachel Cruze

Have you ever stopped to wonder why you find it so painful to part with your money? Or why money seems to slip through your fingers as soon as you get paid? 

Are you able to define your values and connect them with how you manage your finances? 

Have you deeply examined the fears you have around money, and how those fears influence your financial behavior? 

In simple terms: what’s the motivation behind your money management style? 

Whether you’ve pondered these questions for years or they’ve never crossed your mind, digging into your money story can shed valuable insight on your behaviors with money. Those insights may help you develop a healthier relationship with money. 

Rachel Cruze, four-time bestselling author, two-time guest of the show, and daughter of Dave Ramsey, joins us today to talk about three frameworks that can help us better understand our money habits. 

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By Paula Pant

#294: Ask Paula – If I Were to Interview Suze Orman Again Today, How Would It Go?

Jeffrey is curious: if I were to interview Suze Orman today, would I agree more or less with her thoughts on the financial independence retire early (FIRE) movement?

Matt wants to know: if a property cash flows really well, is it worth paying significantly more than the appraised value to purchase that income stream?

Sara and her husband are returning to the states after living abroad for a few years. They’re moving to an expensive area where homes cost $800,000+. They have $150,000 saved for a downpayment, but a $600,000 mortgage isn’t what they had in mind. What should they do?

Eva and her partner are squirreling away money before the birth of their baby. They’d like to pay off their $90,000 mortgage in three years, but they’re afraid to use the money in case of unexpected baby expenses. What’s their best move?

Justin and his wife want to take a gap year with their children in three years. They plan to visit Spain and London for six months each. What are unexpected expenses that they should factor into their budget?

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

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By Erin @ Team Afford Anything

#293: The One Question That Makes Everything Easier, with Geoff Woods

Are you ready to say goodbye to bad habits from 2020 and say hello to habits that will actually guide you toward the person you want to become?

If so, a simple framework for building better habits is only a few minutes away.

After listening to this episode, you’ll have a step-by-step approach for creating habits that will serve you for years to come. This approach brings clarity around the one thing you need to focus on to live the life you’re dreaming of. 

Our guest is Geoff Woods, Vice President of The ONE Thing and host of The ONE Thing podcast. (You might be familiar with the book by the same name.) He is an expert at ruthlessly prioritizing tasks, developing values-based habits, and getting clear on the one thing that needs to be done to achieve a vision.

The simple framework that he presents in today’s interview gives you the tools you need to focus deeply and commit to actions that will take your productivity and personal development to the next level this year.

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By Erin @ Team Afford Anything

PSA Thursday: Kickoff 2021 with a 31-Day Challenge

Happy 2021Welcome back to PSA Thursday, a weekly-ish segment in which we talk about how to handle money, work, and life in the year that is 2020.

Today, we’re looking toward the future with a focus on kicking off 2021 with fresh energy and inspiration.

This episode contains a sneak peek of our 31-day challenge, and if you sign up here, you’ll receive a daily email that contains:

  • One key lesson or takeaway from a book that we love in the areas of psychology, finance, entrepreneurship, or productivity
  • One question, related to how you can apply that lesson to your own life
  • One challenge or action that you can take that will directly relate to that lesson

We also have an exclusive group in our community platform where you can join other members and take part in the challenge together.

This challenge is a powerful way to start 2021 with support, encouragement, guidance, and fresh momentum.

Happy New Year!

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By Paula Pant

#292: Ask Paula – I’m an Investor Who Likes Volatility; What Should I Buy?

Three Kids, FI has an all-equities broad stock market index portfolio that he’s held for years. He’s confident he can handle maximum volatility, so what investments can he lean into to that will provide him with great long-term returns?

Sarah is concerned: a financial advisor told her that investing in VTSAX over-indexes her in large cap funds and technology stocks. Is this true, and what should she do about it?

Alex’s wife lost her job due to the pandemic. They live in Washington state and are married filing separately due to his wife’s student loans. Can he use half of his income to qualify her for Roth IRA contributions?

Jordan is a new listener and he has three questions: should he use $100,000 to buy more rental properties or invest in a brokerage account? Should he and his wife upgrade their home and buy a property that’s worth double their current home? And finally, how can self-employed individuals who earn more lower the cost of health insurance?

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

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By Erin @ Team Afford Anything

PSA Thursday: Year-End Tax Moves to Finish 2020

Welcome back to PSA Thursday, a weekly-ish segment in which we talk about how to handle money, work, and life in the year that is 2020.

Today, we focus on end-of-year tax planning and what you can do to prepare before you celebrate the end of 2020.

Here’s what we cover:

  1. Open a retirement account – you can make contributions that can be retroactively applied to 2020
  2. Adjust your tax withholdings
  3. Check your 529 Plan – see if your contributions qualify for a state income tax deduction or credit
  4. Make charitable contributions
  5. This could be a good year to make a Roth conversion
  6. Spend down the balance in your FSA – you can only rollover up to $500

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By Erin @ Team Afford Anything

#291: How to Command Respect at Work, with Tracy Tutor

Are you confident in your ability to lead a virtual conversation, or do you get so nervous that you forget everything you planned to say as soon as you open your mouth?

Do you know how to keep people engaged during meetings, or do you notice people looking elsewhere for a distraction?

Are you able to listen to your gut and speak your truth when things go awry, or do you silence your inner voice and doubt your feelings?

Tracy Tutor, author of Fear is Just a Four Letter Word and the first female real estate broker on Million Dollar Listing LA, joins us to tackle all of these questions. In this interview, Tracy shares how she learned to listen to her gut after experiencing trauma at the hands of larger-than-life egos, tips for engaging clients and managing group dynamics both virtually and in-person, and why humor can connect us all.

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By Paula Pant

#290: Ask Paula – Is Upgrading Our Lifestyle Worth Mortgaging a More Expensive House?

Sharon owns two condos that are worth $1.4M and has a cash cushion of $120,000 plus a $50,000 emergency fund. She’d like to move into a small house while keeping her cash cushion intact. Should she take out a home equity loan on her mortgage to essentially pay for her house in cash, or get a traditional mortgage and use her savings towards the downpayment? 

Jury and her partner are torn between two options: buying a condo, which would allow them to live off of one salary and invest the other, or buy a more expensive house – a much more attractive lifestyle option. Which should they purchase? 

Daine’s IRA balance is a result of 401k rollovers. He’s concerned that his lack of monthly contributions cause him to miss out on compound interest. What can he do to grow his retirement funds?

Molly and her husband want to reach financial independence (FI) in 15 years, at age 50. They’re unsure of whether their rental property income will sustain their FI lifestyle. How can they plan for this?

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

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Afford Anything