By Erin @ Team Afford Anything
Welcome back to PSA Thursday, a weekly segment in which we talk about how to handle money, work, and life in the middle of a pandemic.
Today, we cover two topics:
1. Building an emergency fund during an emergency
2. How the bear market affects the way that you handle your investments
By Erin @ Team Afford Anything
Should we invest in sustainable funds?
If we choose sustainable funds, will our investment returns suffer? Will our expense ratios be sky-high? What drawbacks might we face?
How do we know that these funds are actually ethical? And what choices are out there for people who want to invest ethically or sustainably?
We invited Dr. Jon Hale to our show today to answer these questions.
Dr. Jon Hale is a chartered financial analyst and the global head of sustainability research for Morningstar. He directs Morningstar’s research on sustainable investing, which launched with the Morningstar Sustainability Rating for Funds in 2016.
We were inspired to conduct this interview on sustainability after we heard a question from one of our community members, Lily. She left a voicemail asking:
“Why don’t we hear anything about ethical investing in the Financial Independence Retire Early (FIRE) movement? I’ve had trouble locating socially responsible funds in the past, and I wonder if these funds are labeled well or if they’re essentially a scam. Is there a third-party reviewer of these funds?”
By Paula Pant
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.
By Erin @ Team Afford Anything
Paula describes the experience of having Covid-19, the illness caused by coronavirus.
By Paula Pant
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.
By Paula Pant
It’s Quarantine Day 10, and thank goodness I’ve been staying in, because yesterday I learned that I have a 102.3 degree fever. I don’t know if it’s Covid-19 or if it’s a fever with extraordinarily bad timing.
By Paula Pant
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
By Paula Pant
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!
By Erin @ Team Afford Anything
Jillian Johnsrud grew up at the poverty line. Her mother had two children by age 19, and Jillian was raised in a town of 700 people, living in a home that struggled to afford the basics.
She married her husband when she herself was 19 years old. During their first year of marriage, they lived in a camper and earned a combined income of $12,000.
Her husband joined the military after graduating from college. They relocated to Washington D.C., where they earned a combined $60,000 per year. They saved half of their income and used their savings to wipe out $55,000 of debt.
At 22 years old, Jillian and her husband adopted a son. Two years later, at age 24, the couple had accumulated their first $100,000. The following year, they gave birth to a second child.
Jillian and her husband continued saving half of their income. Eventually, they bought a house in cash, invested in two rental properties, and built a portfolio of index funds.
By age 32, Jillian and her husband achieved financial independence. And they built this on a modest five-figure income.
How did Jillian and her husband live on $12,000 per year? How did they save their first $100,000 by age 24? What sacrifices did they make? And how did reaching financial independence change their relationship with money? Find out in this raw, emotional interview.
By Paula Pant
Joe has a 24-year-old friend who won a $1 million settlement. How can she use this money to set herself up for financial independence?
Jay is 52 years old and wants to retire at 59.5. He began investing in individual stocks to achieve this goal, and has had excellent returns so far. Is this a sound plan for early retirement? Or should he work until age 62 for Social Security?
Steve is 54 years old. He plans to retire at 60, which is when he can collect 67 percent of his pension. A Vanguard advisor suggested that he direct some of his 403b contributions as Roth contributions, rather than pre-tax contributions. Should he act on this suggestion?
Brit wants to know: is it possible to invest in the S&P 500 Fossil Fuel Free Index through Vanguard?
Anonymous in New York City wants to invest their HSA contributions this year, but the expense ratios seem high. Can they move their HSA to a different provider? What fees are normal for HSAs?
My friend and former financial advisor, Joe Saul-Sehy, joins me on the show to answer these five questions. Enjoy!
