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.
Category: Episodes
PSA Thursday: Social Distancing is Social Solidarity
My chief overriding mission is to use this platform to do everything in my power to help slow the spread of coronavirus. I’d also like to provide as much guidance as possible in this turbulent bear market and potential recession.
My chief overriding mission is to use this platform to do everything in my power to help slow the spread of coronavirus. I’d also like to provide as much guidance as possible in this turbulent bear market and potential recession.
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
#247: Ask Paula – Is the Stock Market Going to Crash in 2020? How Should I Invest in a Bear Market?
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!
#246: Pain, Grief, and the Pursuit of Financial Independence, with Jillian Johnsrud
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.
#245: Ask Paula – I’m 24 and Won a $1 Million Settlement. How Should I Handle This Money?
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!
#244: Why I Quit My Job with No Savings When My Wife Was Five Months Pregnant, with Grant Baldwin
Grant Baldwin felt burned out.
He worked as a youth pastor, which felt like a 24/7 profession. He had to attend student events held late into the night, which left him exhausted.
One night, he came home to find his wife crying. She told him that she felt like she had a roommate, rather than a husband, because he was gone so often.
So Grant did something drastic: he quit his job, with negligible savings, when his wife was four to five months pregnant.
(Editor’s Note: WAT?! Who does that?!)
For the following year, he waited tables and worked odd jobs, cobbling together gig-economy money while raising a newborn. During his rare unscheduled moments, he started crafting a new career for himself as a self-employed public speaker.
Today, Grant Baldwin is a speaker, entrepreneur, coach, and author of The Successful Speaker. He’s earned multiple seven-figures in speaking fees and has helped over 2,000 people become professional speakers.
He shares how he made his dream a reality in this episode.
#243: Ask Paula – How Can I Retire in 10 Years with Rental Properties?
Adam is 23 years old and wants to achieve financial independence as quickly as possible. However, he’s nervous about investing in the stock market and real estate. How can he overcome his fears?
Paris, age 35, has a similar question. She earns $150,000 per year, is debt-free, and doesn’t own a home. How can she reach financial independence in less than 10 years?
Paul wants to househack his first home, but none of the properties he’s seen meet the one percent rule. He doesn’t want to rent forever. Does he need to compromise on his commute time, or wait until he finds an undervalued gem?
Anonymous Househacker rents an apartment with three bedrooms, two of which he rents out on an inconsistent, short-term basis. They want to know: does the money they earn count as rental income if they aren’t making a profit on it?
Ben is a real estate investor who’s curious about growing his portfolio from four units to 20 units. What’s the best approach to take?
I answer these five listener questions in today’s episode. Enjoy!
#242: The Art of Trusting Your Most Dangerous Ideas, with Ash Ambirge, The Middle Finger Project
Ash Ambirge grew up in a trailer park in rural Pennsylvania.
She never met her biological father. Her father-figure mentor passed away when she was 14. Her disabled mother, who raised her on government assistance, passed away when she was 20.
Her childhood goal was to join the middle class. She dreamed of becoming one of those people who eats poppyseed bagels and lemon pepper chicken. After all, what’s more middle class than that?
Ash’s future changed the moment she received a need-based, full ride scholarship to college. After she graduated, she snagged a marketing assistant job and negotiated a $30,000 salary.
Ash had finally made it; she joined the middle class. To celebrate, she bought a brand-new car, financed a $5,000 mattress, and rented a luxurious apartment. Yet she felt that something was lacking (and it wasn’t the lemon pepper chicken).
Unfulfilled, Ash set out to answer two burning questions:
“What does it mean to live a good life?”
“What does it look like to do work that I’m proud of?”
Throughout her childhood, the answers to these questions had been elusive. Her mother hadn’t worked, and Ash had no idea what a “good life” involved. She had no role models.
#241: Ask Paula – Should I Raid My Retirement Savings to Pay for School?
Anton wants to accelerate his flight training so he can get hired within two to three months, rather than two to three years. He has to raid his retirement savings to achieve this. Should he?
Linda and her husband have their eyes on early retirement, but they aren’t sure what their post-retirement lifestyle will cost. How can they budget for unknown expenses that include travel?
Joseph contributes 15 percent of his income to both a Roth 457b and Roth IRA. He wants to retire before age 59.5. Given his early retirement goal, should he focus solely on his Roth 457b?
Henry wants to know how rebalancing and dollar cost averaging interact with each other. Should he rebalance his all-equities portfolio? If so, what approach should he take?
Joe maxes out his 401k and IRA each year. He can make after-tax 401k contributions, or fund his Vanguard taxable brokerage account. Which should he prioritize?
As usual, my friend and former financial advisor, Joe Saul-Sehy, joins me on the show to answer these five listener questions. Enjoy!
#240: 10 Questions to Master Successful Investing, with David Stein
Do you know what it takes to be a successful investor?
Can you name the three drivers of asset class performance?
Are you aware of the upsides and downsides of each investment that you hold?
Not having the answers to these questions could leave your portfolio exposed to major risk.
That’s why David Stein, today’s guest, wrote an appropriately titled book: Money For the Rest of Us. His book outlines 10 thought-provoking questions to ask before making any investment decision.
David, a two-time guest on the show, was the Chief Investment Strategist and Chief Portfolio Strategist at Fund Evaluation Group, a $70 billion investment firm. While there, he co-founded the firm’s $2.2 billion asset management division and developed its investment philosophy and process as the lead portfolio manager.
In this interview, David discusses the 10 questions outlined in his book:
What is it?
Is it investing, speculating, or gambling?
What’s the upside?
What’s the downside?
Who’s on the other side of the trade?
What’s the investment vehicle?
What does it take to be successful?
Who’s getting a cut?
How does this investment impact your portfolio?
Should you invest?
Whether you’re new to investing or consider yourself an advanced investor, David has an asset allocation approach that can save you from the expensive mistakes investors often make.
Here’s how to think through each of these 10 questions and improve your investment decision-making process.
