Afford Anything

Category: Episodes

By

#582: The Marriage Contract You Never Saw (But Can’t Escape), with Harvard Law Alum Aaron Thomas

They had it all. Six thriving children. A 40-year marriage. A household income of $200,000.

Then in her 60s, she discovered a shocking truth: he had gambled away their entire retirement savings in penny stocks.

She had no access to their financial accounts during the marriage. After divorcing, she was left with nearly nothing. Today, she relies on her adult kids for support.

Harvard-trained family law attorney Aaron Thomas joins us for a Valentine’s Day discussion about prenuptial agreements — not just as divorce insurance, but as a framework for building stronger marriages.

Thomas is a three-time winner of Atlanta’s Best Divorce Attorney and a leading expert in family law. He’s the founder of prenups.com and authored The Prenup Prescription.

Thomas explains that every married couple already has a prenup by default: their state’s laws. In 41 states, judges have broad discretion in dividing assets “equitably” — which might mean a 70-30 split rather than 50-50. The remaining nine states are community property states, where assets are typically split equally.

But even in community property states, determining what qualifies as joint property can spark fierce debate. For example: if you entered marriage with $100,000 in a 401(k) and continued contributing during the marriage, how much belongs to you vs. the marriage? What about a home you owned before marriage, but your spouse helped pay the mortgage?

To prevent financial surprises, Thomas recommends couples hold “annual shareholder meetings” to review finances together. He suggests creating three buckets — yours, mine and ours — with clear agreements about spending. For example, his prenup requires both spouses to approve joint account purchases over $500.

Beyond asset division, prenups can include requirements like marriage counseling before filing for divorce, or mediation if custody disputes arise. While prenups can’t determine child custody or support payments, they can establish frameworks for working through conflict.

The biggest benefit, Thomas argues, isn’t protecting yourself in case of divorce — it’s creating clarity and communication during marriage. By having difficult conversations upfront about money, expectations and conflict resolution, couples build stronger foundations for lasting partnerships.

Listen to this episode to hear our full conversation about how prenups can strengthen marriages, prevent costly court battles, and help couples align on money management from day one.

Keep reading...

By

#581: When Disaster Hits Home – Literally

Enrollment for Your First Rental Property is open! affordanything.com/enroll
____________________________
Today’s question is different.

There’s something special about it — and you’ll understand why in a moment.

An 84-year-old listener left us a voicemail about his struggle to break free from mortgage debt. He and his 83-year-old wife need to move from their two-story townhouse because they can’t climb the stairs any longer.

They found a single-story ranch house that fits their needs perfectly — except for one detail: it carries a crushing $4,200 monthly mortgage payment.

They do have one potential escape route from this debt: selling their Florida condo, a vacation retreat that they haven’t visited in years due to mounting chronic health challenges.

But Hurricanes Milton and Helene ravaged their building last year. The storms spared their unit but destroyed the lobby and submerged their car in floodwater. The devastation slashed $100,000 from their property’s value overnight.

Now they face an agonizing decision: Should they accept this massive loss and sell the condo to free themselves from debt? Or would selling now, after such a steep drop in value, mean locking in their losses?

Joe and I have answered hundreds of questions from our listeners over the years. But this question is special. It comes from my Dad.
___________________

Here’s the transcript of my father’s full question:

Hi Paula and Joe,

My name is Prahlad. I am 84 years old, and my wife is 83. We live in a two-storied townhouse in Atlanta and also own a two-bedroom condo on the beach as a second home in Clearwater, Florida.

Recently, we purchased a one-storied ranch home in Atlanta so that we don’t have to go up and down the staircase at this old age.

Our condo in Clearwater is on the 9th floor of the 14 storied building. We love the condo with views of the Gulf of Mexico and the Bay. However, we have not been able to visit it for a long time due to our underlying health conditions.

We purchased the condo for $400,000 in 2015 and it was estimated to have appreciated to $800,000 in 2022. Since then, the price was estimated to come down to $775,000 in the Spring 0f 2024.

As you know, this area was hit by two major hurricanes Helene and Milton in September and October last year. The lobby of the building was flooded with extensive damage and it is still under construction. The parking area under the roof was also flooded and our car was totaled. Fortunately, our condo did not suffer any damage.

There has not been any significant real estate buy and sell activities in this neighborhood since it was hit by the hurricanes last year. My real estate agent estimates that the current value of the condo is $700,000.

This building has been preparing for a major renovation of the plaza deck for the past few years, and we or the future owner anticipate to be assessed a large amount – maybe $30,000 – for the renovation.

We were hoping that we could sell the condo and pay off the mortgage for the ranch home we recently purchased in Atlanta, and be debt free.

What do you think – should we sell it now or wait until some later time – maybe until next year?

Your advice would be highly appreciated. Thank you both for what you do.

Keep reading...

By

#580: Treasury Tantrums, Arctic Routes, and McKinley’s Ghost

“If you want to understand what’s happening in the economy, look at bonds,” begins today’s episode, where we explore how the bond market acts as a crystal ball for economic trends.

The bond market has been sending some clear signals lately. Interest rates remain elevated, with 10-year Treasury yields about 1 percent higher than their September 2024 low. After a challenging 2024 where bond returns flattened to just 1.18 percent, both the U.S. and U.K. are seeing historically high yields. We break down what’s driving these changes and explain key concepts like term premium — the extra return investors demand for holding longer-term bonds.

The Federal Reserve’s recent moves are shaping this landscape. After cutting rates by 1 percent between September and December 2024, Fed officials are now signaling a more cautious approach, wanting to see further inflation decline before considering additional cuts.

Then we explore why President William McKinley is suddenly relevant again. McKinley, whose term began in 1897, was known for his imperialist expansion and love of tariffs. His presidency marked the end of what historians call “the long 19th century” — a period from the French Revolution to World War I that transformed global society.

The episode then turns to what some are calling the “Cold Rush” — the race to claim influence in the rapidly changing Arctic. With ice melting four times faster than global averages and the potential for ice-free Arctic days by 2030, nations are competing for new shipping routes and access to resources. We examine three emerging paths: the Northern Sea Route along Russia’s coast, the North-West Passage along North America, and the Transpolar Sea Route across the North Pole.

Finally, we dive into an overlooked story: the global tax war. In 2021, 136 countries agreed to establish a 15 percent minimum corporate tax rate to prevent profit-shifting to tax havens. While the U.S. already exceeds this minimum with its 21 percent domestic rate, implementation faces challenges due to different methodologies for calculating tax bases and recent political developments that could affect its future.

Keep reading...

By

#579: I Have 14 Days Until My Tenants Move In … And Nowhere to Go

Todd is in a real estate bind. He found out six days before closing on a new home that it wasn’t legally sellable. And renters are moving into his current home in two weeks. What should he do?

Anonymous is excited about expanding her real estate portfolio. Should she sell her $2.5 million rental property in the Bay Area to do this, or can she keep it and leverage the equity instead?

Former financial planner Joe Saul-Sehy and I tackle these two questions in today’s episode.

Enjoy!

Keep reading...

By

#578: The Hidden Cost of Playing It Safe With Money, with Dr. Margie Warrell

Fear blocks smart money moves. Ask Harvard Business Review advisor Dr. Margie Warrell, who guides Fortune 500 companies through strategic risk-taking. Her client roster includes NASA, Morgan Stanley, and Google.
Her understanding of courage started at home. Her 13-year-old daughter landed an Australian TV role. She flew to LA for acting classes. There, she learned the hard truth: Success meant waiting tables for 20 years.
The daughter’s verdict was clear: “Mum, I don’t want it enough.”
This reveals what Dr. Warrell calls the courage gap. It’s the space between your current life and the life you could create through brave action.
For investors, this gap appears daily. It’s the distance between dreaming of financial independence and taking concrete steps toward building wealth.
Drawing on her doctoral research and Fortune 500 consulting experience, Dr. Warrell outlines five critical steps to bridge this gap:
1. Focus on what you want, not what you fear.
Our brains have a negativity bias — we’re twice as sensitive to potential losses as potential gains. This explains why market downturns feel more intense than upswings.

2. Rewrite your story.
The narratives we tell ourselves shape our actions. Perhaps you see yourself as “too risk-averse” to start a business or “not smart enough” to understand investing. Reframe these stories so you can take smart financial risks.

3. Embody courage physically.
Fear lives in our bodies — whether it’s anxiety about making your first investment or launching a side business. Try simple practices like deep breathing when facing big financial decisions.

4. Step into discomfort.
Growth and comfort can’t coexist. Every successful investor and entrepreneur started as a beginner. Financial literacy and business acumen develops through consistent practice.

5. Find the treasure when you trip.
Market corrections, failed business ventures, and investment mistakes are learning opportunities.

Dr. Warrell emphasizes that courage isn’t about waiting until you feel confident — it’s about acting despite your fears.

This applies whether you’re making your first stock purchase, buying your first rental property, or quitting your job to start a business.

The takeaway: While you can’t control market conditions or business outcomes, you can control your response to financial fears.

Keep reading...

By

#577: Q&A: The Efficient Frontier Was Perfect Until HR Got Involved

Kelsey is excited about investing along the efficient frontier, but it feels impossible with the lack of fund options in her employer-sponsored 401k. What’s the best way to deal with this problem?

Molly discovered that her rollover from a 401k to a traditional IRA hadn’t been invested in mutual funds and was still in a money market fund. Manually calculating her net worth helped her identify this oversight, and she shares her experience with us.

Former financial planner Joe Saul-Sehy and I tackle this in today’s episode.

Enjoy!

Keep reading...

By

#576: The World’s Richest People Are Weird by Design, with William Green

The world’s greatest investors have a secret: they’re weird.
When one young fund manager met Bill Miller for the first time, he refused to shake hands. Instead, he locked eyes and declared: “I’m going to beat you, man.”
William Green joins us to share what he’s learned from decades of conversations with investing legends — from the hyper-competitive to the deeply philosophical.
These conversations reveal that success isn’t just about strategy; it’s about understanding yourself and playing to your strengths.

The best investors are mavericks who think differently. They’re willing to look strange, be lonely, and diverge from the crowd.

Templeton demonstrated this during WWII. When Germany invaded France and markets crashed, he bought 104 stocks trading under $1 — including 37 bankrupt companies. His contrarian bet paid off 5x when markets recovered.

But Green emphasizes this isn’t just about getting rich.

His decades of interviews reveal deeper wisdom about building a good life:

— Great investors focus on what they can control. They can’t predict markets, but they can manage their behavior and emotions.

— They embrace simplicity. Jack Bogle advocated owning low-cost index funds rather than chasing complex strategies.

— They understand odds and risk. Howard Marks asks “What’s the consequence if I’m wrong?” before making decisions.

— They play to their strengths. Charlie Munger says if you’re 5’3″, don’t try to be a pro basketball player.

— They live below their means. As investor Tom Gaynor notes, “If you’re living within your means, you’re already rich.”

Green shares a practical framework called HALT PS — don’t make important decisions when Hungry, Angry, Lonely, Tired, in Pain, or Stressed. This applies beyond investing to daily life.

The conversation explores how to build resilience before market crashes through healthy habits, self-awareness, and preparation. Green notes that many successful investors practice meditation and read widely across disciplines.

Even legends make mistakes. Bill Miller saw his assets drop from $77 billion to $800 million during the 2008 crisis. But he rebounded by staying true to his principles and learning from failure.

Green’s key message? Focus less on getting rich and more on building an “anti-fragile” life aligned with your values and strengths.

The best investors aren’t just good at making money — they’re skilled at creating lives of meaning and purpose.

Find more from William Green at williamgreenwrites.com or on his podcast Richer, Wiser, Happier, featured on the We Study Billionaires feed.

Keep reading...

By

#574: The Hidden Psychology of Financial Pressure, with Dr. Sunita Sah

What would you do if someone in authority told you to do something that felt wrong? Most of us like to think we’d speak up, push back, stand our ground. But research tells a very different story.

In fact, when Yale researchers conducted a famous experiment in the 1960s, they found that 65% of people would administer what they believed to be deadly electric shocks to another human being… simply because someone in a lab coat told them to.

Today’s guest has spent over 15 years studying why humans comply with authority – even when every fiber of our being is screaming that we shouldn’t. And when it comes to our money, this tendency to comply with authority figures – from financial advisors to real estate agents to car salespeople – can cost us dearly.

Dr. Sunita Sah began her career as a physician in the UK’s National Health Service. During one particularly exhausting period as a junior doctor, she agreed to meet with a financial advisor who had contacted her at work. That meeting sparked questions that would shape the rest of her career: Why did she feel pressured to trust this advisor, even after learning he had a conflict of interest?

Today, she’s a tenured professor at Cornell University, where her groundbreaking research on compliance and influence has been featured in The New York Times and Scientific American. She’s advised government agencies, served on the National Commission on Forensic Science, and helps leaders understand the psychology behind why we say “yes” when we really want to say “no.”

Whether you’re meeting with a financial advisor, negotiating the price of a home, or discussing rates with a contractor, understanding the psychology of compliance could save you thousands of dollars – and help you make better financial decisions. Today’s conversation isn’t just about psychology – it’s about protecting your wealth by learning when and how to say “no.”

Keep reading...

By

#575: Q&A: The Roth Decision at Every Income Level (And Why It Matters Now!)

Krish is fascinated by cryptocurrency and its impact on global investing. What opportunities should he capitalize on, and how?

Apar’s income has more than doubled after he started his own business. His advisor recommends Roth contributions but he’s skeptical due to his high income. Who’s right?

Keith is frustrated by the conflicting advice he’s heard about Roth conversions. Is it better to do it while he’s young and earning a lower income, or should he wait until closer to retirement?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

Keep reading...

By

#573: Q&A: Wait, Are We All Wrong About Zero APR Strategies?

An anonymous caller has always put her large purchases on zero percent APR credit cards, but something’s been nagging at her. Is she walking on thin ice with this strategy?

Von is confused why he keeps hearing that Roth accounts are better than traditional if they both lead to the same mathematical result. What’s he missing?

Molly and her husband are well on their way to financial independence, but they feel unfulfilled with their careers. Can they afford to plunge into student debt with a 50 percent pay cut?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

Keep reading...

Afford Anything