By Paula Pant
Jackie is sold on Paul Merriman’s “Four Funds” approach, but she’s overwhelmed by the logistics of diversifying her single fund portfolio.. What are the best practices to redistribute her investments, handle taxes, and manage rebalancing?
Heidi’s mother recently passed and she’s struggling to decide between distribution options, their tax implications, and investment options for the […]
By Paula Pant
Bitcoin is hitting new all-time highs. Is this just another bull cycle, or are we witnessing a fundamental shift in how the world thinks about money?
That’s the question at the heart of our conversation with Tatiana Koffman, General Partner at Moonwalker Capital and author of “The Myth of Money.”
Koffman joins us to explain why Bitcoin might be considered “digital property” rather than just a currency. She breaks down how Bitcoin derives its value from mathematical scarcity – similar to how gold becomes harder to mine over time, Bitcoin becomes more difficult and expensive to create every four years through events called “halvings.”
The conversation moves through several key developments in cryptocurrency. We discuss the recent approval of Bitcoin ETFs and how traditional financial institutions like JPMorgan Chase (whose CEO Jamie Dimon once openly criticized crypto) are now embracing these products. Koffman shares insights about crypto adoption worldwide, from El Salvador’s experiment with Bitcoin as legal tender to Dubai’s emergence as a crypto hub.
When discussing Africa’s cryptocurrency landscape, Koffman explains how Nigeria’s unstable banking system has driven crypto adoption, with many young people using decentralized exchanges to participate in global markets. She describes how some Nigerians have built significant wealth starting from nothing, using “airdrops” (free tokens given to early adopters) to begin trading.
The interview includes a debate about inflation rates and economic data reporting, with Koffman expressing skepticism about official figures, while I push back on claims made without supporting evidence.
Koffman also explains different categories of crypto investments, distinguishing between Bitcoin as a potential store of value and what she calls “meme coins” – speculative assets she compares to gambling. She provides context about stable coins, particularly USDC and Tether, and their role during the Silicon Valley Bank collapse.
For those interested in investing in cryptocurrency, Koffman suggests starting with exposure to Bitcoin through regulated platforms like Coinbase or ETFs, while emphasizing the importance of proper security measures. She explains concepts like “cold wallets” and “seed phrases,” comparing them to different levels of bank security.
Looking ahead, Koffman discusses cryptocurrency’s potential role in reducing dependence on the U.S. dollar, particularly in developing economies, while acknowledging the challenges of creating stable alternative currencies.
Find Koffman’s weekly newsletter at mythofmoney.com or follow her on Twitter and Instagram @TatianaKoffman.
By Paula Pant
Joanne is confident that her short and long-term financial plans are set, but she’s not certain about the medium-term. What’s the proper way to allocate money for different time horizons?
Jessie is intrigued by Paul Merriman’s simple portfolio recommendations but wonders about his lean away from growth stocks. Are value funds generally better for everyday investors?
Nancy is worried she’ll miscalculate her financial independence number because her net worth includes pre and post-tax money, plus liquid and illiquid investments. What’s the right approach?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it here.
Written By Paula Pant
Once upon a time, in southern California in 1994, there lived a man named William Bengen.⠀
His friends called him Bill.
Bill was a Brooklyn kid who studied aeronautics at MIT. He wrote a breakthrough paper on advanced model rocketry. He spent 17 years as an executive at a soft drink company. […]
By Paula Pant
Bill Bengen, the former rocket scientist who discovered the “4 percent rule” of retirement planning, joins us at the Bogleheads conference in Minnesota.
Bengen clarifies that calling it a “rule” is misleading since it doesn’t fit everyone’s situation. The 4 percent figure came from studying the worst-case scenario since 1926, when someone who retired in 1968 could only safely withdraw 4.2 percent annually. Out of 400+ retirees in his database, that was the only one who had such a low safe withdrawal rate — most could take out much more.
Recent research has pushed the “safe” withdrawal rate closer to 5 percent. But Bengen identifies eight key factors that affect how much you can withdraw, including how long you’ll be retired and whether you’re drawing from taxable or tax-deferred accounts.
For early retirees planning for 50-60 years, Bengen says the safe withdrawal rate asymptotically approaches 4.2 percent — meaning even with an infinite time horizon, it won’t drop below that. He thinks the common advice to use 3 percent for early retirement is unnecessarily conservative.
Bengen shares what he calls the “four free lunches” in retirement planning:
1. Using an equity glide path (reducing stocks at retirement, then increasing later)
2. Diversification across asset classes
3. Regular portfolio rebalancing
4. Slightly overweighting higher-returning assets like small-cap stocks
When it comes to market drops versus inflation, Bengen has clear advice: Don’t panic during bear markets — they typically recover. But if you hit extended high inflation early in retirement, it’s time to “head for the bunkers” and cut expenses drastically.
Beyond finance, Bengen shares his excitement about space exploration as a former rocket scientist who graduated from MIT just months before the moon landing. He hopes to live long enough to see humans reach Mars and believes space tourism helps people appreciate Earth’s beauty and fragility.
The interview ends with a light-hearted discussion about whether Pluto should still be considered a planet (Bengen still calls it one, out of habit) and speculation about future tourism to Saturn’s moon Titan once the sun’s expansion makes it warmer in a few hundred million years.
Written By Paula Pant
You’ve spent decades being the responsible one. The disciplined saver. The person who maxes out their 401k, lives below their means, and actually understands what “tax-loss harvesting” means.
Then your financial planner looks you in the eye and says: “You’re not going to be able to spend what I think you can spend […]
By Paula Pant
An anonymous caller, whom we name “Samantha,” and her husband are financially strained and feeling torn. Shortly after purchasing two rental properties, their income dropped dramatically. Should they sell?
Tina is a full-time environmentalist. She’s worried that her index funds don’t align with her values on sustainability. Is there a world where she can be a savvy investor and fight climate change?
Another anonymous caller, whom we name “Sarah,” is excited and uncertain about her growing business. Should she hold steady or invest more resources into it? And how does she know if she’s making the right call?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
By Paula Pant
What happens when you spend three decades talking to retirement experts? You learn that most of what people think they know about retirement planning is oversimplified or wrong.
Christine Benz, director of personal finance and retirement planning at Morningstar, joins us on the Afford Anything podcast to share what she’s discovered after 31 years of […]
By Paula Pant
Imagine saving nearly your entire paycheck while your rental properties cover your bills. That’s exactly where real estate investor Andrew finds himself — and yet he’s at a crossroads.
At FinCon, a personal finance conference, former financial advisor Joe Saul-Sehy and I sit down with Andrew and another attendee who bring their money dilemmas live on stage.
Andrew’s question seems simple at first: should he sell his index funds to pay off his rental mortgages? But the real story runs deeper.
He feels called to entrepreneurship and wants to quit his corporate job to pursue it full-time. He could achieve minimal financial independence (lean-FIRE) if he pays off the properties, but that might limit his options.
Next, Chris, a Gen X dad, opens up about his Gen Z kids’ gloomy money outlook. His 22 and 24-year-old children, especially his daughter, believe their generation “will never retire.” They see high inflation, expensive housing, and low wages as insurmountable obstacles.
This sparks a deeper conversation about generational perspectives. We note that similar fears existed 15 years ago when millennials entered the workforce during the Great Recession. Joe shares how he helped his own kids develop healthier money mindsets by introducing them to financial voices they could relate to, like Broke Millennial author Erin Lowry.
The discussion evolves into how today’s young people actually have more opportunities than previous generations — they can work remotely, start online businesses with minimal capital, and create multiple income streams through platforms that didn’t exist before. Chris’s daughter, for instance, sometimes makes $35/hour driving for DoorDash during peak times.
We wrap up by talking about the importance of focusing on what you can control and finding purpose beyond just retirement planning. As Andrew points out, it might be worse to spend the best years of your life doing work you don’t care about than to face uncertainty in retirement. The key is taking action on the things within your control while building toward long-term security.
Throughout the conversation, both guests share personal stories that illuminate their situations – from Andrew’s experience at an oil refinery that pushed him toward entrepreneurship to Chris’s daughter storing cash for taxes from her DoorDash earnings, showing she’s more financially aware than she might think.
By Paula Pant
An anonymous caller was raised to work hard, live below his means, and save. He feels undeserving of his recent $1,000,000 inheritance and struggles to spend it. What should he do?
Jack bought a house with a seven-year adjustable-rate mortgage. He’s confused about when and how he should refinance out of it. What should he do?
Jack is also wondering how to do the breakeven calculation between contributing to a Traditional IRA with upfront income tax savings versus a Roth IRA with deferred savings on investment gains.
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
