Afford Anything

Category: Investing

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#441: How to Invest in a Volatile Market, with JD Stein

It’s GRADUATION WEEK!

For those of you who’ve been following along this past year, you know that I’ve been completing the Knight – Bagehot Fellowship at Columbia University.

This week, my family and I are celebrating the countless hours of studying, all-nighters and eye opening experiences, so here at Afford Anything, we’re airing an important episode from our archives.

This episode addresses important questions we’ve been getting from the Afford Anything community, including:

• Where do I invest?
• How do I diversify outside of the stock market?
• How many individual stocks should I hold?

I’m looking forward to returning to the amazing Afford Anything community full-time as of June 1st, and eagerly anticipating sharing everything I’ve learned with YOU!!!! The team has big plans for the next year, so enjoy this episode and stay tuned for future announcements.

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#434: Tips for Tipped Workers, with Barbara Sloan

The majority of financial advice is geared to people with 9-5 jobs:

• “Negotiate for a raise.”

• “Max out your 401k match.”

• “Budget based on your income.”

Where’s the financial advice for people who earn money in tips: restaurant servers, bartenders, hairstylists, concierge, valets, ushers, nail salon workers, strippers, or other service industry professionals?

What about gig economy workers, freelancers and entrepreneurs? People who don’t earn a regular paycheck?

Not only do these workers earn a volatile and unpredictable income, they also often don’t have job-provided health insurance, retirement plans, and paid time off. They need to provide themselves with these benefits. What should they do?

That’s where Barbara Sloan comes in. She’s a financial coach and author of “Tipped: the life changing guide to financial freedom for waitresses, bartenders, strippers, and all other service industry professionals.”

Her book and advice applies to anyone who works outside of the traditional confines and systems.

If you (or someone you know) works for tips, you’ll love Barbara. And if you’re curious about exploring work outside of the normal 9-to-5, and wonder how to set yourself up for financial success when your income is hit-or-miss, this episode is for you.

Enjoy!

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#426: Key Takeaways: Best Lessons from the Last Year, with Paula Pant

Behavioral researcher, Vanessa Van Edwards, talks to us about the critical importance of charisma – and how to use the perfect blend of warmth and competence to be charismatic.

Dr. Michael Slepian walks us through what secrets mean, what they cost, and how we think about them.

We dive into the world of long distance real estate investing, and talk about two of the major components of investing – Cash and mindsets – to help you determine if long distance real estate investing is right for you.

International best selling author, Julie Winkle Giulioni, reviews eight dimensions of career development and how to navigate them.

Chris Hutchins, entrepreneur and life hacker extraordinaire, spills his best secrets on optimizing spend to travel more cheaply.

Kiersten and Julien Sanders join us to discuss money topics for couples, and their framework for being financially independent in 15 years.

Stanford professor Jeremy Utley breaks down the art of creativity and producing new ideas – and shares actionable tips on how we can be more creative and have better ideas.

Dr. Daniel Crosby discusses how we are not wired to be good investors, and how to overcome our evolutionary wiring.

Enjoy this compilation of our favorite episodes to air in the second half of 2022.

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#413: Why We’re Paying Attention to the Wrong Things, with Dr. Daniel Crosby

If an idea dominates the headlines, we notice it.

But maybe we shouldn’t.

Today’s guest, psychologist and behavioral finance expert Dr. Daniel Crosby, says there’s a difference between a prediction that gets repeated, and one that’s likely to unfold. 

What’s salient isn’t accurate, he says. And vice versa. 

He also talks about how money problems have morphed over time. He chats about how our evolutionary wiring is at odds with our goals. And he even discusses how we’re wired to be ‘lazy’ – and how to work with that tendency instead of fighting an uphill battle against it.

Dr. Crosby researches the intersection of mind and markets. His latest work, The Behavioral Investor, is an in-depth look at how sociology, psychology and neurology impact our investment choices. 

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#412: Ask Paula: Should I Repay Debt or Invest?

Taylor recently graduated. She wants to reach financial independence as soon as possible. What should she do first: invest or repay low-interest debt?

Carter doesn’t want to pay too much for his investments. He’s worried about the tax drag. He wants to know how to improve cost efficiency in his portfolio. How should he manage decisions about basis points, dividends and capital gains?

Our first anonymous caller has been working and investing for a decade. Today her portfolio is large enough that she and her husband can finally take a mini-retirement.

They’d like to rebalance their portfolio. They want it to reflect the fact that they won’t be working for a while. They’d also like to calculate how much money they need to travel with their children. How should they handle this?

Our second anonymous caller is worried that their portfolio is out-of-whack. Their money is in a target date retirement fund. They’d like to move some of it to a three-fund portfolio. But this is a scary time to sell. Stocks are low. What should they do?
Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it here.

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#409: Ask Paula: Should I Sell My Rentals to Buy More Stocks?

Liz and her husband are planning to retire in 5 to 10 years. They have rental income properties, but Liz is bored of managing these, and she’s intrigued by the idea of buying stocks at a discount when the market is low.  Should she sell her rental properties and use the money to buy stocks instead?

Rebecca is a high income earner and thinking about investing in a Roth 401k … but she’s scared of how much she’ll have to pay in taxes. Should she do it anyway?

Anonymous made big changes last year: she got a new career AND sold a house! Now she needs help figuring out capital gains and lowering how much she’ll have to pay in taxes … and she won’t have access to her company’s 401K for most of the year.

Kyle and his wife are moving into their dream home! What should they do with their current place?

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

Enjoy!

P.S. Got a question? Leave it here.

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#408: Build YOUR 15 Year Career, with Kiersten and Julien Saunders

When Kiersten and Julian Saunders began dating in 2012, they fell in love quickly, and their relationship felt strong – until they started talking about money.

They broke up as a result of their first money conversation.

Luckily, they got back together, figured out how to have tough conversations, and paid off $200,000 in debt over the next five years.

Then they started thinking about how to hack their careers. They came up with a plan for a 15-year career.

Today, they join us on the podcast to talk about the 15-year career framework and how to approach your career – and your finances – in 5 year stints.

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#403: How I Reached Financial Independence, with Chad Carson

Chad Carson’s friends called him a “nerdjock.”

When former college football linebacker Chad Carson graduated from Clemson University, he decided to start a business. But he didn’t have any money.

He was a 235-pound athlete who attended college on a football scholarship. He graduated debt-free with $1,000 in savings from various odd jobs. He wanted to become an entrepreneur, and he knew he was starting from zero.

As Chad viewed it, starting from zero meant he had nothing to lose.

He started jogging around local neighborhoods near the university. Whenever he noticed a property in disrepair, he’d ask if it was for sale.

If he noticed a ‘For Sale by Owner’ sign in the yard, for example, he’d dial the number.

If he noticed a home with an overgrown lawn and no curtains in the windows, he’d leave a note on the door, or he’d knock on the neighbor’s doors to get the owner’s phone number.

By doing this, Chad started a real estate wholesaling business. He’d find off-market properties, enter into a sales contract with the owner, and then ‘flip’ the contract to an investor. He earned around $5,000 for each deal.

The benefit to a wholesaling business, Chad discovered, is that he could get a foothold inside the real estate industry without much access to capital. He was a recent college graduate without any official employment, so most banks weren’t interested in offering him loans. Wholesaling gave him a start in the industry.

But after awhile, he wanted to chase bigger deals. He and a business partner decided to start flipping houses themselves. They earned profits of around $20,000 to $30,000 for each deal.

While this was great, Chad wanted to transition into something that would provide a steady, stable income stream. He was running an active business; he wasn’t accumulating a portfolio of passive investments.

He and his business partner stopped flipping homes and began accumulating buy-and-hold rental properties. Today they have 90 units between the two of them.

A few years ago, Chad realized that the passive income from his investments made him financially independent. He and his wife decided to enjoy their newfound freedom by moving to Ecuador with their two children, ages 3 and 5.

They spent 17 months living in Ecuador, learning Spanish and enjoying a slower pace of life. They recently returned to the U.S. and are considering moving to either Spain or Germany — or maybe Colorado? — for their next adventure.

In today’s episode, Chad and I discuss real estate, financial independence, and international travel with children.

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#390: Ask Paula: Help! My Bills Are Too High

We start this episode with two anonymous callers who have opposite problems: one says her bills are too high, while the other is worried that she’s saving too much.

Anonymous (“Izzy”) saves A LOT. She wants to relax about her spending more, and start including more joy into her life. How should she approach the next 10 or 20 years, so that she can enjoy her financial security?

A different anonymous caller (“Starlight”) has the opposite problem: her expenses are mounting. Her bills make her uncomfortable. She wants to shake up her investments so that she can tap her assets in order to make her payments. Ideally, she’d also like to buy a house in Europe within the next 10 years. How should she do this?

John liked the episode with Bill Bengen, where we discussed the 4% rule.  However, he questions whether that rule should really be applied to the FIRE community.

Steve is a landlord who needs his property to cash flow, but doesn’t like to raise rents. What should he do?

Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.

Enjoy!

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