Should a 25-year-old homeowner with healthy savings and no debt (other than his mortgage) upgrade his car? Should he make this choice if his current car is fine, and upgrading puts him into new debt?
Should a couple without access to an employer-sponsored retirement plan put their savings into a taxable account, or should they save for a downpayment on a rental property?
The market is fluctuating like mad; if someone has a lump-sum of cash, should they invest it now or should they slowly meter it in?
Should someone without an emergency fund enroll in an HSA-qualified health insurance plan? Or should they stick with a plan that has a smaller deductible?
How should a husband-and-wife team that’s self-employed and running a company together handle their health insurance?
Former financial planner Joe Saul-Sehy and I answer these five questions on today’s podcast. Enjoy!
Here are more details:
Anonymous asks:
Neither my husband nor I have access to 401(k)s or IRAs at our jobs. We may have access to pre-tax plans in the future, but not for the next year or so.
We max out our Roth IRAs in Vanguard accounts, and we’ll likely be able to do this for another year or two before we meet the income eligibility cap.
Here’s the twist: we’re about to close on our first rental property, and we want to invest in more in the future.
In addition to our Roth IRA contributions, if we set aside the equivalent of maxing out our 401k, would we be better off putting that money into a taxable Vanguard account, saving for another downpayment, or a combination of the two?
Jared asks:
I’m maxing out my Roth IRA, and for everything beyond that, I opened an individual tax account (VTSAX).
I don’t want to get caught up in the noise of market fluctuations, but I wanted your thoughts on whether I should make monthly contributions or lump sum contributions to my Roth IRA and individual tax account.
Jessie asks:
My husband and I are starting our first business together (an LLC), and we have no plans to hire any employees. Since we’re both leaving jobs with health insurance, we want to know how to manage healthcare expenses as entrepreneurs.
What insurance should we get? What are the pros and cons for various healthcare options?
Miles asks:
I’m interested in the FIRE movement, and with my goal of retiring early, I’m wondering if I should buy a new car, or lease it. Nothing is mechanically wrong with my car, but it’s not the best vehicle for getting around in Minnesota winters.
Do you have any advice on buying a new car or leasing, and how it affects long-term financial goals? Are there any general rules-of-thumb to use as far as a monthly car payment?
Anonymous asks:
For the first time in my career, I have access to an HSA plan, but it’s a high-deductible plan. Here are the details:
If I choose an HSA plan, my employer will contribute $500/month to my HSA. I take a monthly medication that costs $30. Besides that, I’m healthy and don’t have any chronic health conditions, and I take good care of myself.
Two other factors to consider: my emergency fund is around $500 – $1,000, which is low, but increasing it is a priority for me. I also have $8,000 of debt that I’m working to pay off.
Do you have any thoughts on how to reduce my risk if I were to choose an HSA plan?
Resources Mentioned
- The Ecuador Chautauqua – the first with an all-female speaker lineup!: abovethecloudsretreats.com
- Carfax.com
- Cars.com
- Do You Really Need AWD in the Snow? – Consumer Reports
- Healthcare.gov
- Policygenius.com
- Ed Slott’s list of advisors
Thanks to our sponsors!
Freshbooks
Save time by using Freshbooks, an easy-to-use, cloud-based accounting system that takes the stress and hassle out of bookkeeping and, especially, invoicing. You can create an invoice in a few seconds, and Freshbooks’ automated system will handle the rest. Visit Freshbooks.com/paula for a free 30-day trial. Please mention this show when they ask how you heard about them.
Robinhood
Robinhood is an investing app that lets you buy and sell stocks and ETFs commission-free. They strive to make financial services work for everyone – not just the wealthy. I’ve been using Robinhood since March 2015! If you want a free stock, just sign up at afford.robinhood.com.
Hello Fresh
Want to conquer your kitchen with deliciously simple recipes? Hello Fresh has you covered. Spend less time meal planning and grocery shopping with meals that come together in 30 minutes or less. Take advantage of Hello Fresh’s special offer for 2019: get $80 off your first month by going to hellofresh.com/affordanything80.
ShipStation
ShipStation is a centralized platform where you can process shipping orders. They have shipping labels for all the top carriers, and they offer deep discounts on shipping. Try ShipStation for free for 30 days and get an additional month free if you use my promo code Paula. Click this link, then click on “heard our ad?” on the top right of the screen, and type Paula.
