Today we’re featuring a special episode recorded LIVE in front of an audience at Podcast Movement, an industry conference in Denver.
Former financial planner Joe Saul-Sehy and I tackle two questions in today’s episode. Our first question comes from a soon-to-be-single-mother on the precipice of divorce. How should she navigate this financially?
Our second question comes from the spouse of a Purple Heart veteran of the war in Afghanistan. She and her husband would like to take a one-year sabbatical from work when they turn 40, which is in five years. They’d also like to pivot into lower-paying but more enjoyable careers. How should they map out their money for this transition?
Joe and I dedicate this episode, recorded live on stage, to answering these two questions. Enjoy!
P.S. Got a question? Leave it here.
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Here are the details:
Anonymous Caller asks (at 02:57 minutes): My marriage may end in divorce.
I don’t know how to navigate this from a financial perspective.
We have children and we own a house with $250,000 of equity. We live in a no-fault state, and we’d split the assets 50-50.
I have modest non-retirement savings, including a Health Savings Account (HSA), Roth IRA annuity, and an illiquid pension with $20,000 to $30,000.
I’ve gone through a rent-to-own analysis from an emotional and financial perspective, and I want to buy a house that would cost $350,000.
What should I prioritize as I look at the possibility of needing to purchase a house and live on a very tight budget as a single parent?
Another Anonymous asks (at 36:38 minutes): Should disability payments factor into long-term financial planning?
My husband and I are 35 and don’t intend to have children. We work in fast-paced jobs in the tech sector and want to take a year off when we turn 40.
After our sabbatical, we’d like to pivot to lower-paying careers we’re more passionate about, essentially becoming Coast FI.
My husband spent five years in the army, earning a Purple Heart while deployed in Afghanistan. He received an 80 percent disability rating, which entitles him to $2,100 a month from the VA, tax-free.
This amount typically goes up yearly based on inflation, but that’s at the discretion of Congress.
Our combined annual income is $280,000, not including the disability.
We max our 401ks and HSA, but we’re over the income limit for Roth IRAs so we contribute this money to a regular taxable account at Vanguard.
How do we determine how much money we’d need for our sabbatical, and to reach Coast Fi?
Do we account for the disability payment when calculating our Coast FI number? Or is this icing on the cake?
Longer-term, do we count it for retirement planning purposes?
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