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By Erin @ Team Afford Anything

#298: How to Talk to Friends about Money, with Erin Lowry

When going to restaurants with friends, does the idea of splitting the bill make you so anxious you can’t enjoy the food?

If someone asks you to be in their wedding party, is it an honor, or a stomach-churning ordeal?

Are you so afraid of discussing financial situations with friends and family that you let others have a say in what you spend your money on?

Awkward money conversations are an inevitable part of life. Whether it’s turning down invitations to go out with coworkers, trying to maintain friendships despite a limited budget, or discussing caring for aging parents with siblings, talking about money is a critical skill that can serve us for a lifetime.

If this is an area you could use a little help with, you’re not alone. Erin Lowry, author of Broke Millennial Talks Money, joins us on the show to share scripts and strategies for tactfully navigating life’s most awkward and common money conversations.

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By Paula Pant

PSA Thursday Part II: Let The People Trade!

This morning, almost every major brokerage halted trading on the most volatile stocks, including GameStop, BlackBerry, Bed Bath & Beyond, Nokia, and AMC Theaters.

We’re in a situation where major trading platforms are blocking retail investors – us – from placing trades, while allowing hedge funds and institutional investors to drive prices.

That is not a free market.

When you don’t let people buy, and you don’t let people sell, you’re locking people out of the game entirely.

Yesterday, I was worried that grandma and grandpa would make the wrong investment choices and irrationally bet their life savings away. Now, they’re prohibited from making any choice. 🤯

We deserve the right to make our own trading decisions.

For the latest updates, follow me on Twitter or Instagram (check out my stories). I’m sharing my thoughts on these platforms as things unfold.

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By Paula Pant

PSA Thursday: Wall Street Bets, GameStop, and the Rise of Meme Stocks

If you blinked, you missed the biggest stock market story since the crash of March 2020. 

It’s a story that led GameStop, a brick-and-mortar company that sells *physical* video games (remember when games came on 5.25-inch floppy disks?), to skyrocket its share price by 700 percent in two weeks. 

It’s a story that explains why multiple brokerages — including Vanguard, Schwab, Robinhood, TD Ameritrade, RBG Direct Investing, ThinkorSwim, Webull, E-Trade, and more — had such high volume and demand on Wednesday that these trading platforms briefly shutdown, or had intermittent service.

It’s a story that explains why AMC Theaters rose 264 percent, um, YESTERDAY. 

It explains why overlooked retailers such as Nokia, Blackberry and Bed, Bath and Beyond rose by approximately 35 to 45 percent yesterday (as of 3:30 pm Eastern, half an hour before market close). 

And it’s a story that explains why Express rose 166 percent in a single day, with such heavy trading volume that several brokerages halted all trades of its stock simply because the platforms couldn’t keep up with the firehose of orders.

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By Paula Pant

#297: Ask Paula – Should I Househack or Pay Off My Student Loans?

George is torn between paying down his student loan debt (which he deferred) or buying a househack. Which is better for his long-term goal of reaching financial independence?

Hanan wants to figure out if a backdoor Roth IRA conversion will work for her. She also wants to investigate whether a Vanguard Institutional 500 Index Trust and a Vanguard Institutional Total Bond Market Index Trust are ideal. Are trusts different from index funds or mutual funds and if so, how?

June and her husband netted $400,000 from the sale of some golden parachute ISOs. They want to help their children pay for college and are trying to figure out how to strategically use this money. Should they pay off their home, buy rentals, fund 529s, or Roth their 401ks?

Mario is curious to know: is his two-fund portfolio at a 90/10 split is a good asset allocation for his Roth IRA?

Vivian is worried about bridging the gap between when she retires and when she claims Social Security. Will her plan of doing a Roth conversion ladder work out the way she hopes?

My friend and former financial planner, Joe Saul-Sehy, joins me to answer these five questions. Enjoy!

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By Erin @ Team Afford Anything

#296: Investing is the Art of Probabilistic Thinking

There’s a lot happening in the market.

The Dow is at a new high, there are runaway stocks causing irrational exuberance, and yet, unemployment claims are on the rise. How can this be?

To make sense of this, we’re dedicating today’s show to discuss how improving judgment and using mental models can protect us against risks and short-term thinking. We also touch on the so-called death of cities, and what this means for real estate investors.

This episode is for you if: you’re confused about why the stock market is doing so well while the world definitely isn’t, you’re getting caught up in market trends and wondering if you should make a risky investment, or you’re curious about whether cities will make a comeback after this is all said and done.

Continue reading for a quick preview of everything discussed in this episode.

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By Erin @ Team Afford Anything

#295: What Your Childhood Taught You About Money, with Rachel Cruze

Have you ever stopped to wonder why you find it so painful to part with your money? Or why money seems to slip through your fingers as soon as you get paid? 

Are you able to define your values and connect them with how you manage your finances? 

Have you deeply examined the fears you have around money, and how those fears influence your financial behavior? 

In simple terms: what’s the motivation behind your money management style? 

Whether you’ve pondered these questions for years or they’ve never crossed your mind, digging into your money story can shed valuable insight on your behaviors with money. Those insights may help you develop a healthier relationship with money. 

Rachel Cruze, four-time bestselling author, two-time guest of the show, and daughter of Dave Ramsey, joins us today to talk about three frameworks that can help us better understand our money habits. 

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By Paula Pant

#294: Ask Paula – If I Were to Interview Suze Orman Again Today, How Would It Go?

Jeffrey is curious: if I were to interview Suze Orman today, would I agree more or less with her thoughts on the financial independence retire early (FIRE) movement?

Matt wants to know: if a property cash flows really well, is it worth paying significantly more than the appraised value to purchase that income stream?

Sara and her husband are returning to the states after living abroad for a few years. They’re moving to an expensive area where homes cost $800,000+. They have $150,000 saved for a downpayment, but a $600,000 mortgage isn’t what they had in mind. What should they do?

Eva and her partner are squirreling away money before the birth of their baby. They’d like to pay off their $90,000 mortgage in three years, but they’re afraid to use the money in case of unexpected baby expenses. What’s their best move?

Justin and his wife want to take a gap year with their children in three years. They plan to visit Spain and London for six months each. What are unexpected expenses that they should factor into their budget?

I answer these questions on today’s episode. Enjoy!

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By Erin @ Team Afford Anything

#293: The One Question That Makes Everything Easier, with Geoff Woods

Are you ready to say goodbye to bad habits from 2020 and say hello to habits that will actually guide you toward the person you want to become?

If so, a simple framework for building better habits is only a few minutes away.

After listening to this episode, you’ll have a step-by-step approach for creating habits that will serve you for years to come. This approach brings clarity around the one thing you need to focus on to live the life you’re dreaming of. 

Our guest is Geoff Woods, Vice President of The ONE Thing and host of The ONE Thing podcast. (You might be familiar with the book by the same name.) He is an expert at ruthlessly prioritizing tasks, developing values-based habits, and getting clear on the one thing that needs to be done to achieve a vision.

The simple framework that he presents in today’s interview gives you the tools you need to focus deeply and commit to actions that will take your productivity and personal development to the next level this year.

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By Erin @ Team Afford Anything

PSA Thursday: Kickoff 2021 with a 31-Day Challenge

Happy 2021Welcome back to PSA Thursday, a weekly-ish segment in which we talk about how to handle money, work, and life in the year that is 2020.

Today, we’re looking toward the future with a focus on kicking off 2021 with fresh energy and inspiration.

This episode contains a sneak peek of our 31-day challenge, and if you sign up here, you’ll receive a daily email that contains:

  • One key lesson or takeaway from a book that we love in the areas of psychology, finance, entrepreneurship, or productivity
  • One question, related to how you can apply that lesson to your own life
  • One challenge or action that you can take that will directly relate to that lesson

We also have an exclusive group in our community platform where you can join other members and take part in the challenge together.

This challenge is a powerful way to start 2021 with support, encouragement, guidance, and fresh momentum.

Happy New Year!

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By Paula Pant

#292: Ask Paula – I’m an Investor Who Likes Volatility; What Should I Buy?

Three Kids, FI has an all-equities broad stock market index portfolio that he’s held for years. He’s confident he can handle maximum volatility, so what investments can he lean into to that will provide him with great long-term returns?

Sarah is concerned: a financial advisor told her that investing in VTSAX over-indexes her in large cap funds and technology stocks. Is this true, and what should she do about it?

Alex’s wife lost her job due to the pandemic. They live in Washington state and are married filing separately due to his wife’s student loans. Can he use half of his income to qualify her for Roth IRA contributions?

Jordan is a new listener and he has three questions: should he use $100,000 to buy more rental properties or invest in a brokerage account? Should he and his wife upgrade their home and buy a property that’s worth double their current home? And finally, how can self-employed individuals who earn more lower the cost of health insurance?

I answer these four questions on today’s episode. Enjoy!

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