Afford Anything

Tag: downpayments

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#430: Ask Paula: My Parents Are Drowning In Credit Card Debt. What Should I Do?

D is worried that she’s going to suffer from her parents’ poor financial choices. Is it time to confront them about it?

An anonymous caller and her fiance both own a house. Which one do they move into after the wedding?

In a world of rising inflation, Nick wants to know if it’s time to change the way he saves for his future.

Another anonymous caller wants to buy a second home within a decade. How does she start planning now?

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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#399: Ask Paula: The Stock Market Is Down – Can I Still Retire?

Bella is SO CLOSE to reaching F.I.R.E and is worried about her withdrawal rate if the stock market drops. If the stock market does drop, can she withdraw as much as she had originally planned?

Sam has been investing for several decades and thinks that he should stay invested in his portfolio, despite the recent drop in value…but he is still wondering if there’s a chance that he should sell.

Meisha is making more money at her new job but can’t contribute to her 401(k) for the first six months – what should she do with her extra money in this interim??

Kyria is a young investor with multiple goals: she’s wondering how to best save for a down payment without it being eroded by inflation and also whether her investment choices should take on more risk, since time is on her side.

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

Enjoy!

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#370: Ask Paula: My Income Is Dropping From $190,000 to $40,000; What Should I Do?

Michelle makes $190,000 and is going to switch to a career that pays $40,000 on average. To prepare for this lower salary, she’s selling her current home and buying a different one. Should she pay off her new home with the proceeds from the old one? Or should she invest her profits?

Kristen is 32, and she and her husband want to retire in less than 20 years. They make too much to contribute to a Roth IRA. Should they use back door Roth conversions to speed along their path to early retirement?

Anonymous lives in a high cost-of-living area and is wondering where to keep her down payment and emergency funds. Should she use I-bonds, TIPS, or some combination of these two?

In today’s episode, former financial planner Joe Saul-Sehy and I tackle these tough situations.

Enjoy!

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.

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#368: Ask Paula: Talk Crypto To Me

Alex is curious about cryptocurrency. How should she analyze the returns promised by different platforms and where can she go to  learn more about crypto in general?

Grace wants to buy a manufactured home for rental income. Should she calculate her returns differently for a manufactured home?

Thomas and his wife have parallel goals of saving for a down payment and contributing to retirement accounts.  How should they balance both of these goals?

In today’s episode, former financial planner Joe Saul-Sehy and I tackle these tough questions.

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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#350: Ask Paula: How Much Should We Spend on a Wedding?

Anonymous and her husband have set themselves on the path of saving for retirement. But an old mistake haunts them: a financial planner convinced them to buy a mix of whole and term life insurance, which costs them $700 per month. Do they need whole life insurance, and where else can they save their money?

Mike has $60,000 in cash earning one percent interest. He has plans to buy a home and get married in three to five years. Where else can he put his cash to earn a little more? Is the stock market too risky for such a short time horizon?

Anonymous and her future husband are wondering: what’s a realistic amount to spend on a wedding?

My friend and former financial planner Joe Saul-Sehy joins me to answer these questions on today’s episode. Enjoy!

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. 

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By Paula Pant

#314: Ask Paula – I’m Worried About My Parent’s Retirement. What Should I Do?

Briale opened a Variable Annuity inside a 403b at work when she was 23. She has 17 years to go before retirement. As an elementary school teacher, her pension will be $6,000 per month. Should she stop contributing to the annuity and contribute to a Roth IRA instead?

Debi has an extra $1,000 each month and isn’t sure where to save it. She also has $10,000 in a CD which will reach maturity in August 2021. Her goal is to buy a residence in the next five years. Should she save this all for a downpayment?

Dominique is concerned about her parents retirement portfolio. Their advisor charges a fee of 1.5 percent assets under management. Her parents are frugal and they don’t realize how much they’re paying. Should she talk to them, or drop the issue?

Sarah isn’t sure whether she should put more of her savings towards a Roth 401k or a 529 fund for her future kids. Which option is best if she wants financial flexibility?

Hunter put a credit freeze on his two children’s credit, which required sending each credit union documentation via mail. Experian and TransUnion confirmed the credit freeze, but Equifax didn’t. Upon calling, the representative gave Hunter a different mailing address for the documents. What should he do?

My friend and former financial planner Joe Saul-Sehy joins me once again to tackle these questions. Enjoy!

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By Paula Pant

#306: Ask Paula & Joe – How to Shift From Financial Independence to a Mini-Retirement?

Jake and his wife want to retire in five years, at which point they’ll have 14 years before they can access their 401k funds. To help bridge that gap, Jake wants to know: what should their asset allocation look like for their taxable brokerage account?

This year, Kim’s employer enrolled all employees into a “fully funded indemnity program combined with a nationwide direct primary care membership.” What the heck is this program, and how might it impact Kim’s finances?

Burnt Out in Boston is switching their focus from financial independence to taking a mini-retirement. How can they financially and mentally prepare for this leap?

Matthew is torn: should he and his wife – both 26 – max out their Roth IRAs and then save up for a rental property, or simply save cash for the rental and worry about their Roth later?

Finally, Deva and her husband are fed up with their messy tenants. They’re kind and responsible, but they’ve left the yard a mess. They have a clause in the lease that addresses this, so beyond that, what can they do?

My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s show. Enjoy!

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By Paula Pant

#286: Ask Paula – How Long Will It Take Me to Become a Millionaire?

Kaitlyn has $78,000 saved for a property, but she isn’t sure whether she should buy a personal residence, a rental property, or both. How can she best use this money?

An anonymous listener wants to lower their housing expenses. Should she and her husband buy a cheaper property and turn their current home into a rental, or should they stay and pay off the mortgage as quickly as possible while saving for a downpayment on another property?

Alex is just getting started with financial independence and asks: how can you calculate your financial independence date, and how do you know how much you need to save to reach that number at a certain age? 

Ell wants to know: what’s the difference between a high-yield savings account and a money market account, and how can you maximize the interest you earn in these accounts?

Jenn wants to know: is it possible for Canadians to find cash-flow positive real estate deals, either in Canada or the United States?

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

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By Paula Pant

#285: Ask Paula – How Can I Pay for Grad School?

Sam wants to use the funds in her Vanguard S&P 500 index funds for a downpayment on a house. She isn’t sure if she should keep her savings in the market. Should she move her money, and where?

Hailey purchased a duplex in March and is already looking to sell due to a hostile tenant during the purchase process. How can she shift her focus from her initial return on investment to a long-term outlook?

Zoe dreams of attending grad school, but her savings are locked away in retirement accounts. How can she save for grad school in the next two to three years?

Mohamed wants to monetize a new podcast with affiliate relationships, but the service providers he wants to promote don’t offer affiliate programs. Can he still make this work, and how?

I answer these listener questions in today’s episode. Enjoy!

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By Paula Pant

#280: Ask Paula – Could This NYC Couple Contribute Only $10,000 Per Year Towards Retirement?

Amy and her husband have $900,000 saved for retirement. They’re 40 years old and plan to retire at 65. Due to a job change + pay cut, they might only have $10,000 per year to save for the next 25 years. Will this be enough, given their yearly expenses of $144,000?

Janie wants to get a solar power system for her house, but isn’t sure how to pay for it. Should she borrow funds from her seven-month emergency fund, or use funds from a taxable brokerage account that were earmarked for retirement?

CJ and his wife netted $200,000 from the sale of their home. They aren’t sure when they’ll purchase their next home – their timeline could be as short as three years or as long as six years. Where should they keep the $200,000 to use towards a downpayment on their next home?

Brandon wants to retire in the next five to ten years. He contributes 20 percent to his Roth 401k. Since he can’t withdraw those contributions early, does it make more sense to contribute up to the match of his 401k and invest the rest in an IRA with the goal of doing a Roth conversion?

Anonymous “am I missing out?” wants to know: when is tax-loss harvesting worthwhile?

My friend and former financial planner Joe Saul-Sehy and I answer these questions on today’s episode. Enjoy!

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Afford Anything