Afford Anything

Tag: financial freedom

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#362: Ask Paula: Okay Seriously, Why Hasn’t Anyone Solved the Budgeting Issue?

David is questioning how to better manage his spending. He’d like a stronger framework to think through budgeting challenges.

Elisa and her husband bought a home, and now they’re saving extra income every month. She has a pension and her husband is an entrepreneur. How much should they be saving for retirement and how should they invest their extra money?

Geoff invested primarily in taxable brokerage accounts for the last twenty years. He’s built a $6 million portfolio and reached financial independence. He wonders about the smartest strategy for withdrawing from those taxable brokerage accounts to efficiently manage capital gains?

Jenna and her husband are planning on buying their next home in a few years. She wants to know if I-bonds are a good way to save for the down payment and closing costs.

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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#358: Ask Paula: Should I Invest in Index Funds More Actively?

Where is the balance between the risks and potential returns of actively and passively investing in index funds?

Where do you place your savings after you max out your retirement and HSA accounts?

How do you finance building a rental unit when there’s already a home on the lot?

Is it more beneficial to buy back pension time with post tax deductions or a 457b plan? Or should I not buy back pension time at all?

In today’s episode, former financial planner Joe Saul-Sehy and I discuss the purpose and practice of mindful money.

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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#356: Ask Paula: FIRE vs. FOMO — How Do You Balance Between These?

How do you find balance between smart money management vs. missing out on opportunities?

Should you pile money into investments or take that dream trip to Tanzania?

What should you do when your heart leads you to a decision that doesn’t make sense on paper?

In today’s episode, former financial planner Joe Saul-Sehy and I discuss the purpose and practice of mindful money.

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#354: Ask Paula: How Do I Make Sure I Don’t Spend the Money I’ve Invested?

Charlie in Cali has enough money saved to pay cash for a house, but she and her husband decided to finance their home, instead. They’d rather invest the money and arbitrage the spread.

But one problem: how can they keep themselves from touching this investment?

Jay is choosing between Fidelity and M1 Finance and has questions about tax loss harvesting.

Nicole and her siblings will be inheriting some properties that they eventually plan to sell. How should they set up or organize these properties among so many owners? Should one person take the lead? Do they need a shared business account? Also, how should they evaluate a property and make sure they get a good deal when they sell?

Ed owns three homes, two of which he plans to sell in the next few years. He plans to live in them long enough to establish residence and take the capital gains exemption when they sell. Is his plan for handling the taxes solid?

We answer these four questions in today’s episode.

Enjoy!

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#352: Ask Paula: Should I Pull Money from My Emergency Fund to Invest or Pay Off Debt?

Anna and her husband have volatile income, but Anna thinks that having 18 months of living expenses is unnecessary. She’s torn between paying off her student loans ($30,000) or investing the money. Mentally, she always figured she would pay off her debt first, but wouldn’t investing pay off in the long run?

Charlotte and her husband are taking a phased approach to financial independence, where they need to bridge two gaps before they each turn 59 ½. How can they calculate how much they need at each phase?

Elle has a retirement plan in place, but her company is adding a Roth 403(b) option soon. Should she stay the course or adjust her strategy in these last five years before retiring?

Sara wants to purchase land and build her dream house by refinancing her rental property and turning her current home into a second rental. How can she improve this plan?

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

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#348: Ask Paula: How Should We Invest to Retire By Our Mid-40’s?

Julia and her husband, both 27, want to retire by their early to mid-40s. Is there a point at which they should stop contributing to tax advantaged accounts and only contribute to taxable accounts?

Ana and her family like their home, but it needs to be bigger. A cash-out refi didn’t give them enough funds for their dream renovation. Should they put their money into the market in the hopes that it will grow large enough to fund a future renovation? Or should they move into a bigger house, rent out their house, and fix it up years down the road?

Anonymous from MA is flummoxed by HSA-compatible health plans. His copay and deductible are awful, and even bronze plans seem better. Are HSA plans overrated, or does the math work out?

Aja’s mom is 75 and has to take required minimum distributions from her IRA. She doesn’t need the money. Where should she put it?

Nick has a seasonal business. Can a sweep account help stabilize him?

My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s show. 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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Written By Paula Pant

Unusual Ideas about Self-Care … FIRE Edition

There are people who claim that ‘self-care’ requires wasting money.

They’ll encourage you to “treat yourself!,” because “you deserve it!”

Buy those shoes! Enjoy that upscale sushi restaurant! Upgrade to the nicer, newer car! You work hard. You deserve it!

Uh-huh.You know what else you deserve?

You deserve the relief that comes from wiping out a debt.

You deserve the joy that comes from buying an investment or a rental property.

You deserve the pride that comes from maxing out your contributions to a retirement account.

You deserve the stress relief that comes from taking a long walk in the park while listening to an audiobook, or taking a yoga class, or enjoying a hard workout at the gym.

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Written By Paula Pant

So I Gave a Talk at Google …

A few months ago, I got an invitation to speak at Google.

“Cool,” I thought. “That’s, like, grown-up stuff!”

The invitation came from one of my podcast listeners, David Moltz, who works at the company’s Los Angeles office and who hosted the hour-long Q&A.

“Could you talk about financial independence,” he asked me, “but maybe leave out the part about everyone quitting their job?”

“Haha! Sure thing,” I replied.

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Afford Anything