By Paula Pant
Financial psychologist Dr. Brad Klontz and Youtuber Adrian Brambila join us to talk about money psychology, starting with a dark but revealing story about an experiment with dogs.
Scientists put dogs in electrified cages from which they couldn’t escape. Eventually, the dogs stopped trying to escape and just lay down, even when later moved to […]
By Paula Pant
Steven is stuck on the question of financial stability. How do you know if you have it? Is there an objective answer based on net worth? Or is it a calculation relative to your income and age?
Jack isn’t sure how to factor his house into his net worth. It’s an asset, but he has a mortgage against it, and there are transaction costs associated with selling it. How should he frame it?
Patricia and her husband are debt-free with a $2.2 million net worth, but she’s constantly stressed about their finances. Are her concerns valid? Or is she a financial hypochondriac?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
By Paula Pant
Ever wondered if you’re making the right choice between a Traditional and Roth 401(k)? You’re not alone.
In this episode, Katie Gatti Tassin, host of MorningBrew’s Money with Katie podcast, joins us to tackle this common retirement savings dilemma.
We deep-dive into the debate between using Traditional vs. Roth 401(k) accounts for retirement savings, in the context of:
Future tax rates
Tax complexities for small business owners and high earners
Social Security uncertainty
Stock-based compensation
Incentives for business owners vs. employees
Katie explains her strategy for maximizing retirement savings while minimizing taxes. She suggests that for some people in higher tax brackets, maxing out a traditional 401(k) and then investing the tax savings elsewhere might be the way to go.
But as we dig deeper, it becomes clear that there’s no one-size-fits-all answer.
We explore the Traditional vs Roth question, discussing how your current income and expected retirement spending can affect your choices.
It’s not just about the math, though. The unpredictability of future tax rates and policies adds another layer of complexity to the decision.
Social Security plays a major role, as well. We discuss its current funding situation and the challenges it might face in the future.
This leads to a fascinating discussion about how AI might impact future costs and lifestyles. Could things actually get cheaper in the future?
Taxes for high earners and small business owners is another focus. We break down some misconceptions about who falls into high tax brackets. It’s not always as simple as it seems.
Stock-based compensation is another hot topic. We discuss how it affects corporate decision-making and the wider economy. This leads to an interesting comparison of the incentives for business owners versus employees.
Throughout the episode, we keep coming back to one key point: no matter which type of account you choose, the most important thing is to contribute as much as you can.
Your contribution amount has a bigger impact on your retirement savings than the type of account you use.
By the end of this interview, you’ll have a better understanding of the factors that go into choosing between a Traditional and Roth 401(k). More importantly, you’ll see how this decision fits into the bigger picture of retirement planning and overall financial health.
By Paula Pant
Anonymous, 60, recently lost her job and is worried about retirement. She owns a paid-off triplex, living in one unit and renting the others for $30,000 a year. She used her 401(k) funds to buy the triplex and now has $50,000 in retirement savings and $150,000 in cash. She expects only $2,400 a month from Social Security at age 67. After losing her son two years ago, she’s seeking advice on managing her underfunded retirement.
Noelle, 40, and her husband, 49, want to cancel his whole life insurance policy. They are debt-free, own their home, and plan to retire soon, relying on Noelle’s $80,000 income. They have $504,000 in retirement savings. Should Noelle keep her $100,000 term life policy until she retires?
Sleepless in San Antonio, age 35, plans to retire at 45 but is concerned about how this will affect Social Security benefits, which is calculated based on the top 35 earning years. Should they work longer in order to boost their Social Security benefits?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
By Paula Pant
The Federal Reserve recently decided to hold interest rates steady, leading to significant shifts in the stock market. The Dow dropped over 850 points, and the NASDAQ entered correction territory, falling more than 10% from its peak.
But what do these numbers mean for you? We break down the latest jobs report, which shows a rise in unemployment to 4.3%, triggering a recession indicator known as the Sahm Rule. This isn’t just economic jargon; it affects real lives, impacting job security, investments, and financial planning.
We discuss potential ripple effects on various sectors, such as real estate, where interest rates influence housing affordability.
We also examine the technology sector’s volatility and how recent market corrections might influence tech stocks and the overall investment landscape.
Understanding this can help you make informed decisions about your investment portfolio.
Every First Friday of the month, we bring you our “First Friday Monthly Economic Report,” where we help you make sense of these trends.
We aim to make complex economic concepts accessible. Join us as we explore these pressing economic issues.
By Paula Pant
Christina is worried. She’s retired with a paid-off condo in Florida. But rising fees, insurance rates, and a major HOA assessment are killing her cash flow. Is it time to become a renter?
Les is surprised by Paula and Joe’s allocation recommendations for international equities. Based on market capitalization, it makes no sense. What’s he missing?
Luke and his wife are breaking some personal finance rules in the name of financial independence. Are they right to take this approach or is there a better way?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
By Paula Pant
An anonymous caller and his girlfriend are musicians who dream of building a home with a monetizable recording studio. How do they untangle personal wants from business needs?
Will feels stumped about the options in his defined benefit pension plan. When should he choose a guaranteed annuity over a lump sum payment?
Mark and his partner will soon inherit an IRA worth over a quarter million dollars. With today’s elevated interest rates, would throwing it all at a primary residence be the smartest play?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
By Paula Pant
Emily Anne is worried about her obsessive tracking behavior. She’s in great financial shape but struggles to shake the constant compulsion to check her accounts. What should she do?
An anonymous caller and his partner plan to use geo-arbitrage to retire early before reaching their financial independence number. Can they have their cake and eat it too?
Kevin and his wife are having second thoughts about their Delaware Statutory Trust (DST) real estate investments. How do they back out without compromising their estate plan?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
By Paula Pant
How much of a pay cut would you take for a lighter workload?
Paul, 35, is grappling with that question. Like many of us, Paul says he loves his job, but the hours are demanding. He would love to work less. But he didn’t think the opportunity would come so soon.
You see, Paul is a dedicated saver. He’s spent years trying to build financial independence. He’s amassed a net worth of $910,000, with no debt.
His ideal early retirement, which would be filled with travel and hobbies, requires more money. Besides, he enjoys his career.
That’s why Paul thought he’d work full-time for several more years. He felt happy with that plan.
But an interesting opportunity recently arose.
Paul’s workplace has offered him the chance to drop his hours – and his salary – by 25 percent. He’d love to work less. But the salary cut is earlier than he’d planned.
Should he take it?
Today, we kick off the podcast episode with this question.
After that, we turn our attention to an anonymous caller. She and her husband want to retire at 55. They also want a bigger home, a better car, and to start growing their family. Can they afford it all?
Meanwhile, Tim spent his 20’s in medical school. He missed out on retirement savings during those years. He’s eager to catch up. What’s the shortest path to get there?
Finally, Matthew and his family dream of leaving Florida for the Pacific Northwest. Will they regret selling everything to start over?
Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode.
Enjoy!
By Paula Pant
Do you ever wonder what happens behind closed doors on Wall Street?
Vivian Tu, also known as Your Rich BFF, is here to spill the tea.
Vivian grew up in a modest immigrant family. After college, she found herself working insane hours on Wall Street after college.
While working on Wall Street, Vivian saw some weird things.
Once, a coworker stumbled hungover into the office after a trip to Atlantic City, carrying a duffel bag with thousands of dollars in cash inside.
Vivian realized that there’s a group of high-income and high-net-worth people who handle money in drastically different ways than she learned in her frugal upbringing.
She learned about investing, taxes, legal loopholes. She discovered new ways of thinking about money.
She shares these insights — gleaned from her Wall Street days — in today’s podcast episode.
