Afford Anything

Tag: financial independence

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#529: Q&A: The Unintended Consequences of Early Retirement

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!

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#528: The Stock Market is in Panic Mode and the Unemployment Rate Jumped – But Everything’s Fine

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.

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#527: Q&A: Can They Be Financially Independent in Five Years … By Breaking the Rules?

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!

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#524: Q&A: Don’t Waste Your Inheritance! Here’s How

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!

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#522: Q&A: Help! I’m STUCK On A Financial Tracking Hamster Wheel

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!

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#496: The Pay Cut Price of Freedom

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!

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#493: Wall Street Secrets, with Your Rich BFF Vivian Tu

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.

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#489: Ask Paula: What to Do with a Six-Figure Windfall?

Cara made $100,000 in commissions this year, her biggest bonus ever. What should she do with the money if she wants to retire early?

An anonymous caller and his partner have lived in an RV for years. They’re ready to settle. Should they sell most of his investments to purchase raw land and build an off-grid home?

Remy and her husband need to come up with $30,000 for IVF treatments. How do they build their family without breaking the family finances in the process?

Another anonymous caller is upset that the 401k plan he sold his boss on is charging him an Assets Under Management (AUM) fee. Should he keep the 401k at all?

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

Enjoy!

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#482: Ask Paula: Should We Drain Our Brokerage to Make a HUGE Down Payment?

A caller named “M” wonders if liquidating stocks for a larger down payment makes sense in a high-interest rate environment.

An anonymous caller wants to take a pay cut to pursue his passions. But 75 percent of his net worth is in real estate. Is this too risky?

Tiffanie hasn’t saved enough for early retirement, but she has a plan to use home equity to accelerate her goals. Is this going to work?

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

Enjoy!

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#478: Buy the Damn Guac, with Jamila Souffrant

Ever skipped that extra drink, pricey cheese, or a night out for the sake of your wallet?

If this feels familiar, then you’ll appreciate today’s episode with Jamila Souffrant.

Jamila is a Certified Financial Education Instructor, podcast host, and author, guiding us on making savvy choices to save while still having fun.

Jamila explores the power of understanding our “why not,” staying motivated on our financial paths, shaping a success-bound mindset, and posing THREE crucial self-assessment questions for goal alignment

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Afford Anything