Afford Anything

Tag: financial independence

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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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By Paula Pant

#191: Ask Paula – Would You Live in an RV to Save Money?

Should Russell rent a cheap apartment, or should he take out a loan for an RV in order to save money on rent?

Carl is working two jobs that each pay $12 per hour. He has $5,000 in student loans. What can he do to improve his situation?

Caroline is about to finish paying off her student loans, and in the next few years she wants to buy a home. Where should she park her savings in the meantime?

Philip is saving for financial independence, but he’s not sure what to do with his time once he quits his job. How can he discover what ignites him?

Amanda is receiving an inheritance, a New York City 4-plex valued at $500,000. How should she handle this?

And an anonymous caller wants to know what the step-by-step path to wealth building would look like.

I answered all of his questions in today’s episode, plus I feature a short follow-up interview with Kim, the firefighter whom we met in Episode 139.

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By Paula Pant

#185: Ask Paula: How Do I Talk to Friends who Ridicule the Idea of FIRE?

Hello from Austin, Texas! I’m living in an Airbnb here for the next 5 weeks. Listen to the end of today’s episode to find out why … and discover how these next 5 weeks, for me, exemplify the “why” of financial independence.

In the meantime, though, the show must go on! Here are the questions that we’re answering in today’s episode.

An anonymous listener named Seeking FIRE wants to know how she can talk about financial independence with people who ridicule the topic. What do you say to those who laugh at the very idea?

Russell owns a landscaping company and is also a part-time student. He’d like to earn more money on the side, but his schedule is overbooked. What can he do?

Nick and his family are moving to the Washington D.C. area for approximately two to six years. They own two rental properties free-and-clear, and would like to buy a personal residence when they move. How should he save for the downpayment?

Gerardo lives in Mexico and wants to retire on his investment portfolio, using the 4 percent withdrawal rule. How should he invest, given currency fluctuations and other international factors?

Anonymous left her job and wants to know if she should roll over her 401k from her old employer.

We tackle these five questions in today’s episode. We also answer a comment from a listener who says that individual stock-picking and active management doesn’t get the credit it deserves.

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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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Written By Paula Pant

Why the FIRE movement is misunderstood

The FIRE movement is misunderstood. The drama of the last two weeks proves it. The question is, how can we fix this?

Ohhh we have a new supporter!!

Last week, Suze Orman called FIRE “dumb and stupid.”

“When I was 30 I was dumb and stupid as well, okay?,” she said in an interview with Yahoo! Finance, adding that she’s “pissed off” at people pursuing early retirement.

But since then, she’s taken more time to learn about the movement — and she’s in support.

In a Facebook post titled “What I Hate — and Love — about FIRE,” Suze writes…

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Written By Paula Pant

“Why I Hate the FIRE Movement,” says Suze Orman

A few weeks ago, I received an email from Suze Orman’s publicist, asking if I’d be interested in interviewing Suze on my podcast.

“Duh,” I replied.

Suze is a legend in the world of personal finance. She’s appeared on Oprah multiple times, published 10 mega-bestselling books, and hosted The Suze Orman Show on CNBC from 2002 to 2015. She’s one of the most famous voices in this space.

I read her most recent book, Women & Money, and sketched out a framework for the interview. Then I threw it away, feeling dissatisfied with my questions, and I turned to the Afford Anything community on Facebook and Twitter.

“I’m interviewing Suze Orman,” I wrote. “What would you like me to ask her?”

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Written By Paula Pant

How Much is Enough?

The idea behind financial independence is that your passive income — typically through investments — is enough.

But how much is enough? Enough for what?

The typical reaction that many people have to this question is to define “enough” based on their current standard of living.

For example: “Right now, my spouse and I […]

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Written By Paula Pant

Your Money? Or Your Life?

There’s a scene in a classic 1950’s TV show, The Jack Benny Program, in which a mugger points a gun at the title character.

“Your money or your life,” the mugger says.

Jack Benny is silent.

“I said, your money or your life!” the mugger repeats.

“I’m thinking it over!,” Jack replies.

The scene […]

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Written By Paula Pant

Here’s a Counterintuitive Idea for Your Retirement …

Once upon a time, in southern California in 1994, there lived a man named William Bengen.⠀

His friends called him Bill.

Bill was born in Brooklyn, and he studied aeronautics at MIT. He wrote a big paper on advanced model rocketry. Then he became an executive at a soft drink company. Finally, 17 years […]

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