Afford Anything

Tag: index funds

By Paula Pant

#219: Ask Paula – How Should I Invest $4,000 Per Month for Early Retirement?

Stella is working toward FIRE and wants to know: how can she create passive income in her retirement years? Is a portfolio with stocks and bonds enough, or should she invest in real estate?

Travis and his wife are also on the FIRE path, and are comparing their investment options. Travis is concerned about the inefficiency of reinvesting returns in real estate. How can you factor this into your decision when buying a property?

Stephanie and her husband are also interested in FIRE (hooray!) and they have $20,000 to invest. How can they best use this money to help them FIRE sooner?

Cade, a 24-year-old listener, wants to FIRE by age 30 (we’re on a roll!). He’s saving $4,000/month and wants to know how to invest these savings.

Anonymous and their partner are taking a mini-retirement and have questions surrounding the logistics of healthcare. What options should they consider?

On a different note, Amanda works in academia. After listening to Episode 12, she’s looking for tips on managing long-term, complex collaborative projects now that she’s in a leadership position.

Steve’s question brings us to the topic of building an online business and social media following. Should he have one brand for all of his interests, or divide these interests into separate channels?

I tackle these questions in today’s episode of the show. Enjoy!

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By Paula Pant

#205: Ask Paula – Am I On-Track for Retirement?

Is it ever a good idea to use your 401(k) as an emergency fund?

What’s the best way to break up with your financial advisor so that you can move all of your funds to Vanguard?

Should you put all of your Roth IRA money into index funds, or is there a better option for your money?

A listener has a job offer working less hours for more money, but without a retirement plan. Is this a good move?

When running a small business as a sole proprietor, are there tax advantages to incorporating or forming an LLC? If so, what should you consider?

What’s the best way to maximize the earnings on a large amount of savings while keeping the savings liquid? Can a robo-advisor help with this?

Myself and former financial planner Joe Saul-Sehy tackle these six questions in today’s episode. Enjoy!

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By Paula Pant

#201: Ask Paula – Which House Should I Pay Off First?

Ross and his wife are both in the Navy. They bought a home while they were stationed in Hawaii. Then the Navy sent them to Virginia, where they currently live; they’ve purchased a home there, too. They kept the Hawaii home as a rental property, and they’d like to move back into it when they retire. Which home should they repay first?

Mike is 33, debt-free except for his mortgage, and earns more than $200,000 per year. He saves half of his income. What should he do with his savings? Pay off his mortgage? Invest?

Josh has a nervous habit of checking his investment account balances daily. How can he break this habit?

Amanda and her husband live in a duplex. They have $115,000 in equity in their home, and another $115,000 remaining on the mortgage. They’d like to move. Should they hold the duplex as a rental? Or should they sell and use the proceeds to buy a cheaper home, with a goal of being mortgage-free?

Christy wants to know how to compete with other aggressive real estate investors who are bidding on homes.

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

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By Paula Pant

#197: Ask Paula – Traditional IRA vs. Roth IRA — What Should I Choose?

Should Bret invest in a Traditional IRA or a Roth IRA?

If Amanda gets married, how will her child support be affected? What about her student loan forgiveness?

Joe is investing in bonds, which average a rate of return that’s equal to the interest rate on his mortgage. Should he switch to all-equities and redirect his bond investments into mortgage payoff, instead?

Taunia has a car loan, a 401k loan, a home improvement loan, a primary mortgage, and a second mortgage. She also has an emergency fund that only covers two months of expenses, and she’s trying to save for college for her two children. What should she prioritize?

Mickey has a six-month emergency fund. Should he leave it in a savings account or invest in bond ladders?

David made $10,000 from a side hustle last year. Can he open a Solo 401k or SEP-IRA for his side hustle business? If so, which one should he choose?

Should Andy invest in a Target Retirement Date fund, or should he split his money between a U.S. index fund and an international index fund?

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

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By Paula Pant

#165: Ask Paula – Should I Invest in Index Funds or Rental Properties?

Should Kim, an entrepreneur, invest in index funds or rental properties?

Should Nick, an MBA student, househack into a more-expensive home with stronger cash flow, or a cheaper home with more budgetary wiggle room?

Should Kelly, who is getting married soon, sell her current home and use the proceeds to buy multiple rentals? Or should she use her current home as a rental property?

Should Trayci and her sister invest in rental properties or bare land?

I answer these four questions in today’s episode.

We’re a weekly show, but on the first Friday of the month, we air a bonus episode. This is our December 2018 First Friday Bonus Episode.

Enjoy!

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By Paula Pant

#163: Ask Paula – The Future of Index Fund Investing

Does my employer match count against my 401k contribution limits? Should I invest in a Traditional or Roth TSP? Should I invest more aggressively in stocks right now, or should I hold cash and bonds until the next downturn? Should I get a mortgage or keep renting until I can buy a home in cash? Do you think index investing will dramatically change in the coming decades?

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

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By Paula Pant

#146: Ask Paula – Where Should I Keep My Money if I Want to Retire Early?

My friend and former financial advisor, Joe Saul-Sehy, joins me to answer a multitude of questions on retirement savings and investing, so let’s dive in.

Elyse has two questions:
#1: Through her job, Elyse has a 401(a) hybrid. Right now, she contributes 0.5% as her employer will contribute 2.5% only when she contributes 4%.

 […]

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By Paula Pant

#32: Ask Paula: The Market Might Drop Soon. Should I Sell?

In this week’s episode, Paula takes your calls:

Should you sell your stocks, given that we might be heading for a market downturn? What are the downsides of index funds? Should you invest in out-of-state rental properties, and if so, how can you figure out where to look? How should you manage money from […]

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By Paula Pant

#29: Ask Paula: Should You Invest in Companies You Don’t Believe In?

Today I release the first “Ask Paula” episode. I’m rockin’ the mic solo, answering your questions about index funds, credit card debt and socially responsible investing.

One listener has “crapton” of credit card debt. He’s thinking about hanging onto his debt, though, and using his savings to make a downpayment on a house. Is […]

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Investing, Reduced to Its Core

Myth: Wealth comes from living below your means.

Fact: Frugality is the first step, not the last.

I’d like to tell you about one of the most interesting couples I know.

They were apartment-dwellers when we met, and I don’t mean the New York City variety. Their dark, musty apartment festered in an area where land is plentiful and square footage is cheap, where apartments […]

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