Afford Anything

Tag: joe saul-sehy

By Paula Pant

#294: Ask Paula – If I Were to Interview Suze Orman Again Today, How Would It Go?

Jeffrey is curious: if I were to interview Suze Orman today, would I agree more or less with her thoughts on the financial independence retire early (FIRE) movement?

Matt wants to know: if a property cash flows really well, is it worth paying significantly more than the appraised value to purchase that income stream?

Sara and her husband are returning to the states after living abroad for a few years. They’re moving to an expensive area where homes cost $800,000+. They have $150,000 saved for a downpayment, but a $600,000 mortgage isn’t what they had in mind. What should they do?

Eva and her partner are squirreling away money before the birth of their baby. They’d like to pay off their $90,000 mortgage in three years, but they’re afraid to use the money in case of unexpected baby expenses. What’s their best move?

Justin and his wife want to take a gap year with their children in three years. They plan to visit Spain and London for six months each. What are unexpected expenses that they should factor into their budget?

I answer these questions on today’s episode. Enjoy!

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By Paula Pant

#292: Ask Paula – I’m an Investor Who Likes Volatility; What Should I Buy?

Three Kids, FI has an all-equities broad stock market index portfolio that he’s held for years. He’s confident he can handle maximum volatility, so what investments can he lean into to that will provide him with great long-term returns?

Sarah is concerned: a financial advisor told her that investing in VTSAX over-indexes her in large cap funds and technology stocks. Is this true, and what should she do about it?

Alex’s wife lost her job due to the pandemic. They live in Washington state and are married filing separately due to his wife’s student loans. Can he use half of his income to qualify her for Roth IRA contributions?

Jordan is a new listener and he has three questions: should he use $100,000 to buy more rental properties or invest in a brokerage account? Should he and his wife upgrade their home and buy a property that’s worth double their current home? And finally, how can self-employed individuals who earn more lower the cost of health insurance?

I answer these four questions on today’s episode. Enjoy!

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By Erin @ Team Afford Anything

#283: Ask Paula & Joe – Could the Stock Market Be Too Much of a Gamble?

Andrea’s parents have a seemingly salesly financial advisor. He tried to get them to purchase a second life insurance policy, among other potentially pushy moves. Are her parents better off without his advice?

Teresa can’t shake the feeling that the stock market is more of a gamble than an investment. Is there any advantage to holding funds for the long-run if the market drops and you lose your gains?

June is curious about the best college planning strategies for families who are working toward, or close to, financial independence. How can you help your children while securing your financial future?

Big Sister’s little sister rents a mobile home in an area she loves. The owner wants to sell, but her little sister might not obtain financing. Should Big Sister buy the property and sell it to her via seller financing?

Managing for Mom in Massachusetts has an investment strategy that he wants to run by us. Does it make sense to shift a 50/50 stocks and bonds portfolio to 100 percent stocks, and shift back to a 50/50 split after the market returns to pre-pandemic numbers?

My friend and former financial planner Joe Saul-Sehy joins me to answer these questions. Enjoy!

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By Paula Pant

#280: Ask Paula – Could This NYC Couple Contribute Only $10,000 Per Year Towards Retirement?

Amy and her husband have $900,000 saved for retirement. They’re 40 years old and plan to retire at 65. Due to a job change + pay cut, they might only have $10,000 per year to save for the next 25 years. Will this be enough, given their yearly expenses of $144,000?

Janie wants to get a solar power system for her house, but isn’t sure how to pay for it. Should she borrow funds from her seven-month emergency fund, or use funds from a taxable brokerage account that were earmarked for retirement?

CJ and his wife netted $200,000 from the sale of their home. They aren’t sure when they’ll purchase their next home – their timeline could be as short as three years or as long as six years. Where should they keep the $200,000 to use towards a downpayment on their next home?

Brandon wants to retire in the next five to ten years. He contributes 20 percent to his Roth 401k. Since he can’t withdraw those contributions early, does it make more sense to contribute up to the match of his 401k and invest the rest in an IRA with the goal of doing a Roth conversion?

Anonymous “am I missing out?” wants to know: when is tax-loss harvesting worthwhile?

My friend and former financial planner Joe Saul-Sehy and I answer these questions on today’s episode. Enjoy!

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By Paula Pant

#272: Ask Paula – I’m Three Years from Retirement. How Should I Invest?

Kelsey doesn’t feel comfortable investing in total stock market index funds and would rather invest in ESG funds. How can she tell if she has the necessary $2,000 invested in a company to submit a proposal to participate in a proxy voting? Also, Vanguard has a poor history of supporting shareholder resolutions. What can we do about this?

An anonymous listener, nicknamed “Jack from Belgrave,” wants to buy and househack one duplex every year to achieve financial independence and leave his office job within the next three to four years. Is his plan realistic?

Dylan and his wife rolled her 401k into a rollover IRA with pre-tax contributions. They’ve continued contributing to this IRA with post-tax contributions. Should they separate the accounts, or can they worry about this when they’re ready to retire?

“Alyssa from Belgrave” (another anonymous listener) and her partner earn $150,000 per year after taxes. They’re currently saving 80 percent by living with family. What should they do with their savings?

Leigh and her husband are three years away from retirement. They have an extra $50,000 in income this year and plenty of options for where to invest this money. Which one is the best?

Former financial planner Joe Saul-Sehy joins me to answer these questions on today’s episode. Enjoy!

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By Paula Pant

#260: Ask Paula – Should I Fire My Financial Advisor During a Pandemic?

Katelyn wants to fire her financial advisor and move her investments from mutual funds into Vanguard index funds. Should she do this during the pandemic? Or should she wait?

Marisa asks: can you invest in a Roth IRA if your income is inconsistent and might exceed the cap?

Anonymous “Flo” had a Simple IRA at her old job that she can no longer contribute to. She also can’t contribute to a 401k until she’s been at her new job for a year. Where should she put her money in the meantime?

Mary received an $80,000 grant of RSUs from her employer when she started. These RSUs began to vest after one year, and the price per share has increased 44 percent. What should she do with the shares?

Anonymous “Olivia” is interested in a Roth conversion ladder, but wants to know: does the pro-rata rule apply here as it does with a backdoor Roth conversion?

My friend and former financial planner Joe Saul-Sehy and I tackle these questions in today’s episode. Enjoy!

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By Paula Pant

#256: Ask Paula: Bonds Are Tanking. Should I Switch to Real Estate Instead?

Jon is wondering if now is a good time to move his RRSP into a tax-free savings account, given the market downturn. He knows you can’t time the market, but the opportunity is tempting. What should he do?

Laurel’s question revolves around the CARE Act and early withdrawal from a 401k. She needs to rebalance her 401k and wants to buy a rental. Instead of selling stocks, should she sell bonds as a form of rebalancing and to withdraw for a rental property?

After seeing so many businesses experience financial hardship, Rebecca and her husband are curious: why don’t companies have emergency funds?

Salome sees the stock market downturn as an opportunity for tax-loss harvesting, but does this hold if you’ve held stocks for less than a year?

Josh and his wife have funds in Vanguard and Betterment, and they own their apartment in Queens, NY. Does the equity they have in their apartment count as real estate, or should they invest in something else for more diversification?

Jenny and her husband earn $220,000, max out their 403b and HSA, and have an extra $4,000 per month to invest. Where should they put this money?

Sheena has the option to purchase company stock at a 15 percent discount through an Employer Stock Purchasing Plan. However, it’s volatile right now. Should she contribute the maximum amount, or nothing?

My friend and former financial planner Joe Saul-Sehy joins me to answer these questions. Enjoy!

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Afford Anything