Afford Anything

Tag: policygenius

By Paula Pant

#275: Avoid These 13 Hidden Money Mistakes That Most People Make, with Jill Schlesinger

It’s September! I’m on round two of what I’ve dubbed my September Sabbatical, otherwise known as my yearly time to take a one-month recess from podcast production.

Throughout September, we’re airing some of the most insightful, inspiring interviews from the archives. You’ll hear from experts discussing topics like habits, happiness, focus, digital minimalism, classic financial lessons and easy-to-make financial mistakes. Enjoy!

Even the nerdiest of money nerds are susceptible to making a dumb financial mistake.

“Nope, not me! There’s no way I make any financial mistakes. I live and breathe this stuff.”

Hm, really? You’re not capable of making any financial mistakes?

By the way – we’re not talking “classic” mistakes like taking out a bunch of loans, running up your credit card, or making a late payment.

We’re talking about hidden mistakes, like having the wrong life insurance policy, or not having an estate plan, or listening to the wrong ‘experts.’

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By Paula Pant

#268: Ask Paula – Should I Invest or Pay Off My Mortgage Early?

Natasha has $3,300 per month to either invest or use toward an early mortgage payoff. Which option should she choose? 

An anonymous caller and military member wants to know if she should move money from a USAA brokerage to Vanguard to pay less in fees. Her goal is to retire in 12 years with $3,000/month in passive income from rental properties, which will supplement her military pension. Should she only contribute to her TSP up to the match, and invest the rest in rentals?

Chaim and his wife live in the Middle East and have $30,000 in a U.S. bank account. However, they don’t plan to relocate. How can they best use this money?

June and her husband are in a sticky situation: they bought their dream house in Michigan last winter, ahead of plans to relocate there. June lives there with their kids, but her husband is unable to find a job despite the numerous contacts he has in the state. He currently works in a job that he dislikes in Southern California, living apart from his family. They’re currently a one-income family, though June has plans to open a firm in Michigan. What should they do? 

Anonymous in Portland has three questions: is a 75/25 US stock/international stock split aggressive? Is an S&P 500 index a close enough equivalent to a total US stock index? Is Betterment worth it for automatic tax harvesting?

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

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By Paula Pant

#264: Ask Paula – How Do I Pick the Right Mix of Investments for My Retirement Portfolio?

An anonymous listener, whom we call “Mary,” is curious about the auto-rebalancing feature offered by M1 Finance. Is it too good to be true?

J isn’t happy with the target date retirement fund she chose for her 401k. She has limited options and is wondering: should she move funds around? If so, is now a bad time, considering the market volatility?

Another anonymous listener, whom we call “Olivia,” is wondering how to choose the right mix of investments for a retirement portfolio. She also wants tips on rebalancing a portfolio. And when should she execute a Roth conversion?

Tami has $160,000 in a G fund in her TSP. Should she move this money to a Lifestyle fund to increase her earnings?

Andy and his wife contribute the maximum to their children’s 529 accounts, and they have three investment options to choose from. Should they continue with an aggressively managed portfolio, or choose something less risky?

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

#262: Ask Paula – I’m Taking a Mini-Retirement in a Pandemic. What Should I Do?

Tyson is taking a year off of work and plans to devote some of his time to domestic travel, volunteer work, and bolstering his rental property portfolio. He originally planned to travel internationally, but won’t due to the pandemic. How does this plan sound?

Jace is wondering whether she should take advantage of the low stock market prices or keep a larger emergency fund due to the pandemic. Which is the better option, given her goal of financial independence?

Jace also wants to know: where do you park your money after maxing out a 401k and Roth IRA?

Venkat had to relocate after living in a condo for one year. He rents out the condo, but he’s in the red. Should he sell this condo? If so, when? 

TW has $250,000 in cash that he can use to either pay off his rental property or purchase two more properties. Which is the better option? 

I answer these questions in 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 Erin @ Team Afford Anything

#255: How Your Personality Affects Your Finances, with Dr. Sarah Stanley Fallaw

When a crisis hits, do you stay calm and collected, or do you launch yourself down a rabbit hole of worry and worst-case scenarios? 

When the stock market spirals downward, do you shrug and stay the course, or do warning bells explode in your brain? 

When news of the pandemic hit, was your first instinct to form a calm and reasoned action plan, or rush to the store to buy months of supplies?

Your personality influences your reactions to these scenarios. 

Personality traits influence our thoughts, feelings and responses, which affects how we manage our money and investments. 

What personality traits are we talking about?

The Big 5 Personality Traits are conscientiousness, agreeableness, introversion/extraversion, openness, and emotional stability. 

Once we understand how the Big Five personality traits influence us, we can make better-informed, less harmful financial decisions.

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By Paula Pant

#254: Ask Paula – Should I Invest During a Pandemic?

It’s our First Friday bonus episode!

Lydia earns income as both a 1099 contract worker and a part-time W2 employee. She filed for unemployment as a W2 worker, but can’t find information on how to file as a contractor. Is there a process contractors can follow to file for unemployment?

Florina and her husband have $70,000 in cash to invest. Where should they put this money in light of the current market?

Ali and his wife saved eight months of living expenses in their emergency fund in case they get laid off during the pandemic. Is this too excessive?

Danielle wants to take advantage of pandemic stock prices – what should she invest in?

Anonymous in Real Estate wants to buy a multifamily property with the equity in their first rental as a downpayment. Their husband doesn’t want three mortgages. Should they accelerate mortgage pay-down and be one mortgage down in four years?

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

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By Erin @ Team Afford Anything

#250: Ethical Investing 101, with Dr. Jon Hale, Head of Sustainability Research for Morningstar

Should we invest in sustainable funds?

If we choose sustainable funds, will our investment returns suffer? Will our expense ratios be sky-high? What drawbacks might we face?

How do we know that these funds are actually ethical? And what choices are out there for people who want to invest ethically or sustainably?

We invited Dr. Jon Hale to our show today to answer these questions.

Dr. Jon Hale is a chartered financial analyst and the global head of sustainability research for Morningstar. He directs Morningstar’s research on sustainable investing, which launched with the Morningstar Sustainability Rating for Funds in 2016.

We were inspired to conduct this interview on sustainability after we heard a question from one of our community members, Lily. She left a voicemail asking:

“Why don’t we hear anything about ethical investing in the Financial Independence Retire Early (FIRE) movement? I’ve had trouble locating socially responsible funds in the past, and I wonder if these funds are labeled well or if they’re essentially a scam. Is there a third-party reviewer of these funds?”

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By Erin @ Team Afford Anything

#244: Why I Quit My Job with No Savings When My Wife Was Five Months Pregnant, with Grant Baldwin

Grant Baldwin felt burned out.

He worked as a youth pastor, which felt like a 24/7 profession. He had to attend student events held late into the night, which left him exhausted.

One night, he came home to find his wife crying. She told him that she felt like she had a roommate, rather than a husband, because he was gone so often.

So Grant did something drastic: he quit his job, with negligible savings, when his wife was four to five months pregnant.

(Editor’s Note: WAT?! Who does that?!)

For the following year, he waited tables and worked odd jobs, cobbling together gig-economy money while raising a newborn. During his rare unscheduled moments, he started crafting a new career for himself as a self-employed public speaker.

Today, Grant Baldwin is a speaker, entrepreneur, coach, and author of The Successful Speaker. He’s earned multiple seven-figures in speaking fees and has helped over 2,000 people become professional speakers.

He shares how he made his dream a reality in this episode.

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By Erin @ Team Afford Anything

#242: The Art of Trusting Your Most Dangerous Ideas, with Ash Ambirge, The Middle Finger Project

Ash Ambirge grew up in a trailer park in rural Pennsylvania.

She never met her biological father. Her father-figure mentor passed away when she was 14. Her disabled mother, who raised her on government assistance, passed away when she was 20.

Her childhood goal was to join the middle class. She dreamed of becoming one of those people who eats poppyseed bagels and lemon pepper chicken. After all, what’s more middle class than that?

Ash’s future changed the moment she received a need-based, full ride scholarship to college. After she graduated, she snagged a marketing assistant job and negotiated a $30,000 salary.

Ash had finally made it; she joined the middle class. To celebrate, she bought a brand-new car, financed a $5,000 mattress, and rented a luxurious apartment. Yet she felt that something was lacking (and it wasn’t the lemon pepper chicken).

Unfulfilled, Ash set out to answer two burning questions:

“What does it mean to live a good life?”
“What does it look like to do work that I’m proud of?”

Throughout her childhood, the answers to these questions had been elusive. Her mother hadn’t worked, and Ash had no idea what a “good life” involved. She had no role models.

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