Afford Anything

Tag: retirement planning

By Paula Pant

#241: Ask Paula – Should I Raid My Retirement Savings to Pay for School?

Anton wants to accelerate his flight training so he can get hired within two to three months, rather than two to three years. He has to raid his retirement savings to achieve this. Should he?

Linda and her husband have their eyes on early retirement, but they aren’t sure what their post-retirement lifestyle will cost. How can they budget for unknown expenses that include travel?

Joseph contributes 15 percent of his income to both a Roth 457b and Roth IRA. He wants to retire before age 59.5. Given his early retirement goal, should he focus solely on his Roth 457b?

Henry wants to know how rebalancing and dollar cost averaging interact with each other. Should he rebalance his all-equities portfolio? If so, what approach should he take?

Joe maxes out his 401k and IRA each year. He can make after-tax 401k contributions, or fund his Vanguard taxable brokerage account. Which should he prioritize?

As usual, my friend and former financial advisor, Joe Saul-Sehy, joins me on the show to answer these five listener questions. Enjoy!

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By Paula Pant

#237: Ask Paula and Joe – Should I BUY a Business, Instead of Starting One?

Katie wants to know how to purchase a business that’s already cash-flow positive. What indicators can she look for?

Rob will retire from the military with an inflation-adjusted pension. Does he need a bond allocation in his investment portfolio?

Brian conquered a large sum of credit card debt, but still has student loan debt and a mortgage. Should he pay off his student loans, refinance them, or refinance his mortgage?

Jeff is curious about the pros and cons of investment apps. When should you use them?

Another Kati (without an e!) wants to live a healthy and wealthy life before she’s 70. Where should she allocate her savings so she can retire early?

We answer these five questions in today’s episode.

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By Paula Pant

#233: Ask Paula – How Can I Retire in 12 Years?

Deepak is considering downsizing his family’s home, but wants to know if the savings are worth the transaction costs he’ll have to pay.

Anonymous and her husband hold $900,000 worth of privately-owned company stock. How should they plan for handling this money?

Shelby is 25 years old and works for a company that awarded her restricted stock units. What should she do with these? Additionally, she traded in a 2013 Prius for a 2018 Subaru, for which she now owes $19,000. Should she sell it for a used vehicle or stick it out?

Katelyn is interested in learning more about annuities. What should she know in order to make an informed decision?

Max FI and his wife want to retire in 12 years. How should they invest to achieve this?

Anonymous’s former employer offered a Roth and Traditional 401k, and his new employer only offers a Traditional option. How should he rollover his former Roth 401k?

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By Paula Pant

#221: Ask Paula – How Much of My Company Stock Should I Buy?

Vanessa is curious about Fidelity and Vanguard. She asks: what are your thoughts on the no-fee Fidelity index funds? What are your opinions on Vanguard’s financial advisors?

Andy wants to know: should my wife and I continue maxing out our traditional 401k and backdoor Roth IRA, or should we start contributing to the Roth 401k my employer offers?

Kyle is wondering – how can he minimize his taxes when he earns $450,000/year?

Rob is self-employed and has been maxing out a Roth IRA, but recently discovered that he can open a self-employed IRA. Should he move his Roth IRA money over, or just open a new account and fund it from scratch?

Christina is torn. She and her husband have been saving to buy a house, but because they live in New York, their savings won’t go very far. Is it a good idea for them to continue renting, despite their dreams?

Mercedes is wondering how REITs compare to stocks and owning actual real estate. Additionally, she’d like to know more about Forex trading.

Craig has an employee stock purchase plan (ESPP). Since these tend to be risky, he’s wondering: is he better off moving the $25,000 that he puts towards the ESPP into mutual funds? Or is an ESPP a good way to diversify his funds?

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

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By Paula Pant

#209: Ask Paula – Are Index Funds Unsafe?

Anonymous wants to retire early and often. They’re going overseas, where they’ll make their annual salary within six months. Where should they put their extra income?

Anonymous also wants to know: how can they find a financial advisor they can actually trust?

Another anonymous listener wants to know – is it possible to spend more while minimizing taxes in early retirement?

JuanCarlos asks: is $20,000 too little to invest with a financial advisor?

Angela is wondering how to create a Roth IRA account for a teenager.

Rose is thinking about switching from mutual funds to index funds because it means encountering less fees, but her and her husband are in their 60s. Does this make sense?

Ari has $700,000 to invest in a taxable brokerage account. He wants to know if a 90 percent total stock market index and 10 percent bonds is a good asset allocation.

Dave and his wife want to use their defined benefit plans as their primary income stream in retirement, and supplement with Roth and 457 incomes. Where else should they be saving?

Myself and former financial planner Joe Saul-Sehy answer these questions on today’s episode.

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

#174: Ask Paula – I’m 48 and Retiring Next Year. Should I Buy More Rentals?

Should a 48-year-old New Yorker who’s retiring next year buy more rental properties?

Should a Michigan-based first-time homebuyer use an FHA loan to buy a duplex for $135,000 that rents for $1,800 per month?

Should a 40-year-old music professor who owns a duplex transfer his property into an LLC?

Should a New Jersey condo owner sell her unit as For Sale by Owner?

And should a woman who’s anxious about owning her own rental properties dive into real estate crowdfunding deals instead?

I answer these five rental property questions in today’s podcast episode.

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By Paula Pant

#142: Ask Paula – How Can We Downsize from Two Incomes to One?

How can a family of four shift from earning two incomes to one, while still pursuing financial independence?

How would a 55-year-old couple with $2 million saved know if they’re ready to retire?

Can parents use leftover money in their 529 plan to help their daughter with her college loans?

If you start a job […]

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By Paula Pant

#137: Ask Paula – What the F**k Are Annuities?

Today’s episode is an annuity sandwich: we answer one question about family and relationships, three questions about annuities, and one question about time management.

My friend and former financial planner Joe Saul-Sehy joins me to answer questions in what, I hope, is the most entertaining episode about annuities you’ll hear.

Here are the five questions […]

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Afford Anything