You can afford anything, but not everything. We make daily decisions about how to spend money, time, energy, focus and attention – and ultimately, our life. Every decision is a trade-off against another choice.
But how deeply do we contemplate these choices? Are we settling for the default mode? Or are we ruthlessly optimizing around a deliberate life?
Host Paula Pant interviews a diverse array of entrepreneurs, early retirees, millionaires, investors, artists, adventurers, scientists, psychologists, productivity experts, world travelers and regular people, exploring the tough work of living a truly excellent life.
Want to learn more? Download our free book, Escape, at http://affordanything.com/escape
Ask Paula: How Should I Invest $5,000 Per Month?
#312: After paying basic living expenses and maxing out their 401k’s and Roth IRAs, Caroline and her partner have $4,000 - $5,000 left each month. Where should they put this money if their goal is to simply have their money work harder for them?
Sanjay is torn between selling his townhome or renting it out. The rental numbers don’t work on his 15-year mortgage -- should he refinance to a 30-year mortgage instead?
Kyle wants to construct a portfolio with the highest Sharpe ratios and wants to know: would the risk parity model work? What are the downsides?
G is curious: does the stimulus check received for their children count as earned income for the kids? If so, can they put it toward the Roth IRAs they opened for their children?
Anonymous has two unrelated questions: what are our thoughts on the housing market in relation to the moratoriums on mortgage payments and emergency bans on evictions? What will happen when they go away? Additionally, what tools, questions, or resources do we recommend to have a productive financial conversation with your partner?
Finally, another anonymous caller wants to know: do they need to submit receipts for the HSA contributions they make?
My friend and former financial planner, Joe Saul-Sehy, joins me as usual to tackle these questions. Enjoy!
For more information, visit the show notes at https://affordanything.com/episode312
The Surprising Solution to Overthinking, with Jon Acuff
#311: Do you find yourself overthinking and getting stuck in unproductive thought loops?
According to a study commissioned by today’s guest, 99.5 percent of 10,000 people said they overthink. Chances are, you can relate.
That guest is Jon Acuff -- a New York Times bestselling author who loves to nerd out about goals. In this discussion, he shares 10 signs you're overthinking, explains the differences between overthinking and being prepared, and presents a framework called the three R’s (retire, replace, repeat) that can transform your destructive thought loops into healthy soundtracks.
For more information, visit the show notes at https://affordanything.com/episode311
Ask Paula: What Should I Do With $25,000?
#310: Greta is tired of financial modesty. She wants to achieve financial independence through diversified income streams, and has her eyes set on owning local duplexes. What should she focus on to make this happen?
Jeannie wants to know: when should you scale back 401k contributions so you can invest in something else, like real estate?
Steph and her husband came into $25,000 and aren’t sure what to do with it. Should they pay off their student loans, save it towards a house and starting a family, or purchase her company stock options?
J from California is curious: how do you strike a balance between optimization and simplicity in your financial plan?
Dawn has $65,000 in a 403b through Ameriprise and the fees associated with it are outrageous. Should she take the money out and put it elsewhere, or leave it?
My friend and former financial planner, Joe Saul-Sehy, joins me to answer these five questions. Enjoy!
For more information, visit the show notes at https://affordanything.com/episode310
Are We Due For Another Housing Market Crash?
#309: Are we in a housing bubble?
Are we going to see a repeat of 2006 all over again?
Are there any good investment deals to be found right now?
These are the questions playing on many people's minds, and we seek to explore the answers in today's First Friday bonus episode.
We start by exploring some of the forces that are at play in today's real estate market. What separates the market of 2006 from the market of today?
In the second half of the episode, Paula explains how and why she chose to buy a duplex in Indianapolis, despite it being a seller's market. There are deals to be had if you know where to look and what to look for. Enjoy!
For more information, visit the show notes at https://affordanything.com/episode309
Ask Paula: I Want to Travel After I Retire; How Much Should I Save?
#308: Ziggy purchased an $890,000 property in San Mateo, CA in 2016. After living there for a year, he had to move, so he rented it out. Unfortunately, it’s cash flow negative. Is this property worth holding onto, or should he sell?
Vivek has a paid-off primary residence that he’s interested in renting out for a few years, before selling. He’s worried about capital gains tax – does turning the home into a rental impact the amount he’ll pay?
Anonymous in Virginia wants to travel after retiring, which will increase her expenses for the first seven or so years of her retirement. How can she plan for a higher withdrawal rate at the beginning of retirement, and a lower withdrawal rate in the middle of her retirement?
Given the talk around student loan forgiveness, Jess wants to know: should she pay the minimum on her student loan debt and save the payments she would otherwise make? Or should she keep throwing extra at her higher interest loans?
My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s show. Let’s dive in!
For more information, visit the show notes at https://affordanything.com/episode308
The Tax Risks That Could Blow Up Your Retirement Plan, with Ed Slott
#307: “Taxes are the single biggest factor that separates people from their retirement dreams.”
That’s a quote from today’s guest, Ed Slott, a nationally recognized IRA distribution expert, practicing CPA, and bestselling author. He argues that there’s a high likelihood that tax rates could rise in the future, and as a result, we need to shovel more money into tax-exempt accounts like Roth IRA and Roth 401k’s.
Ed says taxes are one of the biggest threats to our retirement plans, and draws attention to tax events that catch seniors by surprise, such as the so-called “widow/widower” tax. If you’re wondering how taxes could derail your retirement -- and what you should do about it -- you’ll learn an enormous amount from this episode.
For more information, visit the show notes at https://affordanything.com/episode307