Afford Anything | Get Smarter With Money

Latest Episodes:

Ask Paula: Should I Stay At My Job For the 401k? Dec 21, 2022

Show notes

#419: Casey isn’t happy at her job. If she leaves before her one-year mark, she’ll lose her 401k contributions. Should she stay or find a new job?

Daan resides in a high-cost-of-living area where real estate appreciates rapidly. But there’s no cash flow. How should he evaluate real estate as an investment?

Emily already maximizes her 401k contributions. Should she contribute to an after-tax 401k next?

Ryan’s investing for his son. If the yield is the same between two mutual funds, can he leave his son with more money if one mutual fund pays dividends more frequently?

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

Enjoy!

P.S. Got a question? Leave it at https://affordanything.com/voicemail

For more information, visit the show notes at https://affordanything.com/episode419

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Maybe We Should Spend More, with Dr. Jordan Grumet Dec 15, 2022

Show notes

#418: When Jordan Grumet was a child, his dad died unexpectedly.

That was decades ago.

Jordan is a father today, but he thinks often about the possibility of dying young.

And he wonders how to balance enjoying today vs. saving for tomorrow, given that none of us know how long we’ll be on this earth.

How do we think about our lives when the clock starts to run out?

Beyond money, what other tools can we use to live a fulfilling life?

Jordan Grumet, a hospice doctor and host of the Earn and Invest podcast, discusses this in today’s episode.

For more information, visit the show notes at https://affordanything.com/episode418

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Ask Paula: Marriage and Money: What Are the Right Conversations? Dec 12, 2022

Show notes

#417: Our first anonymous caller is getting married. What are the financial considerations the couple should be thinking through since there is a large income gap between them?

Our second anonymous caller is concerned about her ability to continue working due to major depression. Should she consider disability insurance?

Carly is an accidental landlord and would love to keep her rental property. The problem? It’s losing money right now and she’d probably take a loss if she sold it. What should she do?

Shelby has an amazing opportunity to relocate to Tokyo for work, but she’ll have to take a pay cut. How should she think about her investment options?

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

Enjoy!

P.S. Got a question? Leave it here

For more information, visit the show notes at https://affordanything.com/episode417

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The Crypto Crash, the Housing Market, and Hot Takes on the Latest Economic Headlines Dec 02, 2022

Show notes

#416: Crypto is tanking. Household debt is climbing. Student loans are tangled up in the court system. And the house market…did what?!

Today’s bonus First Friday episode takes a look at the latest economic headlines, with analysis, commentary and hot takes.

Enjoy!

For more information, visit the show notes at https://affordanything.com/episode416

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How I Give Away 41% of My Income, with Bob Lotich Nov 30, 2022

Show notes

#415: The average American donates 2.1 percent of their income to charity, according to data from the Giving Institute.

But an ordinary couple living in Nashville, Bob and Linda Lotich, refuse to be average.

When they were both 31, they decided to “give their age” – they pledged to donate 31 percent of their income to worthwhile causes.

They’ve increased their charitable giving every year since, to match their age. The couple is now 41 years old, and they give away 41 percent of their income.

When they began this project, the Lotich’s were earning a combined household income in the high five-figures. They were making just under $100,000 combined, living in St. Louis. They carried a mortgage on their home. They worried that their commitment to giving might impact their ability to pay the bills.

Over the last decade, their income has fluctuated – up some years, down in others. They moved to Nashville and had three children. These higher living costs have drastically impacted the family budget.

But their commitment to giving persists.

In today’s episode, Bob Lotich joins us to talk about why and how he committed to the “give your age” philosophy – and shares his advice for anyone who wants practical tips for increasing their capacity to donate to meaningful causes.

Enjoy!

Timing of discussion points as of November 2022:

04:46: Adjusting mental and budget space to allow for more charitable donations

13:12: The decision give to individuals vs. charitable organizations

14:57: Does giving to an individual impact the relationship?

16:56: Recommendations for platforms with giving opportunities

25:01: Managing the giving budget after starting a family

25:56: Guilt and shame around generosity

27:41: Giving from a place of gratitude and a place of pain

28:47: The concept of giving dreams

30:19: Building for a continuous impact vs. a large impact

31:48: Getting the children involved

37:48: How to increase your charitable giving

For more information, visit the show notes at https://affordanything.com/episode415

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Ask Paula: I Think I Can Retire Early. Am I Crazy?! Nov 23, 2022

Show notes

#414: Amanda is worried that her recently diagnosed health condition might force her to stop working. How should she financially prepare her family?

Anonymous is a savvy DIY investor who wants to retire early and is wondering if she should hire a financial advisor.

Should Krista tap into the equity from one of her rentals to rebalance a portfolio that is weighted heavily in real estate?

Natasha thinks she and her husband have saved enough to retire early but it feels scary. Is she truly ready or is she nuts?

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

Enjoy!

P.S. Got a question? Leave it here.

For more information, visit the show notes at https://affordanything.com/episode414

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Why We’re Paying Attention to the Wrong Things, with Dr. Daniel Crosby Nov 16, 2022

Show notes

#413: If an idea dominates the headlines, we notice it.

But maybe we shouldn’t.

Today’s guest, psychologist and behavioral finance expert Dr. Daniel Crosby, says there’s a difference between a prediction that gets repeated, and one that’s likely to unfold.

What’s salient isn’t accurate, he says. And vice versa.

He also talks about how money problems have morphed over time. He chats about how our evolutionary wiring is at odds with our goals. And he even discusses how we’re wired to be ‘lazy’ – and how to work with that tendency instead of fighting an uphill battle against it.

Dr. Crosby researches the intersection of mind and markets. His latest work, The Behavioral Investor, is an in-depth look at how sociology, psychology and neurology impact our investment choices.

Timing of discussion points as of December 2022:

03:10: The overlap between psychology and investing + new ideas

04:41: Counterintuitive behavioral finance discoveries

07:27: Money as a “hygiene factor”

08:39: The “new class” of money problems for the more affluent

13:44: Factors that impact our financial decisions

15:22: The influence of evolutionary wiring

17:02: Cognitive and physical wiring leading to laziness and group think

27:45: The benefit of community for investors

28:52: The four types of behavioral risk: ego, conservatism, attention, and emotion

36:21: The three E’s of behavior change: education, environment, encouragement

42:30: Confusing things that are loud with things that are likely

45:21: The risk of managing emotion

For more information, visit the show notes at https://affordanything.com/episode413

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Ask Paula: Should I Repay Debt or Invest? Nov 09, 2022

Show notes

#412: Taylor recently graduated. She wants to reach financial independence as soon as possible. What should she do first: invest or repay low-interest debt?

Carter doesn’t want to pay too much for his investments. He’s worried about the tax drag. He wants to know how to improve cost efficiency in his portfolio. How should he manage decisions about basis points, dividends and capital gains?

Our first anonymous caller has been working and investing for a decade. Today her portfolio is large enough that she and her husband can finally take a mini-retirement.

They’d like to rebalance their portfolio. They want it to reflect the fact that they won’t be working for a while. They’d also like to calculate how much money they need to travel with their children. How should they handle this?

Our second anonymous caller is worried that their portfolio is out-of-whack. Their money is in a target date retirement fund. They’d like to move some of it to a three-fund portfolio. But this is a scary time to sell. Stocks are low. What should they do?

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

Enjoy!

P.S. Got a question? Leave it here.

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Invest Anywhere: Learn About a City Like an Expert Nov 04, 2022

Show notes

#411: In the final installment of this two-part mini-series, we walk you through becoming a subject matter expert in your investment city of choice.

We discuss who you should talk to, where you can find them and what you should talk to them about.

Timing of discussion points as of November 2022:

06:11: Who you should talk to

10:09: Why conversations with non- real estate professionals are important

11:49: Where to meet other real estate investors

13:19: Expanding your network, character due diligence and making friends

13:59: Thinking through others cognitive biases

15:56: Potential implications of neighborhoods with “good cash flow”

20:57: An example of objective feedback

29:40: Dumpsters, sewers, permits and problems: Other specifics to discuss

For more information, visit the show notes at https://affordanything.com/episode411

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The Routine Habits of Breakthrough Thinkers, with Jeremy Utley Nov 02, 2022

Show notes

#410: You face plenty of problems.

But you have a scarcity of good solutions.

Stanford Professor Jeremy Utley can help.

He says that solving complex problems requires creativity. And creativity comes from deliberate practice.

It’s not an innate talent. It’s a skill. And it’s useful in any occupation, from accounting to zookeeping.

Jeremy speaks and writes on the history of invention, discovery, creativity, and innovation. He also leads Stanford d.school's work with professionals.

Today he talks to us about how some of the greatest innovators produce new ideas. He tells us about their creative process.

He describes how researchers and authors improve their skills.

And he shares pointers to help you understand how to do the same.

Timing of discussion points as per November 2022:

3:00: How to focus while staying open to creativity

6:23: Definition of creativity

14:02: Different cognitive biases faced

17:35: The idea quota

19:28: Where ideas come from: the Lego analogy

21:32: How Ben Franklin honed his creativity

28:36: Capturing inspiration

46:04: The importance of reviewing the problems in your life