Afford Anything | Make Smart Money Choices

Marie Curie won the Nobel Prize in Physics in 1903 and the Nobel Prize in Chemistry in 1911. She’s famous for her work in radioactivity. Lin-Manual Miranda is a songwriter, producer and director who won the Pulitzer Prize in Drama in 2016, as well as several Tony awards. What do they have in common? They lived a century apart. They innovated in disparate fields. But they shared a similar productivity practice. Both achieved greatness by embracing the practice of slow productivity, says Georgetown computer science professor Cal Newport. Slow productivity is a three-part practice, Newport explains: (1) do fewer things; (2) work at a natural pace; (3) obsess over quality. We’re used to thinking of productivity as doing more in a short amount of time. This flips that idea on its head, focusing on doing less, but excelling. Slow productivity is the practice of doing fewer tasks better. In this episode, Newport explains how the practice of slow productivity diverges from the normal ways that people in modern society tend to work. Life can be stressful. Your to-do list might feel never-ending. This episode can help you focus on the few things that matter most. It can help you feel less stressed, less busy, and yet — paradoxically — more productive, at the same time. We're sharing this as part of GREATEST HITS WEEK, a 5-day series in which we're sharing 5 episodes, across 5 days, that originally aired at the start of 2024 (January through March). You may have missed it then; enjoy it now. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Do you ever wonder what happens behind closed doors on Wall Street? Vivian Tu, also known as Your Rich BFF, is here to spill the tea. Vivian grew up in a modest immigrant family. After college, she found herself working insane hours on Wall Street after college. While working on Wall Street, Vivian saw some weird things. Once, a coworker stumbled hungover into the office after a trip to Atlantic City, carrying a duffel bag with thousands of dollars in cash inside. Vivian realized that there’s a group of high-income and high-net-worth people who handle money in drastically different ways than she learned in her frugal upbringing. She learned about investing, taxes, legal loopholes. She discovered new ways of thinking about money. She shares these insights — gleaned from her Wall Street days — in today’s podcast episode. We're sharing this as part of GREATEST HITS WEEK, a 5-day series in which we're sharing 5 episodes, across 5 days, that originally aired at the start of 2024 (January through March). You may have missed it then; enjoy it now. Learn more about your ad choices. Visit podcastchoices.com/adchoices

If you’ve ever thought: “I’d love a business BUT …“I don’t have TIME.” “I don’t have MONEY.” “I don’t have IDEAS.” “I have TOO MANY ideas and I don’t know where to start.” “I’m not technical.” “I’m not creative or artistic.” “I’m not good at sales.” You’re not alone. Countless people don’t start businesses or side hustles for these reasons. And they’re losing thousands — perhaps millions — in opportunity cost. How much could you make if you started a side hustle that eventually scaled into a business? Possibly millions. Today’s guest, Noah Kagan, is living proof. Noah was employee #30 at Facebook. His stock options, if fully vested, would be worth over $1 billion today. (If you want to do the math — his stock options came to 0.1 percent of the company, which has a current market cap of $1 trillion.) But Noah was fired just a couple months before his stock options vested. So rather than getting a billion-dollar payout, he got nothing. He sank into a deep depression, eventually recovering with the help of a therapist who counseled him on how to reframe the experience. Then he rolled up his sleeves and got to work. He became a serial entrepreneur, building multiple businesses. His most successful venture now makes $80 million in gross revenue, and his personal take-home is $3.3 million per year (which comes from a $200,000 annual salary and $3.1 million profit distribution.) His net worth is $36 million. Not a billion, but still not too shabby. Noah recently wrote a book called “Million Dollar Weekend: The Surprisingly Simple Way to Launch a 7-Figure Business in 48 Hours.” He sits down with us (in person!) to share: — how to find business ideas — how to overcome objections and rejections — how to scale By the end of the episode, the common objections that you often hear — like “I don’t have time/money/ideas” — will be quashed. Please enjoy! We're sharing this as part of GREATEST HITS WEEK, a 5-day series in which we're sharing 5 episodes, across 5 days, that originally aired at the start of 2024 (January through March). You may have missed it then; enjoy it now. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Great communication will get you a raise. It’ll get you promoted. You’ll land the corner office. You’ll make friends and be the life of the party. You’ll land business deals and form lucrative partnerships. Supercommunication is a superpower. But how do we build it? Sometimes, you might walk away from a conversation with the joy of having made a cool new friend. Or you snagged a critical piece of information that you realllllly needed. Or you successfully negotiated an extra $5,000 off your car. On the flip side, sometimes you’ll walk away from a conversation, scratching your head and wondering … “What just happened?” If either of these situations have happened to you, Charles Duhigg will help you understand WHY. Duhigg is a Pultizer Prize winning reporter. He holds an undergrad degree from Yale and an MBA from Harvard. He wrote for the LA Times and New York Times, before landing at The New Yorker. His first two books, The Power of Habit and Smarter, Faster, Better, have sold more than 5 million copies. Recently, he came out with a new book called Supercommunicators. He chats with us today to discuss the power of communication. Duhigg shares why communication is a critical component to happiness and success in every part of life. He discusses the different styles of conversations that people can have, which lead to either connection or disconnection. He also shares critical tips to help us all become supercommunicators and live richer lives. Enjoy! Resources Mentioned: Supercommunicators: How to Unlock the Secret Language of Connection, by Charles Duhigg | Book The Power of Habit, by Charles Duhigg | Book Smarter Faster Better, by Charles Duhigg | Book We're sharing this as part of GREATEST HITS WEEK, a 5-day series in which we're sharing 5 episodes, across 5 days, that originally aired at the start of 2024 (January through March). You may have missed it then; enjoy it now. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Ever made a flippant, seemingly minor decision that radically changed the course of your life?Morgan Housel has experienced this. At age 17, he made a quick decision that ended up saving his life. Sadly, two of his friends were less fortunate. He shares that story in today’s podcast episode, and sheds light on the lessons he’s learned from it. Housel says that his lifesaving choice — and many of our other important decisions — are snap verdicts, ones that we don’t spend much time thinking about. If pivotal moments are decided in a flash, how do we navigate risk? How do we evaluate our options? Housel says this comes understanding concepts that remain constant, consistent, and universal. We need to accept that humans aren’t rational. We must appreciate the reasons why the best answer doesn’t always win. We ought to remember that we overlook many good things happening around us. These constants will most likely impact our futures. Housel was named by MarketWatch as one of the 50 most influential people in the market. He is the New York Times bestselling author of The Psychology of Money. He joins us to discuss the ideas in his book, "Same As Ever". We're sharing this as part of GREATEST HITS WEEK, a 5-day series in which we're sharing 5 episodes, across 5 days, that originally aired at the start of 2024 (January through March). You may have missed it then; enjoy it now. Learn more about your ad choices. Visit podcastchoices.com/adchoices

#568: Jason is confused by the recent discussions about the efficient frontier and Paul Merriman’s four-sector strategy. It seems a lot like another form of stock-picking. What’s the difference? Michelle straddles the Roth income threshold and is frustrated that she never knows if she’ll qualify for a Roth contribution until tax season. Is her current savings plan too complicated? Evan has $100 to spend on personal finance books for his high school’s library. What books would Paula and Joe put on this limited shelf space? Former financial planner Joe Saul-Sehy and I tackle these three 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/episode568 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#567: What happens when an astronaut goes blind during a spacewalk? For Chris Hadfield, this wasn't a hypothetical scenario. While working outside the International Space Station, cleaning solution from his helmet visor spread into both eyes, leaving him completely blind in the vacuum of space. His response? Stay calm and methodically evaluate options. He could call Houston. He could have a crew member rescue him. He could try to cry to flush out his eyes - though that's tricky in zero gravity. This story opens our conversation with Polina Marinova Pompliano, former Fortune Magazine reporter and author of the new book "Hidden Genius." Through her interviews with high-performers across fields — from astronauts to investors to extreme athletes — she uncovers patterns in how people handle uncertainty and build resilience. Take trust, for example. Reid Hoffman's formula is simple: Trust = Consistency + Time. It's not enough to show up sporadically when it's convenient. Trust builds through meeting deadlines, following through on commitments, and maintaining clear communication — even during challenges. Reliable consistency compounds over time, much like interest in an investment account. Or consider Charlie Munger's approach to beliefs. Rather than defending positions "to the death," he argues you should only claim to believe something if you can argue the opposition's viewpoint better than they can. This forces you to genuinely understand different perspectives rather than just reflexively disagreeing. The conversation explores how people navigate major setbacks, from Conrad Anker surviving an avalanche that killed his climbing partners to Polina's own experience of quitting Fortune magazine right before COVID hit. A key theme emerges: resilience isn't about avoiding difficulty, but about training yourself to handle it through small daily practices. Former Navy SEAL David Goggins calls this "callusing the mind." By deliberately doing one uncomfortable thing each day - whether that's running in the rain or having a difficult conversation - you build your capacity to handle larger challenges. The goal isn't to become superhuman, but to expand your comfort zone step by step. Other topics include: - How immigrant experiences shape risk perception - The shift from institutional to individual trust in media - Reframing "failure" as redirection - Building competence as an antidote to fear - Finding signal in the noise of information overload Enjoy the conversation! For more information, visit the show notes at https://affordanything.com/episode567 Resources: James Clear Episode 156: https://affordanything.com/156-how-to-build-incredible-habits-with-james-clear/ Annie Duke Episode 281: https://affordanything.com/281-the-art-of-decision-making-with-annie-duke/ Annie Duke Episode 424: https://affordanything.com/424-the-power-of-knowing-when-to-walk-away-with-annie-duke/ Learn more about your ad choices. Visit podcastchoices.com/adchoices

#566: Jackie is sold on Paul Merriman’s “Four Funds” approach, but she’s overwhelmed by the logistics of diversifying her single fund portfolio.. What are the best practices to redistribute her investments, handle taxes, and manage rebalancing? Heidi’s mother recently passed and she’s struggling to decide between distribution options, their tax implications, and investment options for the annuity she inherited. An anonymous caller and her husband want to buy a second home, pay for their children’s college, buy a car in cash, travel well, and save $3 to $4 million for retirement. How do they prioritize and manage their competing goals? Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode. Enjoy! P.S. Got a question? Leave it at https://affordanything.com/voicemail Learn more about your ad choices. Visit podcastchoices.com/adchoices

#565: When Codie Sanchez worked in finance, she wasn't planning to buy a laundromat. But facing 60-70 hour workweeks and realizing she didn't want her boss's job, she started looking for an exit strategy. Instead of buying a fancy car during her "midlife crisis," she purchased that first laundromat - a decision that would lead her to acquire multiple laundromats, car washes, and other local businesses. Codie joins us to break down how regular people can buy and run profitable local businesses, even without previous ownership experience. These "Main Street" businesses - think laundromats, car washes, landscaping companies, and other local services - often generate steady cash flow without requiring complex technology or massive scale. She shares eye-opening stats about business ownership in America: while 80 percent of Americans owned a business in the 1800s, today that number has dropped to just 6 percent. Meanwhile, private equity firms have increased their ownership of small businesses from 4 percent in 2000 to 20 percent by 2020. But there's good news for aspiring business owners. Codie breaks down 21 different ways to finance a business acquisition, from seller financing to equipment loans. She explains that 60 percent of businesses sell with some form of seller financing, making ownership more accessible than many realize. Want to avoid common pitfalls? Codie introduces her RICH framework: - Research: Define what type of business fits your goals and skills - Invest: Get skin in the game, but never risk bankruptcy - Command: Use systems and metrics to avoid accidentally buying yourself a job - Harness: Build toward bigger goals if desired She emphasizes starting small — master one business before attempting to build an empire. A successful acquisition requires understanding the "roadmap to making money" - the 5-7 key steps that drive profit in any business. The numbers tell an encouraging story: while 90 percent of startups fail within 10 years, small business acquisitions have a 75-95 percent success rate. Codie attributes this to buying proven business models rather than starting from scratch. Perhaps most importantly, she challenges the notion that "boring" businesses can't generate serious wealth. From a roofing company founder becoming one of the world's wealthiest women to a garbage collection entrepreneur building a billion-dollar enterprise, Main Street businesses have created numerous millionaires and billionaires. Want to learn more? Check out Main Street Millionaire. For more information, visit the show notes at https://affordanything.com/episode565 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#564: Our economy just gave us two big surprises that shape how we'll do business and invest in 2025. Our job market is going through major changes. Sure, we added 227,000 jobs - way more than anyone expected. Healthcare and hospitality are booming. But here's what you need to watch: our unemployment rate just climbed to 4.2%. When you look at how many people are joining or leaving the workforce, you'll spot some interesting signals about where we're headed. You've probably heard about these new trade proposals making waves. They're targeting our biggest trading partners - Mexico, Canada, and China. Let's talk about what tariffs really mean for your wallet. Some industries win, others lose. Your grocery bill? That might change. Your job prospects? That depends on your industry. We'll help you connect these dots. This matters because you need to know how these shifts affect your money, your job, and your business decisions. Our markets are changing. Our policies are evolving. But when you understand what's happening, you can make smarter moves. Join us as we break down these economic changes into practical insights you can actually use. For more information, visit the show notes at https://affordanything.com/episode564 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#563: Bitcoin is hitting new all-time highs. Is this just another bull cycle, or are we witnessing a fundamental shift in how the world thinks about money? That's the question at the heart of our conversation with Tatiana Koffman, General Partner at Moonwalker Capital and author of "The Myth of Money." Koffman joins us to explain why Bitcoin might be considered "digital property" rather than just a currency. She breaks down how Bitcoin derives its value from mathematical scarcity – similar to how gold becomes harder to mine over time, Bitcoin becomes more difficult and expensive to create every four years through events called "halvings." The conversation moves through several key developments in cryptocurrency. We discuss the recent approval of Bitcoin ETFs and how traditional financial institutions like JPMorgan Chase (whose CEO Jamie Dimon once openly criticized crypto) are now embracing these products. Koffman shares insights about crypto adoption worldwide, from El Salvador's experiment with Bitcoin as legal tender to Dubai's emergence as a crypto hub. When discussing Africa's cryptocurrency landscape, Koffman explains how Nigeria's unstable banking system has driven crypto adoption, with many young people using decentralized exchanges to participate in global markets. She describes how some Nigerians have built significant wealth starting from nothing, using "airdrops" (free tokens given to early adopters) to begin trading. The interview includes a debate about inflation rates and economic data reporting, with Koffman expressing skepticism about official figures, while I push back on claims made without supporting evidence. Koffman also explains different categories of crypto investments, distinguishing between Bitcoin as a potential store of value and what she calls "meme coins" – speculative assets she compares to gambling. She provides context about stable coins, particularly USDC and Tether, and their role during the Silicon Valley Bank collapse. For those interested in investing in cryptocurrency, Koffman suggests starting with exposure to Bitcoin through regulated platforms like Coinbase or ETFs, while emphasizing the importance of proper security measures. She explains concepts like "cold wallets" and "seed phrases," comparing them to different levels of bank security. Looking ahead, Koffman discusses cryptocurrency's potential role in reducing dependence on the U.S. dollar, particularly in developing economies, while acknowledging the challenges of creating stable alternative currencies. Find Koffman's weekly newsletter at mythofmoney.com or follow her on Twitter and Instagram @TatianaKoffman For more information, visit the show notes at https://affordanything.com/episode563 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#562: More than 90 percent of people who ask to get their credit card annual fee reduced are successful. Yet most people never ask. Why? They assume the answer will be no. Matt Schultz, the author of “Ask Questions, Save Money, Make More,” joins us to explain the psychology and tactics behind successful negotiation. The key insight: companies want to keep your business. Banks, employers, and service providers invest in long-term relationships because it's more profitable than constantly finding new customers. This gives you more leverage than you might think. For credit cards, Schultz points out that calling the retention department directly (rather than general customer service) often leads to better results. He shares his own experience of getting his $600 annual fee cut in half just by making a yearly call. With mortgage negotiations, Schultz suggests getting quotes from 3-5 lenders on the same day, since rates change frequently. A quarter-point rate reduction on a $360,000 mortgage saves $20,000 over the life of the loan. The fees themselves can differ by $5,000 between lenders. When it comes to workplace negotiations, Schultz recommends keeping a weekly log of your accomplishments. Note both your regular duties and times you went above and beyond. This creates a strong foundation for salary discussions. The most effective negotiations frame requests as win-win scenarios. Instead of just asking for tuition reimbursement, explain how additional education will help you contribute more to the company. Rather than demanding a lower rent, offer to sign a longer lease that reduces the landlord's vacancy risk. Schultz emphasizes building relationships during negotiations. The person at the call center has likely dealt with angry customers all day. Being pleasant and making a human connection can lead to better outcomes. The interview also covers negotiating with family members about money, choosing when to negotiate versus pay full price (like at charity shops or with small businesses), and how to time requests effectively. The common thread: success comes from understanding the other party's interests and finding ways to align them with your own. This episode will show you how to save hundreds — or thousands — in your regular spending, simply by asking. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. (0:00 Intro: Most people fear asking for discounts/negotiations (1:37) Keep weekly notes of work accomplishments for better negotiations (3:38) Companies want long-term customers - use this as negotiating leverage (6:04) Credit card fee negotiations - 90% success rate when asking (8:36) How to negotiate mortgage rates and compare lender quotes (13:15) Open-ended questions get better results than yes/no questions (19:41) How to handle pushy mortgage reps who bash competitors (26:41) Tips for millennials who hate phone calls but need to negotiate (31:17) Framing tuition reimbursement as benefit to company (39:19) Building rapport during negotiations vs being aggressive (44:42) When to walk away from difficult negotiations (49:20) Negotiating with small businesses vs large corporations (54:53) Red flags in workplace negotiations (58:38) How companies signal if they value employee growth (1:06:38) Final thoughts on customer lifetime value and negotiating power For more information, visit the show notes at https://affordanything.com/episode562 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#561: Joanne is confident that her short and long-term financial plans are set, but she’s not certain about the medium-term. What’s the proper way to allocate money for different time horizons? Jessie is intrigued by Paul Merriman’s simple portfolio recommendations but wonders about his lean away from growth stocks. Are value funds generally better for everyday investors? Nancy is worried she’ll miscalculate her financial independence number because her net worth includes pre and post-tax money, plus liquid and illiquid investments. What’s the right approach? Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode. Enjoy! For more information, visit the show notes at https://affordanything.com/episode561 Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. (00:00) Joe, did your clients severely miscalculate their own FIRE number? (03:14) Joanne (31:42) Jesse (47:00) Nancy P.S. Got a question? Leave it at https://affordanything.com/voicemail Learn more about your ad choices. Visit podcastchoices.com/adchoices

#560: Bill Bengen, the former rocket scientist who discovered the "4 percent rule" of retirement planning, joins us at the Bogleheads conference in Minnesota. Bengen clarifies that calling it a "rule" is misleading since it doesn't fit everyone's situation. The 4 percent figure came from studying the worst-case scenario since 1926, when someone who retired in 1968 could only safely withdraw 4.2 percent annually. Out of 400+ retirees in his database, that was the only one who had such a low safe withdrawal rate — most could take out much more. Recent research has pushed the "safe" withdrawal rate closer to 5 percent. But Bengen identifies eight key factors that affect how much you can withdraw, including how long you'll be retired and whether you're drawing from taxable or tax-deferred accounts. For early retirees planning for 50-60 years, Bengen says the safe withdrawal rate asymptotically approaches 4.2 percent — meaning even with an infinite time horizon, it won't drop below that. He thinks the common advice to use 3 percent for early retirement is unnecessarily conservative. Bengen shares what he calls the "four free lunches" in retirement planning: 1. Using an equity glide path (reducing stocks at retirement, then increasing later) 2. Diversification across asset classes 3. Regular portfolio rebalancing 4. Slightly overweighting higher-returning assets like small-cap stocks When it comes to market drops versus inflation, Bengen has clear advice: Don't panic during bear markets — they typically recover. But if you hit extended high inflation early in retirement, it's time to "head for the bunkers" and cut expenses drastically. Beyond finance, Bengen shares his excitement about space exploration as a former rocket scientist who graduated from MIT just months before the moon landing. He hopes to live long enough to see humans reach Mars and believes space tourism helps people appreciate Earth's beauty and fragility. The interview ends with a light-hearted discussion about whether Pluto should still be considered a planet (Bengen still calls it one, out of habit) and speculation about future tourism to Saturn's moon Titan once the sun's expansion makes it warmer in a few hundred million years. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. 0:00 Paula introduces Bill Bengen, creator of the 4% withdrawal rule 2:19 Bengen explains how the 4% rule represents a worst-case scenario from 1968 10:14 Bengen warns against using a fixed percentage withdrawal method, as it could lead to dangerously low income in down markets 17:32 Discussion of the "smile" pattern in retirement spending - high at start, dips in middle, rises at end for medical costs 23:22 Bengen shares the four "free lunches" in retirement planning, including equity glide path and diversification 34:25 Conversation shifts to bonds and stocks no longer being inversely correlated in 2022 35:44 Deep dive into Black Swan events and how to prepare for unpredictable market crashes 42:14 Bengen advises when to panic (inflation) and when not to panic (bear markets) during retirement 49:20 Analysis of spending categories that rise faster than inflation, like healthcare and housing 51:27 Bengen discusses graduating MIT in 1969, just before the moon landing 51:56 Conversation turns to current space exploration and plans for Mars missions 53:39 Bengen speculates about future tourism to Saturn's moon Titan 54:17 Light-hearted debate about Pluto's planetary status Resource Mentioned https://affordanything.com/377-how-i-discovered-the-4-percent-retirement-rule-with-bill-bengen For more information, visit the show notes at https://affordanything.com/episode560 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#559: An anonymous caller, whom we name “Samantha,” and her husband are financially strained and feeling torn. Shortly after purchasing two rental properties, their income dropped dramatically. Should they sell? Tina is a full-time environmentalist. She’s worried that her index funds don’t align with her values on sustainability. Is there a world where she can be a savvy investor and fight climate change? Another anonymous caller, whom we name “Sarah,” is excited and uncertain about her growing business. Should she hold steady or invest more resources into it? And how does she know if she’s making the right call? Former financial planner Joe Saul-Sehy and I tackle these three 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/episode559 The Efficient Frontier: Join Joe for an exclusive live session all about the efficient frontier (aka the secret sauce of smarter investing). This 90 minute online event is Thursday November 21st at 8pm ET / 5pm Pacific. Head on over to http://stackingbenjamins.com/efficient to grab your spot. Learn more about your ad choices. Visit podcastchoices.com/adchoices

#558: What happens when you spend three decades talking to retirement experts? You learn that most of what people think they know about retirement planning is oversimplified or wrong. Christine Benz, director of personal finance and retirement planning at Morningstar, joins us on the Afford Anything podcast to share what she's discovered after 31 years of interviewing experts across personal finance, tax planning, and Social Security. One key insight: The standard advice about withdrawing 4 percent of your portfolio annually in retirement misses the mark. Real-life spending isn't that simple. In your 60s, you might spend more on travel. By your 80s, healthcare costs often rise. Benz suggests creating separate "pots" of money for different purposes - like a travel fund you aim to deplete within your first decade of retirement. Want to protect against market crashes early in retirement? Benz recommends keeping 5-8 years of planned withdrawals in cash and high-quality bonds. This prevents having to sell stocks during downturns. We talk about why retirement doesn't need to be all-or-nothing. Instead of going from 40 hours to zero, Benz describes how many people benefit from a phased approach. This might mean keeping the parts of your job you enjoy while dropping the rest, or finding new ways to use your skills. The conversation shifts to housing choices. While many assume retirees move to Florida or Arizona, the data shows most stay put. Those who do move often end up near their oldest daughter. And while single-family homes tend to make people happier until around age 75, apartment dwellers report more satisfaction after that — largely due to increased social interaction. Benz shares her own retirement planning process. Despite being a retirement expert herself, she works with an hourly financial planner who tells her she'll likely struggle to spend as much as she could in retirement. It's a common problem — after decades of saving habits, many retirees find it psychologically difficult to spend their money. The interview wraps up with a discussion about relationships in retirement. Research shows that while older adults often have smaller social circles, these relationships tend to be deeper and more meaningful. They've pruned away the "good enough" friendships to focus on their closest connections. Benz's insights come from her new book "How to Retire" and her work at Morningstar, where she creates free model portfolios and hosts The Long View podcast. Beyond the financial aspects, she emphasizes that successful retirement planning involves thinking about purpose, relationships, and how you want to spend your days — not just your money. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. 0:00 What 30 years of retirement expert interviews reveal 1:34 Why spending in retirement is harder than saving for it 3:12 Beyond money: need purpose, not just leisure 4:00 The challenge: planning for an unknown time horizon 8:52 Should market fears delay your retirement? 13:42 How much cash and bonds to keep safe 15:49 When bonds don't protect against stock crashes 18:33 Phased retirement: keep what you love, drop what you don't 29:24 Take mini-retirements throughout your career 33:20 Spending shifts: from travel to healthcare costs 46:14 Why most retirees don't actually move 57:31 After 75, apartment living beats houses 1:00:42 Friendship patterns change: quality over quantity 1:04:58 Virtual vs real-life connections 1:06:25 Where to find more info For more information, visit the show notes at https://affordanything.com/episode558 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#557: Imagine saving nearly your entire paycheck while your rental properties cover your bills. That's exactly where real estate investor Andrew finds himself — and yet he's at a crossroads. At FinCon, a personal finance conference, former financial advisor Joe Saul-Sehy and I sit down with Andrew and another attendee who bring their money dilemmas live on stage. Andrew's question seems simple at first: should he sell his index funds to pay off his rental mortgages? But the real story runs deeper. He feels called to entrepreneurship and wants to quit his corporate job to pursue it full-time. He could achieve minimal financial independence (lean-FIRE) if he pays off the properties, but that might limit his options. Next, Chris, a Gen X dad, opens up about his Gen Z kids' gloomy money outlook. His 22 and 24-year-old children, especially his daughter, believe their generation "will never retire." They see high inflation, expensive housing, and low wages as insurmountable obstacles. This sparks a deeper conversation about generational perspectives. We note that similar fears existed 15 years ago when millennials entered the workforce during the Great Recession. Joe shares how he helped his own kids develop healthier money mindsets by introducing them to financial voices they could relate to, like Broke Millennial author Erin Lowry. The discussion evolves into how today's young people actually have more opportunities than previous generations — they can work remotely, start online businesses with minimal capital, and create multiple income streams through platforms that didn't exist before. Chris's daughter, for instance, sometimes makes $35/hour driving for DoorDash during peak times. We wrap up by talking about the importance of focusing on what you can control and finding purpose beyond just retirement planning. As Andrew points out, it might be worse to spend the best years of your life doing work you don't care about than to face uncertainty in retirement. The key is taking action on the things within your control while building toward long-term security. Throughout the conversation, both guests share personal stories that illuminate their situations - from Andrew's experience at an oil refinery that pushed him toward entrepreneurship to Chris's daughter storing cash for taxes from her DoorDash earnings, showing she's more financially aware than she might think. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. 1:50 Andrew asks about index funds vs real estate allocation 4:04 Could Andrew reach lean-FIRE by paying off rentals? 5:00 Joe suggests keeping investments flexible vs mortgage payoff 8:05 Debate over HELOC vs index fund liquidity 10:10 Andrew's bigger dreams beyond real estate investing 17:40 Choosing between W2 security and entrepreneurial freedom 19:20 Andrew saves nearly entire salary while rentals cover bills 24:20 Chris worried about Gen Z kids' financial pessimism 28:40 How Joe helped his kids find relatable money role models 33:40 Millennials faced similar fears post-Great Recession 37:20 Today's expanded opportunities vs previous generations 43:20 Andrew's wake-up call at oil refinery job 49:20 Chris's daughter earning $35/hour on DoorDash 52:00 Finding meaning beyond retirement numbers For more information, visit the show notes at https://affordanything.com/episode557 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#556: An anonymous caller was raised to work hard, live below his means, and save. He feels undeserving of his recent $1,000,000 inheritance and struggles to spend it. What should he do? Jack bought a house with a seven-year adjustable-rate mortgage. He’s confused about when and how he should refinance out of it. What should he do? Jack is also wondering how to do the breakeven calculation between contributing to a Traditional IRA with upfront income tax savings versus a Roth IRA with deferred savings on investment gains. Former financial planner Joe Saul-Sehy and I tackle these three 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/episode556 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#555: Brandon Ganch (known online as MadFientist) joins us from Scotland to share how his life has transformed since retiring in 2016 at age 34. “I thought retirement was an age, not a function,” he said. “And when I realized it was just a math function, it changed my entire life.” Eight years into retirement, Brandon talks about how his spending and lifestyle have evolved. While his investment portfolio has grown "exponentially," he's had to push himself to spend more money. He and his wife have doubled their spending in the last three years, yet still haven't reached the 4 percent withdrawal rate that's common in early retirement. Having two young kids (a two-year-old son and one-month-old daughter) has changed their spending patterns. Restaurant bills and craft beer costs have dropped significantly, while they've invested in a house — their third, but the first one Brandon says he actually enjoys owning since he's no longer "hyper-frugal." Brandon shares his few regrets from his journey to financial independence, mainly missing friends' bachelor parties in his twenties because he didn't want to pay for two transatlantic flights in one month. The book "Die with Zero" has shifted his perspective on spending, making him realize there are "seasons in life" for certain experiences. Brandon suggests trying to live your "post-FI life" before actually reaching financial independence. By traveling for three months straight, he learned that constant travel wasn't actually what he wanted. He emphasizes that financial independence isn't just about early retirement — it's about having choices and power in your career. You can find Brandon at madfientist.com or listen to his music at madfientist.com/album. A Sampling of MadFientist Articles: Retirement withdrawal strategies: https://www.madfientist.com/discretionary-withdrawal-strategy/ Baseline portfolio vs. optimized portfolio: https://www.madfientist.com/guinea-pig-experiment/ FI spreadsheets: https://www.madfientist.com/financial-independence-spreadsheet/ FI laboratory: https://www.madfientist.com/resources/ How to use an HSA as a Super IRA: https://www.madfientist.com/ultimate-retirement-account/ How to Stack Tax Benefits: https://www.madfientist.com/stack-tax-benefits/ And of course, his passion project in retirement — the album: https://www.madfientist.com/album/ Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. 0:00 - Paula opens with a Guy Fawkes Day reference and historical background 2:06 - Brandon Ganch (MadFientist) introduces himself as having retired in 2016 at age 34 4:09 - Brandon explains how HR discovering his Scotland location led to his early retirement 7:01 - Discusses the "power of quitting" and how having FI helped him negotiate better work terms 11:26 - Explains how spending habits changed post-retirement, especially around house ownership 13:37 - Talks about having kids and how that decreased spending on travel, restaurants and beer 19:27 - Shares his only regrets about the FIRE journey, including missing friends' bachelor parties 26:58 - Discusses the "Die with Zero" book and its impact on his financial philosophy 33:32 - Explains why optimization and hyper-frugality are no longer priorities in his life 40:06 - Updates on his music passion project and performing live with his brother 44:21 - Advises people to start living their post-FI life before reaching financial independence 48:36 - Explains why FI might not be for everyone but financial security matters for all 51:28 - Shares thoughts on AI's impact on software development jobs and being glad he's already FI For more information, visit the show notes at https://affordanything.com/episode555 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#554: The U.S. jobs market hit a surprising speed bump in October, adding just 12,000 new jobs — way below the expected 100,000. A mix of natural disasters and labor unrest explains the slump. Recent hurricanes in the Southeast wiped out somewhere between 40,000 to 70,000 jobs, while strikes at Boeing and other companies added to the slowdown. Against this backdrop, the Federal Reserve looks ready to cut interest rates next week by 0.25 percent. Meanwhile, gold is having its biggest moment since 1979, but not for reasons you might expect. Central banks, especially in China and India, are loading up on physical gold like never before. Poland's central bank has grabbed 167 tons of gold and wants to keep 20 percent of its reserves in gold — a move that hints at banks preparing for possible global shake-ups. Remember when I-Bonds were the hot ticket in 2022, paying out 9.6 percent? Those glory days are gone. The new rate has dropped to 3.1 percent, making your standard high-yield savings account look pretty good in comparison. In the stock market, it's all about the "Magnificent Seven" — Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla. These tech giants account for 62 percent of all S&P 500 gains over the past year. The other 493 companies aren't doing too shabby either, with profits expected to grow 13 percent next year. As for the upcoming election, both presidential candidates' economic plans would push the federal deficit higher. The Wharton School of Business says Trump's proposals would add $5.8 trillion to the deficit over 10 years, while Harris's would add $1.2 trillion. There's also talk about tariffs that could spark inflation and maybe even kick off a global trade war. Here's the kicker: during the 2016 election, a 24-year-old Sam Bankman-Fried correctly predicted the outcome before anyone else and made $300 million in a single night trading on that information. But by morning, the markets had swung so wildly that he'd lost $600 million. The lesson? Even if you guess the election right, predicting how markets will react is a whole different ball game — one that you should avoid. Think long-term, buy-and-hold. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. 3:15 October jobs report falls short: only 12,000 new jobs added 7:45 Gold prices surge to 45-year high 11:30 Central banks lead global gold buying spree 16:20 The end of the gold standard 20:45 I-Bond rates plummet from 9.6 to 3.1 percent 24:03 The Magnificent 7 create most S&P 500 gains 28:58 US deficit hits 6 percent, tops G7 countries 33:31 Inflation risks and tariff concerns ahead of election 40:10 Why you shouldn't trade the upcoming election Resources Mentioned Wharton’s Trump Campaign Economic Analysis: https://budgetmodel.wharton.upenn.edu/issues/2024/8/26/trump-campaign-policy-proposals-2024 Wharton’s Harris Campaign Economic Analysis: https://budgetmodel.wharton.upenn.edu/issues/2024/8/26/harris-campaign-policy-proposals-2024 The Economist, Editorial Board Endorsement: https://www.economist.com/in-brief/2024/10/31/why-the-economist-endorses-kamala-harris Bloomberg Endorsement: https://www.bloomberg.com/opinion/articles/2024-10-31/michael-bloomberg-why-i-m-voting-for-kamala-harris The Financial Times endorsement, which is unfortunately behind a paywall: https://www.ft.com/content/3db1db35-f536-4efc-b463-a1fc98a785b0 For more information, visit the show notes at https://affordanything.com/episode554 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#553: This is the third and final episode in a three-part series. Dr. Brad Klontz and Adrian Brambila join us to share 21 harsh truths about building wealth. This episode focuses on the final 11 harsh truths, following up on their previous conversations about the first 10 harsh truths. The conversation begins with a key distinction: poor people buy stuff, while rich people buy time. They explain how wealthy people focus on building passive income streams rather than trading hours for objects. Brambila shares how he learned this lesson personally, discussing his pickleball court purchase through investment income rather than active work hours. The duo challenges common assumptions about luxury brands, arguing that people who constantly show off designer items are usually compensating for insecurity. Klontz shares his own experience of buying an expensive watch early in his career to prove his success. They examine whether college, marriage, and homeownership are necessary for wealth building. While data shows these traditional paths often lead to higher net worth, they acknowledge these aren't the only routes to financial success. On the topic of retirement, both guests argue that completely stopping work can be psychologically harmful, sharing examples of successful people who stayed active well into their later years. They break down specific money-saving strategies like getting roommates, using public transportation, and cutting your own hair. Brambila demonstrates how women can cut their own hair during the interview. The discussion covers specific side hustle opportunities, with detailed explanation of how to make money doing Amazon product reviews. Brambila shares how his videos have generated significant income, including $2,000 in a single day during Black Friday. They address money myths about credit cards, particularly the misconception about carrying balances to improve credit scores. Real examples and personal stories illustrate their points. Klontz shares how his 11-year-old son is making $5,000 monthly doing Amazon reviews, while Brambila discusses living in a van while earning six figures to demonstrate that wealth isn't about outward appearances. The episode concludes by connecting financial security to Maslow's hierarchy of needs, explaining how building wealth enables higher-level personal growth and positive impact. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. 0:00 Introduction 2:02 Poor people buy stuff, rich people own time 13:20 Wealth mindset invests in passive income vs trading time 21:20 Only insecure people flex luxury brands 30:00 Debating necessity of college, marriage, homeownership 38:20 Why retirement can harm mental health 48:40 Wealthy people aren't afraid to ask for help 54:40 Don't rely on politics for financial freedom 1:03:20 Complaining keeps you poor 1:05:20 Alternative saving strategies: roommates, bus, sobriety 1:15:20 Netflix binging vs side hustles 1:19:40 Making money with Amazon product reviews 1:28:20 Credit cards must be paid in full monthly 1:31:00 The importance of thinking rich 1:33:30 Where to find more resources and bonuses For more information, visit the show notes at https://affordanything.com/episode553 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#552: In this special three-part series, we discuss some of the 21 Harsh Truths About Money. For more information, visit the show notes at https://affordanything.com/episode552 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#551: Financial psychologist Dr. Brad Klontz and Youtuber Adrian Brambila join us to talk about money psychology, starting with a dark but revealing story about an experiment with dogs. Scientists put dogs in electrified cages from which they couldn't escape. Eventually, the dogs stopped trying to escape and just lay down, even when later moved to cages where escape was possible. This 'learned helplessness' mirrors how people can get trapped in negative beliefs about money when they grow up with financial hardship. The conversation explores four main "money scripts" - deep beliefs about money that shape our behavior: 1. Money Avoidance: Thinking money is bad and rich people are evil 2. Money Worship: Believing more money will solve all problems 3. Money Status: Equating net worth with self-worth 4. Money Vigilance: Being careful and anxious about money (this one actually leads to the best financial outcomes) Adrian shares his journey from making $27,000 at a call center in Iowa to becoming successful through YouTube, explaining how he had to find mentors online since no one around him understood his goals. He talks about feeling like a "lone wolf" with uncommon aspirations in a small town. Dr. Brad reveals some surprising findings - like how meditation is linked to lower net worth (because being present-focused can work against future planning). His solution? "Automate before you meditate" - set up your savings and investments first. They discuss how your friend group shapes your money views. The FIRE (Financial Independence Retire Early) movement, for example, creates status around having high savings rates instead of fancy cars. But they note some FIRE followers end up "FIRED" - Financially Independent Retire Early Depressed - because they never learned to enjoy spending money. Dr. Brad shares a personal story about realizing in couples therapy that his fear of becoming poor was causing harmful stress, even though he was financially secure. This highlights a key theme: money scripts affect both rich and poor, and having more money doesn't automatically fix unhealthy money beliefs. All these insights come from Dr. Brad and Adrian's research and personal experiences, which they've collected in their book "Start Thinking Rich." The core message? Your money beliefs probably came from your childhood and culture, but you can change them once you understand them. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. 0:00 Intro to 3-part series on thinking rich 3:01 Psychology experiment reveals how learned helplessness affects money habits 8:12 Adrian's journey from call center worker to YouTuber 14:16 How friend groups sabotage financial success 19:52 Brad's struggle sharing book-writing aspirations 29:30 Being the lone ambitious person in a small town 40:24 Introduction to the concept of money scripts 48:20 Money script #1: avoiding wealth and villainizing rich people 56:52 American consumerism vs other cultures 1:02:40 Money script #2: believing money solves everything 1:09:20 Money script #3: equating net worth with self-worth 1:16:40 Money script #4: vigilance leads to better money outcomes 1:20:40 Why meditation correlates with lower wealth 1:22:48 When parents can't enjoy their retirement money 1:29:44 Overcoming the fear of becoming poor again For more information, visit the show notes at https://affordanything.com/episode551 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#550: Paul Merriman, a former wealth manager turned financial educator, joins us to share investing wisdom that could reshape how you think about your money. We kick things off talking about portfolio diversification. Paul suggests a simple four-fund strategy that includes large cap, small cap, and value stocks. He says this mix has historically beaten the S&P 500 with lower risk. We then dive into international investing. Paul explains that while adding international stocks doesn't necessarily boost returns, it can help smooth out the ride. He keeps half his equity portfolio in international stocks, even at age 81. Got kids? Paul's got some advice for you too. He tells us about putting money aside for his new granddaughter, aiming to fund her Roth IRA as soon as she can earn income. He breaks down how investing just a dollar a day from birth to age 21 could turn into millions by retirement age. It's a powerful lesson in starting early and the magic of compound interest. We also chat about some common investing mistakes. Paul stresses that young investors often underestimate the power of stocks over bonds for long-term growth. He shares some eye-opening numbers: $100 invested in bonds since 1928 would have grown to about $12,000, while the same amount in small cap value stocks would be worth nearly $15 million. Paul wants you to think of investing as a partnership with businesses. When you buy a mutual fund, you're becoming a senior partner in thousands of companies. At first, your contributions drive most of the growth. But over time, market returns take over, and you become the junior partner to a much larger fortune. We wrap up with Paul sharing his excitement about a 40-hour financial education program he helped create at Western Washington University. It's designed to teach students essential money skills throughout their college years, from budgeting as freshmen to understanding 401(k)s as seniors. Throughout our chat, Paul's message is clear: start early, stay diversified, and think long-term. He believes that with the right education and mindset, anyone can build a solid financial future. 4 Fund Combo Guide https://www.paulmerriman.com/4-fund-combo#gsc.tab=0 Table Numbers https://soundinvesting.com/wp-content/uploads/2020/04/Table-Numbers.pdf Quilt Charts https://soundinvesting.com/wp-content/uploads/2021/01/2020-Year-End-Podcast-Charts.pdf Historical Risk and Return Tables https://www.paulmerriman.com/historical-risk-and-return-tables#gsc.tab=0 Portfolio Configurator https://lookerstudio.google.com/u/0/reporting/a941a5d4-0929-45ea-b22e-3bb82dc334ff/page/99wxc?s=hqmha3-AK5k Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. 0:00 Intro to Paul Merriman and podcast topic 0:57 Two-fund portfolio strategy 3:55 Four-fund portfolio strategy explained 5:31 Large cap performance concerns 7:06 S&P 500 vs Total Market Index 10:59 AI impact on large companies 14:43 Market trends and historical performance 20:41 International equity in portfolios 25:26 ETFs vs index funds 29:41 Non-US investor asset allocation 38:41 Setting up kids financially 43:57 Early investing importance 48:37 Common investor mistakes 50:25 Investing as business partnership 52:51 Evolving financial education landscape For more information, visit the show notes at https://affordanything.com/episode550 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#549: Steven is stuck on the question of financial stability. How do you know if you have it? Is there an objective answer based on net worth? Or is it a calculation relative to your income and age? Jack isn’t sure how to factor his house into his net worth. It’s an asset, but he has a mortgage against it, and there are transaction costs associated with selling it. How should he frame it? Patricia and her husband are debt-free with a $2.2 million net worth, but she’s constantly stressed about their finances. Are her concerns valid? Or is she a financial hypochondriac? Former financial planner Joe Saul-Sehy and I tackle these three 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/episode549 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#548: Economist Dr. Karsten Jeske talks with us about the current economic landscape. Karsten, who retired at 44, breaks down the Fed's recent decisions and how they might affect our finances. He explains how markets often anticipate interest rate changes before they happen. Karsten challenges traditional views on inflation and unemployment, telling us that textbook models don't always match reality. Karsten shares his personal investing experiences, covering both market highs and lows. He emphasizes the value of consistent investing regardless of market conditions. For those eyeing retirement, Karsten dives into safe withdrawal rates. He advises paying close attention to current market valuations when planning. On the topic of mortgages, he offers clear guidance on when refinancing makes sense. We also touch on economic history, discussing the Weimar Republic's hyperinflation. Karsten uses this to critique modern monetary theory, expressing skepticism about unrestricted money printing. Throughout our conversation, Karsten explains complex economic concepts in accessible terms. He draws on his background as both an academic and a Wall Street professional to provide well-rounded insights. Karsten, also known as Big ERN, is the author of EarlyRetirementNow.com, where he writes about safe withdrawal rates and personal finance while enjoying his retirement. For more information, visit the show notes at https://affordanything.com/episode548 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#547: An anonymous caller and her husband have a $2 million net worth at 40, but they’re worried that the one-fund portfolio that got them there isn’t good enough anymore. Are they right? Jared feels frustrated that so much personal finance media is centered around tech and freelance workers. Does Paula and Joe have negotiation advice for someone in the union? Sam owns two overseas properties in a country that’s experienced runaway inflation for the past decade. He’s worried he’ll lose $500,000 worth of assets. How does he control the bleeding? Steve is calling back with an exciting update on his house-swapping journey from Episode 487. Former financial planner Joe Saul-Sehy and I tackle these three 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/episode547 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#546: The Federal Reserve slashed interest rates by half a percentage point. What does this mean for your mortgage, your savings account, and the economy at large? In this First Friday economic episode, we dive deep into the Fed's decision. But that's just the beginning. As the presidential election looms, we'll also unpack the economic proposals from both candidates, examining how their plans for housing, taxes, and more could shape your financial future. We emphasize critical, non-partisan analysis of economic proposals. We want you to understand complex economic issues and their potential impacts, rather than advocating for specific political positions. Here are more specifics about this episode: The Federal Reserve's decision to cut interest rates by half a percentage point – the first rate reduction since the pandemic – is the biggest economic story of the month. We start by exploring the implications of the Federal Reserve’s rate cut, from falling mortgage and auto loan rates to potential increases in home prices and a tightening housing inventory. We also touch on the flip side: declining yields on high-interest savings accounts and CDs. We unpack the reasoning behind the Fed's decision, including shifting concerns from inflation to unemployment. We delve into economic indicators like the "dot plot" and "R-Star," explaining their significance in predicting future interest rates and economic trends. Then we discuss the latest jobs report, with 254,000 new jobs added in September, surpassing expectations. We break down the unemployment rate's drop to 4.1 percent. As the conversation shifts to the upcoming election, we take a nonpartisan approach to examining economic proposals from both presidential candidates. The episode focuses on policy rather than politics, encouraging critical thinking about each proposal's potential impacts. One area of bipartisan agreement - a proposal for no tax on tips for service workers - is scrutinized. We explain why economists across the political spectrum view this idea skeptically, highlighting the lack of specificity in defining "service workers" and "tips." Housing policy takes center stage, with both candidates proposing regulatory streamlining for home construction and opening federal lands for development. We discuss the limitations of federal intervention in what are often local zoning and regulatory issues. The episode also examines proposals for first-time homebuyer assistance, explaining how subsidizing demand in a supply-constrained market could potentially lead to higher housing prices. Throughout the discussion, we emphasize the importance of evaluating these policies based on their potential economic impacts rather than political affiliations. This episode will help you make more informed decisions about personal finances and policy preferences. Timestamps Note: timestamps will vary on individual devices based on advertising length 0:00 Introduction to the Fed's recent interest rate cut 2:35 Unpacking the impact of rate cuts on mortgages and savings 5:12 Explanation of the dot plot and R-Star concepts 9:47 Analysis of September's job report and unemployment figures 15:23 Discussion on labor force participation trends 21:08 Introduction to election-related economic policies 25:40 Examination of bipartisan "no tax on tips" proposal 31:15 Analysis of housing policies from both candidates 37:22 Critique of down payment assistance for first-time homebuyers 42:56 Exploration of the Tax Reform Act of 1986 and its housing impact 48:03 Discussion on proposed acts to limit corporate housing investments 52:17 Case study of Argentina's recent housing market changes For more information, visit the show notes at https://affordanything.com/episode546 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#545: Kat feels thrown off. She’s realizing that the simple investing strategy that nearly 5x’d her portfolio in six years might be unwise. Should she course correct? And how? Ryan and his wife are torn between buying what they want (a single-family house) and what seems prudent (a multi-family house). How do they decide? Is there a third way? At 30, Danielle has saved enough for a traditional retirement. But she’s confused about how this meshes with planning for an early retirement. How should she think about money buckets? Former financial planner Joe Saul-Sehy and I tackle these three 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/episode545 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#544: Remember that time you found a $20 bill in an old jacket pocket? The rush of excitement, followed by the quick mental math of what you could buy with it? That's your money mindset at work. In this episode, we dive deep into the psychology behind our financial decisions. You'll hear about the three money mindsets: anxious, obsessed, and avoidant. Ever clutched onto every penny out of fear? That's the anxious mindset. Spent big to impress others? Money obsession. Ever thought "I'd rather be happy than rich" or felt uncomfortable talking about money? These could be signs of a money-avoidant mindset. The episode shares a personal journey from being terrified of running out of money to developing a healthier relationship with finances. It's not just about saving or spending - it's about using money as a tool to express your values. You'll learn why being "good with money" isn't as simple as “just don’t spend it!” Think about Ebenezer Scrooge - he had plenty of cash but lived like a pauper. Is that really good money management? On the other end of the extreme, you have Montgomery Burns from The Simpsons as another example. He's loaded but obsessed with getting even richer, showing how the endless pursuit of wealth can leave you lonely and isolated. The talk covers how your beliefs about money can become self-fulfilling prophecies. If you think you're bad with money, you might make poor financial decisions without realizing it. You'll hear about the balance between time and money. Both are limited resources, and sometimes it's smart to spend money to buy back your time. After all, you can always make more money, but you can't make more time. This episode tackles the myth that work is always a drag. It suggests finding work that gives you a sense of purpose can lead to both job satisfaction and financial success. Investing comes up too. You'll learn why it's often simpler than the financial industry wants you to believe. Sometimes, doing less with your investments can lead to better results. We wrap up by talking about imposter syndrome - that feeling that you don't deserve your financial success. If you've ever felt like a fraud because your bank account looks better than it used to, you're not alone. Throughout the episode, you'll get insights into how your past experiences shape your current money habits. By the end, you'll have tools to start examining your own money mindset and working towards a healthier relationship with your finances. For more information, visit the show notes at https://affordanything.com/episode544 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#543: Picture this: You're at a car dealership, trying to get the best price on your dream car. The salesperson hits you with a "take it or leave it" offer. Your palms are sweaty, your heart's racing. What do you do? That's just one of the tricky situations we dive into in this episode. We're tackling seven types of hardball negotiation tactics that can trip you up in all sorts of situations - from asking for a raise to haggling at a flea market. First up, we break down the "take it or leave it" tactic. We share a real-life story of Sarah, a software developer, facing this exact situation in a job interview. You'll hear how she turned it around and got what she wanted. Next, we talk about psychological warfare. Sounds intense, right? It can be. We tell you about Emma, a graphic designer, who had to deal with a client trying to throw her off her game. You'll learn how she kept her cool and came out on top. Ever heard of the "good cop, bad cop" routine? It's not just in movies. We share a story of how this played out in a business deal and give you tips on how to spot it and handle it like a pro. Then there's the "snow job" - when someone dumps so much information on you that your head spins. We break down how to cut through the clutter and focus on what really matters. We also cover what to do when someone's holding back important info, how to spot a fake-out (when someone pretends to care about one thing but really wants another), and the sneaky "nibbling" tactic where people ask for just one more small thing... and then another... and another. For each tactic, we give you the lowdown on: What it looks like in action Why it works (yep, there's some psychology involved) How you can spot it What you can do to counter it We wrap up with a handy checklist for each tactic. Think of it as your negotiation cheat sheet. By the end of the episode, you'll have a toolkit of strategies to help you navigate tough negotiations, whether you're buying a car, negotiating your salary, or just trying to decide where to go for dinner with your friends. Remember, negotiation isn't about "winning" at all costs. It's about finding solutions that work for everyone. With the tips from this episode, you'll be better equipped to do just that, even when things get tricky. For more information, visit the show notes at https://affordanything.com/episode543 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#542: Ever feel like you're never doing enough with your money, even when your finances look good on paper? You're not alone. Katie Gatti Tassin, host of the Money with Katie podcast, dives into a phenomenon called "money dysmorphia" in today’s interview. She shares how she got flooded with responses when she asked her listeners about money dysmorphia. Folks with hefty savings and investments still worry they're not doing enough. It's like they're always waiting for the other shoe to drop. Where does this come from? Katie points to a few culprits. Social media is an obvious scapegoat. But traditional media plays a role too. Think about all those TV shows where "normal" families live in massive houses and drive fancy cars. It skews our perception of what's average. Location matters too. Katie talks about how moving from Dallas to Fort Collins changed her spending habits. Different cities have different vibes and social norms around money. The conversation takes an interesting turn when Katie shares her own experience buying a Porsche. She felt conflicted, worried her FIRE (Financial Independence, Retire Early) community would judge her. It highlights how even personal finance experts grapple with these issues. They also touch on how the pandemic shook up financial priorities. When faced with uncertainty, some people realized saving for a far-off future might not be the only goal worth pursuing. Katie and Paula discuss the importance of balance. It's good to save, but not at the expense of living your life now. They suggest seeking out voices in the personal finance world to get a more rounded perspective. Travel comes up as a way to gain financial perspective. Seeing how people live in other parts of the world can make you appreciate what you have or show you where your own country could improve. Katie and Paula offer food for thought on how to navigate our complex relationship with money. It's a conversation that might make you think differently about your own financial mindset. Timestamps Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. 01:13 - Define money dysmorphia concept 02:22 - Social media's influence on financial perceptions 03:57 - Traditional media's impact on financial normalcy 06:03 - Wealth displays in TV and movies 09:52 - Regional cultures affect spending habits 11:35 - Social engineering in consumer culture 14:36 - TV shows shape perceptions of normal lifestyles 17:19 - Lower-income portrayal in media 20:22 - Social circles influence financial habits 23:35 - Importance of balance in financial perspectives 26:34 - Travel's role in gaining financial perspective 29:12 - Key takeaways about money dysmorphia 31:30 - Media's influence on financial normalcy perception 33:46 - Balancing future planning with present enjoyment For more information, visit the show notes at https://affordanything.com/episode542 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#541: Ever wondered if you're making the right choice between a Traditional and Roth 401(k)? You're not alone. In this episode, Katie Gatti Tassin, host of MorningBrew’s Money with Katie podcast, joins us to tackle this common retirement savings dilemma. We deep-dive into the debate between using Traditional vs. Roth 401(k) accounts for retirement savings, in the context of: Future tax rates Tax complexities for small business owners and high earners Social Security uncertainty Stock-based compensation Incentives for business owners vs. employees Katie explains her strategy for maximizing retirement savings while minimizing taxes. She suggests that for some people in higher tax brackets, maxing out a traditional 401(k) and then investing the tax savings elsewhere might be the way to go. But as we dig deeper, it becomes clear that there's no one-size-fits-all answer. We explore the Traditional vs Roth question, discussing how your current income and expected retirement spending can affect your choices. It's not just about the math, though. The unpredictability of future tax rates and policies adds another layer of complexity to the decision. Social Security plays a major role, as well. We discuss its current funding situation and the challenges it might face in the future. This leads to a fascinating discussion about how AI might impact future costs and lifestyles. Could things actually get cheaper in the future? Taxes for high earners and small business owners is another focus. We break down some misconceptions about who falls into high tax brackets. It's not always as simple as it seems. Stock-based compensation is another hot topic. We discuss how it affects corporate decision-making and the wider economy. This leads to an interesting comparison of the incentives for business owners versus employees. Throughout the episode, we keep coming back to one key point: no matter which type of account you choose, the most important thing is to contribute as much as you can. Your contribution amount has a bigger impact on your retirement savings than the type of account you use. By the end of this interview, you'll have a better understanding of the factors that go into choosing between a Traditional and Roth 401(k). More importantly, you'll see how this decision fits into the bigger picture of retirement planning and overall financial health. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. Here are the condensed timestamps and descriptions: 0:00 Introduction 1:46 Katie explains strategy for maximizing retirement savings 3:19 Discuss assumptions behind traditional vs Roth 401(k) decisions 5:54 Compare scenarios of traditional and Roth contributions 8:54 Explore how income affects retirement account choice 13:51 Talk about media's impact on financial perceptions 15:20 Discuss unpredictability of future tax policies 18:03 Explain current state of Social Security funding 21:05 Explore AI's potential impact on future costs 24:41 Discuss how location influences spending habits 28:16 Examine tax implications for high earners 31:12 Talk about effects of stock-based compensation 33:55 Compare incentives for business owners vs employees 36:06 Emphasize importance of contribution amounts For more information, visit the show notes at https://affordanything.com/episode541 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Originally aired August 2023: Stanford psychology professor Jamil Zaki shares his research and findings around the science of empathy – and how we can apply this to improving our relationships with colleagues, clients, customers, co-founders, and business and investing cohorts. Zaki is the director of the Stanford Social Neuroscience Lab, and the author of “The War For Kindness.” We'll break down the science. We talk about why empathy matters in business, investments, and in career growth, and we’ll discuss its digital age dynamics. How does AI impact the way in which we relate to others? If you want to learn the science of emotional intelligence, and how to apply this to your career and business interactions, you’ll learn a lot from today’s episode. Enjoy! The original show notes can be found at https://affordanything.com/episode456 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#540: What can M&Ms, McDonalds, Harry Potter, Aquafina, Taylor Swift, Jeopardy, and Bed Bath & Beyond teach us about landing a dream job or securing a promotion? Plenty. Imagine you're at a job interview. You've rehearsed your answers, polished your resume, and you're feeling confident. But what if the key to landing that job isn't just about your skills and experience? What if it's about how you make people feel? How you make people feel is your brand, Zane says. That's what Leslie Zane, a Harvard Business School alum and prominent branding expert, talks about in this interview. She says that whether you're trying to get a new job, a promotion, or more customers for your small business, it all comes down to how you build your personal brand. Zane breaks it down into three main ideas: be salient, be relevant, and be distinctive. Being salient means making sure people remember you. It's not just about doing your job well, but about connecting with people all over your company. Zane gives an example of a dental hygienist who calls patients after their appointments to check on them and offer advice. This extra touch helps the hygienist stick in people's minds. Being relevant is about focusing on the good stuff. Zane says if you make a mistake at work, don't dwell on it. Instead, do more good things to push out the bad memory. She talks about how McDonald's dealt with rumors about "pink slime" in their food. Instead of denying it over and over, they started showing how they make their food with fresh ingredients. This helped people forget about the pink slime and think about good things instead. Being distinctive means standing out, but in a way that still feels familiar. Zane tells a story about the game show Jeopardy. When the longtime host Alex Trebek died, the producers tried inviting different celebrities to host the show. But viewers didn't like it. The ratings only rose when they chose Ken Jennings, a former champion contestant, as the new host. He was familiar enough that viewers felt comfortable with him. Zane also talks about how these ideas can help small businesses. She says it's important to reach out to new customers, not just focus on the ones you already have. She suggests finding ways to connect your business to things that people already enjoy. If you run an accounting firm in Kansas City, for example, you might talk about local sports teams or famous barbecue to help people feel a connection to your business. Throughout the interview, Zane emphasizes that building a strong personal brand isn't about bragging or being fake. It's about creating genuine connections with people and consistently showing your best qualities. You’re creating buzz about yourself. The more positive connections you make, the stronger your brand becomes. Zane's advice goes against some common ideas about marketing and self-promotion. She says you don't need to stick to just one thing or only target a specific group of people. Instead, she encourages reaching out to as many people as possible and finding ways to connect your skills or business to things they already care about. Timestamps Note: Timestamps will vary on individual listening devices based on dynamic ad lengths 0:00 - Importance of becoming a personal brand for career growth 6:04 - Tapping into the instinctive mind 8:54 - How brands grow in people's minds 13:40 - Situational salience using M&M's example 18:40 - Why Harry Potter is a salient brand 24:23 - Three key elements of building a personal brand 29:20 - McDonald's addressing negative brand associations 35:40 - Be distinctive, not unique 41:00 - Jeopardy! host change and brand continuity 46:56 - Creating buzz about yourself at work 52:40 - Why core customers can be a business trap 57:20 - Handling negative feedback or associations 1:02:40 - Tips for standing out in job interviews For more information, visit the show notes at https://affordanything.com/episode540 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#539: An anonymous caller feels trapped. She owes $100,000 in back taxes on earnings she had to give up as a result of a lawsuit with her former business partner. What should she do? Saul and his wife want to retire in Mexico but they don’t want to give up the ability to continue investing in US stocks. Can they buy a primary residence that doubles as a short-term rental? Nina and her partner are eager to start a $500,000 renovation on their home but they’re still three years away from saving enough. How can they bridge the gap without risking too much? Former financial planner Joe Saul-Sehy and I tackle these three 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/episode539 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#538: The latest jobs report just dropped, and it's a game-changer. Job creation numbers are lower than expected, at 142,000 new jobs in August. This comes on the heels of the biggest downward revision in job numbers since 2009. We're diving deep into what this means for the Federal Reserve's long-anticipated first rate cut. Are we looking at a modest quarter-point cut in interest rates, or a more substantial half-point drop? The Fed's decision could mean the difference between that dream house being within reach or slipping away. We'll break down the latest data and translate what it means for you. In our second segment, we're celebrating Warren Buffett's 94th birthday by exploring how he continues to lead Berkshire Hathaway with razor-sharp acumen — and what this teaches us about aging. Finally, we'll turn our attention to Selena Gomez, who just became a billionaire. Around 81% of her wealth comes from her makeup line; only 3% of her net worth comes from acting and singing. Her story highlights the power of entrepreneurship in building massive wealth. Join us for a blend of timely economic analysis and inspiring success stories. For more information, visit the show notes at https://affordanything.com/episode538 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#537: Frequent contributor Joe Saul-Sehy shares an emotional, personal story of getting into a soul-crushing level of debt in his 20s and early 30s. He owed so much in back taxes to the IRS that he didn’t file a tax return for three years. He ran out of gas and was stranded on the side of the highway, with 85 cents remaining in his bank account. By the time he pulled himself out of debt, his twin son and daughter were seven years old. Learn the gripping, gut-wrenching story of Joe’s past money mistakes in today’s episode. For more information, visit the show notes at https://affordanything.com/episode537 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#536: NYU Psychology Professor Dr. Tessa West has spent nearly two decades studying relationships, including those in the workplace. She talks about her research on why people feel disconnected from their jobs and what to do about it. Dr. West breaks down five main ways people might feel unhappy at work: 1. Crisis of identity: This is when you've poured a lot into your career, but you're starting to question if it's really who you are anymore. 2. Drifting apart: This happens when your job changes, not you. Maybe your company's gone through some big shifts, or your day-to-day tasks are different now. Or maybe your industry has totally changed. 3. Stretched too thin: We've all been there - too much to do and not enough time. 4. Runner up: Always close to that promotion or raise, but never quite getting there. 5. Underappreciated star: You're doing great work, but no one seems to notice. Dr. West digs into each of these, explaining what they look like and why they happen. She talks about how work relationships are a lot like romantic relationships — just as you might feel disconnected from a partner, you can feel the same way about your job. She describes a matrix that shows how satisfied you are with your job versus how much you identify with it. She also gets practical stuff, describing how to manage distractions at work and be more productive. There's a neat concept called "working spheres" that might help you organize your tasks better. If you're thinking about leaving your job, Dr. West suggests doing some self-reflection and networking to learn about other industries or companies. She warns that there's often a lot of "hidden" stuff about jobs that you won't find in the job description, so it's essential to dig deeper. At the end, she talks about how to figure out if a new job will actually be better. Her main tip? Ask tough questions in interviews. Don't be afraid to dig into the not-so-great parts of the job or company. Dr. West doesn't sugarcoat the tough parts of work life, but she offers practical advice for dealing with them. Whether you're happy in your job or thinking about a change, you'll find something useful here. Timestamps Note: Timestamps will vary slightly on individual listening devices based on dynamic ad lengths. 1:09 - Dr. Tessa West. Psychology professor. Workplace relationships. 3:10 - Five major ways people feel disconnected from work. 4:55 - Work relationships mirroring other relationship types. 9:04 - "Crisis of identity" at work. 13:40 - Matrix: job satisfaction vs. identity centrality. 18:20 - "Drifting apart" from your career. 21:40 - Common changes causing career drift. 25:55 - "Stretched too thin" at work. 29:35 - Managing external work disruptions. 31:40 - "Working spheres" for better productivity. 37:37 - "Runner up" at work. 40:29 - Common reasons for not getting promoted. 47:51 - "Underappreciated star" at work. 51:18 - Next steps if unhappy at work. 55:56 - Determining if a new job will be better. For more information, go to https://affordanything.com/episode536 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#535: Melissa and her partner are preparing for the best earning years of their lives. Could they benefit from automated tax-loss harvesting and transition from DIY investing to a robo-advisor? An anonymous caller just learned something surprising about their Roth 401k and feels squeamish about making future contributions to this account. What’s Paula and Joe’s advice? Hampton is following up on a question from Episode 524 to spark an intriguing discussion on the generational tax advantages of a Roth IRA. Former financial planner Joe Saul-Sehy and I tackle these three 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/episode535 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#534: We sit down with David Novak, the co-founder and former CEO of Yum! Brands, the giant parent company behind KFC, Taco Bell, Pizza Hut, and the Habit Burger Grill. David shares stories from his remarkable career, offering insights into leadership, decision-making, and personal growth. We dive into one of David’s most memorable projects: the creation of Crystal Pepsi. David talks about how the idea was born out of a gut instinct when he noticed a trend toward clear beverages. The media buzz was massive, and he was convinced it was a winner. But the Pepsi bottlers pushed back, saying it didn’t taste enough like traditional Pepsi. David pressed on anyway. The product launched to a lot of fanfare but ultimately flopped. David reflects on this experience as a lesson in the importance of listening to feedback, even when you’re sure you’re right. The conversation then shifts to David’s unique upbringing. He lived in 23 different states before high school. This taught David to adapt quickly, make friends fast, and assess people and situations—a skill set that became invaluable in his leadership roles. David then takes you through his early career, from being a mediocre student who found his passion in advertising, to making a pivotal move from marketing to operations at PepsiCo. This shift was crucial, setting him up to eventually lead Yum! Brands. David’s journey is filled with stories of hard decisions, like turning down a bigger job at Frito-Lay because it didn’t align with what truly made him happy. He shares his philosophy on prioritizing joy and finding fulfillment in your work, a principle that guided his entire career. Leadership is a major theme in the discussion. David talks about the balance between confidence and humility, using Warren Buffett as an example of someone who embodies both. He also shares his thoughts on how to handle criticism and feedback. According to David, the key is to listen carefully, avoid being defensive, and understand whether the feedback is valid before making decisions. David also offers practical advice on personal development. He talks about his “Three by Five” exercise, where he regularly assesses who he is today and what he needs to work on to become more effective. This habit of self-reflection has helped him stay grounded and continually improve as a leader. The episode wraps up with a discussion on company culture. David believes that creating an environment where everyone feels valued is essential for success. He emphasizes the importance of leaders modeling the behavior they want to see in their teams and being the first to extend trust and positivity. David’s stories and insights provide a deep dive into what it takes to lead a major company, make tough decisions, and continually grow both personally and professionally. Timestamps Note: Timestamps will vary on individual devices due to dynamic advertising run times. 0:00 - Introduction to David Novak and his leadership background 6:17 - David’s personal journey and learning framework 11:25 - Importance of listening to feedback in decision-making 17:31 - Impact of frequent childhood moves on David’s adaptability 23:32 - Identifying and focusing on what brings joy in life and work 29:26 - Value of learning that leads to action 35:58 - Overcoming challenges by reframing your approach 42:20 - Learning from mentors who have succeeded in your field 48:35 - Criteria for board membership: contributing and learning. 54:47 - Building a high-performance culture at Yum! Brands 1:01:02 - Mapping out learning needs for project success 1:07:25 - Gaining confidence and skills for leadership 1:13:23 - Maintaining integrity and taking the high ground 1:19:03 - A mentor relationship that shaped David’s leadership 1:26:02 - Evaluating what successful companies are doing right For more information, visit the show notes at https://affordanything.com/episode534 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#533: Kristin is floored by the 60 percent increase in her homeowner’s insurance this year. Should she cancel the policy and self-insure instead? Susana and her husband are torn. They bought their dream home last year but now need to relocate indefinitely. What should they do with the house? An anonymous caller wants to help his soon-to-be wife invest a five-figure gift she received in another country. How do they untangle the complexities of managing money from abroad? Former financial planner Joe Saul-Sehy and I tackle these three 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/episode533 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#532: We’re diving deep into the art of negotiation, especially when it comes to asking for a raise. The episode is broken down into three main parts, each designed to give you practical tools and insights that you can apply right away. First up, setting the stage. Before you even think about negotiating, it’s crucial to understand the difference between “interests” and “positions.” You’ll learn why knowing the underlying reasons behind what both you and the other party want is key to finding a win-win solution. We’ll also talk about how to prepare yourself, including knowing your BATNA (Best Alternative to a Negotiated Agreement), your aspiration point, and your reservation point. Plus, you’ll get tips on how to build rapport and strategically frame your requests to set the tone for a successful negotiation. Next, we move into taking action. Here’s where you get the practical strategies you can use during the negotiation itself. We’ll cover techniques like anchoring—where you set the initial offer to guide the conversation—and how to make strategic concessions. You’ll also learn about the power of silence, managing your emotions, and making sure that any concessions you make are balanced by getting something in return. Finally, we tackle more complex situations. Sometimes, negotiations aren’t straightforward. Maybe you’re dealing with a difficult negotiator who’s being aggressive, uncooperative, or even deceitful. In this part, we’ll discuss how to handle these tricky scenarios while still aiming for a win-win outcome. Throughout the episode, you’ll get a clear, actionable framework that you can use to negotiate effectively, whether it’s for a raise, closing a business deal, or even in your personal life. The focus is on preparation, understanding what both sides truly want, and using smart strategies to reach an agreement that works for everyone. ____ Timestamps Note: Timestamps will vary on individual devices based on dynamic advertising run times 1:15 - Introduces negotiation, focusing on asking for a raise 3:45 - Explains interests vs. positions in negotiation 6:10 - Prepares by knowing your BATNA, aspiration, and reservation points 9:30 - Builds rapport and trust before negotiating 12:20 - Frames arguments to align with other party’s interests 15:05 - Introduces anchoring to set the tone 18:40 - Makes concessions while ensuring reciprocity 22:10 - Uses silence strategically in negotiations 25:55 - Manages emotions, avoids triggers in tense talks 29:40 - Creates value by expanding negotiation scope 33:25 - Prioritizes and bundles issues in multi-issue negotiations 37:15 - Deals with difficult negotiators like aggressors and stonewallers 41:00 - Recognizes closing signals to finalize a deal 44:45 - Documents agreements to avoid post-settlement disputes 47:30 - Reflects on each negotiation to improve For more information, visit the show notes at https://affordanything.com/episode532 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#531: Let's talk about negotiations. You know, those back-and-forth talks where you try to get the best deal possible on a used car, a house, or a couch on Facebook Marketplace? Or when you ask your boss for a raise? Turns out, asking the right questions can be a game-changer. According to Jeff Wetzler, Ed.D., people often hold back information when they're negotiating. They might be worried about looking bad or giving away too much. But if you can get them talking, you can learn a lot. It's like peeling an onion – layer by layer, you discover what really matters to the other person. The key is to be curious and listen carefully. Show the other person you're interested in what they have to say. And don't just focus on what they're saying; pay attention to how they say it. Their body language and tone can tell you a lot. By understanding the other person's point of view, you can find ways to work together and reach a deal that benefits everyone. It's all about building trust and finding common ground. For more information, visit the show notes at https://affordanything.com/episode531 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#530: We sit down with financial educator Brian Feroldi to dive into the often-overlooked world of stock-based compensation. This form of compensation is becoming more common, especially in large companies, but many employees don’t fully understand how to make the most of it. Brian helps break down the basics, explaining what stock-based compensation is and why companies use it to attract and retain employees. We start by discussing why companies offer stock options or restricted stock units (RSUs) instead of just higher salaries or bonuses. Brian explains that stock-based compensation is a way for companies to align your interests with the success of the business. When you own a piece of the company, you’re more likely to care about its performance, which can drive you to work harder and stay longer. This also allows companies to conserve cash while still offering competitive compensation packages. Brian also highlights the importance of understanding the different types of stock-based compensation. He breaks down stock options, where you have the right to buy company stock at a set price, and RSUs, where you’re given shares of stock that vest over time. Each has its pros and cons, and understanding these differences can help you make better decisions about your compensation. One of the key takeaways from our discussion is the importance of negotiation. Brian emphasizes that the best time to negotiate stock-based compensation is when you’re first hired. Companies often have more flexibility with stock options than with salary, so it’s crucial to ask for more stock or a shorter vesting period upfront. This can make a big difference in your long-term financial gains, especially if the company’s stock value increases over time. We also touch on the tax implications of stock-based compensation. Brian explains that different types of stock options are taxed differently, and understanding these tax rules can help you minimize your tax bill. For instance, holding onto stock after exercising options can lead to lower taxes if the stock price rises and you qualify for long-term capital gains. Throughout the interview, Brian shares practical tips for you, such as targeting companies in industries like technology and healthcare that are known for generous stock-based compensation packages. He advises you to educate yourself on your company’s specific policies and to be proactive in managing your stock options to avoid leaving money on the table. By the end of the episode, you’ll have a clearer understanding of stock-based compensation and how to leverage it to build wealth. Brian’s insights are particularly valuable if you’re switching jobs and want to maximize your compensation package. Resource Mentioned: Finchat.io For more information, visit the show notes at https://affordanything.com/episode530 Timestamps: Note: Timestamps will vary on individual devices based on dynamic advertising run times. 2:16 - Explain why companies offer stock compensation over salaries 4:00 - Discuss how stock compensation aligns employee and company goals 7:28 - Introduce types of stock compensation: stock options vs. RSUs 12:24 - Explain the significance of vesting schedules 17:00 - Discuss tax implications of stock options and RSUs 28:00 - Emphasize the long-term impact of stock-based compensation on financial independence 34:00 - Identify industries with high stock compensation, like tech and healthcare 40:00 - Discuss benefits of Employee Stock Purchase Plans (ESPPs) Learn more about your ad choices. Visit podcastchoices.com/adchoices

#529: Anonymous, 60, recently lost her job and is worried about retirement. She owns a paid-off triplex, living in one unit and renting the others for $30,000 a year. She used her 401(k) funds to buy the triplex and now has $50,000 in retirement savings and $150,000 in cash. She expects only $2,400 a month from Social Security at age 67. After losing her son two years ago, she's seeking advice on managing her underfunded retirement. Noelle, 40, and her husband, 49, want to cancel his whole life insurance policy. They are debt-free, own their home, and plan to retire soon, relying on Noelle's $80,000 income. They have $504,000 in retirement savings. Should Noelle keep her $100,000 term life policy until she retires? Sleepless in San Antonio, age 35, plans to retire at 45 but is concerned about how this will affect Social Security benefits, which is calculated based on the top 35 earning years. Should they work longer in order to boost their Social Security benefits? Former financial planner Joe Saul-Sehy and I tackle these three 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/episode529 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#528: The Federal Reserve recently decided to hold interest rates steady, leading to significant shifts in the stock market. The Dow dropped over 850 points, and the NASDAQ entered correction territory, falling more than 10% from its peak. But what do these numbers mean for you? We break down the latest jobs report, which shows a rise in unemployment to 4.3%, triggering a recession indicator known as the Sahm Rule. This isn't just economic jargon; it affects real lives, impacting job security, investments, and financial planning. We discuss potential ripple effects on various sectors, such as real estate, where interest rates influence housing affordability. We also examine the technology sector's volatility and how recent market corrections might influence tech stocks and the overall investment landscape. Understanding this can help you make informed decisions about your investment portfolio. Every First Friday of the month, we bring you our "First Friday Monthly Economic Report," where we help you make sense of these trends. We aim to make complex economic concepts accessible. Join us as we explore these pressing economic issues. Timestamps Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. 1:23 - Discuss the Fed's decision to hold interest rates steady and its economic impact. 3:15 - Explore how recent economic changes affect the Dow and NASDAQ for investors. 5:30 - Explain the SAM rule and why unemployment rising to 4.3% matters. 7:45 - Analyze how interest rates affect housing affordability and real estate. 10:05 - Examine tech sector volatility and its impact on stocks and investments. 12:30 - Look into how economic trends influence consumer spending patterns. 14:42 - Offer tips on managing debt, building emergency funds, and smart investments. 17:03 - Stress the importance of informed decision-making and understanding trade-offs. 19:27 - Highlight the role of "First Friday Monthly Economic Reports" in understanding trends. 21:15 - Wrap up with insights for applying knowledge to financial decision-making. For more information, visit the show notes at https://affordanything.com/episode528 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#527: Luke and his wife are breaking some personal finance rules in the name of financial independence. Are they right to take this approach or is there a better way? Christina is worried. She’s retired with a paid-off condo in Florida. But rising fees, insurance rates, and a major HOA assessment are killing her cash flow. Is it time to become a renter? Les is surprised by Paula and Joe’s allocation recommendations for international equities. Based on market capitalization, it makes no sense. What’s he missing? Former financial planner Joe Saul-Sehy and I tackle these three 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/episode527 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#526: Recorded LIVE on stage at the Morningstar Conference in Chicago! We chat with behavioral finance professor Meir Statman. He breaks down the differences between standard finance and behavioral finance, making it clear that understanding human behavior is an essential part of investing. Statman starts by explaining that standard finance assumes people are rational. They make decisions purely based on logic and aim to maximize wealth. However, behavioral finance sees people as normal, not always rational. We often act on emotions and cognitive shortcuts. For instance, people might prefer receiving dividends over selling shares, even if both result in the same financial gain. This is because dividends feel like income, while selling shares feels like dipping into savings. He uses a great metaphor to explain how investors view their portfolios. Think of a dinner plate: behavioral investors like their investments separated, like mashed potatoes on one side, vegetables on another, and steak in the middle. Rational investors don’t care if it’s all blended together because they only focus on the total nutrients. This shows that normal investors have different needs and want to balance safety with growth. Statman talks about the importance of diversification. He recalls a lunch with Harry Markowitz, the father of Modern Portfolio Theory, who supported the idea of having a mix of safe and risky investments. Markowitz himself had municipal bonds to avoid poverty and stocks to grow wealth. Diversifying helps investors manage risk and meet both their safety and growth needs. We then dive into how people manage money across their life cycle. Statman points out that young people know they need to save but are tempted to spend. They often control this urge by putting money into retirement accounts like 401(k)s. As people get older, they become so good at saving that they sometimes forget to spend and enjoy their money. Statman gives a funny example of his mother-in-law, who refused to replace an old sofa because she didn’t want to dip into her savings. Statman also touches on asset pricing and market efficiency. He explains that while traditional finance focuses solely on risk, behavioral finance considers other factors like social responsibility. Some investors are willing to accept lower returns to stay true to their values. Additionally, he argues that market prices do not always reflect true value, and it’s hard to predict when they will. Towards the end, we discuss the broader aspects of wellbeing. Statman emphasizes that financial wellbeing is just one part of a happy life. Family, health, work, and community are also crucial. He believes financial advisors should help clients achieve overall life wellbeing, not just financial success. For more information, visit the show notes at https://affordanything.com/episode526 Timestamps Note: Timestamps vary on individual listening devices based on advertising run times. 1:23 - Explain the differences between standard and behavioral finance. 4:30 - Discuss Harry Markowitz's influence on modern investment strategies. 6:08 - Highlight life cycle investing and saving/spending behaviors over a lifetime. 10:02 - Explore mental accounting and differentiating between income and capital. 11:14 - Talk about common trading mistakes due to cognitive errors. 14:26 - Discuss utilitarian, expressive, and emotional benefits of financial decisions. 17:41 - Explain the difference between System 1 and System 2 thinking. 21:39 - Discuss how emotions and moods impact investment decisions. 25:59 - Explore the concept of regret and how it affects financial decisions. 30:21 - Emphasize the importance of human touch in financial advising. 44:00 - Discuss the impact of AI on different industries and investment decisions. 48:24 - Highlight the need to balance financial wellbeing with overall life wellbeing. Learn more about your ad choices. Visit podcastchoices.com/adchoices

#525: We chat with renowned financial advisor Michael Kitces at the Morningstar Investor Conference in Chicago. Kitces answers a big question: Is the economy worse than we think? He explains that a few big companies like Nvidia, Meta, and Alphabet are holding up the S&P 500. But this doesn’t mean the economy is bad. It's common for a small group of companies to drive the market. Since it’s hard to predict which companies will do well, he stresses the need for diversification. Kitces tells us to focus on long-term growth instead of trying to time the market. He shares a famous quote from economist John Maynard Keynes: "Markets can remain irrational longer than you can remain solvent." This means it’s better to invest broadly and wait for the market to grow over time. Kitces also says that career development is important. He believes boosting your income through career advancements can have a bigger impact on your financial health than trying to get the highest returns on your investments. He says, "Spending more time focusing on my career and getting a raise... will actually be more meaningful than trying to improve the returns on my own money." We discuss the importance of index investing and proper asset allocation. Kitces advises owning a diversified portfolio that includes international and small-cap funds. Even if these funds aren’t performing well in the short term, diversification helps spread risk and capture growth from different sectors and markets. Kitces talks about the cyclical nature of markets. Some people worry that the market will go down just because it’s been up for a long time. He explains that markets don’t "die of old age." Many factors influence market cycles, and it’s hard to predict when a downturn will happen. This reinforces the idea that staying invested and diversified is usually the best strategy. Finally, we talk about inflation and interest rates. Kitces explains that it’s hard to predict when inflation will return to the Fed’s target rate of 2 percent. This means that interest rates might stay high for a while. It’s important to keep a long-term perspective and not make drastic changes based on short-term market movements. This episode offers practical advice on investment strategies, the importance of diversification, and why focusing on your career can be more beneficial than trying to outsmart the market. Kitces’ insights help anyone who wants to reach financial freedom. Timestamps [Note: Time codes will vary on individual listening devices based on advertising run times.] 1:23 - Becoming a famous financial advisor. 2:08 - Role of a small number of companies in holding up the S&P 500. 5:11 - NVIDIA's role in AI and cryptocurrency. 7:38 - Importance of diversification. 11:27 - Irrationality and efficiency of markets. 16:26 - Role of international and small-cap funds in diversification. 18:10 - Impact of regulatory frameworks on AI development. 32:11 - Demographic advantages of emerging markets. 40:01 - Cyclical nature of markets and investor fears. 51:30 - Inflation and wage growth. For more information, visit the show notes at https://affordanything.com/episode525 Learn more about your ad choices. Visit podcastchoices.com/adchoices