Afford Anything | Make Smart Money Choices

#380: Matt wants to optimize his portfolio and wants to know if he should invest along the Efficient Frontier – despite the fact that the asset allocation it recommends is absolutely bonkers; it’s wild and risky and tilted like nothing he’s ever seen before. Ionnie just rolled over her Roth IRA and would like to understand how to withdraw her contributions without getting penalized. Anonymous and her spouse are both in the military and about to reach retirement. They have an expensive whole life insurance policy, costing $550 per month, and wonder if they should switch to term life insurance. Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode. Enjoy! P.S. Also – we’re launching a book club!! Each month, we’ll read and discuss a book written by an Afford Anything podcast guest, starting with Morgan Housel, James Clear, Ken Honda, and Dr. Susan David. Sign up here. P.P.S. Got a question? Leave it here. For more information, visit the show notes at https://affordanything.com/episode380 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#379: Welcome to our First Friday bonus episode. Once a month, Afford Anything presents a special feature called Invest Anywhere, in which we teach our audience how to invest in real estate from thousands of miles away. We kickoff today’s episode by discussing current market conditions. Yesterday the Fed raised interest rates by another 50 basis points, which means mortgages are more expensive than they’ve been in years. Additionally, jittery investors worried about an impending recession led the stock market to its worst day of the calendar year so far. How should we interpret the current market conditions? Is this a good time to buy an investment property? We cover this in the first 20 minutes of today’s episode. Next, we discuss 5 challenges associated with investing in long-distance real estate investing: (1) fear, (2) accountability, (3) traction, (4) stress, and (5) relationships. We elaborate on each challenge and offer solutions. Finally, we discuss 4 benefits to investing out-of-state: (1) competitive ability, (2) diversification, (3) returns, and (4) repeatability. We elaborate on four types of diversification: economic, strategy, business cycle, and asset based. Enjoy! For more information, visit the show notes at https://affordanything.com/episode379 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#378: Anonymous is 25. She has a job offer that comes with a substantial raise. Hooray! Buuut … there’s a problem. If she accepts this job offer, her new employer won’t allow her to contribute as much money to her company retirement accounts. How should she think about the trade-off between increasing income and funding her retirement? Meanwhile, Dan from California is retiring soon and wants to know what he and his wife should do with the loan they took out against their 401(k). Finally, an anonymous caller who goes by “Daughter” has a whole life policy that only costs her less than $50 per month. Since her policy is so cheap, should she keep it? In today's episode, former financial planner Joe Saul-Sehy and I tackle these tough situations. Enjoy! Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. Learn more about your ad choices. Visit podcastchoices.com/adchoices

#377: Today’s episode is sheer retirement nerd bliss. We talk to the creator of the 4 percent retirement safe withdrawal rule, Bill Bengen. If you’re new to retirement planning, you might not yet grasp the gravity of this. Let’s cut to the chase: the 4 percent rule is one of the most revolutionary, groundbreaking insights in the field of retirement research in the past 30 years. To understand why, let’s climb in our time machines and return to 1994. Back then, many financial advisors were telling their clients that they could safely withdraw 7 percent of their retirement portfolio each year. After all, the simplistic logic went, the stock market has historically yielded between 7 to 9 percent returns, so that type of withdrawal rate shouldn’t dwindle the principle … right? ⠀ Bill Bengen, an MIT graduate and former rocket scientist, decided to build a better model. He looked at the performance of investment portfolios across 30-year time horizons, beginning in 1926. Under the assumption that the portfolio is invested 50 percent in an S&P 500 Index and 50 percent in intermediate-term bonds, in a tax deferred account, he found that retirees could only withdraw 4.2 percent of their portfolio in the first year of retirement, and that amount adjusted for inflation each subsequent year. He called this the “safe withdrawal rate” that gave people a reasonable chance of not outliving their money, based on historic performance. He published the results in the Journal of Financial Planning and caused a stir. This was revolutionary. It upended the assumptions that dominated the field at the time. And it remains a cornerstone of retirement planning to this day. We talk to Bill Bengen about his discovery – and his latest research – in today’s episode. For more information, visit the show notes at https://affordanything.com/episode377 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#376: Meghan’s mom is 64 years old and suffering under a toxic boss. It’s tough to switch jobs at her age. How should she think through the next steps? Ellen has a 20-year-old son with physical and developmental disabilities. Her other child, age 21, will need to look after him for the rest of their lives. How should she handle their inheritance? Joe wants to start working part-time in four years, and fully retire four years after that. He worries he’s investing too aggressively for his retirement date. In today's episode, former financial planner Joe Saul-Sehy and I tackle these tough situations. Enjoy! Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it at https://affordanything.com/voicemail and we’ll answer them in a future episode. _______ For more information, visit the show notes at https://affordanything.com/episode376 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#375: Here’s the deal: The majority of people who write about personal finance repeat the same tired aphorisms and cliches. “Millennials aren’t investing enough,” they’ll lament. “Millennials are amassing wealth at a slower pace than previous generations!” But when you ask for their source, they turn up blank. Each writer points to a headline, which sources another headline, in a neverending circular secondary-source-citation that fails to point to any primary data source. Nick Maggiulli doesn’t play that game. If you haven’t heard the name Nick Maggiulli yet, prepare to meet one of the most original, insightful voices in the media landscape of personal finance and investing. (His last name is pronounced “ma - julie,” and his godfather refers to him as “paper hands,” but that latter point is a different story for another day.) Nick is a data scientist with a knack for clear written communication, a rare Venn Diagram intersection of skill sets. He holds a laser-focused interest in the arenas of personal finance and investing, and he’s eager to share fresh, nuanced, evidence-backed takes about savings, spending and investing with anyone who will listen. He recently released his first book, Just Keep Buying; the title reflects a user-friendly reminder to continue dollar-cost averaging. It also speaks to the main idea behind wealth creation: accumulate income-producing assets, consistently, for as long as you possibly can. It’s an honor to welcome Nick Maggiulli onto the Afford Anything podcast for what I hope is the first of many appearances. In today’s episode, we discuss actionable strategies for managing your money, including assessing your spot along the save-invest continuum, implementing the 2X rule into your spending decisions, and saving half of your inflation-adjusted future raises. Enjoy! For more information, visit the show notes at https://affordanything.com/episode375 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#374: Andy in Palm Springs wants to create an income stream through a taxable brokerage account. What strategy should he use to minimize the tax impact of withdrawing his gains? Jake wants investment cash flow until he’s eligible for his military pension in 10 years. Should he buy small multifamily properties right now, wait a few years and invest in syndications or should he invest in index funds through taxable accounts? Anonymous is a US Citizen, lives in London, and can’t invest in index funds. How can he invest while reducing his risk? Former financial planner Joe Saul-Sehy and I tackle these 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

#373: How do people make money in real estate? Many focus on rental income, but this is only one of five ways that properties create wealth. We explain five surprising ways that real estate builds your balance sheet: cash flow, appreciation (market-based and forced), tax benefits, principal paydown, and instant equity at closing. Why does this matter for long-distance investors? If you’re investing out-of-state, you’ll need to choose a city or town. How do you decide? First, think about how you want to bias your returns. Do you want to optimize for cash flow? More appreciation potential? Identifying this will help you align your city/town selection with your financial goals. If you’ve been thinking about investing in real estate – especially if you might invest long-distance – you’ll love this episode. Enjoy! For more information, visit the show notes at https://affordanything.com/episode373 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#372: Eve has been investing in her brokerage account and the tax liabilities are starting to add up. She wants to retire in 12 years and is wondering if she should invest in after-tax contributions and plan on a Roth conversion. Anonymous has rental properties and wants to start building his kids credit histories. Is it a good idea to add them as co-borrowers on the mortgage? Lily is really excited about investing in real estate, but househacking wasn’t the right fit. She’s looking for advice on investing in opportunity zones through crowdfunding platforms. In today's episode, former financial planner Joe Saul-Sehy and I tackle these tough situations. Enjoy! Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it at https://affordanything.com/voicemail and we’ll answer them in a future episode. Learn more about your ad choices. Visit podcastchoices.com/adchoices

#371: Psychology professor Bill von Hippel explains the evolutionary science behind how we’re hardwired as humans. We’re wired to be social, to connect, to communicate and cooperate. We’re wired to want to learn and teach, to build a collective body of knowledge that stretches beyond what any single individual could ever learn in their lifetime. We’re wired to feel surges of happiness that fade, so that we’re intrinsically motivated to keep repeating behaviors that lead to additional surges of happiness. Once we understand the evolutionary science behind what makes us happy, Dr. von Hippel explains, we can apply this knowledge to making better decisions for our work, money and lives. Bill von Hippel is a graduate of Yale University and the University of Michigan. He’s currently a psychology professor at the University of Queensland in Australia. He joins us to share his insights into the history and science of happiness. For more information, visit the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#370: Kristen is 32, and she and her husband want to retire in less than 20 years. They make too much to contribute to a Roth IRA. Should they use back door Roth conversions to speed along their path to early retirement? Michelle makes $190,000 and is going to switch to a career that pays $40,000 on average. To prepare for this lower salary, she's selling her current home and buying a different one. Should she pay off her new home with the proceeds from the old one? Or should she invest her profits? Anonymous lives in a high cost-of-living area and is wondering where to keep her down payment and emergency funds. Should she use I-bonds, TIPS, or some combination of these two? In today's episode, former financial planner Joe Saul-Sehy and I tackle these tough situations. Enjoy! Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it at https://affordanything.com/voicemail and we’ll answer them in a future episode. Learn more about your ad choices. Visit podcastchoices.com/adchoices

#369: To answer these questions, we need a deep, tree-trunk understanding – a core, fundamental understanding – of how the stock market operates. What, exactly, IS a stock – and how are stocks valued? What’s the difference between the Dow Jones, the S&P 500, and the Nasdaq? Why is the market a voting machine in the short-term, but a weighing machine in the long-term? Brian Feroldi, the author of “Why Does the Stock Market Go Up?,” joins us for a Stocks 101 explainer episode. If you’d like a deeper understanding of the world of stocks, you’ll enjoy this explainer episode. And if you have a friend/spouse/coworker who’s said, “I need to learn more about investing,” share this episode with them. Enjoy! For more information, visit the show notes at https://affordanything.com/episode369 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#368: Grace wants to buy a manufactured home for rental income. Should she calculate her returns differently for a manufactured home? Alex is curious about cryptocurrency. How should she analyze the returns promised by different platforms and where can she go to learn more about crypto in general? Thomas and his wife have parallel goals of saving for a down payment and contributing to retirement accounts. How should they balance both of these goals? In today's episode, former financial planner Joe Saul-Sehy and I tackle these tough questions. Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. Enjoy! For more information, visit the show notes at https://affordanything.com/episode368 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#367: Since the start of the Covid-19 pandemic, many commentators have remarked that we’re living in an “epidemic of anxiety.” More than 40 million Americans suffer from anxiety, and countless millions more notice themselves “acting out” against their responsibilities in smaller, self-sabotaging ways: procrastinating, lacking motivation, grappling with an inability to concentrate. In today’s episode, Dr. Ellen Vora, M.D., discusses both the internal and environmental factors that can exacerbate anxiety. She talks about nutrition and sleep, as well as the fact that, frankly, your job just might suck. She applies these ideas to tactics that allow us to better handle our finances, investments, careers and lives. Dr. Ellen Vora holds a B.A. from Yale University and a medical degree from Columbia University. She’s a board-certified psychiatrist. Enjoy this conversation, and share your comments and feedback with members of our community at affordanything.com/community For more information, visit the show notes at https://affordanything.com/episode367 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#366: Micheal’s parents just sold their home to pay off debt and fund their retirement. How should he invest the profits? Ryker would like to understand what it would take for cryptocurrency to be considered as a good investment option for a diversified portfolio. Megan has qualified for her employer's 401k and needs help deciding between investing in a Roth 401K and a Roth IRA. In today's episode, former financial planner Joe Saul-Sehy and I tackle these tough questions. Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. Enjoy! Learn more about your ad choices. Visit podcastchoices.com/adchoices

#365: Nearly every financial news story for the past several months has centered around inflation – but what, exactly, is inflation? What are its causes? What are its effects? How is it measured? What notable inflationary events have unfolded throughout history, and what can we learn from these? In this episode, we peel back the layers of the onion in order to deepen our understanding of the concept of inflation. We discuss hyperinflation, biflation, stagflation; we discuss the CPI, the PPI, and core inflation. We discuss the demand-pull inflation, cost-push inflation and the wage-price spiral. We resist the temptation to make predictions about the future, choosing instead to focus on refining our understanding of the present. Enjoy! For more information, visit the show notes at https://affordanything.com/episode365 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#364: Our first caller is curious about whether he should keep his 30 year term life insurance policy or let it lapse with 12 years left on the policy? Anonymous is wondering which financial products would work best for to cover her older age care and expenses? Max is thinking through real estate and stock market returns as they relate to future population trends. Ramon asks us about the details behind infinite banking. Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it at https://affordanything.com/voicemail and we’ll answer them in a future episode. Enjoy! Learn more about your ad choices. Visit podcastchoices.com/adchoices

#363: In our 20’s and 30’s, we have high levels of fluid intelligence, or raw intellectual horsepower. We can ace tests, impress people with our memory and recall, and analyze facts, documents and data. But in our 40’s and 50’s, we have higher levels of crystallized intelligence, which allows us to draw together novel insights from across domains. Fluid intelligence allows us to analyze, or break apart. Crystallized intelligence allows us to synthesize, or put together. Each type of intelligence invites us to express different skills, to pivot our role at work – or perhaps even to change careers or industries altogether. In today’s episode, Harvard professor Arthur Brooks discusses these two types of intelligence, and outlines how we can gracefully move from one strength to the next. Subscribe to the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#362: David is questioning how to better manage his spending. He’d like a stronger framework to think through budgeting challenges. Elisa and her husband bought a home, and now they’re saving extra income every month. She has a pension and her husband is an entrepreneur. How much should they be saving for retirement and how should they invest their extra money? Geoff invested primarily in taxable brokerage accounts for the last twenty years. He’s built a $6 million portfolio and reached financial independence. He wonders about the smartest strategy for withdrawing from those taxable brokerage accounts to efficiently manage capital gains? Jenna and her husband are planning on buying their next home in a few years. She wants to know if I-bonds are a good way to save for the down payment and closing costs. Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode. Enjoy! P.S. Got a question? Leave it here. Subscribe to the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#361: Wall Street Journal columnist Spencer Jakab marks the one-year anniversary of that weird time when the subReddit Wall St Bets pumped shares of meme stocks like GameStop and AMC Theaters, triggering a short squeeze that forced several hedge funds to lose billions. What did we learn from that experience? And how do we actually take down Wall Street? How do we launch a truly effective financial revolution? We share those insights in today’s episode. Subscribe to the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#360: I’m worried my parents are getting ripped off by their financial advisor. What should I do? My wife is trying to qualify for student loan forgiveness … but we might lose a bunch of tax benefits in the process. Is it worth the risk? I’m enrolling in grad school, and I want to optimize how to pay for rent and groceries. Should I use money from a 529 plan? Three callers. Three questions. In today's episode, former financial planner Joe Saul-Sehy and I tackle these tough Q’s. Enjoy! Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. Subscribe to the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#359: Money, relationships, health and purpose: life is running smoothly when all four of these elements are working together in tandem, like wheels on a car. But how can we make spending and investing choices that facilitate stronger relationships, better health and a deeper sense of purpose? Andrew Hallam, who became a millionaire on a teacher’s salary, shares researched-backed, evidence-based insights into how to find balance, drawing from the worlds of behavioral finance and stock market history. Subscribe to the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#358: Where is the balance between the risks and potential returns of actively and passively investing in index funds?Where do you place your savings after you max out your retirement and HSA accounts? How do you finance building a rental unit when there’s already a home on the lot? Is it more beneficial to buy back pension time with post tax deductions or a 457b plan? Or should I not buy back pension time at all? In today’s episode, former financial planner Joe Saul-Sehy and I discuss the purpose and practice of mindful money. Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. Enjoy! Subscribe to the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#357: Discussing advanced investing topics with me is former financial planner Joe Saul-Sehy. You may recognize him from the Ask Paula episodes, but we discuss financial topics shared in his new book "STACKED: Your Super-Serious Guide to Modern Money Management" - co-authored with Emily Guy Birken. Subscribe to the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#356: How do you find balance between smart money management vs. missing out on opportunities? Should you pile money into investments or take that dream trip to Tanzania? What should you do when your heart leads you to a decision that doesn't make sense on paper? In today's episode, former financial planner Joe Saul-Sehy and I discuss the purpose and practice of mindful money. Subscribe to the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#355: When Jordan Grumet realized he has achieved financial independence, he fell into a deep depression. He didn’t know who he was anymore, he says, and he didn’t know what should come next. He learned about how to deal with us by observing his hospice patients. In this episode, Grumet, a hospice doctor, describes how working with the dying has taught him about life. Subscribe to the show notes at affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#354: Charlie in Cali has enough money saved to pay cash for a house, but she and her husband decided to finance their home, instead. They’d rather invest the money and arbitrage the spread. But one problem: how can they keep themselves from touching this investment? Jay is choosing between Fidelity and M1 Finance, and has questions about tax loss harvesting. Nicole and her siblings will be inheriting some properties that they eventually plan to sell. How should they set up or organize these properties among so many owners? Should one person take the lead? Do they need a shared business account? Also, how should they evaluate a property and make sure they get a good deal when they sell? Ed owns three homes, two of which he plans to sell in the next few years. He plans to live in them long enough to establish residence and take the capital gains exemption when they sell. Is his plan for handling the taxes solid? We answer these four questions in today’s episode. Enjoy! Subscribe to the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#353: Daniel Pink joins us to discuss an unusual theory: (1) that our energy rises, falls, and then rises again; (2) that this pattern plays out across our days (morning energy, afternoon slump, nighttime second wind); (3) this also plays out across our lives, with serious implications for how we spend those “muddled middle” years of our 30’s, 40’s and 50’s. Get the show notes delivered to your inbox by visiting https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#352: Anna and her husband have volatile income, but Anna thinks that having 18 months of living expenses is unnecessary. She’s torn between paying off her student loans ($30,000) or investing the money. Mentally, she always figured she would pay off her debt first, but wouldn’t investing pay off in the long run? Charlotte and her husband are taking a phased approach to financial independence, where they need to bridge two gaps before they each turn 59 ½. How can they calculate how much they need at each phase? Elle has a retirement plan in place, but her company is adding a Roth 403(b) option soon. Should she stay the course or adjust her strategy in these last five years before retiring? Sara wants to purchase land and build her dream house by refinancing her rental property and turning her current home into a second rental. How can she improve this plan? Joe Saul-Sehy, my friend and former financial planner, joins me to tackle these questions on today’s episode. Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it at here and we’ll answer them in a future episode. Get the show notes delivered to your inbox by visiting https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#351: Geoff Woods, Vice President of The ONE Thing and host of The ONE Thing podcast, is an expert on ruthless prioritization, habit development, and goal setting. The simple framework he presents allows you to focus deeply and commit to the actions you need to take if you want to take your productivity to the next level this year. Get the show notes delivered to your inbox by visiting https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#350: Anonymous and her husband have set themselves on the path of saving for retirement. But an old mistake haunts them: a financial planner convinced them to buy a mix of whole and term life insurance, which costs them $700 per month. Do they need whole life insurance, and where else can they save their money? Mike has $60,000 in cash earning one percent interest. He has plans to buy a home and get married in three to five years. Where else can he put his cash to earn a little more? Is the stock market too risky for such a short time horizon? Anonymous and her future husband are wondering: what’s a realistic amount to spend on a wedding? My friend and former financial planner Joe Saul-Sehy joins me to answer these questions on today’s episode. Enjoy! Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. To subscribe to the show notes, go to https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

#349: A frank and candid conversation about life, dead-lifting, and enjoying the hell out of doing meaningful work. For more information, visit the show notes at https://affordanything.com/episode349 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#348: Aja’s mom is 75 and has to take required minimum distributions from her IRA. She doesn’t need the money. Where should she put it? Anonymous from MA is flummoxed by HSA-compatible health plans. His copay and deductible are awful, and even bronze plans seem better. Are HSA plans overrated, or does the math work out? Julia and her husband, both 27, want to retire by their early to mid-40s. Is there a point at which they should stop contributing to tax advantaged accounts and only contribute to taxable accounts? Ileana and her family like their home, but it needs to be bigger. A cash-out refi didn’t give them enough funds for their dream renovation. Should they put their money into the market in the hopes that it will grow large enough to fund a future renovation? Or should they move into a bigger house, rent out their house, and fix it up years down the road? Nick has a seasonal business. Can a sweep account help stabilize him? My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s show. Enjoy! Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. For more information, visit the show notes at https://affordanything.com/episode348 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#347: Back in the 1960’s, Jack Bogle thought that actively-managed mutual funds performed better than a passive indexing strategy. He pseudonymously published a paper saying so. But academic data from the University of Chicago challenged his preconceived notions. He attended seminars that showed how the drag on returns that come from management fees and trading costs, coupled with the reality that the bulk of gains come from a hard-to-predict handful of equities (a concept known as “skew”), lead to index funds holding long-term outperformance. At the time, index funds were only available to major institutional investors. Regular folks couldn’t access these winners. And that might have continued for a long time … … except history turned on a dime. In the early 1970’s, Jack Bogle got fired. Rather than accept defeat, he turned into a renegade. He launched Vanguard and began offering index funds to ordinary individual investors. And the rest, as they say, is history. In today’s episode, we learn about the revolutionary ideas that paved the path to passive investing. We learn about the radical invention of the index fund. We discover the drama, the tenacity, the betrayal and redemption behind it. And we discover the lessons that the history of the index fund holds. Enjoy! For more information, visit the show notes at https://affordanything.com/episode347 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#346: Pensions make Chad uncomfortable, to the point of quitting his job to roll his $175,000 over to an IRA. Is the 12 percent match his employer offers good enough to beat the two percent growth of his pension? Or should he leave and never look back? Anonymous and his wife have $275,000 saved and a child on the way. They’re 27 and want to reach financial independence by 35. They want to buy a house, but with this crazy market, what’s the smartest way for them to use their savings? Anonymous and his wife are 30 and hope to reach financial independence in five years. They want to know: is a taxable brokerage account the best place for their leftover $1,000 after they max out their pre-tax 401k contributions? Norm wants to buy a house in cash and doesn’t want his name on public record. Is it possible for him to stay anonymous? Sharon called in on episode 336 and called back to clarify her question. Her husband purchased a below-market property which has a cap that limits how much they can sell it for. Should they keep the home, or sell it, even if they can’t get the full price for it? Joe Saul-Sehy, my friend and former financial planner, joins me to tackle these questions on today’s episode. Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. For more information, visit the show notes at https://affordanything.com/episode346 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#345: Let’s talk about one of the biggest expenses you might ever encounter: health care costs. When you get a hospital bill, do you understand it? After all, it looks like it’s written in code (and sometimes it literally is). How do you know if the bill is accurate? Has everything been coded properly? Are you being charged for the services that you actually received? If you need to dispute an item, what’s the process? Pulitzer Prize finalist Marshall Allen joins us to shed light on the complex world of medical billing. He breaks down the “explanation of benefits,” describes a step-by-step process for obtaining your medical records, and explains an actionable plan for how to contest a bill. If you’ve ever felt overwhelmed by the complexity of your health care bills, you’ll learn a lot from this concise, informative episode. Enjoy! For more information, visit the show notes at https://affordanything.com/episode345 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#344: Russell’s job offers the option to contribute to a 457 plan. Since he’s in the highest tax bracket, should he take advantage of the tax deferral offered through the 457 or invest within a taxable brokerage account? Anonymous is on track to be financially independent in 14 years, but isn’t living up to her potential working a boring job. How can she live up to her potential and do more without sacrificing her quality of life? C wants to know what tax implications she should consider before working remotely from abroad? Daan is wondering if he should stake or lend his current cryptocurrency portfolio to make additional gains on assets he plans to hold long-term? Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. For more information, visit the show notes at https://affordanything.com/episode344 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#343: The real estate market in 2021 has been bonkers. That’s the technical term. From 2012 to 2020, home prices nationwide rose at an annualized average of 5.8 percent per year. From April 2020 to April 2021, home prices climbed 17.2 percent. This sudden surge in prices has many homeowners and would-be investors fearful of a crash. The memories of the stark price run-up prior to The Great Recession are all too salient. What goes up must come down, right? Not exactly. In this episode, we walk through market fundamentals — discussing housing supply, lumber prices, and the distinction between cheap credit vs easy credit — to illustrate how today’s market is unlike anything we’ve ever seen. More importantly, we offer tips for everyone —whether you’re a renter looking to get into your starter home, an empty-nester looking to downsize, an owner-occupant who wants to lock in your gains, or a curious aspiring investor who wonders if it’s too late. Enjoy! For more information, visit the show notes at https://affordanything.com/episode343 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#342: Russell is a busy professional who’d like to invest passively in real estate. Is there data he can use to compare this approach to owning and managing their own properties? Laura wants to purchase her first investment property in Miami. Should she cash out some RSUs and stock from her company to use as a down payment? And what type of mortgage is she eligible for since she already owns a home? Jordan and his wife own three properties and are under contract on a new house since they have a new baby on the way. Should he sell any of his existing properties to be in a stronger cash position, thus mitigating the risk of future fluctuations in his income as a real estate broker? Or should he keep his rental properties since his goal is to reach financial independence through rental income? Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. For more information, visit the show notes at https://affordanything.com/episode342 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#341: Imagine a line. Cowardice exists at one extreme end of that line. Recklessness exists at the other extreme end. And in the balanced middle, you’ll find courage. Today’s conversation is about courage. We’re not talking about inspiring physical acts of bravery in this episode; rather, we’re discussing moral and social courage. The type of courage you need to make an investment. Buy a rental property. Invest in stocks. Start a business or side hustle. Retire early. Travel overseas. Have a difficult but diplomatic conversation. Express your feelings constructively rather than bottling them up inside. Raise an issue with immediacy rather than hesitation. Break bad news to someone. Ask for help. Launch an initiative. Try something new. We’re talking about the type of courage that’s required to become a better, bigger person in your work, your relationships, your life. We’re having this conversation with Ryan Holiday, the bestselling author of a series of books on Stoic philosophy. Enjoy. Resources Mentioned: Courage is Calling, by Ryan Holiday affordanything.com/realestate affordanything.com/viplist For more information, visit the show notes at https://affordanything.com/episode341 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#340: Imagine this: You start a side hustle. Maybe you sell planners or lead workouts in the park. You make a few thousand dollars during your first year. It’s fun beer money, but not enough to quit your day job. But you keep growing. You run this as a one-person operation, though you bring on freelancers or independent contractors. Your revenue grows into the five figures. Then six figures. After a few years, you’re running a one-person, million dollar company. This sounds like a pipe dream, right? But it’s the true story of Laszlo Nadler, who created a line of planners and calendars. It’s the true story of Stacy Berman, who started leading 5:30 AM fitness bootcamp classes in the park. And it’s the true story of hundreds of other solopreneurs interviewed by business journalist Elaine Pofeldt, who took a deep-dive look at the lives and businesses of entrepreneurs who run companies that gross more than $1 million, but have no employees. In today’s episode, we take an inside look at the secrets behind one-person, million-dollar businesses. If you’ve ever considered starting a side hustle or business of your own, don’t miss this. This episode originally aired in March 2019. For more information, visit the show notes at https://affordanything.com/episode340 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#339: Have you ever thought, “I’d like to invest in rental real estate but there are no cheap properties in my area!” “Homes in my city are too expensive. I’d have to invest out-of-state, but that sounds terrifying.” Or have you ever thought, “I’m curious about real estate but I’m not a fan of the idea of taking on all that debt.” Today’s interview is right up your alley. We talk to Rich Carey, who bought 20 single-family rental properties in Alabama, totally debt-free, while stationed in Germany and South Korea. He invested not just out-of-state, but entirely from outside the country. He bought his properties free-and-clear. And he did it on a military salary while raising two kids. This interview originally aired in June 2018. Enjoy! For more information, visit the show notes at https://affordanything.com/episode339 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#338: This month, we’re running four episodes based around the four pillars of F.I.R.E. — financial psychology, investing, real estate and entrepreneurship. Today’s episode, which originally aired in April 2018, offers advice to investors who want to sharpen and hone their competitive edge. Here are three lessons from this conversation with investment writer Morgan Housel: Lesson #1: Great investors need patience and humility. Lesson #2: Read broadly. Don’t just read books about finance and investing. Read from a broad multi-disciplinary array of subjects, so that you can form a latticework of ideas. Lesson #3: Play a strong defense. On the surface, it seems like playing defense is a conservative strategy. Emergency funds and a strong income-producing allocation, for example, both sound conservative. But in the long-term it could prove to be the opposite. Enjoy this interview, which originally aired in April 2018. For more information, visit the show notes at https://affordanything.com/episode338 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#337: Meet Kristen Berman, a top researcher in the field of behavioral economics. She’s the co-founder of Irrational Labs, which designs products that are evidence-based in the behavioral sciences. Her co-founder, Dan Ariely, is the James B. Duke Professor of psychology and behavioral economics at Duke University, and one of the most famous behavioral economists in the world. Here are some of the (counterintuitive!) ideas that Kristen shares: Habits are overrated. Automate instead Budgeting doesn’t change your spending behavior Commit in advance Forget about the outcome Focus on the process You need accountability Think about the Three B’s: behavior, barriers and benefits Tune into this episode to hear Kristen elaborate on these research-backed, evidence-based ideas about how to improve our spending, saving and investing habits. For more information, visit the show notes at https://affordanything.com/episode337 *Note: This interview originally aired in October 2019. Learn more about your ad choices. Visit podcastchoices.com/adchoices

#336: Anonymous and his partner have a one-bedroom condo that they rent out in Pasadena, CA. The problem? They’re barely breaking even. Should they keep the condo, or sell it and make better use of the profits? Sam wants to know: how much of an emergency fund does a rental property need? Michael and his wife expect their taxable income to be less than $10,000 this year. Should Michael (age 56) take distributions from his 401k to minimize or eliminate their income tax burden? Shanon wants to switch to an ethical bank with values that align with hers. How can she create a framework for making decisions about financial institutions when authentic information is scarce? Sharon's husband purchased a property with a below-market loan in 2008. They now have an extra $4,000 per month, and Sharon wants to buy a property as a first-time buyer. They're torn between keeping the property or selling it. What should they do? Former financial planner Joe Saul-Sehy joins me to answer more of your questions. Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. For more information and resources, go to https://affordanything.com/episode336 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#335: Have you ever spent years studying the wrong major, climbing the ladder at the wrong company, chasing the wrong career? Have you spent years living in the wrong city? Wrong relationship? Wrong lifestyle? It’s hard to discern what *we think we want* from what we really want. Society teaches us what we’re “supposed” to want. And we follow along. The result is keeping up with the Joneses. It’s the hedonic treadmill. It’s lifestyle inflation. And it causes conflict, both within ourselves and with others. Today’s guest, Luke Burgis, discusses mimetic desire — how our “wants” are imitative — and how we can find our deeper truths. For more information, visit the show notes at https://affordanything.com/episode335 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#334: In today’s episode, we answer three questions from a college senior named Rafael. He asks about productivity tools and tactics, student debt, Robinhood and market investing, and how to establish yourself as an expert in a given domain. We answer his questions by widening the lens. People often ask about productivity tools. “Do you use Asana or Trello?” But nobody asked Michelangelo what paintbrush he used to paint the Sistine Chapel. The discussion around tools misses the point, which is to master the craft. Sure, we answer his direct, overt questions. But we also dive deeper, refining these topics and exploring the questions *behind* his questions. This is an episode in which we peel layers off the onion. For more information, visit the show notes at https://affordanything.com/episode334 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#333: In the 1890s and early 1900’s, we had recessions every two years. From 2009 to 2020, we enjoyed an 11-year bull run, the longest bull run in history. And when we finally had a recession, it lasted only two months. It was the shortest recession in U.S. history. The duration between recessions is growing longer (these days, we average 10 years between recessions, as opposed to two years at the turn of the previous century). And when recessions strike, we recover faster. The average length of recessions is growing shorter. What does this mean? If we project these trends into the future, are we bound for the end of recessions? That’s the question that kicks off this discussion with Ben Carlson, Director of Institutional Asset Management at Ritzhold Wealth Management and the host of the Animal Spirits podcast. For more information, visit the show notes at https://affordanything.com/episode333 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#332: Ginger’s financial independence (FI) number is $2 million, but she doesn’t want to fully retire early. Once she hits ‘coast’ FI, she wants to 1) buy her time back with outsourcing, 2) take a mini-retirement, and 3) buy a vacation home. Does it make sense for her to divert retirement contributions to these goals, or should she aim to save $2M? Wilson plans to have a two percent withdrawal rate in retirement. Given this low rate, should he go all-in on stocks? Or should he split up his retirement funds and invest one half conservatively and the other half aggressively? Jennifer has a low-stress doggie-daycare, but she needs a bigger space to scale up. How the heck can she find a property to suit her needs in Austin, TX? My friend and former financial planner Joe Saul-Sehy joins me to answer another round of listener questions. (If you have questions on business, money, trade-offs, financial independence strategies, travel, or investing, leave them here and we’ll answer them in a future episode.) For more information, visit the show notes at https://affordanything.com/episode332 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#331: Four thousand weeks. That’s how long we live if we’re lucky enough to celebrate our 80th birthday. We rarely think of our lifespan in terms of weeks. When we do, it seems painfully short. And that’s the point that Oliver Burkeman, author of Four Thousand Weeks, wants to drive home. Rather than fight a losing battle against time, Oliver recommends that we embrace our cosmic insignificance, redefine what a meaningful life looks like, choose what to fail at, burn bridges, and ruthlessly limit our works-in-progress. If the financial independence movement is a rebellion against trading the rest of our limited time for pay, Oliver’s unconventional view on time management is a rebellion against trading the rest of our limited time for an illusion of productivity. For more information, visit the show notes at https://affordanything.com/episode331 Learn more about your ad choices. Visit podcastchoices.com/adchoices