PLAY PODCASTS
179-Friday Q&A: Where to Keep An Emergency Fund, Should I Make a 50% Down Payment, How to Pay For a Master's Degree, How To Prepare For An Overseas Trip

179-Friday Q&A: Where to Keep An Emergency Fund, Should I Make a 50% Down Payment, How to Pay For a Master's Degree, How To Prepare For An Overseas Trip

Radical Personal Finance · Joshua J. Sheats, MSFS, CFP, CLU, ChFC, CASL, RHU, REBC, CAP

April 10, 201552m 21s

Audio is streamed directly from the publisher (pdcn.co) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.

Original episode page

Show Notes

This morning, I put out a note on the Patreon page for questions from the patrons and I received four:

  • 02:38 I'm currently in the "Financial Stability" stage of building wealth. Where do you recommend keeping an emergency fund &/or savings for large purchases?
  • 17:36 My only major financial goal is to buy a small condo in Hollywood in about 6-7 years. I am 33 years old, single and don't plan on starting a family. I have about $170K in investments/retirement and am on track to have an additional 80-90K saved for the condo in about six years. I want to make a 50% down payment on a $200K condo (so basically a 100K down payment). My dream is to have a super low monthly mortgage payment (around $500 - 600 per month). That would be very freeing for me! I want the flexibility in life + career that low monthly expenses would give me. Am I crazy to make such a big down payment? I know its almost half of my net worth, but it feels right for my lifestyle choices. I'm tired of being stuck in the super-high trendy-city apartment renting hamster wheel ;)
  • 30:19 I have a 529 for my oldest son. I am planning on transferring that to my wife as she will be going back to school in August of 2016. She is a teacher, once she graduates with a specialist degree she will receive an automatic $5,000 annual pay raise. We estimate the program will cost $15,000 and can be completed in 18 months-24 months. The 529 plan is currently invested very aggressively (based on our oldest son's age of 6). I am planning on immediately changing the investment to the guaranteed option (1-1.25%). Am I missing any other investment options? We use Georgia's 529 plan which is TIAA-CREF based. It seems an easy choice to me. What else am I missing? Any other thoughts? The current value is $12,700 and we contribute $600 per year. If we are short during the last semester or two, we plan on paying with excess cash flow we hope to save up by then.
  • 40:34 If you were at a "Financial Stability" stage 3.5 in the US (debt is eliminated and about 50% of basic items are addressed) and were planning on moving overseas for 2 years (in 2 years), what steps would you take to secure your financial future?

Enjoy the show!

Joshua

← All episodes of Radical Personal Finance