Ask Paula: Is Upgrading Our Lifestyle Worth Mortgaging a More Expensive House?

Afford Anything | Make Smart Money Choices

Paula Pant | Cumulus Podcast Network

Investing, Entrepreneurship, Business

4.7 • 3.6K Ratings

🗓️ 15 December 2020

⏱️ 57 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

#290: Sharon owns two condos that are worth $1.4M and has a cash cushion of $120,000 plus a $50,000 emergency fund. She’d like to move into a small house while keeping her cash cushion intact. Should she take out a home equity loan on her mortgage to essentially pay for her house in cash, or get a traditional mortgage and use her savings towards the downpayment? Jury and her partner are torn between two options: buying a condo, which would allow them to live off of one salary and invest the other, or buy a more expensive house – a much more attractive lifestyle option. Which should they purchase? Daine’s IRA balance is a result of 401k rollovers. He’s concerned that his lack of monthly contributions cause him to miss out on compound interest. What can he do to grow his retirement funds? Molly and her husband want to reach financial independence (FI) in 15 years, at age 50. They’re unsure of whether their rental property income will sustain their FI lifestyle. How can they plan for this? I answer these questions in today’s episode. Enjoy! For more information, visit the show notes at https://affordanything.com/episode290 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	You can afford anything but not everything.
0:11.6	Every decision that you make is a trade-off against something else and that doesn't just
0:14.8	apply to your money.
0:15.8	That applies to how you spend any limited resource like your time, your energy, your attention.
0:20.3	Saying yes to one thing implicitly means saying no to other alternatives.
0:25.0	And that opens up two questions.
0:27.2	First what matters most to you?
0:29.4	What to society tell you should?
0:31.4	But what actually is a priority in your own life?
0:34.0	And second how do you align your decision making on a daily, weekly, monthly, yearly basis
0:39.5	to reflect that?
0:41.2	Answering these two questions is a lifetime practice and that is what this podcast is here
0:45.1	to explore.
0:46.1	My name is Paula Pant.
0:47.1	I am the host of the Afford Anything Podcast.
0:49.8	Every other episode we answer questions that come from you, the community.
0:54.4	Today here's what we'll be tackling.
0:57.0	Maine has an IRA balance of about $140,000 that comes from 401k rollovers he's done every
1:03.5	time he switched jobs.
1:05.2	He's concerned because he's not making any new contributions into his IRA.
1:08.9	So what can he do to better prepare himself for retirement?
1:12.8	Molly and her husband want to reach financial independence in 15 years.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Paula Pant | Cumulus Podcast Network, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Paula Pant | Cumulus Podcast Network and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.