Ask Paula: Should I Invest or Pay Off My Mortgage Early?

Afford Anything | Make Smart Money Choices

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Investing, Business

4.7 • 3.6K Ratings

🗓️ 4 August 2020

⏱️ 100 minutes

🔗️ Recording | iTunes | RSS

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Summary

#268: Natasha has $3,300 per month to either invest or use toward an early mortgage payoff. Which option should she choose? An anonymous caller and military member wants to know if she should move money from a USAA brokerage to Vanguard to pay less in fees. Her goal is to retire in 12 years with $3,000/month in passive income from rental properties, which will supplement her military pension. Should she only contribute to her TSP up to the match, and invest the rest in rentals? Chaim and his wife live in the Middle East and have $30,000 in a U.S. bank account. However, they don’t plan to relocate. How can they best use this money? June and her husband are in a sticky situation: they bought their dream house in Michigan last winter, ahead of plans to relocate there. June lives there with their kids, but her husband is unable to find a job despite the numerous contacts he has in the state. He currently works in a job that he dislikes in Southern California, living apart from his family. They’re currently a one-income family, though June has plans to open a firm in Michigan. What should they do? Anonymous in Portland has three questions: is a 75/25 US stock/international stock split aggressive? Is an S&P 500 index a close enough equivalent to a total US stock index? Is Betterment worth it for automatic tax harvesting? My friend and former financial planner Joe Saul-Sehy joins me to answer these questions. Enjoy! For more, go to https://affordanything.com/episode268 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	You can afford anything but not everything.
0:10.7	Every choice that you make is a trade-off against something else and that applies not
0:13.8	just to how you spend your money but how you spend any limited resource, including your
0:18.1	time, your focus, your energy, your attention, anything that you have to manage.
0:23.5	And that opens up two questions.
0:25.1	First, what matters most to you?
0:27.6	What does society say is a post a matter most?
0:30.6	But what actually is a value in your own life?
0:33.6	And second, how do you align your daily decisions to reflect that?
0:38.5	Answering these two questions is a lifetime practice and that is what this podcast is here
0:42.1	to explore.
0:43.2	My name is Paula Pat.
0:44.2	I am the host of the Afford Anything Podcast.
0:46.7	Every other episode, I answer questions that come from you, the community, and today
0:51.5	my buddy, former financial planner Joe Saul Seahye, joins me to answer these questions.
0:56.3	What's up, Joe?
0:57.3	I wish that people knew how much, well, I guess they will now, because I'm about to say it,
1:02.4	how much people knew that we laugh as we record these.
1:04.7	Oh my goodness.
1:05.7	So behind the scenes, Joe and I have been chatting and laughing for half an hour.
1:10.2	And eventually we're like, I guess we should hit record.
1:14.5	Maybe we need to get to work.
	...

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