Afford Anything

#590: In the left corner, we have Paul Merriman, the seasoned finance veteran weighing in at 183 pounds. In the right corner, Dr. Karsten Jeske, the scrappy newcomer at 208 pounds. The bell rings, and the small cap value debate begins. This episode features a financial boxing match between two investment heavyweights with dramatically different perspectives. Paul Merriman champions diversification through the efficient frontier, which means adding small cap value to your portfolio. Dr. Karsten Jeska has "thrown cold water" on this approach, favoring simpler strategies like "VTSAX and chill." The stakes are high — we're talking potentially millions of dollars in your retirement account over decades. Merriman argues that history shows clear evidence for small cap value's premium. From 2000 to 2009, small cap value outperformed the S&P 500 in all but one year, compounding at 10 percent while the S&P 500 returned negative 1 percent. He believes this pattern will continue, creating a powerful diversification effect when combined with broader market indexes. Jeska counters that small cap value's outperformance is mostly "front-loaded" in history, happening before anyone knew about it. Since 2006, small cap value has underperformed. He argues that once an advantage becomes widely known, it disappears in an efficient market. Adding small cap value might even be "di-worsification" — increasing complexity without improving returns. The debate expands beyond small cap value to touch on: Active vs. passive investing strategies Market timing vs. buy-and-hold approaches Simplicity vs. complexity in portfolio construction The role of faith vs. evidence in investment decisions While both experts disagree about small cap value's future, they agree on fundamentals: invest early, stay invested for the long term, and understand that no one can predict markets with certainty. What starts as a technical debate evolves into a philosophical discussion about evidence, probability, and the limits of our knowledge — all with millions of retirement dollars hanging in the balance. 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) Debate intro: small cap value vs index funds (4:01) Merriman: small cap value offers premium returns (9:40) Jeske: small cap value underperformed since 2006 (18:20) Historical performance data significance (25:15) Stakes: difference of millions over time (33:08) Diversification vs added volatility debate (41:45) Risk-adjusted returns comparison (49:08) Questioning true diversification benefits (57:40) Value traps and actively managed funds (1:05:08) Technology stocks vs value investments (1:13:45) Data selection bias in studies (1:19:40) Faith vs science in investment decisions (1:29:20) Personal risk tolerance considerations (1:36:08) Closing arguments on investment strategies (1:42:08) Paula declares the debate a draw For more information, visit the show notes at https://affordanything.com/podcast/binge Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 14 March 2025

#589: Kimmy is worried that her mom’s retirement portfolio is invested too conservatively. Is she right to advise her to take on more risk? Peyton has heard the financial advice about staying away from Whole Life Insurance as an investment, but what about as a savings account for children? Is there good a use case for this? Jeff and his wife are in a great financial position, but they fear that their retirement savings are too heavily apportioned in traditional IRAs. Will they run into tax problems in the future?  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 For more information, visit the show notes at https://affordanything.com/podcast/binge Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 11 March 2025

#588: Jobs are growing, interest rates are holding, and your student loan options just hit pause. Welcome to this month's economic rollercoaster. The economy is sending mixed messages this month. We added 151,000 new jobs in February, slightly better than January's 143,000. But unemployment ticked up to 4.1 percent. Health care is booming (52,000 new jobs). Restaurants and bars? They're hurting (lost 27,500 jobs). Federal government shed 10,000 positions while state and local governments added 21,000. The Fed isn't making any sudden moves. They'll likely hold interest rates steady at 4.25 - 4.5 percent when they meet March 18-19. Fed Chair Powell made this clear: "We do not need to be in a hurry and are well-positioned to wait for greater clarity." Meanwhile, Treasury Secretary Scott Bessent is working a different angle. He's targeting 10-year Treasury yields instead of pressuring the Fed on short-term rates. His strategy? Use fiscal and regulatory reforms to convince markets that inflation will be controlled long-term. Energy costs are a key part of his plan. Bessent believes lowering gas and heating oil prices does double duty: saves consumers money and boosts economic confidence. This matters because consumer spending is 70 percent of our economy. Speaking of confidence – it's plummeting. February saw the largest monthly decline in consumer sentiment since August 2021. People across all age groups and income levels are increasingly pessimistic. They expect inflation to hit 6 percent in the coming year (significantly higher than current rates). Got federal student loans? Applications for income-driven repayment plans are temporarily on hold. This affects all plans, even the older ones not being challenged in court. The pause came after a federal appeals court expanded a suspension of the SAVE plan. About 8 million borrowers had enrolled in this program, with more than 400,000 having their debts erased. If you're working toward Public Service Loan Forgiveness, this is particularly important since income-driven plans are a key requirement. In crypto news, bipartisan legislation for stablecoins is moving forward. The Senate has the GENIUS Act while the House has the STABLE Act (yes, that spells "stable genius"). These bills would establish clear rules about who can create stablecoins and require them to be fully backed by high-quality assets like U.S. dollars or Treasury bills. They would also officially classify stablecoins as payment instruments rather than securities – a significant regulatory distinction. The housing market? It varies dramatically by location. In DC, some zip codes are seeing prices climb rapidly while others face steep declines. The lesson: real estate is hyper-local. Success comes from becoming an expert in just a couple of specific zip codes rather than trying to understand entire metropolitan markets. As Fed Chair Powell wisely put it, the key is "separating the signal from the noise as the outlook evolves." That's solid advice for navigating our current economic landscape. Episode Mentioned: Afford Anything Episode 564, The Real Story Behind Those Economic Tariffs https://affordanything.com/564-the-real-story-behind-these-new-tariffs/ Timestamps: Note: The provided timestamps are approximate and may be several minutes off due to changing ad lengths. (00:00) March's Economic Update (01:18) February Jobs Report (04:18) The Fed is to meet on March 18-19 about interest rates (08:14) Consumer Confidence Survey (10:33) Stock Market Performance (14:14) Deep Seek Chat Bot (17:28) New CFTC Chairperson is crypto friendly (20:34) Home Market in the D.C area changing (25:24) Income Driven Repayment Plan applications temporarily on hold (27:41) Stablecoins (30:58) Certain borrowers may be excluded from student loan forgiveness (31:54) Fed Chair Jerome Powell says the Fed is "awaiting greater clarity" Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 7 March 2025

#587: Debi is stressed about saving a down payment to buy a house in her high-cost-of-living area. Should she cash out her brokerage account to speed up the process? Lucas and his wife are high earners, but they’re tired and ready for a change. What strategies can they use to maximize their investments and confidently step away from their jobs? Grant is thrown off by recent discussions about the efficient frontier. It sounds a lot like market timing to base an investment strategy on an arbitrary set of historical dates. What’s he missing? 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 For more information, visit the show notes at https://affordanything.com/episode587 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 4 March 2025

#586: If you are a complete beginner at finances, or if you know someone who is, this episode is for you. The biggest hurdle for beginners? Money seems complex and intimidating. But Scott Yamamura, author of Financial Epiphany, explains personal finance doesn't have to be complicated. He breaks compound interest into three easy-to-grasp frameworks: Money as a Multiplying Ability: Just like athletes have peak physical abilities in their 20s, your money has its greatest multiplying power when you're young. At age 22, every dollar invested can multiply 16 times by retirement (assuming a 40-year career and 7.2 percent returns). The Doubling Framework: Money can double approximately every 10 years with average market returns. This explains why a dollar invested at 22 becomes $2 by 32, $4 by 42, $8 by 52, and $16 by 62. The Halving Concept: With each decade that passes, your money's multiplying power gets cut in half. This is the inverse of the above idea. Scott shares how these simple frameworks helped him front-load his son's college savings. "We can stop now because it's going to double," he said. For beginners struggling with analysis paralysis, Scott offers a Rubik's Cube analogy: You don't need to understand all 43 quintillion possible combinations to solve it — you just need one simple method to get started. Similarly, you don't need to master every financial concept to begin investing. The most important step is just to get started. You can learn the complexities later, but starting early gives your money more time to grow. Scott also emphasizes finding your "why" — a purpose bigger than just accumulating wealth. He shares a moving story about a man named Ernie who funded his mission trip to Sierra Leone, showing how money can be used to make a profound difference in people's lives. 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  (1:16) Scott discusses reframing compound interest as "money multiplying ability" (3:47) Money multiplying power works like athletic ability - strongest when young (7:02) Scott addresses challenges of saving when young and broke (10:29) Explanation of the Rule of 72 for doubling money (13:43) Every dollar invested at 22 multiplies 16x by retirement (17:08) What to do if you're starting late with retirement savings (20:44) Three core ideas of compound interest (23:19) Using the concept of "halving" to create urgency to invest (30:30) Finding your "why" to overcome financial temptations (33:07) Scott shares personal story about Sierra Leone mission trip (36:46) The joy of spontaneous giving as motivation for building wealth (40:53) Balancing retirement savings with paying off debt (43:38) Simplifying finance through the Rubik's Cube analogy (52:50) Paula's wrap-up with actionable investing advice for beginners For more information, visit the show notes at https://affordanything.com/episode586 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 28 February 2025

#585: Michael rebalances his portfolio every year. But he’s worried that triggering capital gains taxes on his brokerage account will cancel out the benefits of reallocation. Is there a better approach? Sam has an opportunity to switch jobs, but she’s confused about how an Employee Stock Ownership Plan stacks against her current employer’s 401(k). Is she getting a good offer? Carlos is excited about early retirement in Brazil, but he’s worried about the tax implications for his U.S.-based retirement accounts. How should he prepare for this move? Former financial planner Joe Saul-Sehy and I tackle these questions in today’s episode. Enjoy! P.S. Got a question? Leave it https://affordanything.com/voicemail For more information, visit the show notes at https://affordanything.com/episode585 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 25 February 2025

#584: Think about how you spend an average day. Would the 10-year-old version of yourself be impressed? What about the 90-year-old version? These two powerful questions frame our conversation with Sahil Bloom, founder and managing partner of an early-stage venture fund with investments in over 60 startups and author of The Curiosity Chronicle, a newsletter that reaches more than a million readers worldwide. Sahil shares the story of his own wake-up call. While living in California and earning massive money as a venture inventor, he had a drink with an old friend who asked how often he saw his parents. When Sahil answered "about once a year," his friend asked how old they were. Learning they were in their mid-60s, his friend calculated: "So you're going to see your parents 15 more times before they die," assuming they'd live to about 80. That gut-punch realization led to massive change. Within 45 days, Sahil had left his job, sold his house, and moved across the country to be closer to family. This shift represents the core of Sahil's philosophy about the five types of wealth: 1. Time wealth: Control over your calendar and priorities 2. Social wealth: Deep, meaningful connections with others 3. Mental wealth: Curiosity, purpose, and personal growth 4. Physical wealth: Health and vitality 5. Financial wealth: Traditional money and assets Most of us focus exclusively on financial wealth because it's easily measurable. But Sahil argues that true wealth encompasses all five domains, and we should intentionally invest in each one. Sahil shares practical exercises for building each type of wealth: - For time wealth, create an "energy calendar" by tracking which activities energize versus drain you - For social wealth, map your relationships based on how healthy and frequent they are - For purpose, ask yourself what your world (family, community, etc.) needs from you - For physical wealth, focus on movement, nutrition, and recovery through simple practices - For financial wealth, clearly define what "enough" looks like for you These five domains aren't meant to be balanced perfectly every day. Instead, Sahil suggests thinking in seasons — some periods might emphasize financial growth while others prioritize family time. Sahil also discusses powerful concepts like goals versus anti-goals (what you're unwilling to sacrifice to reach your goals) and "Memento Mori" — the ancient Roman practice of remembering one's mortality to inspire present action. The conversation ends with a reminder that "your life has seasons" just like the weather — you don't expect to experience all four seasons in a single day, so don't expect perfect balance in every area of life simultaneously. For more from Sahil Bloom, find him on major social platforms or visit fivetypesofwealth.com. 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. # Episode Timestamps (0:00) Would your 10-year-old self be impressed with your life? (1:46) Sahil's wake-up call: seeing parents only 15 more times before they die (4:19) The Tail End: visualizing how few books and moments remain in life (6:56) Small changes that dramatically increase time with loved ones (13:26) The tension between ambition and presence; why "later" becomes "never" (17:42) Why we measure financial wealth but not other forms of wealth (19:47) The five types of wealth: financial, time, social, mental, physical (30:09) Creating an "energy calendar" to track what energizes vs drains you (38:09) Relationship mapping: evaluating connections by health and frequency (42:33) Goals vs anti-goals: what you're unwilling to sacrifice for success (51:17) Why your purpose doesn't need to be your work (54:46) The 30-day health challenge: movement, nutrition, recovery (57:05) Vonnegut and Heller on having "enough" vs wanting more Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 21 February 2025

#583: Contrary to recent discussions, Jesse has concluded that a traditional IRA is the smarter way to go for most people once marginal tax rates are factored in. Is he missing something?   An anonymous caller is four years away from early retirement but she’s unsure if her portfolio allocations are in the right place. How and when should she start converting equities to cash? Luz is confused about how to handle company stock options. Is there an ideal spread between the exercise price and the stock price? And, what should she do once the stocks are exercised? Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode. Enjoy! P.S. Got a question? Leave it https://affordanything.com/voicemail For more information, visit the show notes at https://affordanything.com/episode583 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 18 February 2025

#582: They had it all. Six thriving children. A 40-year marriage. A household income of $200,000. Then in her 60s, she discovered a shocking truth: he had gambled away their entire retirement savings in penny stocks.  She had no access to their financial accounts during the marriage. After divorcing, she was left with nearly nothing. Today, she relies on her adult kids for support. Harvard-trained family law attorney Aaron Thomas joins us for a Valentine's Day discussion about prenuptial agreements — not just as divorce insurance, but as a framework for building stronger marriages. Thomas is a three-time winner of Atlanta's Best Divorce Attorney and a leading expert in family law. He’s the founder of prenups.com and authored The Prenup Prescription. Thomas explains that every married couple already has a prenup by default: their state's laws. In 41 states, judges have broad discretion in dividing assets "equitably" — which might mean a 70-30 split rather than 50-50. The remaining nine states are community property states, where assets are typically split equally. But even in community property states, determining what qualifies as joint property can spark fierce debate. For example: if you entered marriage with $100,000 in a 401(k) and continued contributing during the marriage, how much belongs to you vs. the marriage? What about a home you owned before marriage, but your spouse helped pay the mortgage? To prevent financial surprises, Thomas recommends couples hold "annual shareholder meetings" to review finances together. He suggests creating three buckets — yours, mine and ours — with clear agreements about spending. For example, his prenup requires both spouses to approve joint account purchases over $500. Beyond asset division, prenups can include requirements like marriage counseling before filing for divorce, or mediation if custody disputes arise. While prenups can't determine child custody or support payments, they can establish frameworks for working through conflict. The biggest benefit, Thomas argues, isn't protecting yourself in case of divorce — it's creating clarity and communication during marriage. By having difficult conversations upfront about money, expectations and conflict resolution, couples build stronger foundations for lasting partnerships. Listen to this episode to hear our full conversation about how prenups can strengthen marriages, prevent costly court battles, and help couples align on money management from day one. 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) The hidden marriage contract (3:01) Legal definition of marriage and financial rights (12:42) Historical view: marriage as duty vs love (19:38) Prenups defined: financial rules for marriage (24:20) Annual money meetings between spouses (27:26) Why "everything is 50/50" is a myth (35:21) How separate property becomes marital property (39:26) Real examples: retirement accounts and homes (44:44) State prenup vs your own prenup (48:04) Using prenups for counseling and mediation (55:07) Pets in divorce: property not custody (57:30) Family loans and spending limits (1:01:57) Financial transparency prevents disasters (1:07:21) Community property vs equitable division (1:10:34) Why every couple needs money agreements (1:14:51) Postnups and no-nups explained Resources Mentioned: Home - Prenups | Website Prenups.com (@prenupguy) | Instagram Book Your 30-Minute Consultation Today - Afford Anything - Prenups | Website The Prenup Prescription | Book For more information, visit the show notes at https://affordanything.com/episode582 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 14 February 2025

Enrollment for Your First Rental Property is open! affordanything.com/enroll ____________________________ #581: Today's question is different. There's something special about it — and you'll understand why in a moment. An 84-year-old listener left us a voicemail about his struggle to break free from mortgage debt. He and his 83-year-old wife need to move from their two-story townhouse because they can’t climb the stairs any longer. They found a single-story ranch house that fits their needs perfectly — except for one detail: it carries a crushing $4,200 monthly mortgage payment. They do have one potential escape route from this debt: selling their Florida condo, a vacation retreat that they haven't visited in years due to mounting chronic health challenges. But Hurricanes Milton and Helene ravaged their building last year. The storms spared their unit but destroyed the lobby and submerged their car in floodwater. The devastation slashed $100,000 from their property's value overnight. Now they face an agonizing decision: Should they accept this massive loss and sell the condo to free themselves from debt? Or would selling now, after such a steep drop in value, mean locking in their losses? Joe and I have answered hundreds of questions from our listeners over the years. But this question is special. It comes from my Dad. __________________________ Here’s the transcript of my father’s full question: Hi Paula and Joe,  My name is Prahlad. I am 84 years old, and my wife is 83. We live in a two-storied townhouse in Atlanta and also own a two-bedroom condo on the beach as a second home in Clearwater, Florida.  Recently, we purchased a one-storied ranch home in Atlanta so that we don’t have to go up and down the staircase at this old age.  Our condo in Clearwater is on the 9th floor of the 14 storied building. We love the condo with views of the Gulf of Mexico and the Bay. However, we have not been able to visit it for a long time due to our underlying health conditions.  We purchased the condo for $400,000 in 2015 and it was estimated to have appreciated to $800,000 in 2022. Since then, the price was estimated to come down to $775,000 in the Spring 0f 2024.   As you know, this area was hit by two major hurricanes Helene and Milton in September and October last year. The lobby of the building was flooded with extensive damage and it is still under construction. The parking area under the roof was also flooded and our car was totaled. Fortunately, our condo did not suffer any damage.  There has not been any significant real estate buy and sell activities in this neighborhood since it was hit by the hurricanes last year. My real estate agent estimates that the current value of the condo is $700,000.  This building has been preparing for a major renovation of the plaza deck for the past few years, and we or the future owner anticipate to be assessed a large amount – maybe $30,000 – for the renovation.  We were hoping that we could sell the condo and pay off the mortgage for the ranch home we recently purchased in Atlanta, and be debt free.  What do you think – should we sell it now or wait until some later time – maybe until next year?  Your advice would be highly appreciated. Thank you both for what you do.   For more information, visit the show notes at https://affordanything.com/episode581 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 11 February 2025

#580: "If you want to understand what's happening in the economy, look at bonds," begins today's episode, where we explore how the bond market acts as a crystal ball for economic trends. The bond market has been sending some clear signals lately. Interest rates remain elevated, with 10-year Treasury yields about 1 percent higher than their September 2024 low. After a challenging 2024 where bond returns flattened to just 1.18 percent, both the U.S. and U.K. are seeing historically high yields. We break down what's driving these changes and explain key concepts like term premium — the extra return investors demand for holding longer-term bonds. The Federal Reserve's recent moves are shaping this landscape. After cutting rates by 1 percentage point between September and December 2024, Fed officials are now signaling a more cautious approach, wanting to see further inflation decline before considering additional cuts. Then we explore why President William McKinley is suddenly relevant again. McKinley, whose term began in 1897, was known for his imperialist expansion and love of tariffs. His presidency came towards the end of what historians call "the long 19th century" — a period from the French Revolution in 1789 to the start of World War I in 1914. This era was marked by massive social upheaval, major technological advancement, the First Industrial Revolution, and huge migration into cities. It also included the California and Klondike Gold Rushes. The episode then turns to what some are calling the "Cold Rush" — the race to claim influence in the rapidly changing Arctic. With ice melting four times faster than global averages and the potential for ice-free Arctic days by 2030, nations are competing for new shipping routes and access to resources. We examine three emerging paths: the Northern Sea Route along Russia's coast, the North-West Passage along North America, and the Transpolar Sea Route across the North Pole. Finally, we dive into an overlooked story: the global tax war. In 2021, 136 countries agreed to establish a 15 percent minimum corporate tax rate to prevent profit-shifting to tax havens. While the U.S. already exceeds this minimum with its 21 percent domestic rate, implementation faces challenges due to different methodologies for calculating tax bases and recent political developments that could affect its future. Resources mentioned: https://www.federalreserve.gov/econres/notes/feds-notes/the-treasury-tantrum-of-2023-20240903.html https://www.pimco.com/us/en/insights/will-the-true-treasury-term-premium-please-stand-up https://www.bls.gov/news.release/pdf/empsit.pdf https://youtu.be/gQqcKepuQdA?feature=shared https://www.morningstar.com/bonds/how-largest-bond-funds-did-2024 https://www.npr.org/2025/02/05/1229167003/mckinley-trump-tin-tariffs https://www.economist.com/finance-and-economics/2025/01/23/the-arctic-climate-changes-great-economic-opportunity https://www.clingendael.org/pub/2020/presence-before-power/4-greenland-what-is-china-doing-there-and-why/ https://www.clingendael.org/pub/2020/presence-before-power/ For more information, visit the show notes at https://affordanything.com/episode580 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 8 February 2025

#579: Todd is in a real estate bind. He found out six days before closing on a new home that it wasn’t legally sellable. And renters are moving into his current home in two weeks. What should he do? Anonymous is excited about expanding her real estate portfolio. Should she sell her $2.5 million rental property in the Bay Area to do this, or can she keep it and leverage the equity instead? Former financial planner Joe Saul-Sehy and I tackle these two 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/episode579 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 4 February 2025

#578: Fear blocks smart money moves. Ask Harvard Business Review advisor Dr. Margie Warrell, who guides Fortune 500 companies through strategic risk-taking. Her client roster includes NASA, Morgan Stanley, and Google. Her understanding of courage started at home. Her 13-year-old daughter landed an Australian TV role. She flew to LA for acting classes. There, she learned the hard truth: Success meant waiting tables for 20 years. The daughter's verdict was clear: "Mum, I don't want it enough." This reveals what Dr. Warrell calls the courage gap. It's the space between your current life and the life you could create through brave action. For investors, this gap appears daily. It's the distance between dreaming of financial independence and taking concrete steps toward building wealth. Drawing on her doctoral research and Fortune 500 consulting experience, Dr. Warrell outlines five critical steps to bridge this gap: 1. Focus on what you want, not what you fear.  Our brains have a negativity bias — we're twice as sensitive to potential losses as potential gains. This explains why market downturns feel more intense than upswings.  2. Rewrite your story.  The narratives we tell ourselves shape our actions. Perhaps you see yourself as "too risk-averse" to start a business or "not smart enough" to understand investing. Reframe these stories so you can take smart financial risks. 3. Embody courage physically.  Fear lives in our bodies — whether it's anxiety about making your first investment or launching a side business. Try simple practices like deep breathing when facing big financial decisions. 4. Step into discomfort.  Growth and comfort can't coexist. Every successful investor and entrepreneur started as a beginner. Financial literacy and business acumen develops through consistent practice. 5. Find the treasure when you trip.  Market corrections, failed business ventures, and investment mistakes are learning opportunities.  Dr. Warrell emphasizes that courage isn't about waiting until you feel confident — it's about acting despite your fears.  This applies whether you're making your first stock purchase, buying your first rental property, or quitting your job to start a business. The takeaway: While you can't control market conditions or business outcomes, you can control your response to financial fears.  Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate. (0:00) Introduction (3:54) Fear's impact on financial decisions (6:13) Case study: Risk-reward in property investment decisions (10:28) Psychology of wealth decisions (14:21) How negativity bias affects investment choices (18:09) Five steps to bolder money moves (21:23) Navigating market uncertainty (26:52) Physical techniques for managing investment anxiety (31:28) Real example: Leading through market volatility (37:42) Finding clarity in financial goals (43:34) Why comfort zones limit wealth creation (47:59) Small steps toward investment confidence (53:11) Learning from market setbacks (58:38) Balanced approach to investment failures (1:02:51) Building long-term wealth resilience Resources Mentioned in the Episode: Website: Dr. Margie Warren Book: The Courage Gap Connect with Dr. Warrell on LinkedIn: Dr. Margie Warrell Follow Dr. Warrell on Instagram: Dr. Margie Warrell Interview with David Novak: Episode 534 For more information, visit the show notes at https://affordanything.com/episode578 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 31 January 2025

#577: Kelsey is excited about investing along the efficient frontier, but it feels impossible with the lack of fund options in her employer-sponsored 401k. What’s the best way to deal with this problem? Molly discovered that her rollover from a 401k to a traditional IRA hadn’t been invested in mutual funds and was still in a money market fund. Manually calculating her net worth helped her identify this oversight, and she shares her experience with us. Former financial planner Joe Saul-Sehy and I tackle this 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/episode577 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 28 January 2025

#576: The world's greatest investors have a secret: they're weird.  When one young fund manager met Bill Miller for the first time, he refused to shake hands. Instead, he locked eyes and declared: "I'm going to beat you, man." William Green joins us to share what he's learned from decades of conversations with investing legends — from the hyper-competitive to the deeply philosophical.  These conversations reveal that success isn't just about strategy; it's about understanding yourself and playing to your strengths. The best investors are mavericks who think differently. They're willing to look strange, be lonely, and diverge from the crowd. Templeton demonstrated this during WWII. When Germany invaded France and markets crashed, he bought 104 stocks trading under $1 — including 37 bankrupt companies. His contrarian bet paid off 5x when markets recovered. But Green emphasizes this isn't just about getting rich.  His decades of interviews reveal deeper wisdom about building a good life: Great investors focus on what they can control. They can't predict markets, but they can manage their behavior and emotions. They embrace simplicity. Jack Bogle advocated owning low-cost index funds rather than chasing complex strategies. They understand odds and risk. Howard Marks asks "What's the consequence if I'm wrong?" before making decisions. They play to their strengths. Charlie Munger says if you're 5'3", don't try to be a pro basketball player. They live below their means. As investor Tom Gaynor notes, "If you're living within your means, you're already rich." Green shares a practical framework called HALT PS — don't make important decisions when Hungry, Angry, Lonely, Tired, in Pain, or Stressed. This applies beyond investing to daily life. The conversation explores how to build resilience before market crashes through healthy habits, self-awareness, and preparation. Green notes that many successful investors practice meditation and read widely across disciplines. Even legends make mistakes. Bill Miller saw his assets drop from $77 billion to $800 million during the 2008 crisis. But he rebounded by staying true to his principles and learning from failure. Green's key message? Focus less on getting rich and more on building an "anti-fragile" life aligned with your values and strengths.  The best investors aren't just good at making money — they're skilled at creating lives of meaning and purpose. Find more from William Green at williamgreenwrites.com or on his podcast Richer, Wiser, Happier, featured on the We Study Billionaires feed. 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. (01:00) Meeting Sir John Templeton in the Bahamas (04:02) Templeton's WWII stock strategy during market crash (12:00) Wisdom vs survivorship bias in investing stories (14:55) Why great investors recommend index funds (23:34) Prioritizing freedom over wealth maximization (39:27) Bogle's client-first philosophy (51:32) Living below means for market volatility (01:01:37) HALT PS conditions leading to poor choices (01:06:45) Using data for better decision making (01:11:13) Bogle's emphasis on simple investing (01:14:30) Danoff's "stocks follow earnings" strategy For more information, visit the show notes at https://affordanything.com/episode576 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 24 January 2025

#575: Apar’s income has more than doubled after he started his own business. His advisor recommends Roth contributions but he’s skeptical due to his high income. Who’s right? Keith is frustrated by the conflicting advice he’s heard about Roth conversions. Is it better to do it while he’s young and earning a lower income, or should he wait until closer to retirement? Krish is fascinated by cryptocurrency and its impact on global investing. What opportunities should he capitalize on, and how? 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

Transcribed - Published: 21 January 2025

#574: What would you do if someone in authority told you to do something that felt wrong? Most of us like to think we'd speak up, push back, stand our ground. But research tells a very different story. In fact, when Yale researchers conducted a famous experiment in the 1960s, they found that 65% of people would administer what they believed to be deadly electric shocks to another human being... simply because someone in a lab coat told them to. Today's guest has spent over 15 years studying why humans comply with authority - even when every fiber of our being is screaming that we shouldn't. And when it comes to our money, this tendency to comply with authority figures - from financial advisors to real estate agents to car salespeople - can cost us dearly. Dr. Sunita Sah began her career as a physician in the UK's National Health Service. During one particularly exhausting period as a junior doctor, she agreed to meet with a financial advisor who had contacted her at work. That meeting sparked questions that would shape the rest of her career: Why did she feel pressured to trust this advisor, even after learning he had a conflict of interest? Today, she's a tenured professor at Cornell University, where her groundbreaking research on compliance and influence has been featured in The New York Times and Scientific American. She's advised government agencies, served on the National Commission on Forensic Science, and helps leaders understand the psychology behind why we say "yes" when we really want to say "no." Whether you're meeting with a financial advisor, negotiating the price of a home, or discussing rates with a contractor, understanding the psychology of compliance could save you thousands of dollars - and help you make better financial decisions. Today's conversation isn't just about psychology - it's about protecting your wealth by learning when and how to say "no." Resources Mentioned in the Episode: - Website: sunitasah.com - Newsletter: Defiant by Design on Substack - Connect with Dr. Sah on LinkedIn - Follow Dr. Sah on Instagram About Dr. Sunita Sah Dr. Sunita Sah is a tenured professor at Cornell University specializing in organizational psychology. Her research focuses on how and why people comply with authority, even against their better judgment. A former physician in the UK's National Health Service, Dr. Sah brings a unique perspective to understanding human behavior and decision-making. Her work has been featured in leading publications including The New York Times and Scientific American, and she has served as a Commissioner on the National Commission on Forensic Science. 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 4:00 Most people follow authority against their own judgment 7:01 Dr. Sah meets a pushy financial advisor as a young doctor 9:55 Why conflict-of-interest disclosures backfire 12:16 "Insinuation anxiety" makes us cave under pressure 14:13 The "sales pitch effect" creates unwanted obligation 17:29 Growing up conditioned to comply as a South Asian daughter 20:34 Career paths: following passion vs family expectations 27:29 The Milgram experiments reveal our tendency to obey 35:28 Using "quiet defiance" to resist pressure 42:20 Why managers misunderstand employee silence 46:43 Five elements that separate consent from compliance 53:03 Building defiance through small daily practices 58:13 The power of the pause in decision-making 1:02:54 Five stages to recognize and act on resistance 1:18:22 How to develop your personal style of defiance For more information, visit the show notes at https://affordanything.com/episode574 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 17 January 2025

#573: An anonymous caller has always put her large purchases on zero percent APR credit cards, but something’s been nagging at her. Is she walking on thin ice with this strategy? Von is confused why he keeps hearing that Roth accounts are better than traditional if they both lead to the same mathematical result. What’s he missing?  Molly and her husband are well on their way to financial independence, but they feel unfulfilled with their careers. Can they afford to plunge into student debt with a 50 percent pay cut? 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/episode573 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 14 January 2025

#572: At age 7, Dr. Jordan Grumet lost his father. This early loss shaped his career path — he became a physician, following in his dad's footsteps. But by 2010, feeling burned out from internal medicine, he took an unexpected turn: he became a hospice doctor. In this episode, Dr. Grumet joins us to discuss what he's learned from thousands of conversations with people in their final days.  These discussions have revealed a pattern: people don't typically regret their bank balance on their deathbed. Instead, they regret not pursuing the activities and dreams that truly lit them up. Dr. Grumet explains the difference between what he calls "Big P Purpose" versus "little p purpose." Big P Purpose involves major life goals like becoming president or curing cancer. Little p purpose, by contrast, focuses on the process — finding activities you enjoy regardless of the outcome.  He shares the story of a young professional who loved competitive cycling. While working a demanding nonprofit job, this person started fixing bikes at races on weekends. This side project combined his skills and passion, eventually creating enough income for him to reduce his full-time hours. Dr. Grumet introduces three key concepts for building more purpose into your life: - Joy of Addition: Add activities that excite you, even if just for 15 minutes daily - Art of Subtraction: Remove activities that drain you - Substitution: When you can't add or subtract, swap one activity for another He emphasizes that money isn't the only tool for creating change. Youth, energy, relationships, skills and community can be equally valuable resources. A 22-year-old might lack funds but has the advantage of time and stamina that a 51-year-old doesn't possess. Dr. Grumet references the Harvard Adult Developmental Health Study, which found that strong relationships — not achievements or money — most strongly correlate with happiness. He suggests that pursuing activities you enjoy naturally leads to building these vital connections. The episode closes with a powerful story about his grandfather, who loved math and became an accountant in the 1950s.  This passion influenced Dr. Grumet's mother to become a CPA, which in turn helped young Jordan develop confidence in math, despite his reading challenges. Years later, this mathematical thinking helped him diagnose a rabbi's rare condition — proving how small actions can create ripple effects across generations. 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 to Dr. Grumet, hospice doctor discussing end-of-life insights 1:06 Transition from medicine to hospice as side hustle 2:21 Hospice shifts from medical to emotional care 4:12 Palliative care vs hospice care explained 5:05 Age range of hospice patients 6:55 Life priorities and deathbed regrets 13:46 Harvard Adult Developmental Health Study on happiness 20:00 Purpose, happiness and flow states 26:35 Joy of Addition and Art of Subtraction explained 33:30 Using youth when lacking money 41:18 Calendar evaluation strategies 48:45 Managing family disappointment 56:08 Regrets as purpose anchors 1:03:26 Common end-of-life regrets 1:09:06 Small actions, big legacy For more information, visit the show notes at https://affordanything.com/episode572 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 10 January 2025

#571: An anonymous caller’s crypto investments have recently skyrocketed to 17 percent of her investment portfolio. Given the volatility of this asset, should she rebalance it or go all in?  Jocelyn wants to buy a house in three years but she’s reluctant to keep her sizable down payment in cash. What if she splits the difference and invests half the money instead? Allison feels antsy holding $1 million in cash with falling interest rates on the horizon. How does she optimize this money while keeping it liquid enough to buy a house on an uncertain timeline?  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/episode571 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 7 January 2025

Grab your free copy of the 52-week guide to micro-improvements at https://affordanything.com/financialgoals _______ In 2012, the British cycling team pulled off what seemed impossible. After 76 years of losses, they won the Tour de France, took second place, and grabbed 8 Olympic gold medals. Their secret? Tiny improvements that added up to massive change. That's the philosophy behind "One Tweak a Week," a year-long financial roadmap broken into 52 small, manageable steps. Each tweak takes less than an hour — many just minutes — but compound into significant financial progress over time. The plan breaks down into four quarters. Quarter 1 lays the groundwork with foundational habits like writing a financial motivation statement, calculating net worth, and choosing key metrics to track. It's about getting clear on where you stand and where you're headed. Quarter 2 shifts focus to optimizing your money. You'll track prices, adjust thermostat settings to cut energy costs, create a "fun fund" for guilt-free spending, and develop strategies for charitable giving. This quarter also tackles professional development and emergency medical expense planning. In Quarter 3, the focus turns to systematic improvements — maintaining proper tire pressure to save on fuel, capturing work-from-home savings, planning for seasonal expenses, and building a buffer for unexpected price increases. Quarter 4 wraps up with fine-tuning your system. You'll evaluate housing options, manage variable food costs, set micro-saving challenges, and create strategies for handling market uncertainty. The approach mirrors what British cycling performance director Dave Brailsford calls "the 1 percent margin for improvement." He transformed the team by focusing on tiny details — everything from athlete hand-washing techniques to bringing specific mattresses to hotels for better sleep. Even painting the maintenance floor white to better spot problematic dust on bike gears. Like Brailsford's approach, these financial tweaks might seem small on their own. But together, they create a comprehensive system for building lasting wealth.  The guide is available at affordanything.com/financialgoals. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 3 January 2025

#569: Let’s take a look back on the biggest financial and economic stories of 2024 - and a look ahead to 2025! The Fed GDP The Bull Market The Deficit Inflation Bitcoin Basel III Endgame and Scientific Breakthroughs References and Resources: Michael Kitces interview https://AffordAnything.com/episode525 One Tweak a Week: https://AffordAnything.com/financialgoals For more information, visit the show notes at https://affordanything.com/episode569 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcribed - Published: 30 December 2024

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

Transcribed - Published: 27 December 2024

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

Transcribed - Published: 26 December 2024

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

Transcribed - Published: 25 December 2024

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

Transcribed - Published: 24 December 2024

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

Transcribed - Published: 23 December 2024

#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

Transcribed - Published: 20 December 2024

#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

Transcribed - Published: 17 December 2024

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

Transcribed - Published: 13 December 2024

#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

Transcribed - Published: 10 December 2024

#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

Transcribed - Published: 7 December 2024

#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

Transcribed - Published: 3 December 2024

#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

Transcribed - Published: 29 November 2024

#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

Transcribed - Published: 26 November 2024

#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

Transcribed - Published: 22 November 2024

#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

Transcribed - Published: 19 November 2024

#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

Transcribed - Published: 15 November 2024

#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

Transcribed - Published: 12 November 2024

#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

Transcribed - Published: 8 November 2024

#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

Transcribed - Published: 5 November 2024

#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

Transcribed - Published: 1 November 2024

#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

Transcribed - Published: 29 October 2024

#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

Transcribed - Published: 25 October 2024

#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

Transcribed - Published: 22 October 2024

#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

Transcribed - Published: 18 October 2024

#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

Transcribed - Published: 15 October 2024

#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

Transcribed - Published: 11 October 2024

#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

Transcribed - Published: 8 October 2024

#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

Transcribed - Published: 4 October 2024