Afford Anything Q&A: Should You Cash Out Your ETFs? The Hidden Consequences of That Decision …
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Mar 4, 2025 Listeners weigh the pros and cons of cashing out ETFs to buy a home in New York City. The conversation shifts to smart investment strategies for high earners ready for a career change. They explore the concept of the Efficient Frontier, questioning traditional market timing methods. Key financial advice centers on the importance of asset allocation and managing long-term expenses. Personal experiences and resource recommendations provide listeners with practical insights for navigating financial independence.
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NYC Housing Decision
- Separate moving for more space from the decision to buy.
- Consider renting if it's financially sensible and crunch the price-to-rent ratio.
Price-to-Rent Ratio
- Calculate the price-to-rent ratio by dividing the home price by the annual rent.
- Buy if it's 16 or under, rent if it's 25 or above, and consider other life factors if between 16 and 24.
Cashing Out Investments
- Don't let taxes be the only factor in deciding whether to cash out investments for a down payment.
- Consider the impact on long-term goals and split the tax hit between years if possible.