Afford Anything Q&A: How to Choose Between Financial Freedom and a First Home
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Oct 28, 2025 What would you do with $70,000 left over at 23? The hosts explore the tug-of-war between saving for a down payment and stashing cash for retirement. They dive into the complexities of defining a home's true meaning and the unexpected speed of achieving financial independence. Tax-loss harvesting is dissected, weighing its costs against potential benefits. Plus, they challenge the notion that mega-cap dominance spells the end for small-cap investments, reminding listeners of past market disruptions and the value of diversification.
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Decide Home Specs Before Splitting Savings
- Figure out the price point and type of home you want before allocating savings between retirement and a down payment.
- Use that target to calculate a concrete down payment goal and then choose a savings split you can live with.
Snowball A Short-Term Down Payment
- If a 20% down payment is your goal, calculate the dollar amount and timing given your current savings rate.
- Laser-focus (snowball) on the down payment and then redirect those contributions to retirement when it's complete.
One Year's Retirement Delay Scales Huge
- Missing a year of retirement contributions compounds across decades and can be very costly.
- One year of contributions at age 23 grows for ~40 years, amplifying opportunity cost of delaying retirement savings.
