Ask Paula: Is Mom Getting Ripped Off by Her Investment Advisor?!
Dec 27, 2023
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Nicole worries about her mom's investments; Paul wants to lower his income for financial aid; Nick considers long-term care insurance rates. Former financial planner Joe Saul-Sehy and Paula tackle these topics in today's episode.
Pre-paying expenses can help reduce future financial burdens and can be done through mortgage payments, car loan payments, and advanced tax payments.
Investing in unlisted REITs carries significant risks, and inexperienced investors should be cautious and fully understand the risks before investing.
Personal finance should be rooted in values and goals, with a focus on long-term planning and prioritizing decisions that align with those values and goals.
Deep dives
Pre-paying Mortgage and Car Loan
To pre-fund expenses, you can consider pre-paying your mortgage by either paying it off completely or making advanced principal payments. Similarly, pre-paying your car loan by covering the next three years' payments can help reduce future expenses.
Pre-paying Taxes
Another strategy is to pre-pay your taxes by sending a large check to the IRS ahead of time. The IRS accepts and holds these payments, even paying interest on the amount.
Managing Food Expenses
While pre-paying food expenses directly may be challenging, you can focus on reducing overall food costs during the fast application years. This can involve budgeting, meal planning, and finding cost-saving strategies, such as buying in bulk or using coupons.
The dangers of investing in unlisted REITs for inexperienced investors
The podcast episode discusses the risks associated with investing in unlisted Real Estate Investment Trusts (REITs) for inexperienced investors. The speaker highlights the unethical sales pitch used to convince investors, particularly inexperienced ones, to invest in these types of investments. The episode points out that investing in unlisted private companies is generally considered risky, and the same caution should be applied to REITs. The speaker emphasizes the importance of investors being knowledgeable and understanding the risks involved before investing in any type of private investment.
The importance of starting with values and goals in personal finance
The podcast episode explores the importance of starting with values and goals when it comes to personal finance. The speaker uses the analogy of a tree to explain that values serve as the roots, which give rise to goals and ultimately guide the financial decisions and strategies. The episode emphasizes the value of focusing on underlying values and goals rather than getting caught up in product-specific details. The speaker also discusses the importance of long-term financial planning and encourages listeners to prioritize financial decisions that align with their values and goals.
#479: Nicole’s 78-year-old mom is paying huge fees for low returns. How can Nicole help her mom make better investments?
Paul is a single dad, worried about paying his daughter’s college costs. He’s trying to figure out how to report lower income on the FAFSA, so that his daughter can get better financial aid.
Nick is in his 40’s. His long-term care insurance rate is nearly doubling. Should he stop spending on this type of insurance?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
