If Your Money Plan Isn’t Working It's Time for a New One
Sep 10, 2024
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Jade Warshaw, a financial planning expert, and Ken Coleman, a career specialist, tackle pressing money questions. They discuss whether to sell a commercial building to pay off debt and the dilemma of a looming car repossession. The duo also addresses the challenges of balancing mortgage repayments with investing. A knockout conversation emerges around whistleblowing in the workplace and questions surrounding the demanding nature of college degrees. Their insights combine practical finance tips with career strategies to empower listeners towards financial stability.
Entrepreneurs should focus on their long-term goals and consider selling underperforming assets to improve financial health.
Building credit for young adults can be achieved through alternative, debt-free methods rather than borrowing for college education.
Balancing debt repayment with investing can be effective when strategizing expenses and leveraging employer retirement contributions.
Deep dives
Navigating Career and Business Decisions
A caller discusses a dilemma between continuing to run his own tax preparation business and accepting a partnership offer with an established CPA firm. He enjoys being his own boss but is unsure whether he should maintain his business or pursue partnership opportunities. The experts suggest he focus on his own aspirations of growing his business and obtaining his CPA certification. The advice centers on evaluating long-term goals, with a preference for building his own firm rather than becoming a partner in another.
Understanding the Importance of Legal and Financial Management
An entrepreneur experiences conflicts over a substantial debt due to a commercial building renovation for their event rental business. Their financial struggles raised concerns about a potential long break-even point. The experts stress the need for better financial management and stronger communication with their accountant to truly understand the business's profitability. The advice suggests selling the commercial property to cut losses and focus on the more profitable event rental aspect of their operations.
Building Strong Financial Foundations for Transitioning Adults
A caller seeks clarification on the pitfalls of borrowing for college to help establish credit for their child, questioning the potential impact on their financial future. The experts warn against the necessity of debt in building credit and suggest that many paths exist that do not rely on taking out loans. They emphasize alternatives for young adults to build credit without student loans, highlighting responsible usage of credit cards as a stronger option. Ultimately, the consensus is that there are better, debt-free strategies available for establishing good credit.
Prioritizing Investments and Understanding Loan Dynamics
A 25-year-old caller expresses uncertainty about how to balance debt repayment on a home while also wanting to invest effectively. The experts clarify that his earlier habits of saving and investing are commendable and should continue alongside managing mortgage payments. Recommendation includes utilizing employer matching in retirement contributions without sacrificing the goal of paying off the mortgage early. Ultimately, the ideal scenario is achieving a balance between investing and making extra payments on the mortgage in a strategic manner.
Evaluating Electric Vehicle Options in Challenging Circumstances
A caller evaluates whether to lease an electric vehicle or keep an efficient SUV due to high gas costs associated with driving frequently for work. He finds that leasing an electric car, despite its seeming cost efficiency, might not actually make financial sense when factoring potential depreciation and charging infrastructure. The experts advise considering a more affordable vehicle option or identifying less expansive driving habits to mitigate fuel costs. Ultimately, the emphasis is on making an informed purchase decision while considering long-term sustainability.
