Afford Anything

#347: Back in the 1960’s, Jack Bogle thought that actively-managed mutual funds performed better than a passive indexing strategy.He pseudonymously published a paper saying so.But academic data from the University of Chicago challenged his preconceived notions. He attended seminars that showed how the drag on returns that come from management fees and trading costs, coupled with the reality that the bulk of gains come from a hard-to-predict handful of equities (a concept known as “skew”), lead to index funds holding long-term outperformance.At the time, index funds were only available to major institutional investors. Regular folks couldn’t access these winners.And that might have continued for a long time …… except history turned on a dime.In the early 1970’s, Jack Bogle got fired. Rather than accept defeat, he turned into a renegade. He launched Vanguard and began offering index funds to ordinary individual investors.And the rest, as they say, is history.In today’s episode, we learn about the revolutionary ideas that paved the path to passive investing.We learn about the radical invention of the index fund.We discover the drama, the tenacity, the betrayal and redemption behind it.And we discover the lessons that the history of the index fund holds.Enjoy!For more information, visit the show notes at https://affordanything.com/episode347 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#346: Pensions make Chad uncomfortable, to the point of quitting his job to roll his $175,000 over to an IRA. Is the 12 percent match his employer offers good enough to beat the two percent growth of his pension? Or should he leave and never look back?Anonymous and his wife have $275,000 saved and a child on the way. They’re 27 and want to reach financial independence by 35. They want to buy a house, but with this crazy market, what’s the smartest way for them to use their savings?Anonymous and his wife are 30 and hope to reach financial independence in five years. They want to know: is a taxable brokerage account the best place for their leftover $1,000 after they max out their pre-tax 401k contributions?Norm wants to buy a house in cash and doesn’t want his name on public record. Is it possible for him to stay anonymous?Sharon called in on episode 336 and called back to clarify her question. Her husband purchased a below-market property which has a cap that limits how much they can sell it for. Should they keep the home, or sell it, even if they can’t get the full price for it?Joe Saul-Sehy, my friend and former financial planner, joins me to tackle these questions on today’s episode.Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.For more information, visit the show notes at https://affordanything.com/episode346 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#345: Let’s talk about one of the biggest expenses you might ever encounter: health care costs.When you get a hospital bill, do you understand it? After all, it looks like it’s written in code (and sometimes it literally is).How do you know if the bill is accurate? Has everything been coded properly? Are you being charged for the services that you actually received?If you need to dispute an item, what’s the process?Pulitzer Prize finalist Marshall Allen joins us to shed light on the complex world of medical billing. He breaks down the “explanation of benefits,” describes a step-by-step process for obtaining your medical records, and explains an actionable plan for how to contest a bill.If you’ve ever felt overwhelmed by the complexity of your health care bills, you’ll learn a lot from this concise, informative episode.Enjoy!For more information, visit the show notes at https://affordanything.com/episode345 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#344: Russell’s job offers the option to contribute to a 457 plan. Since he’s in the highest tax bracket, should he take advantage of the tax deferral offered through the 457 or invest within a taxable brokerage account?Anonymous is on track to be financially independent in 14 years, but isn’t living up to her potential working a boring job. How can she live up to her potential and do more without sacrificing her quality of life?C wants to know what tax implications she should consider before working remotely from abroad?Daan is wondering if he should stake or lend his current cryptocurrency portfolio to make additional gains on assets he plans to hold long-term?Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.For more information, visit the show notes at https://affordanything.com/episode344 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#343: The real estate market in 2021 has been bonkers.That’s the technical term.From 2012 to 2020, home prices nationwide rose at an annualized average of 5.8 percent per year.From April 2020 to April 2021, home prices climbed 17.2 percent.This sudden surge in prices has many homeowners and would-be investors fearful of a crash. The memories of the stark price run-up prior to The Great Recession are all too salient.What goes up must come down, right?Not exactly. In this episode, we walk through market fundamentals — discussing housing supply, lumber prices, and the distinction between cheap credit vs easy credit — to illustrate how today’s market is unlike anything we’ve ever seen.More importantly, we offer tips for everyone —whether you’re a renter looking to get into your starter home, an empty-nester looking to downsize, an owner-occupant who wants to lock in your gains, or a curious aspiring investor who wonders if it’s too late.Enjoy!For more information, visit the show notes at https://affordanything.com/episode343 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#342: Russell is a busy professional who’d like to invest passively in real estate. Is there data he can use to compare this approach to owning and managing their own properties?Laura wants to purchase her first investment property in Miami. Should she cash out some RSUs and stock from her company to use as a down payment? And what type of mortgage is she eligible for since she already owns a home?Jordan and his wife own three properties and are under contract on a new house since they have a new baby on the way. Should he sell any of his existing properties to be in a stronger cash position, thus mitigating the risk of future fluctuations in his income as a real estate broker? Or should he keep his rental properties since his goal is to reach financial independence through rental income?Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.For more information, visit the show notes at https://affordanything.com/episode342 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#341: Imagine a line.Cowardice exists at one extreme end of that line. Recklessness exists at the other extreme end.And in the balanced middle, you’ll find courage.Today’s conversation is about courage. We’re not talking about inspiring physical acts of bravery in this episode; rather, we’re discussing moral and social courage.The type of courage you need to make an investment. Buy a rental property. Invest in stocks. Start a business or side hustle. Retire early. Travel overseas. Have a difficult but diplomatic conversation. Express your feelings constructively rather than bottling them up inside. Raise an issue with immediacy rather than hesitation. Break bad news to someone. Ask for help. Launch an initiative. Try something new.We’re talking about the type of courage that’s required to become a better, bigger person in your work, your relationships, your life.We’re having this conversation with Ryan Holiday, the bestselling author of a series of books on Stoic philosophy.Enjoy.Resources Mentioned:Courage is Calling, by Ryan Holidayaffordanything.com/realestateaffordanything.com/viplistFor more information, visit the show notes at https://affordanything.com/episode341 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#340: Imagine this:You start a side hustle. Maybe you sell planners or lead workouts in the park.You make a few thousand dollars during your first year. It’s fun beer money, but not enough to quit your day job.But you keep growing. You run this as a one-person operation, though you bring on freelancers or independent contractors.Your revenue grows into the five figures. Then six figures. After a few years, you’re running a one-person, million dollar company.This sounds like a pipe dream, right?But it’s the true story of Laszlo Nadler, who created a line of planners and calendars. It’s the true story of Stacy Berman, who started leading 5:30 AM fitness bootcamp classes in the park.And it’s the true story of hundreds of other solopreneurs interviewed by business journalist Elaine Pofeldt, who took a deep-dive look at the lives and businesses of entrepreneurs who run companies that gross more than $1 million, but have no employees.In today’s episode, we take an inside look at the secrets behind one-person, million-dollar businesses.If you’ve ever considered starting a side hustle or business of your own, don’t miss this.This episode originally aired in March 2019.For more information, visit the show notes at https://affordanything.com/episode340 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#339: Have you ever thought, “I’d like to invest in rental real estate but there are no cheap properties in my area!”“Homes in my city are too expensive. I’d have to invest out-of-state, but that sounds terrifying.”Or have you ever thought, “I’m curious about real estate but I’m not a fan of the idea of taking on all that debt.”Today’s interview is right up your alley. We talk to Rich Carey, who bought 20 single-family rental properties in Alabama, totally debt-free, while stationed in Germany and South Korea.He invested not just out-of-state, but entirely from outside the country.He bought his properties free-and-clear. And he did it on a military salary while raising two kids.This interview originally aired in June 2018. Enjoy!For more information, visit the show notes at https://affordanything.com/episode339  Learn more about your ad choices. Visit podcastchoices.com/adchoices

#338: This month, we’re running four episodes based around the four pillars of F.I.R.E. — financial psychology, investing, real estate and entrepreneurship.Today’s episode, which originally aired in April 2018, offers advice to investors who want to sharpen and hone their competitive edge.Here are three lessons from this conversation with investment writer Morgan Housel:Lesson #1: Great investors need patience and humility.Lesson #2: Read broadly.Don’t just read books about finance and investing. Read from a broad multi-disciplinary array of subjects, so that you can form a latticework of ideas.Lesson #3: Play a strong defense.On the surface, it seems like playing defense is a conservative strategy. Emergency funds and a strong income-producing allocation, for example, both sound conservative.But in the long-term it could prove to be the opposite.Enjoy this interview, which originally aired in April 2018.For more information, visit the show notes at https://affordanything.com/episode338 Learn more about your ad choices. Visit podcastchoices.com/adchoices