#130: Anna and Dave want to get married … eventually. But they want to buy a rental property together first. How should they approach this from a paperwork/legal structure standpoint? Note: They’re thinking about having one partner purchase the home, with the other partner acting as a lender (with proper paperwork in place). Would this be a wise approach? Fred lives in Saskatchewan, Canada and owns two duplexes. He’s thinking of buying rental properties in the U.S., and he has 4 questions: What requirements or criteria do you establish ahead of time? For example, do you look for a minimum cap rate? Or a specific type of property? When you’re looking out-of-state, what steps do you take to identify a community? How about the type of property? What market research do you undertake? How would you caution an international investor who wants to start investing in U.S. properties? Jordana wants to build financial independence. She’s thinking about selling off stocks and index funds in order to buy her first rental property. Is this a good idea? Cheryl lives in Texas, where property taxes are astronomical. How should she factor this into her rental property decisions? Rachel is worried about bed begs. (Yuck!) Have I dealt with these in any of my rental properties? How do I protect against pests, termites and roaches? I tackle these five questions in today’s episode, which is dedicated to rental property investing. Enjoy! P.S. Need software to manage your rental properties? Collect applications, screen tenants, and collect rent online with Cozy.co/Paula. (And P.P.S. — If you’re not interested in rental investing, don’t worry! Check out last week’s episode about debt payoff with Laura Adams, or the previous week’s episode, in which Joe Saul-Sehy and I answer a smattering of general personal finance questions. Have fun!) For more information, visit the show notes at http://affordanything.com/episode130 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#129: Laura Adams grew up in an upper-middle-class family in South Carolina, and her parents supported her through college. She attended her top-choice school, met her husband while they were still students, and enjoyed a charmed life. When she graduated, she continued to live at a lifestyle to which she felt accustomed. She rented a beautiful apartment. She took vacations. When she felt lonely, she comforted herself with shopping sprees. Unfortunately, her spending habits weren't aligned with her meager post-collegiate, entry-level income. Laura quickly found herself buried under thousands of dollars of credit card debt. She began feeling anxious about the debt. Fortunately, Laura channeled that anxiety into action. She cut back on discretionary spending. She watched her monthly mortgage payments fall. She focused on ways to earn more. Every time she'd free a small chunk of money -- a hundred here, a hundred there -- she made an extra payment on her credit card balance. Eventually, Laura wiped out her debts. She decided to become a "serious student" of finance. She returned to school for an MBA, where she noticed that many of her classmates were intelligent, hardworking students who were superb at managing corporate balance sheets, but terrible at managing their own personal finances. She decided to spend her life solving this problem. In 2006, she began writing about personal finance; in 2007, she started a personal finance podcast; by 2008, she was invited to join the Quick and Dirty Tips Network as the host of the Money Girl Podcast. Her podcast on personal finance has been downloaded more than 40 million times. Laura has also authored several books on money management and appeared on more than 1,000 media interviews on NBC, FOX, Bloomberg and more. How did Laura transition from wearing "financial blinders" to a renowned financial expert? What advice would she give to anyone who's trying to overcome the "ostrich," head-in-the-sand mindset around their money? What important money issues are we not talking about enough? Find out in today's episode. For resources mentioned in today's episode, go to http://affordanything.com/episode129 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#128: Antonia, 27, wants to retire in 15 years. She's trying to figure out whether to contribute to pre-tax or after-tax retirement accounts. Most financial advice for 20-somethings that she's encountered says to contribute to after-tax (Roth) retirement accounts. These articles assume that a 27-year-old will continue earning money for the next 30+ years, presumably escalating into higher tax brackets along the way. By paying taxes upfront, these articles say, you'll enjoy 30+ years of compounding gains, which you'll be able to withdraw tax-exempt. But what if, like Antonia, you're only 15 years from retirement? Should you stick with Roth tax treatment? Or is there wisdom in making retirement contributions with pre-tax money? _____ Marisa is young, high-income, and highly risk-tolerant. She'd like to know: what asset allocation would I suggest for a young, risk-tolerant person? And is rebalancing her portfolio necessary, or just a distraction? _____ Dylan owns his home outright. When he sells it, he'll collect about $100,000 after fees. He also has an additional $100,000 saved in cash. He'd like to buy a home free-and-clear. What's the best way to approach this? Should he take out a home equity line of credit? A bridge loan? Something else? _____ Pal lives in the San Francisco Bay Area. He recently bought his first rental property, and he's interested in building passive income and reach financial independence. He's curious about credit card piggybacking, a side hustle by which a person with a high credit score adds another person with a low credit score as an authorized user to their card. It seems like a legitimate way to earn extra money. Why aren't more people talking about this? Is there a problem he's overlooking? _____ Anonymous, 24, says she knows next-to-nothing about investing. She has $6,500 in her Roth IRA, invested in a Washington Mutual Class A mutual fund, which is an actively-managed mutual fund with a front load. Should she keep her money there? Or should she move it? Her second question is about her 401k. She contributes 5 percent of her paycheck into a Roth 401k account, from which she invests in a Target Date retirement fund. Her employer doesn't match any contributions. Her total contributions to both accounts (her Roth 401k and Roth IRA) equal $5,500 per year. Should she stop contributing to her Roth 401k, so that she can focus her contributions on her Roth IRA? ____ Jeff and his wife are both 64. When he reads about retirement, the information is ambiguous about Social Security. Let's say that he has $1 million saved towards retirement, which generates $40,000 annually at the 4 percent rule of thumb. Let's also say that he is eligible for Social Security income of $40,000 per year. Doesn't this mean he could retire on $80,000 per year? If so, then why do "4 percent rule" projections only talk about the portfolio portion? ____ Former financial advisor Joe Saul-Sehy and I discuss these questions on today's episode. Enjoy!   For links to resources mentioned in this episode, go to http://affordanything.com/episode128 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#127: Most people know what they “should” do — save for the future. Spend less than they earn. Why do so few people follow through? The answer may have less to do with tactics, and more to do with a person’s deep-seated beliefs, fears and anxieties around money. Your income, debt, and spending habits aren't merely a function of your actions. They're a reflection of your deep-seated inner psychology around money. Dr. Brad Klontz, a clinical psychologist and financial planner, joins me on today's show to discuss four "money scripts" that may be harming us. These scripts include: Money avoidance -- We believe money corrupts or that staying poor is noble, so we self-sabotage our success. Yet at the same time, we also desperately (at the conscious level) want more money in our lives, and feel trapped between these conflicting ideas. Money worship -- We believe money will solve our problems. And even though we know that the research says that, after a tipping point, it won't, we don't internalize that idea. Money status -- We believe our net worth is our self-worth, and we overly identify with our investment and bank balances. We may display conspicuous consumption or place a high priority on making the "right" friends. Money vigilance -- We watch our money carefully, but we may also feel anxious about running out. We may also downplay the amount of money that we have, if we're outperforming our friends, because we feel guilt and imposter syndrome. In addition to these four "money scripts," we also grapple with innate cognitive biases around how we manage money. Let’s take a look at loss avoidance, for example, which is a common cognitive bias. Humans are hardwired to fear losing money, far more than we fear missing opportunities for growth. As a result, we might hold onto an investment for longer than we should. Or we might become preoccupied with penny-pinching, at the expense of earning more. In this episode, Dr. Klontz and I discuss shame, guilt, and how to implement behavioral changes. We talk about how to contextualize our beliefs based on our family history, and how to recognize whether or not our beliefs are limiting or dysfunctional. Dr. Klontz shares his story about graduating with $100,000 in student loan debt, and feeling anxious about whether or not he could repay this loan. He decided to sell his car, poured the proceeds into tech stocks, and watched this investment disappear. That’s when he started questioning why someone like himself, someone of relative intelligence, would do something so ill-thought-out. And this sparked his lifelong passion in financial psychology. How can you develop a healthy relationship with money? Find out in today's episode. For more information, visit the show notes at http://affordanything.com/episode127 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#126: It's time to answer real estate investing questions! Tom asks: "We're thinking about buying a duplex on a beach in a popular vacation destination in Florida. If the property stays 85 percent occupied as a short-term (VRBO) rental at current rates, the income from one unit of the duplex could cover the costs of a 30-year mortgage. "But if a recession hits, Florida real estate might tank. The rental rates or occupancy could drop. And we'd be stuck paying the mortgage out-of-pocket, which means we might not be able to retire. Should we take this risk?" Rachel asks: "Would you consider purchasing a beach house? Also, would you consider buying out-of-state?" Alfredo asks: "I own a couple of rental properties. I have to admit, my personal and business funds are completely co-mingled. I'm trying to separate these expenses, but it's a mess. If I hired professional help, how much might I pay?" Anonymous from the Northeast asks: "I'm gathering friends to invest. We live in the northeast, where home prices are expensive. I'd like to invest out-of-town. They'd like to invest locally. What talking points can you give me to convince them to invest out-of-state?" Mitzi asks: "Could you please explain the 1 percent rule-of-thumb around buying a rental property?" I answer these 5 questions in this episode. Enjoy! For more information, visit the show notes at http://affordanything.com/episode126 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#125: Morgan Housel has spent thousands of hours reading about investing. As a former columnist for the Wall Street Journal and The Motley Fool, he's spent more than a decade reading, interviewing, thinking and writing about how to manage money. And he's come to a simple conclusion: less is more. Doing nothing is often the best course of action. Patience, humility and long-term thinking give individual investors a massive competitive edge over major institutions. The classic strategy of dollar-cost averaging into index funds is a smart approach. And ultimately, success is based more on emotions than Excel. This week, Morgan joins me on the podcast to discuss how to gain a competitive edge as an investor. For more information, visit the show notes at http://affordanything.com/episode125 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#124: Former financial planner Joe Saul-Sehy and I answer five questions about investing, retirement, insurance, travel and selling an expensive car. Eliana is 25 and makes $63,000 per year, plus a little extra from freelance work. She holds $95,000 in cash, $67,000 in retirement investments, and no debt. She doesn't necessarily hold early retirement as a goal, but she'd like the option to access her funds before she's 59-and-a-half. She asks two questions: First, she's been spreading her money between a Roth IRA, pre-tax 403b, and taxable brokerage account to spread her risk. Should she not contribute so much to the taxable account? She's also paying $88 per month for a $25,000 life insurance policy for her mother, who is 57 years old. She likes the peace-of-mind that comes with knowing it'll be there to cover funeral expenses, if needed. But she recognizes that there's a huge opportunity cost that comes from paying for such an expensive plan. Should she drop it? Rudy's employer offers two options: a pension or a retirement plan that essentially functions as an annuity. He would need to contribute 3 percent of his income, regardless of which option he chooses. Which one should he pick? Nicole lives in Canada. She has a Registered Retirement Savings Plan (RRSP), to which she contributes monthly. She's been with her employer for almost 10 years, but she's about to switch into a new field. She'll have about $45,000 in a pension plan from the employer that she's leaving. What should she do with this money? Julie is a frugal single mom of two. Four months ago, she purchased a brand-new vehicle for $39,000 and instantly regretted it. She'd like to sell it, but she could only recoup around $33,000 of value. She'd lose $6,000 from a car she's owned for 4 months. Should she take the hit? Or should she hang onto her car, since the damage has already been done? Finally, an anonymous caller wants to know more about long-term travel. How do you acquire visas that will let you stay in a country for many months? How do you find health insurance with overseas coverage? And what should you do with your snail mail? We tackle these questions in today's episode. Enjoy! ________ Resources Mentioned: Julie's question: Articles on selling a car, private party: https://www.edmunds.com/sell-car/10-steps-to-selling-your-car.html https://www.edmunds.com/sell-car/sell-your-car-safely.html https://www.edmunds.com/sell-car/how-to-close-a-used-car-sale.html Articles on buying a car, private party: https://www.edmunds.com/car-buying/buying-a-car-sight-unseen.html https://www.edmunds.com/car-buying/10-steps-to-buying-a-used-car.html Travel question: Overseas health insurance: - https://www.imglobal.com/travel-medical-insurance - https://www.gninsurance.com/international-travel-health-insurance-plans - https://www.geobluetravelinsurance.com/product_overview.cfm How to handle mail while overseas: https://www.earthclassmail.com Learn more about your ad choices. Visit podcastchoices.com/adchoices

#123: In the 1970's, a woman named Vicki Robin teamed up with a man named Joe Dominguez. They came from different backgrounds: she was an Ivy League graduate with a comfortable upbringing; he was raised in Spanish Harlem on "welfare cheese." But they shared one common thread: a commitment to financial independence, not just as a money management strategy, but as a philosophy on life. Vicki and Joe became partners in both work and life. They united over a definition of "FI" that expanded beyond paying your bills through your savings and investments. They saw FI as a lifestyle that exists in three dimensions: 1: Financial Intelligence -- Your ability to think about money in an objective, unbiased and non-emotional manner. 2: Financial Integrity -- Your ability to earn and spend in a manner that's consistent with your values, and to stay aware of the impact of your earning/spending choices on yourself, your family and your planet. 3: Financial Independence -- Your ability to break the shackles of paycheck dependence, and ALSO your ability to declare independence from limiting beliefs, fears, and the perception that money will solve your problems. In 1992, Vicki and Joe co-authored a book called Your Money or Your Life, outlining the FI philosophy. Their book became a mega-bestseller, selling more than one million copies. It landed on the New York Times bestseller list and spent more than 5 years on the BusinessWeek bestseller list. Oprah Winfrey said: "This is a wonderful book. It can really change your life." Vicki and Joe devoted the next five years to spreading the message of FI. They appeared on hundreds of TV and radio shows, including Oprah, Good Morning America, and NPR. They were written about in the New York Times, the Wall Street Journal, People Magazine, and Newsweek. Joe passed away in 1997, and Vicki continued spreading the FI message for another five years, before her cancer diagnosis caused her to take a step back. Today, Vicki is 72, healthy, and still spreading the FI message. And she'd like to discuss a fourth dimension to FI: 4: Financial Interdepedence -- Your ability to live within a flow of giving and receiving. Interdependence comes from our relationship with our communities, our nation, and the natural world. In today's podcast episode, Vicki discusses how we can move from financial independence to financial interdependence. Enjoy! For more, go to http://affordanything.com/session123 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#122: Tony lives in Chicago, where the returns on rental properties are so-so. He's thinking about investing in Indianapolis, where he consistently finds rental properties with cap rates that are greater than 8 percent. Should he invest locally, so that he can get a primary residence mortgage and keep a closer eye on the space? Or should he invest out-of-state, where the returns are stronger? Dan lives in California. He's curious: where should he look for rental properties? And when should he buy? Dan holds $150,000 in a savings account and carries a mortgage and car loan with less-than-2-percent interest rates. Should he continue saving, or is he ready to take the plunge? Isaiah and his friends want to buy a plot of land and build two yurts, complete with internal bathrooms and kitchenettes. They estimate this will cost $120,000 and they can Airbnb the yurts for $100 per night. They'd like this to be a hybrid between an investment and a personal vacation spot. Should they do it? Evelyn lives in Brooklyn, where she's an Airbnb host within her primary residence. She'd like to sell her home and she expects to clear $1 million in equity. What should she do with this windfall? She holds $100,000 in a SEP-IRA and $10,000 in credit card debt, and she can't qualify for another mortgage. I tackle these questions on today's episode. Enjoy! For more information, visit the show notes at http://affordanything.com/episode122 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#121: After Liz Thames graduated from college, she couldn't find a job. "Nowhere would hire me," Thames says. "I had what I thought was this nice resume, and I sent out over 50 applications. Nowhere called me back." She took a temporary job at a document-scanning agency, then joined Americorps to serve as a full-time volunteer in a low-income neighborhood in Brooklyn. She lived on a stipend of $10,000 annually, plus food stamps and a transit pass. She saved $2,000 from her $10,000 stipend, while paying rent in New York. To say that Thames is a natural saver is an understatement. Her frugality stayed intact throughout her twenties. She got married, earned a free masters degree and advanced into higher-paying roles. But she and her husband, who was equally frugal, continued saving as much as possible -- at times pushing their savings rate to as high as 70 percent of their income. When they were 30, they decided to shoot for financial independence. They shared a dream of moving to a rural farm, where they could raise children and spend everyday outdoors. By age 32, they achieved financial independence. Their investment portfolio is robust enough that they could draw down, in perpetuity, for the rest of their lives. They rented out their home in Cambridge, quit their office jobs, and moved to a 66-acre farm in Vermont. These days, they live on a combination of their rental income and 'side hustle' income from their blog, Frugalwoods. They have two children. Today, Liz joins me on the Afford Anything podcast to share the story of how she and her husband achieved financial independence by age 32. Resources Mentioned: Book: Meet the Frugalwoods Website: Frugalwoods.com   For more information, visit the show notes at http://affordanything.com/episode121 Learn more about your ad choices. Visit podcastchoices.com/adchoices