Jul 31, 2017
#88: Former financial planner Joe Saul-Sehy and I answer 4
questions from the Afford Anything community.
We chat about how to control lifestyle inflation, how to break up
with a financial planner, how to invest your first $10,000, and
whether or not sector-specific or theme-specific funds are a good
idea.
#1: Laura is transitioning to a new job, and she's discovered that
her new responsibilities require some lifestyle inflation. She
needs work-appropriate clothing, for example; she can't wear
leggings everyday anymore. She and her husband are going to need
two cars, instead of one. And she's ordering restaurant delivery
more often, because she doesn't have time to cook.
She recognizes that lifestyle inflation is unavoidable, and she's
curious: what's legitimate and what's not? What's the difference
between healthy lifestyle inflation vs. over-the-top upscaling?
#2: Nakia wants to "divorce" her financial planner. But she's not
sure how to break the news gently. Her financial planner is a
friend and neighbor; their kids are friends. What should she
say?
#3: Megan and her husband both want to retire early. They have
saved $10,000, which they'd like to invest in the Vanguard Total
Stock Market Index Fund, Admiral Shares (VTSAX). This fund requires
a minimum of $10,000 as an initial investment.
Should they put this money into a taxable brokerage account, so
that they can access this in early retirement? Or should they save
more and then each open an IRA?
#4: Nancy is a single mom with a five-year-old son. She recently
transitioned into a lower-stress lifestyle, but as a result, her
income dropped significantly.
She's a beginner investor without much money, and she's curious
about Motif Investing, a platform that focuses on sector-specific
and thematic investments. Would this platform be right for her?
Enjoy!
- Paula
Resources Mentioned:
FINRA website -- Broker Check https://brokercheck.finra.org
MadFientist article on how to access retirement funds early
http://www.madfientist.com/how-to-access-retirement-funds-early