Jul 3, 2017
#84: This week, I tackle your questions with my good friend,
recovering financial planner Joe Saul-Sehy. Here's what we
answer:
1. I'm asking for a friend -- no, really, I'm asking for a
friend!
My friends are married and buried. They're a married couple, buried
in $500,000 of debt.
Some is federal student loans, some is private student loans, and
some is credit card debt. They're paying the minimum on their
student loans, with the hope that these loans will be forgiven
after 25 years. They're also saving money in their retirement
accounts.
Is this a terrible plan? Should they stop saving for retirement
while they wipe out their student loans? If so, how can I convince
them?
2. My husband and I are both 30 and live in Ft. Collins, Colorado.
We don't plan on having children.
We know that long-term care insurance gets more expensive as you
age. Should we buy this insurance now? Or can we self-insure for
this through adequate retirement/investment funds?
3. I own my home free-and-clear, and I'm buying a second home.
Should I take a cash-out refinance on my primary home? Get a
conventional loan from the bank? Or something else?
4. My wife, 4 children and I live in the San Francisco Bay Area. We
have $5,000 in credit card debt, which we've paid down from $30,000
in the last two years. We owe $20,000 on a minivan and $18,000 on
student loans, both of which have 2-3 percent interest rates. We
have two IRA's, one Traditional and one Roth. I also have about
$20,000 in my company's non-matching 401(k).
Should I focus my future investments on Traditional or Roth
accounts? What accounts should I use when saving for my children's
college funds?
5. I'm curious about your own investments, Paula. What's
under the hood?
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Thank you to everyone who left a comment after last week's show.
I'll talk more about these amazing responses at the end of Episode
85 (next week's episode.)
For now -- enjoy today's show!
Thanks!
Show notes can be found at http://affordanything.com/episode84