Afford Anything

• Q&A: Everyone Is Arguing About Roth IRAs And We Have Thoughts

  #583: Contrary to recent discussions, Jesse has concluded that a traditional IRA is the smarter way to go for most people once marginal tax rates are factored in. Is he missing something?   An anonymous caller is four years away from early retirement but she’s unsure if her portfolio allocations are in the right place. How and when should she start converting equities to cash? Luz is confused about how to handle company stock options. Is there an ideal spread between the exercise price and the stock price? And, what should she do once the stocks are exercised? Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode. Enjoy! P.S. Got a question? Leave it https://affordanything.com/voicemail For more information, visit the show notes at https://affordanything.com/episode583 Learn more about your ad choices. Visit podcastchoices.com/adchoices

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  1:08:54
• The Marriage Contract You Never Saw (But Can't Escape), with Harvard Law Alum Aaron Thomas

  #582: They had it all. Six thriving children. A 40-year marriage. A household income of $200,000. Then in her 60s, she discovered a shocking truth: he had gambled away their entire retirement savings in penny stocks.  She had no access to their financial accounts during the marriage. After divorcing, she was left with nearly nothing. Today, she relies on her adult kids for support. Harvard-trained family law attorney Aaron Thomas joins us for a Valentine's Day discussion about prenuptial agreements — not just as divorce insurance, but as a framework for building stronger marriages. Thomas is a three-time winner of Atlanta's Best Divorce Attorney and a leading expert in family law. He’s the founder of prenups.com and authored The Prenup Prescription. Thomas explains that every married couple already has a prenup by default: their state's laws. In 41 states, judges have broad discretion in dividing assets "equitably" — which might mean a 70-30 split rather than 50-50. The remaining nine states are community property states, where assets are typically split equally. But even in community property states, determining what qualifies as joint property can spark fierce debate. For example: if you entered marriage with $100,000 in a 401(k) and continued contributing during the marriage, how much belongs to you vs. the marriage? What about a home you owned before marriage, but your spouse helped pay the mortgage? To prevent financial surprises, Thomas recommends couples hold "annual shareholder meetings" to review finances together. He suggests creating three buckets — yours, mine and ours — with clear agreements about spending. For example, his prenup requires both spouses to approve joint account purchases over $500. Beyond asset division, prenups can include requirements like marriage counseling before filing for divorce, or mediation if custody disputes arise. While prenups can't determine child custody or support payments, they can establish frameworks for working through conflict. The biggest benefit, Thomas argues, isn't protecting yourself in case of divorce — it's creating clarity and communication during marriage. By having difficult conversations upfront about money, expectations and conflict resolution, couples build stronger foundations for lasting partnerships. Listen to this episode to hear our full conversation about how prenups can strengthen marriages, prevent costly court battles, and help couples align on money management from day one. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. (0:00) The hidden marriage contract (3:01) Legal definition of marriage and financial rights (12:42) Historical view: marriage as duty vs love (19:38) Prenups defined: financial rules for marriage (24:20) Annual money meetings between spouses (27:26) Why "everything is 50/50" is a myth (35:21) How separate property becomes marital property (39:26) Real examples: retirement accounts and homes (44:44) State prenup vs your own prenup (48:04) Using prenups for counseling and mediation (55:07) Pets in divorce: property not custody (57:30) Family loans and spending limits (1:01:57) Financial transparency prevents disasters (1:07:21) Community property vs equitable division (1:10:34) Why every couple needs money agreements (1:14:51) Postnups and no-nups explained Resources Mentioned: Home - Prenups | Website Prenups.com (@prenupguy) | Instagram Book Your 30-Minute Consultation Today - Afford Anything - Prenups | Website The Prenup Prescription | Book For more information, visit the show notes at https://affordanything.com/episode582 Learn more about your ad choices. Visit podcastchoices.com/adchoices

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  1:33:52
• When Disaster Hits Home – Literally

  Enrollment for Your First Rental Property is open! affordanything.com/enroll ____________________________ #581: Today's question is different. There's something special about it — and you'll understand why in a moment. An 84-year-old listener left us a voicemail about his struggle to break free from mortgage debt. He and his 83-year-old wife need to move from their two-story townhouse because they can’t climb the stairs any longer. They found a single-story ranch house that fits their needs perfectly — except for one detail: it carries a crushing $4,200 monthly mortgage payment. They do have one potential escape route from this debt: selling their Florida condo, a vacation retreat that they haven't visited in years due to mounting chronic health challenges. But Hurricanes Milton and Helene ravaged their building last year. The storms spared their unit but destroyed the lobby and submerged their car in floodwater. The devastation slashed $100,000 from their property's value overnight. Now they face an agonizing decision: Should they accept this massive loss and sell the condo to free themselves from debt? Or would selling now, after such a steep drop in value, mean locking in their losses? Joe and I have answered hundreds of questions from our listeners over the years. But this question is special. It comes from my Dad. __________________________ Here’s the transcript of my father’s full question: Hi Paula and Joe,  My name is Prahlad. I am 84 years old, and my wife is 83. We live in a two-storied townhouse in Atlanta and also own a two-bedroom condo on the beach as a second home in Clearwater, Florida.  Recently, we purchased a one-storied ranch home in Atlanta so that we don’t have to go up and down the staircase at this old age.  Our condo in Clearwater is on the 9th floor of the 14 storied building. We love the condo with views of the Gulf of Mexico and the Bay. However, we have not been able to visit it for a long time due to our underlying health conditions.  We purchased the condo for $400,000 in 2015 and it was estimated to have appreciated to $800,000 in 2022. Since then, the price was estimated to come down to $775,000 in the Spring 0f 2024.   As you know, this area was hit by two major hurricanes Helene and Milton in September and October last year. The lobby of the building was flooded with extensive damage and it is still under construction. The parking area under the roof was also flooded and our car was totaled. Fortunately, our condo did not suffer any damage.  There has not been any significant real estate buy and sell activities in this neighborhood since it was hit by the hurricanes last year. My real estate agent estimates that the current value of the condo is $700,000.  This building has been preparing for a major renovation of the plaza deck for the past few years, and we or the future owner anticipate to be assessed a large amount – maybe $30,000 – for the renovation.  We were hoping that we could sell the condo and pay off the mortgage for the ranch home we recently purchased in Atlanta, and be debt free.  What do you think – should we sell it now or wait until some later time – maybe until next year?  Your advice would be highly appreciated. Thank you both for what you do.   For more information, visit the show notes at https://affordanything.com/episode581 Learn more about your ad choices. Visit podcastchoices.com/adchoices

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  57:41
• Treasury Tantrums, Arctic Routes, and McKinley's Ghost

  #580: "If you want to understand what's happening in the economy, look at bonds," begins today's episode, where we explore how the bond market acts as a crystal ball for economic trends. The bond market has been sending some clear signals lately. Interest rates remain elevated, with 10-year Treasury yields about 1 percent higher than their September 2024 low. After a challenging 2024 where bond returns flattened to just 1.18 percent, both the U.S. and U.K. are seeing historically high yields. We break down what's driving these changes and explain key concepts like term premium — the extra return investors demand for holding longer-term bonds. The Federal Reserve's recent moves are shaping this landscape. After cutting rates by 1 percentage point between September and December 2024, Fed officials are now signaling a more cautious approach, wanting to see further inflation decline before considering additional cuts. Then we explore why President William McKinley is suddenly relevant again. McKinley, whose term began in 1897, was known for his imperialist expansion and love of tariffs. His presidency came towards the end of what historians call "the long 19th century" — a period from the French Revolution in 1789 to the start of World War I in 1914. This era was marked by massive social upheaval, major technological advancement, the First Industrial Revolution, and huge migration into cities. It also included the California and Klondike Gold Rushes. The episode then turns to what some are calling the "Cold Rush" — the race to claim influence in the rapidly changing Arctic. With ice melting four times faster than global averages and the potential for ice-free Arctic days by 2030, nations are competing for new shipping routes and access to resources. We examine three emerging paths: the Northern Sea Route along Russia's coast, the North-West Passage along North America, and the Transpolar Sea Route across the North Pole. Finally, we dive into an overlooked story: the global tax war. In 2021, 136 countries agreed to establish a 15 percent minimum corporate tax rate to prevent profit-shifting to tax havens. While the U.S. already exceeds this minimum with its 21 percent domestic rate, implementation faces challenges due to different methodologies for calculating tax bases and recent political developments that could affect its future. Resources mentioned: https://www.federalreserve.gov/econres/notes/feds-notes/the-treasury-tantrum-of-2023-20240903.html https://www.pimco.com/us/en/insights/will-the-true-treasury-term-premium-please-stand-up https://www.bls.gov/news.release/pdf/empsit.pdf https://youtu.be/gQqcKepuQdA?feature=shared https://www.morningstar.com/bonds/how-largest-bond-funds-did-2024 https://www.npr.org/2025/02/05/1229167003/mckinley-trump-tin-tariffs https://www.economist.com/finance-and-economics/2025/01/23/the-arctic-climate-changes-great-economic-opportunity https://www.clingendael.org/pub/2020/presence-before-power/4-greenland-what-is-china-doing-there-and-why/ https://www.clingendael.org/pub/2020/presence-before-power/ For more information, visit the show notes at https://affordanything.com/episode580 Learn more about your ad choices. Visit podcastchoices.com/adchoices

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  1:01:33
• Q&A: Two Weeks Until My Tenants Move In And I Have Nowhere to Go

  #579: Todd is in a real estate bind. He found out six days before closing on a new home that it wasn’t legally sellable. And renters are moving into his current home in two weeks. What should he do? Anonymous is excited about expanding her real estate portfolio. Should she sell her $2.5 million rental property in the Bay Area to do this, or can she keep it and leverage the equity instead? Former financial planner Joe Saul-Sehy and I tackle these two questions in today’s episode. Enjoy! P.S. Got a question? Leave it at https://affordanything.com/voicemail For more information, visit the show notes at https://affordanything.com/episode579 Learn more about your ad choices. Visit podcastchoices.com/adchoices

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  1:04:02

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