Afford Anything®

#657: Can You Really Beat The Market By Copying Members of Congress?

Listen Later

This week, Paula and Joe dig into a listener’s question about ETFs that track the stock trades of U.S. politicians — including the Democratic “NANC” fund and its Republican counterpart “KRUZ.” They explore whether this strategy is smart investing or just expensive entertainment.

Then, they shift gears to home ownership headaches. Another listener asks how to control ballooning maintenance costs, and Paula shares her best advice for finding trustworthy contractors, budgeting for repairs, and knowing when DIY doesn’t actually save money.

Finally, an anonymous caller wonders if starting a small business just for tax breaks makes sense. Paula and Joe explain the IRS rules — and why energy and purpose matter more than deductions.

From “fun money” investing to financial planning that actually works, this episode is all about balancing curiosity, caution, and common sense.

Key Takeaways
  • Congressional-trade ETFs aren’t a shortcut to wealth. They’re speculative, lag behind real trades, and carry high costs.
  • Home maintenance is predictable — plan for it. Create a repair timeline and build relationships with investor-friendly contractors.
  • DIY isn’t always cheaper. Factor in time, tools, and opportunity cost.
  • Never open a business just for taxes. If it doesn’t make a profit or bring joy, it’s an energy drain, not a strategy.
  • Separate fun money from freedom money. Keep speculation playful, and build wealth with focus and purpose.
    • Chapters

    Note: Timestamps will vary on individual listening devices based on dynamic advertising segments. The provided timestamps are approximate and may be several minutes off due to changing ad lengths.

    0:00 – Introduction: The Age of Political Investing

    01:15 – Should You Follow Congress’s Trades?
    06:00 – The Lag Problem and Investor Bias
    10:30 – The “Fun Money” Rule
    11:20 – The Hidden Cost of Home Repairs
    15:00 – Finding Investor-Friendly Contractors
    18:00 – Planning Ahead for Repairs
    22:00 – DIY vs. Opportunity Cost
    26:00 – Starting a Small Business for Tax Breaks
    29:00 – The IRS “3-of-5 Rule”
    32:00 – Purpose Over Deductions
    34:00 – Final Thoughts

    Want more investing topics? Click here.

    Thanks to our sponsors!

    Policy Genius

    Secure your family’s future with Policygenius. Head to policygenius.com to compare life insurance quotes from top companies and see how much you could save.

    Quince

    Step into the holiday season with layers made to feel good, look polished, and last— from Quince. Go to Quince.com/Paula for free shipping on your order and 365-day returns.

    Indeed

    If you’re looking for amazing talent to bolster your team, you need Indeed. Go to indeed.com/paula and start hiring with a seventy-five dollar sponsored job credit.

    Shopify

    Sign up for your one month, one dollar per month trial period and start selling today at shopify.com/paula

    ...more
    View all episodesView all episodes
    Download on the App Store
    Afford Anything®By