Afford Anything®

Afford Anything®

By
Download on the App Store

Afford Anything® episodes

  • #763: Acorns CEO: The Scariest Part Of Investing Is the First Step, with Noah Kerner

    Noah Kerner was a bank teller at 17 and interned on a municipal bond trading floor in college. By every measure, he understood money. But his fear of investing kept him from buying so much as a certificate of deposit for most of his twenties, and it cost him a decade of compounding.

    Today he’s the CEO of Acorns, which has helped everyday people save and invest more than $35 billion, often starting with spare change. He knows firsthand that the fear of investing rarely comes from a lack of knowledge. It comes from stress, shame, and the sense that money is a club you were never invited into.

    Noah joins the show to talk about why so many people avoid looking at their money, and why most parents would rather talk to their kids about sex and drugs than about finances. He explains how Acorns tackles the fear of investing by making the first step so small that it’s hard to say no.

    He also draws a sharp line between patience and prediction. He explains why prediction markets, sports betting, and buy now, pay later keep pulling people toward quick hits, and why the best thing to do with your money is often to be boring.

    Then the conversation turns personal: the vestibular migraines that forced him to step away from work, how he lives with the risk that most companies fail, and the trait he values most in the people he hires.

    Listen onApple PodcastsListen onSpotifyWatch onYouTube

    Key Takeaways
    The biggest ideas from the conversation

    +
    • Knowing about money doesn’t make investing easier: Noah worked as a bank teller and interned on a bond trading floor, yet his fear of investing still kept him on the sidelines for a decade. Avoidance is usually emotional, driven by stress and shame, not a knowledge gap.
    • Make the first step too small to refuse: Rounding a $12.87 purchase up to $13 and investing the 13 cents is hard to object to. Starting tiny gets people past the fear of investing, and watching the balance grow builds the confidence to add recurring contributions.
    • Automation beats willpower for long-term investing: Recurring investments, such as $5 a day or $25 a week, are the most popular feature at Acorns. Automating the habit means it runs in the background for decades, without relying on daily discipline or decision-making.
    • Choose patience over prediction with your money: Prediction is thinking you can guess your way to rich quickly. Patience means a diversified portfolio and a 40-year horizon. Noah says it’s fine to play with about 10% of your money, but problems start when people confuse betting with a money strategy.
    • The app you use shapes how you behave: The same $10,000 can be handled very differently depending on the platform. Products built around trading reward impulsivity, while Acorns saw low withdrawals and steady investing even during market shocks like Liberation Day in April 2025.
    • A company’s business model reveals its real incentives: Acorns charges a subscription instead of profiting from trading, borrowing, or overspending. Noah argues that how a company makes money determines what it rewards, so it’s worth asking how any financial app earns its revenue before trusting it with yours.

      • Resources
      Links, tools and references mentioned

      +

      Acorns
      Noah’s advice is to start small. Open an Acorns account, invest at least $5, and get a $5 bonus investment:
      affordanything.com/acorns

      Are You a Money Avoider?
      Avoiding money cost Noah a decade of investing. Find out if you’re an avoider here:
      affordanything.com/fiire

      Noah Kerner
      Learn more about Noah:
      acorns.com/noah

      Chapters
      Jump to a specific part of the conversation

      +

      Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.

      02:02
      Why over half of young people avoid their money
      02:39
      How fear cost him a decade of investing
      04:44
      Why money feels more taboo than sex
      11:12
      Why saving 13 cents beats saving nothing
      13:54
      Why people feel broke during a long bull market
      17:48
      Same $10,000, different app, different behavior
      22:54
      Why the best investing is boring
      28:49
      Patience vs. prediction: how wealth really grows
      48:48
      When his body forced him to stop working
      56:20
      Living with the odds that most businesses fail

      Sponsors
      Sponsors supporting this episode

      +

      Vinted

      Ready to clean out your closet and make some extra money? Download the Vinted app for free and start listing. There are no seller fees, so you keep everything you earn.

      Policygenius

      Find 20-year life insurance policies starting at just $276 a year for $1 million in coverage. Compare quotes from top insurers at Policygenius and see how much you could save.

      Indeed

      Need to hire? Spend less time searching and more time interviewing candidates who check all your boxes with Indeed Sponsored Jobs. Listeners get a $75 Sponsored Job credit to give your job post premium status. Terms and conditions apply.

      0 min
    • #762: Q&A: I’m the Executor of Dad’s $500K Portfolio. Should I Cash It Out?

      “So I would say move it to cash today.” That was Joe’s advice to a listener who just became the executor of an estate, with a $500,000 brokerage account mostly in S&P 500 index funds and months of probate ahead.

      I disagreed. That money now belongs to him and his siblings, whose time horizon stretches out for decades, so I argued for keeping it invested. By the end, I’d come around to a hybrid approach, and Joe and I agreed on one thing every executor of an estate should hear: none of these options count as market timing.

      Then we help a listener who watched her long-term government bond fund lose 38% of its value over six years decide between bond funds and individual bonds.

      We close with a call from Cheryl, who has run a $370 million retirement plan for 23 years. She thinks Joe’s take on target date funds misses how most people actually behave with their 401(k), and Joe responds.

      And if you’re the executor of an estate right now, stay to the end. Joe shares a free checklist built for exactly that job.

      Listen onApple PodcastsListen onSpotifyWatch onYouTube

      Listener Questions
      The questions we answered this episode

      +

      John asks: I have a question about an executor’s responsibility during probate. My siblings and I are going through the estate process after losing our father. There are no family disputes, but the process will take months. The largest asset is a $500,000 brokerage account that’s mostly in S&P 500 index funds, representing over a third of the estate. For some of us, this money will be life-changing; for all of us, it’s important. I am the executor, and I’m agonizing over the decision of what to do with this account. On the one hand, it feels vulnerable to a major crash. On the other hand, moving it to cash could mean missing out on significant wealth creation during probate. Is liquidating to a money market fund in this moment prudent capital preservation for an executor, or is it improper market timing?

      Anonymous (let’s call them “Susan”) asks: When would you choose a bond fund versus holding individual bonds? When I first started investing, I was under the impression that holding a bond fund is just as good as holding individual bonds. So when I built my portfolio, I chose a very low-fee, long-term government bond index fund, and over the last six years, I have watched my bond fund lose 38% of its value. Now is a great time to buy bonds since yields are so high, but it seems to me it is a great time to buy individual bonds. With bond funds, the yields are never locked in, and I could buy more shares while share prices are low. But the premise that a bond fund is good ballast in a portfolio was seriously brought into question during COVID when both stocks and bonds tanked. It’s nice that my bond fund is now getting a higher yield, but frustrating that it is on a smaller current value. The current value of my account is actually pretty close to the original principal from about 10 years ago, and it will take me close to 10 years at a 5% yield to make back the loss of value from the drop in NAV. Is the idea that the NAV will rebound when yields drop? I’ve read that if you’re using bonds as ballast, it is better to hold short-term bond funds because there is much less volatility in the NAV compared to long-term bond funds. Am I correct in thinking bond funds and holding individual bonds function very differently? And when, if ever, does it make more sense to own a bond fund versus individual bonds? I get that you don’t want to time the market with stocks, but since bond yields are locked in, it seems only buying individual bonds when yields are high makes a lot of sense as opposed to a fund where the yields and NAV can be variable. Or do I just need to be more patient with my bond funds? Am I missing something?

      Cheryl asks: I love learning about finances, but from 23 years of running our retirement plan at work, I know that most people do not enjoy finances. Over the last 23 years, I’ve watched our 1,100 employees benefit significantly from legal changes that enabled us to default people into a Safe Harbor plan design that is best for the participant. Examples of this in recent years have been auto-enrollment, auto-escalation, and adjusting a default to something like a Vanguard target-date fund, which is our current age-appropriate default.

      The vast majority of people do not take action to invest in their 401(k) plan or pay attention to how their investments are set up. Our ability as plan sponsors to set up target-date funds for people is a far better design than the old option of defaulting into a possibly inappropriately conservative fund that they would leave their money in and sub-optimize over the course of their working lives. For many people, company-sponsored 401(k) plans are their only investments, so having a low-fee Vanguard target-date fund as our default is a real benefit.

      I think the target-date rant is misplaced for the vast majority of people who really just need auto-enrollment and auto-default mechanisms that are good for them in the long run. I agree with Joe that we can get into the details and become true experts at finances if we care to, but the truth is that the vast majority of people do not care to. I’m saying this based on the 1,100 people in our plan and having been the plan sponsor of a $370 million plan for three decades now. When someone new to the show hears the target-date rant—which I’ve heard on more than one episode—I think when you dig into the nuance, while there are bad target-date funds out there, plan sponsors like us who have done the research have an awesome age-appropriate lineup and achieve great defaulted outcomes. I’m definitely in Paula’s camp on this one and think behavioral economics needs to be taken into consideration in the big scheme of things.

      Key Takeaways
      The biggest ideas from the conversation

      +
      • An inheritance’s time horizon resets at death: As the executor of an estate, you’re managing money for heirs whose time horizon may stretch out for decades. That’s why I argued that keeping a prudent, broad-market index fund invested can make more sense than moving everything to cash.
      • Executors are fiduciaries for every beneficiary: Joe’s view: the executor of an estate doesn’t know every heir’s goals, so lock in what the estate is worth today and let each person decide how to invest. Many states’ prudent investor rules may protect you if the holdings are broad index funds (not legal advice).
      • A hybrid approach splits the difference: Keep half in the original investments and move half to a money market fund, ideally with every beneficiary’s buy-in. Either way, set aside cash for final taxes, legal fees and debts. None of these choices count as market timing.
      • Individual bonds lose value too, just quietly: When rates rise, an individual bond’s resale value drops, just like a bond fund’s NAV. The difference is that no statement rubs it in your face. Hold to maturity and you collect the coupon regardless.
      • Check yield to maturity, not the coupon: Joe saw first-time bond buyers pay $1,200 for a $1,000 bond with a 6% coupon and earn far less than they expected. Yield to maturity, plus the issuer’s credit rating, tells you what you’re actually getting.
      • Target date funds are a floor, not a ceiling: For people who won’t engage, I’m with Cheryl: a low-fee target date default beats cash. Joe agrees, but his point is that anyone willing to learn can build a simple three-fund portfolio and do better.

        • Resources
        Links, tools and references mentioned

        +

        Outgrowing Your Target-Date Fund?
        Here’s which account each new fund belongs in.
        affordanything.com/assetlocation

        Free Executor Checklist from Stacking Benjamins
        A step-by-step PDF of everything the executor of an estate needs to handle. Tina at Stacking Benjamins made it after handling two estates herself, so if you’re the executor of an estate for the first time, start here.
        stackingbenjamins.com/estate

        Buy Treasury Bonds Directly from the Government
        TreasuryDirect is where I bought 30-year Treasuries to hold to maturity.
        treasurydirect.gov

        Share Your Worst Investment Mistake
        Joe and I want to hear about a bad investment you made and what it taught you. Leave a voicemail and it could be featured on a future episode.
        affordanything.com/voicemail

        Chapters
        Jump to a specific part of the conversation

        +

        Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.

        02:00
        Why disability insurance costs so much
        09:10
        An executor’s $500K dilemma: stay invested or cash out?
        11:41
        Why Joe would move the estate to cash
        15:13
        The 50/50 split both hosts can live with
        24:56
        Her bond fund lost 38%. Now what?
        27:33
        Why individual bonds wouldn’t have dodged the loss
        32:48
        How a “6%” bond can still lose money
        35:20
        Why Paula bought her first bonds at 5.2%
        53:54
        A 401(k) plan manager defends target-date funds
        1:05:40
        Why so many people ignore their own money

        Sponsors
        Sponsors supporting this episode

        +

        Vinted

        Ready to clean out your closet and make some extra money? Download the Vinted app for free and start listing. With no seller fees, you keep every dollar you earn.

        Policygenius

        Find 20-year life insurance policies starting at just $276 a year for $1 million in coverage. Head to Policygenius to compare life insurance quotes from top companies and see how much you could save.

        Indeed

        Spend less time searching and more time interviewing candidates who check all your boxes. Listeners get a $75 Sponsored Job credit to give your job post premium status. Need the right hire fast? This is a job for Indeed Sponsored Jobs. Terms and conditions apply.

        Got a money question on your mind? Submit it here and it could be featured on an upcoming Q&A episode.

        0 min
      • #761: 3 Million Americans Got Rich From Boring Businesses. Here’s How, with Owen Zidar & Eric Zwick

        Dick Portillo started his hot dog business with about $1,000 and a shack that had no running water. He washed the dishes in his family’s bathtub. Decades later, he sold the company for roughly a billion dollars, which makes him one of the starkest examples of how boring businesses quietly create American wealth.

        He’s not an outlier. Economists Owen Zidar and Eric Zwick spent more than a decade in the Treasury Department matching anonymized tax returns to the private businesses behind them. They found roughly 3 million private business owners worth at least $5 million each, who together hold more than ten times the wealth of the entire Forbes 400.

        These aren’t tech founders or Wall Street tycoons. They own beer distributors, car dealerships, HVAC companies, dental practices and trash-bag-liner manufacturers. These boring businesses typically have 10 to 50 employees and took decades to build.

        Most of these owners didn’t start out rich, either. The majority of founders behind successful businesses grew up in families outside the top 10% of earners, and only about 23% of top-earning business owners inherited their companies.

        Owen and Eric join the show to talk about their book, The Everywhere Millionaire, and what it means for anyone thinking about starting or buying one of these boring businesses. They cover how to find an edge, why retiring baby boomers are opening up opportunities, and how to run small experiments without betting the house.

        Listen onApple PodcastsListen onSpotifyWatch onYouTube

        Key Takeaways
        The biggest ideas from the conversation

        +
        • Private business owners hold more wealth than billionaires: Roughly 3 million private business owners have a net worth of at least $5 million, averaging about $25 million each. Individually they’re nowhere near Elon Musk, but as a group they hold more than ten times the combined wealth of the Forbes 400.
        • The richest Americans often run boring businesses: Beer distributors, car dealers, HVAC companies, mid-market manufacturers, dentists and lawyers fill the ranks of the top 1%. These boring businesses usually have 10 to 50 employees and $10 million to $50 million in revenue, and they drive more than half the rise in top 1% income share.
        • The edge comes from years of experience: Most owners spend years learning an industry first. Larry Miller, for example, worked in a Toyota parts department before he bought dealerships. The average founder of a star business is in their late 30s or early 40s, and the typical owner is in their late 50s or early 60s.
        • Retiring baby boomers are selling their businesses: A wave of baby boomer owners want to retire, and many of their kids don’t want the business. Buying one of these boring businesses means the idea is already tested, and seller financing can keep the previous owner invested in its success.
        • Fund experiments with profits, not debt: Successful owners focus on profitability early and reinvest cash flow instead of borrowing, so no single failed experiment wipes them out. Reinvesting through the business also reduces taxable profits, which makes growth cheaper than pulling money out and investing it elsewhere.
        • Concentration builds wealth; diversification protects it: Star business owners stay deeply concentrated in one business for years and carry a lot of idiosyncratic risk. Zidar and Zwick suggest diversifying by moving profits outside the business into retirement accounts, index funds or real estate, and keeping enough of a cushion to cover basic household needs.

          • Resources
          Links, tools and references mentioned

          +

          Buy a retiring owner’s business or build your own?
          Find the ownership path that fits your money and risk.
          Find your path

          The Everywhere Millionaire
          Owen Zidar and Eric Zwick’s book on the private business owners and boring businesses behind most American wealth.
          Get the book

          The Everywhere Millionaire on Substack
          More research and data from Owen and Eric.
          Read the Substack

          The Millionaire Next Door, by Thomas J. Stanley and William D. Danko
          The classic book Paula and the guests compare with the tax-data findings in this episode.
          Get the book

          Chapters
          Jump to a specific part of the conversation

          +

          Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.

          02:20
          Why 3 million business owners outweigh the Forbes 400
          06:13
          The overlooked businesses behind America’s quiet fortunes
          11:22
          Why retiring owners could be your buying opportunity
          17:31
          Own all of something small, not 2% of a unicorn
          21:36
          Buy a business or start one?
          29:24
          How to fail small without getting wiped out
          34:35
          What yacht and private jet data revealed
          44:20
          Most successful founders didn’t grow up rich
          1:06:31
          Double down or diversify once it works?
          1:18:51
          Should you leave a high-paying job for this?

          Sponsors
          Sponsors supporting this episode

          +

          Vinted

          Ready to clean out your closet and make some extra money? Download the Vinted app for free and start listing. With no seller fees, you keep every dollar you earn.

          Policygenius

          Find 20-year life insurance policies starting at just $276 a year for $1 million in coverage. Compare quotes from top companies at policygenius.com and see how much you could save.

          Indeed

          Spend less time searching and more time interviewing candidates who check all your boxes. Afford Anything listeners get a $75 Sponsored Job credit to help their job post stand out at indeed.com/podcast. Terms and conditions apply.

          1 hr 38 min
        • #760: Q&A: $1 Million Invested, $100K a Year to Live On. Do We Ever Need to Save Again?

          “Oh God, yes.” That’s how fast Joe answered when I asked whether our first caller, Beth, and her husband have already reached coast FIRE.

          They’re in their late 30s and early 40s, with two young kids, a paid-off house, and about $1 million invested. They expect to need roughly $100,000 a year once daycare ends, and they want to know: are they coast FIRE now, and will they be in four years, when they plan to downshift?

          Joe and I define coast FIRE, agree the math is the easy part, and spend most of our time on the harder question: where flexible, part-time work with health benefits actually exists for two knowledge workers.

          Then we help a newly retired dad plan for his high school sophomore’s Ivy League ambitions, including why the CSS Profile matters more than his 1099 income. We close with a listener in his 30s in New York City who wonders if he’ll ever own a home, and my answer comes down to this: rent in Manhattan, own in the Midwest.

          Listen onApple PodcastsListen onSpotifyWatch onYouTube

          Listener Questions
          The questions we answered this episode

          +

          Beth asks: My husband and I are in our late 30s and early 40s. He’s in tech and I’m an accountant. We have two kids—one in preschool and one in elementary school—and our day-to-day support is limited. We’re both working full-time, but we’d love more time to rest, recharge, and spend quality time with our kids while they’re little.

          My husband is burned out, and work stress has been affecting his sleep and health. He has a chronic health condition, so health insurance is a huge factor in our plan. My job isn’t super stressful, but I want to keep it low-stress. I don’t want a higher-level role than I have now, and I want more flexibility. In a perfect world, one of us would stay full-time, or close to it, in a low-stress role to carry benefits for the family, and the other would work part-time to manage the home and kids, freeing up more time for both of us.

          The challenge is that good part-time options are hard to find in both of our fields. We’re open to retraining, but we don’t know what to retrain into. AI is also on our minds, especially in tech, because it’s changing the work and making us question career security. We also frequently fantasize about completely changing our jobs to do something totally different from our desk-bound office lifestyles.

          Here is where we are financially: Our house and cars are paid off, and we don’t plan to take on any debt going forward if we can avoid it. Together, we earn roughly $290,000 a year. We have around $100,000 in a high-yield savings account for emergencies, about $330,000 in taxable brokerage accounts, and a bit over $700,000 in retirement accounts. We save about 40% of our income on average. For the kids, we have modest 529 plans and a separate brokerage account, totaling about $40,000 saved.

          We conservatively assume we will need about $100,000 a year to live on once daycare ends, which is in four years when we target our downshift. Coast FIRE appeals to us because stopping work entirely feels scary at our ages, and we want to keep a foot in the working world. The idea is to earn enough to cover our living expenses without drawing down our investments.

          Are we at Coast FI now? What about in four years when we plan to downshift? If we are, what should we be thinking about as we pivot, and what careers could realistically provide benefits while allowing part-time work?

          Daniel asks: I am a recent retiree from the Phoenix area, and I am now planning college for my sophomore daughter. She is a 4.0 student looking to go to a high-echelon school, maybe an Ivy League institution. I’m trying to get information regarding the college financial aid system, specifically ways to lower my 1099 income for FAFSA, since that interest is what I live off of. I’m also looking to gather information on admissions advisors and SAT tutoring.

          Anonymous (let’s call them “Ezra”) asks: I am a younger millennial in my early 30s, and I’ve recently started thinking about my finances a little more seriously in a way I didn’t in my 20s. In the back of my head, I’ve always assumed I would be a homeowner by my mid-to-late 30s, which is when my parents moved into the house where I grew up. But as is the case with so many in my generation, that has started to feel like an impossible dream. Making matters worse is the fact that I live in New York City, and I love it here—it’s the greatest city in the world, and I don’t want to leave.

          Do you think homeownership is still a good or even viable financial goal for folks in my generation? Is being a lifelong renter just a financial death sentence that I should avoid, or are there other ways to think of building wealth that might look a little different from how my parents did it, but fundamentally get me to the same place of financial security?

          Key Takeaways
          The biggest ideas from the conversation

          +
          • Coast FIRE means you can stop retirement saving: My definition of coast FIRE: you have enough in retirement accounts that you no longer need to contribute to them. With $1 million invested by their early 40s, Beth and her husband could see that money double roughly every nine years at 8% returns.
          • Hitting coast FIRE frees up your savings rate: Once retirement is covered, the gap between income and expenses doesn’t have to go into retirement accounts anymore. That delta can fund short-term reserves, or simply let one of you cut back hours now, while the kids are young.
          • The best part-time jobs hide in tiny businesses: Below roughly 25 employees, bureaucracy fades and you get a direct line to the decision-maker. Look for W-2 roles with reduced hours, contract work with a small business, or a handful of contract clients cobbled together.
          • For Ivy League aid, the CSS Profile matters most: Lowering your 1099 income won’t move the needle much. The Ivies lean on the CSS Profile, which looks at assets as well as income. Many cover some or all of tuition for families earning under roughly $200,000 to $250,000, if your assets match that income.
          • Put SAT and ACT prep ahead of admissions counselors: With rampant grade inflation, standardized test scores are a better signal of preparedness than GPA, which is why testing is back in vogue at top schools. Prep resources are cheap, and a strong score matters more than polished extracurriculars.
          • Let the price-to-rent ratio decide rent or buy: Divide a home’s purchase price by its annual rent. Under 15 is a slam-dunk buy; over 25 is a slam-dunk rent; 15 to 25 is a gray zone. In Manhattan, it’s over 25, so I’d rent there and own somewhere it pencils out.

            • Resources
            Links, tools and references mentioned

            +

            Reached coast FIRE? Map where your next dollar should go
            On one free page.
            Get the free page

            Joe’s conversation with Lynda Gratton
            On taking breaks and changing careers over a longer life (Stacking Benjamins SB1898).
            Listen to the episode

            Read This Before Planning for College
            Stacking Benjamins x The College Investor.
            Read the guide

            The College Investor
            Robert Farrington’s site.
            thecollegeinvestor.com

            Chapters
            Jump to a specific part of the conversation

            +

            Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.

            02:53
            $1 million by 40 and burned out: can they downshift?
            06:18
            Why one spouse should keep the health insurance
            07:41
            Where to find part-time work that still pays well
            10:41
            Why work-life balance comes in seasons, not days
            12:49
            What it really means to stop saving for retirement
            14:10
            How $1 million could grow to $4 million untouched
            16:47
            Turn your savings gap into time with your kids
            20:47
            Why a lower income may not unlock Ivy aid
            29:12
            Why test prep beats an admissions counselor
            37:32
            Is renting really throwing money away?

            Sponsors
            Sponsors supporting this episode

            +

            Vinted

            Ready to clean out your closet and make some extra money? Download the Vinted app for free and start listing. With no seller fees, you keep every dollar you earn.

            Policygenius

            Find 20-year life insurance policies starting at just $276 a year for $1 million in coverage. Compare quotes from top companies and see how much you could save at policygenius.com.

            Indeed

            Spend less time searching and more time interviewing candidates who check all your boxes. Listeners get a $75 Sponsored Job credit to give your job post premium status at indeed.com/podcast. Terms and conditions apply.

            Got a money question on your mind? Submit it here and it could be featured on an upcoming Q&A episode.

            1 hr 2 min
          • #759: My Bank Account Hit Zero … Then I Got Rich — with Jaspreet Singh of Minority Mindset

            Jaspreet Singh bought his first rental property at 19: a foreclosed condo in metro Detroit, listed for $8,400, that had originally sold for $150,000. He was a college student who had read that wealthy people own real estate, and that was about all he knew about how to build wealth.

            His third property nearly broke him. One contractor took his money and disappeared, a second ran up a Home Depot card buying materials for other people’s jobs, and thieves stripped out the copper plumbing, the furnace and the AC. By the end, his bank accounts were at zero, overdraft notices were piling up, and he was paying the bills with stacks of cash from his party promotion business.

            Today, Jaspreet runs Minority Mindset, a YouTube channel with 2.5 million subscribers. He’s also CEO of Briefs Finance, the company behind the Market Briefs newsletter. His core message on how to build wealth is simple: stop thinking like a worker and start thinking like an owner.

            He joins the show to talk about what that nightmare property taught him, and why the hardest-working employee on his team wasn’t driving results. He also walks through his three rules of money, his “always be buying” habit, and TRM (time, return and money), which is his framework for how to build wealth.

            Then he looks ahead at where he thinks money is moving next: AI and everything it depends on, from energy and data centers to semiconductors and copper, the same metal thieves once ripped out of his Detroit house.

            Listen onApple PodcastsListen onSpotifyWatch onYouTube

            Key Takeaways
            The biggest ideas from the conversation

            +
            • The cheapest option often ends up costing the most: Jaspreet hired the cheapest property manager and contractors he could find, and paid for it with a nightmare tenant who never signed a lease, thousands lost to a contractor who vanished, and a gutted house. Licensed, insured, reliable help usually costs less in the long run.
            • Compare where your hours go with your results: Jaspreet had his hardest-working employee list his five biggest time sinks and his five highest-revenue activities. The top three time sinks drove zero revenue. Working hard and producing results aren’t the same thing, and the gap is easy to miss until it’s written down.
            • Wealth comes from owning, not just earning: Jaspreet’s view of how to build wealth rests on his three rules of money: it flows to investors, inflation benefits investors, and the tax code favors investors. Becoming an owner can mean starting a business or simply buying a share of one.
            • Always be buying, no matter what markets do: Jaspreet’s hypothetical cousin Bunty invests $100,000 total at four of the worst market peaks in recent history, yet ends up with more than $1 million with dividends reinvested. Bunty did one thing right: he never sold. Consistent buying beats trying to time the market.
            • Start with a thesis, then pick investments: Before choosing an index fund or an individual stock, Jaspreet says to decide whether you want growth, income, or wealth preservation. Then apply TRM: time is hard to change, so knowing how to build wealth faster comes down to investing more money or seeking higher returns, which means more risk.
            • Look beyond AI to what it runs on: Rather than guessing which chatbot wins, Jaspreet looks at what every AI company needs: energy, data centers, cooling and semiconductors. His team goes a layer deeper, to raw materials like copper, where demand is rising faster than supply.

              • Resources
              Links, tools and references mentioned

              +

              Free Five Pillars Workbook
              Jaspreet learned rentals, business, and investing the expensive way. Map your own path and learn how to build wealth across all five pillars, for free.
              affordanything.com/fiire

              Minority Mindset on YouTube
              Jaspreet’s YouTube channel, with more than 2.5 million subscribers.
              youtube.com/@MinorityMindset

              Briefs Finance and Market Briefs
              Jaspreet’s company, with investor research tools and the free Market Briefs newsletter.
              briefs.co

              Chapters
              Jump to a specific part of the conversation

              +

              Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.

              4:00
              Buying a rental for $8,000 at age 19
              10:38
              Skipping a $200 inspection on his worst deal
              15:07
              Thieves stripped the copper, furnace, and AC
              28:19
              The $500,000 blog that earned a few thousand
              31:11
              Telling his team AI could bankrupt them by 2030
              33:46
              Why a coasting employee hurts more than a weak one
              40:21
              A two-list test for whether your work pays off
              1:01:18
              Three ways the system rewards owners, not workers
              1:10:56
              How terrible timing still grew $100K to $1 million
              1:26:44
              Why AI’s suppliers may matter more than AI apps

              Sponsors
              Sponsors supporting this episode

              +

              Mint Mobile

              To get your new wireless plan for just 15 bucks a month, go to mintmobile.com/paula. That’s it, there’s no catch.

              Policygenius

              With Policygenius, you can find 20-year life insurance policies starting at just $276 a year for $1 million in coverage. Head to policygenius.com to compare life insurance quotes from top companies and see how much you could save.

              Monarch

              Write your own money story with Monarch. Use code AFFORD at monarch.com to get your first year of Monarch Core half off at just $50.

              NetSuite

              If your revenues are at least in the seven figures, go to netsuite.com/paula to get your free guide.

              MasterClass

              MasterClass keeps adding new classes, so there’s never been a better time to get in. Right now, as a listener of this show, you get at least 15% off any annual membership at masterclass.com/afford. Head to masterclass.com/afford to see the latest offer!

              Fora Travel

              Become a Fora Advisor today at foratravel.com/paula, and make sure you tell them we sent you.

              1 hr 40 min
            • #758: Q&A: “I’m 26 and No Longer Motivated by Money. Am I Unemployable?”

              “You’re ready for career change now.”

              That’s what I told Lucas near the end of this episode. He’s 35, he and his wife have two young kids (including a daughter with special needs), and he’s weighing a career change from IT consulting into financial planning that would cut his income by roughly 60%.

              Before we get to Lucas, Joe and I start with Maria. She’s 26, her net worth is about 10 times her annual spending, and she’s no longer motivated by money, which has her worried she’s becoming unemployable. I think it makes her exactly the kind of person I’d want to hire.

              In between, Matt from Utah asks us to weigh in on target date funds. I’m a fan; Joe insists he isn’t against them, he just doesn’t think you should use them.

              By the end, Joe and I land in the same place on both career questions: the money you’ve saved is what buys you the freedom to do work that’s worth your time, whether that means a career change or holding out for the right employer.

              Listen onApple PodcastsListen onSpotifyWatch onYouTube

              Listener Questions
              The questions we answered this episode

              +

              Anonymous (let’s call them “Maria”) asks: I’m 26 years old, living in the United States, and my net worth is roughly 10 times my annual spending. There is plenty of advice on how to work your way to financial independence, but what I can’t find is how to work after achieving it. While I haven’t reached full financial independence yet, I have enough that I am no longer motivated by money. I don’t find working on someone else’s schedule acceptable, and I want to determine what projects I work on rather than having an employer decide. It feels like I have a negotiation advantage that other employees don’t have, but potential employers can simply avoid hiring me in favor of workers who are motivated by money and forced to work on someone else’s schedule. I am not at a place in my career where entrepreneurship is a good option yet. Because of my investments, I don’t think I can accept a job doing anything other than what I want to do, which is clearly not what my coworkers are doing and not what employers expect of me. I’m starting to worry that I am becoming unemployable.

              Matt asks: I have a question about target date funds. I know Joe is not a fan, and I’ve heard him rant about that many times over the years. However, several people I respect—such as YouTuber Rob Berger, Bogleheads leader John Luskin, and financial advisor Peter Lazaroff—invest most or all of their money in a target date or all-in-one fund and speak positively about them. I know Joe disagrees, but these are people I trust. I don’t invest in a target date fund myself, but I’m intrigued by the idea. I would love to hear your point of view on them.

              Lucas asks: I’d love your perspective on the timing and financial risk of a career change. My wife and I are both 35. We have a two-and-a-half-year-old daughter who has special needs and a six-month-old son. My daughter will likely need lifelong support, so we’re trying to plan responsibly for future care costs that are still hard to estimate.

              We both work in IT consulting at large professional services firms. Our combined compensation is about $375,000 annually, including salary, bonuses, and ESPP. We spend roughly $110,000 per year today, but we expect that number to rise to about $130,000 starting in 2027 as daycare and other kid-related expenses increase.

              Over the past four or five years, we’ve paid off our mortgage and saved an average of about $5,000 to $6,000 per month into our taxable brokerage account. We still get our full 401(k) matches, max out our HSA and dependent care FSA, and have a little over $840,000 across our 401(k)s and IRAs. By the time I expect to make a career move, we think we’ll have about 12 months of necessary expenses in cash reserves, and we also plan to purchase a new vehicle before then.

              The complication is that I’m considering a transition into financial planning around late summer 2027. I’m comfortable starting near the bottom of the ladder and expect my income could fall by roughly 60% initially. That would bring our household income down to around $250,000, just as we have two kids starting in daycare and our expenses are at their highest. I’m not really happy in my current role, and I feel confident that financial planning is the right long-term move for me, but I’m struggling with whether this is the responsible timing. Should I make the switch in 2027, accepting a temporary step back in income, or stay in IT consulting another year or two to build a bigger cushion?

              As far as the timing of the transition, I’ve already taken major steps over the past few months to position myself for the switch, including completing a financial planning externship, networking with local CFPs to gauge the market in my area, and studying for my Series 65. I’m also taking my last block of paternity leave in January and owe my company 30 business days after returning. By that time, it will be performance discussion season, bonuses are paid out in late May, and 401(k) matches are in late June, so it’s worth staying into the summer.

              What blind spots do you see, and am I accounting for the right things, especially given our children, higher near-term expenses, and the uncertainty around our daughter’s long-term care needs?

              Key Takeaways
              The biggest ideas from the conversation

              +
              • Not chasing money can make you more employable: When I hire, I look for two things: a drive for mastery and a belief in the mission. Someone who isn’t there just to collect a paycheck is exactly who I want on my team. Money motivation would be the wrong fit.
              • Small businesses reward results over seat time: Joe pointed out that big corporations often care whether you’re at your desk from 8 to 5, while small businesses care whether the work gets done. My caveat: in a tiny company, one or two personalities shape your entire experience.
              • Look for founders who are humble but confident: The best small-business leaders know what they’re bad at and hire people better than them, without letting ego get in the way. A quick test before any job or career change: would you want to spend an eight-hour airport layover with these people?
              • A good target date fund is harm reduction: Joe argues most people can learn to build a simple three-fund portfolio, and that many target date funds are packed with high-fee leftovers. I see a low-cost one from Vanguard, Fidelity, Schwab, or T. Rowe Price as a smart default for anyone tempted by crypto or individual stocks.
              • Your savings exist for moments like this: Lucas has spent years paying off his mortgage and building a taxable brokerage account. To me, funding a career change into work he actually wants is exactly what all that saving is for. Waiting “one more year” just delays the clock.
              • Make your career change while your kids are young: Joe started his financial planning career when his kids were small and says getting that pain out of the way early was worth it. Time, not money, is the bigger currency in any career change, and leaner years can still be rich ones.

                • Resources
                Links, tools and references mentioned

                +

                Free Asset Location Guide
                Building your own mix instead of a target date fund? See which account each fund belongs in.
                Download the guide

                Episode #709 with Keith Wargo
                Planning for a child with special needs, including special needs trusts and ABLE accounts.
                Listen to Episode #709

                Episode #755 with Rob Berger
                Our interview with Rob Berger, one of the target date fund fans Matt mentions.
                Listen to Episode #755

                Stacking Benjamins
                Joe’s podcast, recorded live on YouTube on Monday afternoons.
                Visit Stacking Benjamins

                Strategic Coach
                The entrepreneur coaching program Joe recommends.
                Learn more

                Chapters
                Jump to a specific part of the conversation

                +

                Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.

                02:32
                She’s 26 and no longer motivated by money
                07:23
                What Paula looks for instead of money motivation
                12:54
                The hidden risk of working at a tiny company
                24:55
                The 8-hour layover test for coworkers
                33:05
                Why Paula put her parents in target date funds
                40:24
                Joe’s 30-minute alternative to target date funds
                51:33
                Why your 401(k) target date fund may be junk
                58:33
                The case for target date funds as harm reduction
                1:08:01
                Should he take a 60% pay cut for a career change?
                1:13:37
                Why waiting “one more year” rarely helps

                Sponsors
                Sponsors supporting this episode

                +

                Mint Mobile

                To get your new wireless plan for just 15 bucks a month, go to mintmobile.com/paula. That’s it, there’s no catch.

                Policygenius

                With Policygenius, you can find 20-year life insurance policies starting at just $276 a year for $1 million in coverage. Head to policygenius.com to compare life insurance quotes from top companies and see how much you could save.

                Monarch

                Write your own money story with Monarch. Use code AFFORD at monarch.com to get your first year of Monarch Core half off at just $50.

                NetSuite

                If your revenues are at least in the seven figures, go to netsuite.com/paula to get your free guide.

                MasterClass

                MasterClass keeps adding new classes, so there’s never been a better time to get in. Right now, as a listener of this show, you get at least 15% off any annual membership at masterclass.com/afford. Head to masterclass.com/afford to see the latest offer!

                Fora Travel

                Become a Fora Advisor today at foratravel.com/paula, and make sure you tell them we sent you.

                Got a money question on your mind? Submit it here and it could be featured on an upcoming Q&A episode.

                1 hr 11 min
              • #757: Steve Jobs Hated the Name “Genius Bar.” How He Came Around, with Ron Johnson

                On the morning Apple opened its first stores, Ron Johnson called Steve Jobs to apologize. Thirty minutes before the doors opened in Glendale, California, only about 50 people were in line, and Ron was sure he’d blown it. Steve’s reply (“have faith, they’ll come”) said a lot about the Steve Jobs leadership style Ron had spent the past year learning.

                They came. By closing time, 7,000 people had visited the store, in a line that wound down the mall, past JCPenney, and out into the parking lot.

                Ron hadn’t come from tech. He’d turned down Goldman Sachs to unload trucks at Mervyn’s, then brought Michael Graves design to Target. When Steve first asked him to send an email, he had to admit he’d never sent one.

                Ron came on the show to talk about what Steve Jobs leadership looked like up close: the nightly 8 p.m. phone calls, the Saturday-morning blowup over a few columns in a Boston-area store, and how Steve went from hating the name “Genius Bar” to trademarking it in a single day.

                He also talks about the bet that didn’t work. As CEO of JCPenney, Ron brought an Apple-sized vision to a 100-year-old company and moved before he’d earned his team’s trust. He explains why lessons from Steve Jobs leadership couldn’t make up for that, and what it taught him about leading change.

                Listen onApple PodcastsListen onSpotifyWatch onYouTube

                Key Takeaways
                The biggest ideas from the conversation

                +
                • The best idea wins, not the boss: Ron says Steve was never the dictator people imagine. He hated malls and the name Genius Bar, then reversed himself on both once he heard the reasoning, a core trait of Steve Jobs leadership.
                • Invest heavily before handing over the keys: Steve Jobs leadership meant delegating fully but investing heavily first. For about a year, Steve called Ron every night at 8 p.m. to talk family, faith, Pixar, and Apple, so Ron would know how Steve thought.
                • Big goals are easier to rally behind: Ron’s high school soccer team won two games one year and made the state tournament the next, after he set an outsized goal. He argues people work harder chasing something great than chasing small improvements, and that playing it safe keeps a career moving at an ordinary pace.
                • Design around service, not selling: When Ron’s team shared their best-ever service experiences, 16 of roughly 18 people named a hotel. That insight shaped the Apple Store: warm welcomes modeled on the Ritz-Carlton, and a bar that dispensed advice instead of drinks, later named the Genius Bar.
                • Trust has to come before transformation: At Apple, Ron inherited trust because Steve had picked him; at JCPenney, nobody knew him, and he overhauled pricing within three months. He says the vision wasn’t what failed, but moving too fast to earn his team’s trust was.
                • Cure analysis paralysis by trusting instinct: Ron says overthinking usually means relying too much on the mind and not enough on instinct. His fix is to put the spreadsheet down, take a walk, visit stores, and observe real people until that inner voice comes through.

                  • Resources
                  Links, tools and references mentioned

                  +

                  Would you turn down $120K for work you love?
                  Find out what’s really driving your money choices:
                  affordanything.com/fiire

                  Shop Different by Ron Johnson
                  Ron’s novel-style account of building the Apple Stores, with an inside look at Steve Jobs leadership:
                  Get the book

                  Ron’s website
                  Learn more about Ron and order Shop Different:
                  ronjohnsonshopsdifferent.com

                  Chapters
                  Jump to a specific part of the conversation

                  +

                  Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.

                  02:14
                  Why a few columns made Steve Jobs furious
                  08:44
                  How he talked Steve Jobs into shopping malls
                  15:33
                  Why he turned down $120K to unload trucks
                  22:10
                  Why big goals beat small improvements
                  29:24
                  How to sell a risky idea to cautious coworkers
                  37:02
                  The $30 tea kettle that caught Steve Jobs’ eye
                  46:02
                  Why a record-breaking opening day was misleading
                  56:26
                  How a hotel inspired the Genius Bar
                  1:14:40
                  Why JCPenney failed: trust, not vision
                  1:35:54
                  How to escape analysis paralysis

                  Sponsors
                  Sponsors supporting this episode

                  +

                  Mint Mobile

                  Get your new wireless plan for just $15 a month at mintmobile.com/paula. That’s it, there’s no catch.

                  MasterClass

                  MasterClass keeps adding new classes, so there’s never been a better time to get in. Right now, as a listener of this show, you get at least 15% off any annual membership at masterclass.com/afford.

                  Policygenius

                  Find 20-year life insurance policies starting at just $276 a year for $1 million in coverage. Compare quotes from top companies and see how much you could save at policygenius.com.

                  Wayfair

                  Transform your space with pieces that hold up to real life. Join Wayfair Rewards today and get 5% back on every purchase at wayfair.com, or shop the Wayfair app for all things home.

                  Monarch

                  Write your own money story with Monarch. Use code AFFORD at monarch.com to get 50% off your first year of Monarch Core, just $50.

                  1 hr 46 min
                • #756: How Losing $500K in ‘08 Led One Trader to a Different Kind of Portfolio, with Jared Dillian

                  On the morning of the Lehman Brothers collapse, Jared Dillian, who ran the firm’s ETF trading desk, walked past TV trucks and a crowd of reporters to get to the trading floor. He looked around at the chaos, took off his tie, and figured he wouldn’t be needing it anymore.

                  That week, about half a million dollars of his restricted Lehman stock went to zero. Some of his colleagues, who had loaded up on discounted shares through the company’s stock purchase plan, lost roughly 80% of their net worth.

                  Jared came through the Lehman Brothers collapse in a different position. He had lived far below his means, with a cheap house, a small mortgage, and no vacations, so while colleagues grabbed whatever job they could find, he had the cash to walk away and start his own newsletter.

                  In this episode, he explains the lessons from the Lehman Brothers collapse that still shape how he invests. He covers why he treats cash as an option rather than a drag on returns and how a simple five-way split across stocks, bonds, cash, gold, and real estate has historically cut volatility roughly in half.

                  He also shares a Las Vegas test for finding your risk tolerance, explains why he thinks buy-and-hold investors haven’t faced a real bear market since 2008, and gives his outlook on bond yields, inflation, and Social Security.

                  Listen onApple PodcastsListen onSpotifyWatch onYouTube

                  Key Takeaways
                  The biggest ideas from the conversation

                  +
                  • Cash gives you the freedom to bet on yourself: Jared’s coworkers earned the same Wall Street paychecks, but many spent them on pricey apartments and weekend golf. Because he lived cheaply, Jared came out of the Lehman Brothers collapse with enough liquidity to skip the job he was offered and start his own newsletter instead.
                  • A smoother ride beats the highest return: Jared focuses on risk-adjusted returns rather than raw returns, because the S&P 500 fell 57% from 2007 to 2009 and investors who panic-sell near the bottom lock in that loss. A portfolio built to reduce volatility makes it easier to stay invested when markets drop.
                  • Split your portfolio five equal ways: Jared’s Awesome Portfolio holds 20% each in stocks, bonds, cash, gold, and real estate, rebalanced once a year. In backtests going back to 1971, it has returned about 9% annually, a point or two below the S&P 500, with roughly half the volatility and a worst year of −11.8%.
                  • Test your risk tolerance at the craps table: Jared’s gut check is to go to Vegas and notice how much you’re willing to lose before the pain makes you walk away. Despite a career trading on Wall Street, his limit is a few hundred dollars, while some friends will put $10,000 on the table.

                    • Resources
                    Links, tools and references mentioned

                    +

                    Free Asset Location Guide
                    Before you add bonds or real estate funds, know which account they belong in. This free guide covers what to hold in tax-deferred, tax-exempt, and taxable accounts.
                    Download the free guide

                    Jared Dillian’s Website
                    Jared’s research services and market newsletter.
                    jareddillianmoney.com

                    The Awesome Portfolio by Jared Dillian
                    Jared’s book on the simple five-asset strategy he built after losing $500,000 in the Lehman Brothers collapse.
                    Get the book

                    Jared Dillian on X
                    Follow Jared for ongoing market commentary.
                    @dailydirtnap

                    Chapters
                    Jump to a specific part of the conversation

                    +

                    Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.

                    02:29
                    Walking into Lehman Brothers the day it collapsed
                    04:38
                    The $500,000 in company stock that went to zero
                    06:57
                    How cheap living let him start a business instead
                    19:54
                    Why buy-and-hold hasn’t faced a real crash since 2008
                    22:52
                    The Las Vegas test for your risk tolerance
                    27:07
                    A five-way portfolio that fell just 9.8% in 2008
                    28:46
                    The one scenario where this portfolio struggles
                    29:33
                    Is 20% cash too much with inflation?
                    44:45
                    Why bond yields are the economy’s warning light
                    51:25
                    Why half of retirees claim Social Security at 62

                    Sponsors
                    Sponsors supporting this episode

                    +

                    Mint Mobile

                    Get your new wireless plan for just $15 a month at mintmobile.com/paula. That’s it, there’s no catch.

                    MasterClass

                    MasterClass keeps adding new classes, so there’s never been a better time to get in. Right now, as a listener of this show, you get at least 15% off any annual membership at masterclass.com/afford.

                    Policygenius

                    Find 20-year life insurance policies starting at just $276 a year for $1 million in coverage. Compare quotes from top companies and see how much you could save at policygenius.com.

                    Wayfair

                    Transform your space with pieces that hold up to real life. Join Wayfair Rewards today and get 5% back on every purchase at wayfair.com, or shop the Wayfair app for all things home.

                    Monarch

                    Write your own money story with Monarch. Use code AFFORD at monarch.com to get 50% off your first year of Monarch Core, just $50.

                    51 min
                  • #755: AI, Debt, and a Social Security Shortfall. Should Your Money Plans Change? With Rob Berger

                    Rob Berger started writing about personal finance in 2007, just months before the Great Recession hit. His retirement planning strategy through the crash was almost comically simple: keep contributing to his 401(k), don’t sell anything, and otherwise do nothing.

                    Nearly 20 years later, the list of worries looks different. AI is upending which skills and companies are valuable, the U.S. is paying more than a trillion dollars a year in interest on its debt, and Social Security’s trust fund is on track to run out in roughly six years.

                    For anyone doing retirement planning right now, that’s a lot of uncertainty to absorb. Rob’s take is that far less has changed than it seems, and that convincing yourself the fundamentals no longer apply is where the big mistakes start.

                    Rob joins the show to explain why he isn’t touching his own asset allocation despite lofty stock valuations, why he doesn’t think the country can grow its way out of its debt, and how someone retiring within five years can build enough guaranteed income to sleep at night. He also shares the career advice he gives his own kids, the latte habit that taught him how much control people have over what makes them happy, and the retirement planning questions his audience asks him most.

                    Listen onApple PodcastsListen onSpotifyWatch onYouTube

                    Key Takeaways
                    The biggest ideas from the conversation

                    +
                    • AI changes the economy, not valuation fundamentals: AI will create winners and losers, just as the car did for saddle makers, and it makes future growth harder to model. But Rob argues the basics haven’t moved: valuation still matters eventually, even when it appears not to for a while.
                    • High valuations aren’t a reason to change course: Rob believes stock valuations are elevated, especially in certain sectors and in the U.S., yet he isn’t changing his asset allocation at all. He doesn’t know when a downturn will come or what will trigger it, and timing both the exit and re-entry just adds more chances to fail.
                    • Growth alone won’t fix the national debt: Higher productivity from AI might bring temporary relief, but Rob compares the government to a family that spends every raise. Fixing the debt and Social Security will mean higher revenue, reduced benefits, or both, and taxing only the wealthy won’t cover the gap.
                    • Cover necessities with guaranteed income first: For anyone nearing retirement, Rob’s approach to retirement planning starts with guaranteed income (Social Security, a pension, or a TIPS ladder) sized to cover basic expenses. The rest of the portfolio can then fund everything else, which makes market swings far easier to live with.
                    • Savings buy freedom long before retirement: Living below your means pays off at 30, 35, and 40, not just 65. When Rob landed in a job that wasn’t right for him, his savings let him accept a significant pay cut for a new role that became the best job he ever had.
                    • Money skills are more habit than information: Rob sees getting better with money as mostly psychology and routine, not information. He quit a near-daily mocha latte habit for health reasons, struggled through the first day, and three weeks later didn’t miss it, proof that people control more of their happiness than they think.
                      • Resources
                      Links, tools and references mentioned

                      +

                      Cornerstone
                      Retirement worries feel overwhelming? See your whole financial picture on one page.
                      affordanything.com/cornerstone

                      Rob Berger on YouTube
                      Rob’s channel covering retirement planning, investing, and the questions his audience sends in most.
                      Watch on YouTube

                      Rob’s free weekly retirement newsletter
                      Sign up for Rob’s free newsletter, delivered every week.
                      robberger.com/newsletter

                      Chapters
                      Jump to a specific part of the conversation

                      +

                      Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.

                      00:41
                      What AI changes about investing, and what it doesn’t
                      04:48
                      Why Rob isn’t touching his portfolio despite high valuations
                      07:57
                      Why a strong economy still feels so bad
                      13:41
                      What happens if Social Security benefits drop 30%
                      18:37
                      Why we can’t simply grow our way out of debt
                      20:27
                      How to retire in the next 5 years without panicking
                      24:38
                      Money moves for anyone starting a career now
                      29:56
                      How doing nothing paid off after 2008
                      34:56
                      Why daily habits beat financial education
                      38:30
                      The three questions retirees ask Rob most
                      Sponsors
                      Sponsors supporting this episode

                      +

                      Mint Mobile

                      Get your new wireless plan for just $15 a month at mintmobile.com/paula. That’s it, there’s no catch.

                      Fora Travel

                      Become a Fora Advisor today at foratravel.com/paula, and make sure you tell them we sent you.

                      Policygenius

                      Find 20-year life insurance policies starting at just $276 a year for $1 million in coverage. Compare quotes from top companies and see how much you could save at policygenius.com.

                      Wayfair

                      Transform your space with pieces that hold up to real life. Join Wayfair Rewards today and get 5% back on every purchase at wayfair.com, or shop the Wayfair app for all things home.

                      Monarch

                      Write your own money story with Monarch. Use code AFFORD at monarch.com to get 50% off your first year of Monarch Core, just $50.

                      1 hr 8 min
                    • #754: Q&A: We Have $80K In Cash and Want a 1-2 Year Sabbatical. Is It Enough?

                      “You have this golden opportunity during these low-income years.” That’s what I told a listener who’s heading into a one-to-two-year career break with $80,000 in cash and a paid-off home.

                      Is that enough? It depends on the one number she didn’t give us: how much she plans to spend.

                      So Joe and I walk through how to set aside what the sabbatical needs from a $394,000 taxable brokerage account, why a career break is the perfect window for Roth conversions, and whether an all-stock portfolio is too risky in your 30s.

                      Before we get there, we help a listener in the UK who wants to fund a career break, travel, and home projects while her emergency fund is only half built, and who’s wondering whether she has to finish one before starting the others. We close with something we rarely touch on this show: how to judge whether a politician is actually good for the economy.

                      Listen onApple PodcastsListen onSpotifyWatch onYouTube

                      Listener Questions
                      The questions we answered this episode

                      +

                      Anonymous (let’s call them “Amelia”) asks: How would you define the difference between an emergency fund, sinking funds (such as for a new laptop), and medium-term savings (like a career break or a big trip within the next two years)? How should we think about and treat these pots differently, and is there a defined line or overlap between them? Additionally, some people replace the term emergency fund with opportunity fund, which adds another dimension.

                      Secondly, how do you create a structure to decide how to apportion discretionary money across competing goals? How should someone choose which pot or goal to prioritize or allocate the largest contribution to, versus funding each pot equally?

                      For context, I am 42 and based in the UK. My defined contribution pension—similar to a 401(k)—can be accessed around age 57, and with my current contributions, I expect to retire at 64. My goal is to have an eight-month emergency fund, and I currently have four months saved. I would like to start funding other goals, such as a career break, travel, and home improvements, alongside building my emergency fund. Can I start funding those other pots now, or should the emergency fund be fully funded first? Once the emergency fund is taken care of, at what point should I pivot back to bringing my retirement age forward versus funding adventures over the next two decades? How should I balance multiple goals across differing timelines and magnitudes, weighing the flexibility of cash savings against the growth of investing?

                      Anonymous (let’s call them “Esther”) asks: I am trying to figure out the best way to organize my finances now that I finally have the courage to take a sabbatical after listening to one of you and Joe’s previous episodes.

                      My partner and I are in our mid-to-late 30s. We have been DIYing our finances, so it is not the most sophisticated. Jointly, we have $392,000 in our 401(k) and $189,000 in our Roth IRAs, and we max out the Roths every year. We are considering converting our 401(k) to Roth during these low-income years. We have $394,000 in a taxable brokerage account and about $80,000 in cash. We own a paid-off home worth $315,000 and moved to a rental for the sabbatical period. I am thinking of investing half of that into the brokerage account and saving the other half for a down payment on our future home, likely after my one- to two-year sabbatical.

                      Most of our investments are spread between VFIAX, VIGAX, and VGIX, and I recently added some VITAX. We have no bonds, and I am worried that we lack diversification, but I am not interested in managing rentals because we love to travel. We would also love to have the option to retire early in our mid-40s or 50s.

                      If that is our goal, should we wait to convert our 401(k) and do it when both of us retire? Will our current portfolio be too volatile, and should I rebalance everything? What are the implications of converting during early retirement years if we also want to take advantage of the $98,000 tax-free withdrawal from our brokerage account?

                      Larry asks: I have a question about objectively grading the economic success of politicians at both the state and national levels. We often judge the success of politicians based on emotion or political spin. For example, when a recent jobs report showed great numbers, the opposing party claimed the data was rigged. Meanwhile, the stock market has been up, but so have inflation and home prices, meaning one indicator may look positive while another does not. Could you suggest a more objective framework or composite metric to evaluate how a president, Congress, or governor measures up regarding economic indicators? How can voters confidently assess whether an elected official has done a good job managing the economy?

                      Key Takeaways
                      The biggest ideas from the conversation

                      +
                      • Don’t turn your emergency fund into an emergency: With four months already saved, I’d keep making small, steady contributions while also funding a career break, travel, and home projects. Joe’s test: check twice a year that it’s still growing.
                      • Put a price and deadline on every goal: Divide each goal’s cost by the months until you want it, and the monthly total is almost always unrealistically huge. That’s the point: now you can cut goals, shrink them, or push the timeline out.
                      • Earmark sabbatical money before making any other plans: Esther’s $80,000 in cash probably won’t cover a two-year career break, so I’d first set aside what the sabbatical will pull from her brokerage account. Of what’s left, half can stay invested and half becomes flexible cash for a future down payment.
                      • Convert to Roth now, not in early retirement: A sabbatical’s low-income years are a golden window for Roth conversions, as long as you plan for the tax bill. As Joe puts it, the sooner you stop splitting your returns with Uncle Sam, the better.
                      • Your all-stock portfolio’s real risk might be you: In your 30s, you have the risk capacity for zero bonds; the question is risk tolerance. Look up each fund’s standard deviation on Morningstar, translate it into real dollars, and add small-cap and international exposure for true diversification.
                      • Judge politicians on process, not outcomes: No single leader controls much of an economy shaped by earnings, the Fed, wars, and disasters. Like judging someone’s health by their habits rather than one checkup, ask whether the underlying policies are sound, not what this quarter’s numbers say.

                        • Resources
                        Links, tools and references mentioned

                        +

                        Paul Merriman Financial Education Foundation
                        Free model portfolios, calculators, and an investing boot camp from the researcher Joe and I recommend for building a simple, diversified portfolio.
                        Explore Paul’s free resources

                        Adventure Capitalist by Jim Rogers
                        Joe’s pick: a finance veteran’s record-setting drive around the world, sizing up each country’s economy and politics as an outsider.
                        Get the book

                        Ask Us a Question
                        Have a money question for a future episode? Leave us a voicemail.
                        Leave a voicemail

                        Free Worksheet: Where Should Each Dollar Go?
                        Emergency fund, sabbatical, retirement? See which box each dollar belongs in with this free one-page worksheet.
                        Get the worksheet

                        Chapters
                        Jump to a specific part of the conversation

                        +

                        Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.

                        5:30
                        The real difference between emergencies and expenses
                        7:28
                        Why a former planner never said “emergency fund”
                        13:13
                        The monthly math that breaks most wish lists
                        18:36
                        One question that reveals what you really want
                        26:37
                        Why four months of savings is enough for now
                        33:48
                        Fund the sabbatical before earmarking a down payment
                        37:00
                        Why a career break is prime time for Roth conversions
                        43:24
                        How to test if you can handle a 22% drop
                        1:01:53
                        Judge politicians on policies, not short-term results
                        1:09:42
                        Why focusing on what you control grows your influence

                        Sponsors
                        Sponsors supporting this episode

                        +

                        Mint Mobile

                        Get your new wireless plan for just $15 a month at mintmobile.com/paula. That’s it, there’s no catch.

                        Fora Travel

                        Become a Fora Advisor today at foratravel.com/paula, and make sure you tell them we sent you.

                        Policygenius

                        Find 20-year life insurance policies starting at just $276 a year for $1 million in coverage. Compare quotes from top companies and see how much you could save at policygenius.com.

                        Wayfair

                        Transform your space with pieces that hold up to real life. Join Wayfair Rewards today and get 5% back on every purchase at wayfair.com, or shop the Wayfair app for all things home.

                        Monarch

                        Write your own money story with Monarch. Use code AFFORD at monarch.com to get 50% off your first year of Monarch Core, just $50.

                        Got a money question on your mind? Submit it here and it could be featured on an upcoming Q&A episode.

                        1 hr 13 min

                      About Afford Anything®

                      From the publisher's feed

                      Get Smarter With Money So You Can Build Wealth