Afford Anything

#541: Ever wondered if you're making the right choice between a Traditional and Roth 401(k)? You're not alone. 

In this episode, Katie Gatti Tassin, host of MorningBrew’s Money with Katie podcast, joins us to tackle this common retirement savings dilemma.

We deep-dive into the debate between using Traditional vs. Roth 401(k) accounts for retirement savings, in the context of:

Katie explains her strategy for maximizing retirement savings while minimizing taxes. She suggests that for some people in higher tax brackets, maxing out a traditional 401(k) and then investing the tax savings elsewhere might be the way to go. 

But as we dig deeper, it becomes clear that there's no one-size-fits-all answer.

We explore the Traditional vs Roth question, discussing how your current income and expected retirement spending can affect your choices. 

It's not just about the math, though. The unpredictability of future tax rates and policies adds another layer of complexity to the decision.

Social Security plays a major role, as well. We discuss its current funding situation and the challenges it might face in the future. 

This leads to a fascinating discussion about how AI might impact future costs and lifestyles. Could things actually get cheaper in the future? 

Taxes for high earners and small business owners is another focus. We break down some misconceptions about who falls into high tax brackets. It's not always as simple as it seems.

Stock-based compensation is another hot topic. We discuss how it affects corporate decision-making and the wider economy. This leads to an interesting comparison of the incentives for business owners versus employees.

Throughout the episode, we keep coming back to one key point: no matter which type of account you choose, the most important thing is to contribute as much as you can. 

Your contribution amount has a bigger impact on your retirement savings than the type of account you use.

By the end of this interview, you'll have a better understanding of the factors that go into choosing between a Traditional and Roth 401(k). More importantly, you'll see how this decision fits into the bigger picture of retirement planning and overall financial health.

Timestamps:

Note: Timestamps will vary on individual listening devices based on dynamic advertising run times.

Here are the condensed timestamps and descriptions:

0:00 Introduction

1:46 Katie explains strategy for maximizing retirement savings

3:19 Discuss assumptions behind traditional vs Roth 401(k) decisions

5:54 Compare scenarios of traditional and Roth contributions

8:54 Explore how income affects retirement account choice

13:51 Talk about media's impact on financial perceptions

15:20 Discuss unpredictability of future tax policies

18:03 Explain current state of Social Security funding

21:05 Explore AI's potential impact on future costs

24:41 Discuss how location influences spending habits

28:16 Examine tax implications for high earners

31:12 Talk about effects of stock-based compensation

33:55 Compare incentives for business owners vs employees

36:06 Emphasize importance of contribution amounts

For more information, visit the show notes at https://affordanything.com/episode541

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Originally aired August 2023: Stanford psychology professor Jamil Zaki shares his research and findings around the science of empathy – and how we can apply this to improving our relationships with colleagues, clients, customers, co-founders, and business and investing cohorts.

Zaki is the director of the Stanford Social Neuroscience Lab, and the author of “The War For Kindness.”

We'll break down the science. We talk about why empathy matters in business, investments, and in career growth, and we’ll discuss its digital age dynamics. How does AI impact the way in which we relate to others?

If you want to learn the science of emotional intelligence, and how to apply this to your career and business interactions, you’ll learn a lot from today’s episode.

Enjoy!

The original show notes can be found at https://affordanything.com/episode456

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What can M&Ms, McDonalds, Harry Potter, Aquafina, Taylor Swift, Jeopardy, and Bed Bath & Beyond teach us about landing a dream job or securing a promotion?

Plenty.

Imagine you're at a job interview.

You've rehearsed your answers, polished your resume, and you're feeling confident.

But what if the key to landing that job isn't just about your skills and experience? What if it's about how you make people feel?

How you make people feel is your brand, Zane says. 

That's what Leslie Zane, a Harvard Business School alum and prominent branding expert, talks about in this interview.

She says that whether you're trying to get a new job, a promotion, or more customers for your small business, it all comes down to how you build your personal brand.

Zane breaks it down into three main ideas: be salient, be relevant, and be distinctive.

Being salient means making sure people remember you. It's not just about doing your job well, but about connecting with people all over your company.

Zane gives an example of a dental hygienist who calls patients after their appointments to check on them and offer advice. This extra touch helps the hygienist stick in people's minds.

Being relevant is about focusing on the good stuff. Zane says if you make a mistake at work, don't dwell on it. Instead, do more good things to push out the bad memory.

She talks about how McDonald's dealt with rumors about "pink slime" in their food. Instead of denying it over and over, they started showing how they make their food with fresh ingredients. This helped people forget about the pink slime and think about good things instead.

Being distinctive means standing out, but in a way that still feels familiar.

Zane tells a story about the game show Jeopardy. When the longtime host Alex Trebek died, the producers tried inviting different celebrities to host the show. But viewers didn't like it. The ratings only rose when they chose Ken Jennings, a former champion contestant, as the new host. He was familiar enough that viewers felt comfortable with him.

Zane also talks about how these ideas can help small businesses. She says it's important to reach out to new customers, not just focus on the ones you already have.

She suggests finding ways to connect your business to things that people already enjoy.

If you run an accounting firm in Kansas City, for example, you might talk about local sports teams or famous barbecue to help people feel a connection to your business.

Throughout the interview, Zane emphasizes that building a strong personal brand isn't about bragging or being fake. It's about creating genuine connections with people and consistently showing your best qualities. You’re creating buzz about yourself. The more positive connections you make, the stronger your brand becomes.

Zane's advice goes against some common ideas about marketing and self-promotion. She says you don't need to stick to just one thing or only target a specific group of people.

Instead, she encourages reaching out to as many people as possible and finding ways to connect your skills or business to things they already care about.

Timestamps

Note: Timestamps will vary on individual listening devices based on dynamic ad lengths

0:00 - Importance of becoming a personal brand for career growth

6:04 - Tapping into the instinctive mind

8:54 - How brands grow in people's minds

13:40 - Situational salience using M&M's example

18:40 - Why Harry Potter is a salient brand

24:23 - Three key elements of building a personal brand

29:20 - McDonald's addressing negative brand associations

35:40 - Be distinctive, not unique

41:00 - Jeopardy! host change and brand continuity

46:56 - Creating buzz about yourself at work

52:40 - Why core customers can be a business trap

57:20 - Handling negative feedback or associations

1:02:40 - Tips for standing out in job interviews

For more information, visit the show notes at https://affordanything.com/episode540

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#539: An anonymous caller feels trapped. She owes $100,000 in back taxes on earnings she had to give up as a result of a lawsuit with her former business partner. What should she do?

Saul and his wife want to retire in Mexico but they don’t want to give up the ability to continue investing in US stocks. Can they buy a primary residence that doubles as a short-term rental?

Nina and her partner are eager to start a $500,000 renovation on their home but they’re still three years away from saving enough. How can they bridge the gap without risking too much?

Former financial planner Joe Saul-Sehy and I tackle these three 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/episode539

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#538: The latest jobs report just dropped, and it's a game-changer. Job creation numbers are lower than expected, at 142,000 new jobs in August. This comes on the heels of the biggest downward revision in job numbers since 2009.

We're diving deep into what this means for the Federal Reserve's long-anticipated first rate cut. Are we looking at a modest quarter-point cut in interest rates, or a more substantial half-point drop?

The Fed's decision could mean the difference between that dream house being within reach or slipping away. We'll break down the latest data and translate what it means for you.

In our second segment, we're celebrating Warren Buffett's 94th birthday by exploring how he continues to lead Berkshire Hathaway with razor-sharp acumen — and what this teaches us about aging.

Finally, we'll turn our attention to Selena Gomez, who just became a billionaire. Around 81% of her wealth comes from her makeup line; only 3% of her net worth comes from acting and singing. Her story highlights the power of entrepreneurship in building massive wealth.

Join us for a blend of timely economic analysis and inspiring success stories.

For more information, visit the show notes at https://affordanything.com/episode538

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#537: Frequent contributor Joe Saul-Sehy shares an emotional, personal story of getting into a soul-crushing level of debt in his 20s and early 30s.

He owed so much in back taxes to the IRS that he didn’t file a tax return for three years.

He ran out of gas and was stranded on the side of the highway, with 85 cents remaining in his bank account.

By the time he pulled himself out of debt, his twin son and daughter were seven years old.

Learn the gripping, gut-wrenching story of Joe’s past money mistakes in today’s episode.

For more information, visit the show notes at https://affordanything.com/episode537

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#536:

NYU Psychology Professor Dr. Tessa West has spent nearly two decades studying relationships, including those in the workplace. She talks about her research on why people feel disconnected from their jobs and what to do about it.

Dr. West breaks down five main ways people might feel unhappy at work:

1. Crisis of identity: This is when you've poured a lot into your career, but you're starting to question if it's really who you are anymore.

2. Drifting apart: This happens when your job changes, not you. Maybe your company's gone through some big shifts, or your day-to-day tasks are different now. Or maybe your industry has totally changed.

3. Stretched too thin: We've all been there - too much to do and not enough time.

4. Runner up: Always close to that promotion or raise, but never quite getting there.

5. Underappreciated star: You're doing great work, but no one seems to notice.

Dr. West digs into each of these, explaining what they look like and why they happen. She talks about how work relationships are a lot like romantic relationships — just as you might feel disconnected from a partner, you can feel the same way about your job.

She describes a matrix that shows how satisfied you are with your job versus how much you identify with it. 

She also gets practical stuff, describing how to manage distractions at work and be more productive. There's a neat concept called "working spheres" that might help you organize your tasks better.

If you're thinking about leaving your job, Dr. West suggests doing some self-reflection and networking to learn about other industries or companies. She warns that there's often a lot of "hidden" stuff about jobs that you won't find in the job description, so it's essential to dig deeper.

At the end, she talks about how to figure out if a new job will actually be better. Her main tip? Ask tough questions in interviews. Don't be afraid to dig into the not-so-great parts of the job or company.

Dr. West doesn't sugarcoat the tough parts of work life, but she offers practical advice for dealing with them. Whether you're happy in your job or thinking about a change, you'll find something useful here.

Timestamps

Note: Timestamps will vary slightly on individual listening devices based on dynamic ad lengths.

1:09 - Dr. Tessa West. Psychology professor. Workplace relationships.

3:10 - Five major ways people feel disconnected from work.

4:55 - Work relationships mirroring other relationship types.

9:04 - "Crisis of identity" at work.

13:40 - Matrix: job satisfaction vs. identity centrality.

18:20 - "Drifting apart" from your career.

21:40 - Common changes causing career drift.

25:55 - "Stretched too thin" at work.

29:35 - Managing external work disruptions.

31:40 - "Working spheres" for better productivity.

37:37 - "Runner up" at work.

40:29 - Common reasons for not getting promoted.

47:51 - "Underappreciated star" at work.

51:18 - Next steps if unhappy at work.

55:56 - Determining if a new job will be better.

For more information, go to https://affordanything.com/episode536

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#535: Melissa and her partner are preparing for the best earning years of their lives. Could they benefit from automated tax-loss harvesting and transition from DIY investing to a robo-advisor?

An anonymous caller just learned something surprising about their Roth 401k and feels squeamish about making future contributions to this account. What’s Paula and Joe’s advice?

Hampton is following up on a question from Episode 524 to spark an intriguing discussion on the generational tax advantages of a Roth IRA.

Former financial planner Joe Saul-Sehy and I tackle these three 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/episode535

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#534: We sit down with David Novak, the co-founder and former CEO of Yum! Brands, the giant parent company behind KFC, Taco Bell, Pizza Hut, and the Habit Burger Grill. David shares stories from his remarkable career, offering insights into leadership, decision-making, and personal growth.

We dive into one of David’s most memorable projects: the creation of Crystal Pepsi. David talks about how the idea was born out of a gut instinct when he noticed a trend toward clear beverages. The media buzz was massive, and he was convinced it was a winner. But the Pepsi bottlers pushed back, saying it didn’t taste enough like traditional Pepsi. David pressed on anyway. The product launched to a lot of fanfare but ultimately flopped. 

David reflects on this experience as a lesson in the importance of listening to feedback, even when you’re sure you’re right.

The conversation then shifts to David’s unique upbringing. He lived in 23 different states before high school. This taught David to adapt quickly, make friends fast, and assess people and situations—a skill set that became invaluable in his leadership roles.

David then takes you through his early career, from being a mediocre student who found his passion in advertising, to making a pivotal move from marketing to operations at PepsiCo. This shift was crucial, setting him up to eventually lead Yum! Brands. 

David’s journey is filled with stories of hard decisions, like turning down a bigger job at Frito-Lay because it didn’t align with what truly made him happy. He shares his philosophy on prioritizing joy and finding fulfillment in your work, a principle that guided his entire career.

Leadership is a major theme in the discussion. David talks about the balance between confidence and humility, using Warren Buffett as an example of someone who embodies both. He also shares his thoughts on how to handle criticism and feedback. 

According to David, the key is to listen carefully, avoid being defensive, and understand whether the feedback is valid before making decisions.

David also offers practical advice on personal development. He talks about his “Three by Five” exercise, where he regularly assesses who he is today and what he needs to work on to become more effective. This habit of self-reflection has helped him stay grounded and continually improve as a leader.

The episode wraps up with a discussion on company culture. David believes that creating an environment where everyone feels valued is essential for success. He emphasizes the importance of leaders modeling the behavior they want to see in their teams and being the first to extend trust and positivity.

David’s stories and insights provide a deep dive into what it takes to lead a major company, make tough decisions, and continually grow both personally and professionally.

Timestamps

Note: Timestamps will vary on individual devices due to dynamic advertising run times.

0:00 - Introduction to David Novak and his leadership background

6:17 - David’s personal journey and learning framework

11:25 - Importance of listening to feedback in decision-making

17:31 - Impact of frequent childhood moves on David’s adaptability

23:32 - Identifying and focusing on what brings joy in life and work

29:26 - Value of learning that leads to action

35:58 - Overcoming challenges by reframing your approach

42:20 - Learning from mentors who have succeeded in your field

48:35 - Criteria for board membership: contributing and learning.

54:47 - Building a high-performance culture at Yum! Brands

1:01:02 - Mapping out learning needs for project success

1:07:25 - Gaining confidence and skills for leadership

1:13:23 - Maintaining integrity and taking the high ground

1:19:03 - A mentor relationship that shaped David’s leadership

1:26:02 - Evaluating what successful companies are doing right

For more information, visit the show notes at https://affordanything.com/episode534

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#533: Kristin is floored by the 60 percent increase in her homeowner’s insurance this year. Should she cancel the policy and self-insure instead?

Susana and her husband are torn. They bought their dream home last year but now need to relocate indefinitely. What should they do with the house?

An anonymous caller wants to help his soon-to-be wife invest a five-figure gift she received in another country. How do they untangle the complexities of managing money from abroad?

Former financial planner Joe Saul-Sehy and I tackle these three 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/episode533

Learn more about your ad choices. Visit podcastchoices.com/adchoices