#124: Former financial planner Joe Saul-Sehy and I answer five questions about investing, retirement, insurance, travel and selling an expensive car.

Eliana is 25 and makes $63,000 per year, plus a little extra from freelance work. She holds $95,000 in cash, $67,000 in retirement investments, and no debt. She doesn't necessarily hold early retirement as a goal, but she'd like the option to access her funds before she's 59-and-a-half.

She asks two questions: First, she's been spreading her money between a Roth IRA, pre-tax 403b, and taxable brokerage account to spread her risk. Should she not contribute so much to the taxable account?

She's also paying $88 per month for a $25,000 life insurance policy for her mother, who is 57 years old. She likes the peace-of-mind that comes with knowing it'll be there to cover funeral expenses, if needed. But she recognizes that there's a huge opportunity cost that comes from paying for such an expensive plan. Should she drop it?

Rudy's employer offers two options: a pension or a retirement plan that essentially functions as an annuity. He would need to contribute 3 percent of his income, regardless of which option he chooses. Which one should he pick?

Nicole lives in Canada. She has a Registered Retirement Savings Plan (RRSP), to which she contributes monthly. She's been with her employer for almost 10 years, but she's about to switch into a new field. She'll have about $45,000 in a pension plan from the employer that she's leaving. What should she do with this money?

Julie is a frugal single mom of two. Four months ago, she purchased a brand-new vehicle for $39,000 and instantly regretted it. She'd like to sell it, but she could only recoup around $33,000 of value. She'd lose $6,000 from a car she's owned for 4 months. Should she take the hit? Or should she hang onto her car, since the damage has already been done?

Finally, an anonymous caller wants to know more about long-term travel. How do you acquire visas that will let you stay in a country for many months? How do you find health insurance with overseas coverage? And what should you do with your snail mail?

We tackle these questions in today's episode. Enjoy!

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Resources Mentioned:

Julie's question:
Articles on selling a car, private party:
https://www.edmunds.com/sell-car/10-steps-to-selling-your-car.html
https://www.edmunds.com/sell-car/sell-your-car-safely.html
https://www.edmunds.com/sell-car/how-to-close-a-used-car-sale.html

Articles on buying a car, private party:
https://www.edmunds.com/car-buying/buying-a-car-sight-unseen.html
https://www.edmunds.com/car-buying/10-steps-to-buying-a-used-car.html

Travel question:
Overseas health insurance:
- https://www.imglobal.com/travel-medical-insurance
- https://www.gninsurance.com/international-travel-health-insurance-plans
- https://www.geobluetravelinsurance.com/product_overview.cfm

How to handle mail while overseas:
https://www.earthclassmail.com

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