Afford Anything | Get Smarter With Money

One major tech index lost $2.3 trillion in a single day on Thursday – the biggest one-day loss on record. The S&P 500 fell 4.4 percent, the Dow dropped more than 1,800 points and the Nasdaq slid into correction territory.👉 Join us for what happens next: affordanything.com/newsletterThe selloff started with AI stocks after the midterm elections raised questions about data center construction.This First Friday episode covers what happened, why it dragged down the whole market and what the latest economic numbers mean for your wallet.We explain concentration risk and what it means for your index funds. We also talk about how long-term investors can think about short-term swings.Next, the jobs report. The U.S. added 165,000 jobs in October, nearly three times what economists expected, and unemployment dipped to 4.1 percent. The government also revised August and September up by a combined 84,000 jobs.We compare those numbers with private payroll data from ADP, which tells a very different story about one major sector. We also look at job openings, quits and a jump in the number of people stuck in part-time work.The Fed held interest rates steady in October in a 10-2 vote, and both dissenters wanted a hike. We also revisit a 1986 vote that left Paul Volcker on the losing side.Inflation keeps climbing. Consumer prices rose 3.7 percent over the past year, driven largely by gas. Wages grew 3.1 percent, so paychecks still trail prices. Social Security recipients get a 3.6 percent raise in January, though higher Medicare premiums will eat into it.The economy grew at a 3.4 percent annual rate in the third quarter. We break down what drove that growth.Finally, bonds. Long-term Treasury yields hit their highest level in more than two decades in early October, then fell. We explain a simple rule of thumb for where the 10-year Treasury tends to trade and what today’s rate says about investors’ inflation expectations. Mortgage rates have now dipped three weeks in a row. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Most retirements in the U.S. aren’t voluntary. Layoffs, health problems or caring for a family member decide the date for most people, so real financial planning has very little to do with skipping lattes.Paula and former financial planner Joe Saul-Sehy answer three listener questions. The first is from an Air Force major with $2.5 million saved whose parents both have early-onset Alzheimer’s. The second is from a 58-year-old early retiree deciding whether to rent or buy her next home. The third is from a couple weighing whether to pay down a 6% mortgage.In this episode, we discuss:Why to buy disability and long-term care insurance before you take a genetic testHow to plan for long-term care costs without draining the rest of your familyWhich estate documents to sign now, and the trust step most people skipWhy the person raising your kids and the person managing their money shouldn’t be close friendsHow to use the price-to-rent ratio to decide whether to rent or buyWhether paying down a 6% mortgage really earns a guaranteed 6% returnWhy extra mortgage payments won’t hurt you if you refinance laterIf you’ve been treating personal finance as a budgeting exercise, this episode shows what planning ahead looks like. It also shows why planning makes you more flexible, not less.⏱️ TIMESTAMPS Note: Timestamps may vary slightly depending on dynamic ad placements.(00:00) Why most retirements aren’t your choice(06:57) What Charlie Munger regretted at 99(15:35) $2.5M saved and a family history of Alzheimer’s(17:11) Why to buy insurance before a genetic test(29:46) How to handle the sticker shock of long-term care(32:21) Estate paperwork to sign before you need it(38:53) Why your kids’ guardian and money manager shouldn’t be friends(54:56) The one ratio that tells you to rent or buy(1:07:39) Is a 6% mortgage a guaranteed 6% return?(1:14:03) 15 families could pay off their mortgage. None did.🔗 RESOURCES MENTIONEDIS YOUR FAMILY COVERED IF YOU CAN’T WORK? MAP YOUR INSURANCE, SAVINGS AND RETIREMENT ON ONE FREE PAGE AND FIND THE GAPS 👉 http://affordanything.com/cornerstone 👉 Joe Saul-Sehy’s show, Stacking Benjamins: https://www.stackingbenjamins.com👉 Lacey Langford’s MILMO Show (money planning for military families): https://laceylangford.com/expert-resources/milmo-show👉 Our interview with estate planning expert Andrea Baumann Lustig: https://affordanything.com/725-what-most-families-get-wrong-about-passing-down-wealth-with-andrea-baumann-lustig See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Over half of young Americans avoid looking at their money to cope with stress, and the CEO of Acorns says he was one of them. In his twenties, even a guaranteed 2.5% return felt too scary to touch, and it cost him a decade of growth.Noah Kerner is CEO and chairman of Acorns, the automated saving and investing app whose customers have invested more than $33 billion, often starting with spare change.👉 Acorns: https://affordanything.com/acornsIn this episode we discuss:Why avoiding your money feels like relief, and what it quietly costs youHow to make saving so small you can't talk yourself out of itWhy so many people feel pessimistic about money despite a long bull marketHow the app you use can change what you do when markets dropWhy the best investing strategy is usually the boring oneHow to tell patience from prediction when betting looks like investingHow a founder copes when his body forces him to stop workingIf you've been putting off looking at your accounts, or you're tempted by faster ways to grow your money, this conversation offers a calmer path forward.⏱️ TIMESTAMPSNote: Timestamps may vary slightly depending on dynamic ad placements.(00:00) Over half of young people avoid their money(03:07) Why we avoid money(05:43) How families pass down fear(07:54) Automate investing with spare change(13:32) Why strong markets feel scary(15:57) How apps shape money habits(21:07) Why betting feels so tempting(27:08) Patience versus prediction(28:44) Buy now, pay later pitfalls(31:40) Build businesses that help people(34:56) Noah’s path to Acorns(41:16) Give small shareholders a voice(46:36) When health forces work aside(51:10) Business risks and team building(55:11) Paula’s three key takeaways🔗 RESOURCES MENTIONED👉 AVOIDING YOUR MONEY COST HIM A DECADE. FIND OUT IF YOU'RE AN AVOIDER TOO: https://affordanything.com/fiire👉 Acorns: https://affordanything.com/acorns See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A bond fund that lost 38% feels like proof you should have bought individual bonds instead. But individual bonds would have lost value too; you just wouldn’t get a statement telling you so.Former financial planner Joe Saul-Sehy joins Paula to answer three listener calls. The first comes from an executor deciding whether to move his late father’s $500,000 brokerage account to cash during probate (the court process of settling an estate). The second is from an investor whose bond fund lost 38% in six years, and the third is from a 401(k) plan manager of 23 years who pushes back on Joe’s take on target-date funds.In this episode, we discuss:How an executor can protect an estate’s value without market timingWhy splitting the money 50/50 between stocks and cash can work, if every heir agreesWhy individual bonds lose value when rates spike too, even when no statement shows itHow a bond advertising 6% can still lose you money if you overpay for itWhen a bond fund makes more sense than individual bonds, and vice versaWhy short-term bonds can drag down a long-term portfolioWhether target-date funds are a smart default or a first step to outgrowIf you’re settling a parent’s estate, second-guessing your bonds, or wondering whether your 401(k) default is good enough, this episode gives you a way to weigh the tradeoffs instead of reaching for a one-size-fits-all rule.⏱️ TIMESTAMPS Note: Timestamps may vary slightly depending on dynamic ad placements.(00:00) 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🔗 RESOURCES MENTIONEDOUTGROWING YOUR TARGET-DATE FUND? HERE’S WHICH ACCOUNT EACH NEW FUND BELONGS IN 👉 https://affordanything.com/assetlocationFree executor checklist from Stacking Benjamins 👉 https://stackingbenjamins.com/estateBuy Treasury bonds directly from the government 👉 https://www.treasurydirect.govShare your worst investment mistake for a future episode 👉 https://affordanything.com/voicemail See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#761: Roughly 3 million Americans who own private businesses — car dealerships, beer distributors, dental practices — are collectively worth more than ten times the entire Forbes 400. Most of them didn't start rich, and you've probably never heard of a single one.Economists Owen Zidar (Princeton) and Eric Zwick (University of Chicago Booth School of Business) spent more than a decade linking anonymized tax records to the people who own America's private businesses. They share what they found in their new book, The Everywhere Millionaire.In this episode, we discuss:Why owning all of a small business can rival owning a sliver of a startupWhich unglamorous industries quietly produce the most wealthHow to decide whether to buy an existing business or start your ownHow retiring owners and seller financing (paying the owner back over time) open doors for buyersHow to run cheap experiments so no single failure wipes you outWhen to double down on one business versus diversifyWhat the data says about whether you need to be born richIf you're weighing a steady paycheck against owning something yourself, this conversation shows who actually takes that path, what it demands, and how often it pays off.⏱️ TIMESTAMPSNote: Timestamps may vary slightly depending on dynamic ad placements.(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(01:06:31) Double down or diversify once it works?(01:18:51) Should you leave a high-paying job for this?🔗 RESOURCES MENTIONED👉 Buy a retiring owner's business or build your own? Find the ownership path that fits your money and risk: https://affordanything.com/fiire👉 The Everywhere Millionaire (book): https://link.amazon/B04y1xfaU👉 The Everywhere Millionaire on Substack: https://everywheremillionaire.substack.com👉 The Millionaire Next Door, by Thomas J. Stanley and William D. Danko: https://link.amazon/B01HtGgHg See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.