Afford Anything

#601: Nick and his wife have $100,000 to invest, but theyre worried about the volatility of the current stock market. Should they look into alternative investments such as private equity?

Even though Roth IRAs come with tax-free withdrawals in retirement, Josh is worried about his tax bracket going up and neutralizing the benefits. Is he right to be concerned?

The retirement portion of Cindys financial three-legged stool is set, and shes now focused on her taxable brokerage. What investment strategy will allow her to be work optional in 10 years?

Former financial planner Joe Saul-Sehy and I tackle these questions in todays episode. Enjoy!

P.S. Got a Question? Leave it at https://affordanything.com/voicemail Learn more about your ad choices. Visit podcastchoices.com/adchoices

#600: Jillian Johnsrud was falling apart. After suffering a miscarriage, she couldn't pull herself together to return to her job as a youth pastor in DC. She decided to take a month off.

That unexpected break became Jillian's first "mini-retirement" — a deliberate step away from work for at least 30 days to focus on something meaningful. 

Today, Jillian is a mom of six who has taken more than a dozen mini-retirements with her kids, who currently range in age from 8 to 17. 

During her first mini-retirement, she and her best friend piled into her green Honda Civic and drove from DC to Seattle, leaving her 13-year-old son Micah at home with her husband.

A couple years later, Jillian took Micah, then 15, to Glacier National Park in Montana for another mini-retirement. They saw mountain goats, kayaked together, and swam in ice-cold waters. 

This trip created irreplaceable memories. Sadly, Micah died six years later. 

His death changed how Jillian sees time. She now understands that meaningful moments don't wait for perfect timing - they either happen now or vanish forever. 

Waiting for "someday" might mean missing chances forever. 

This drives her philosophy about mini retirements — life contains fleeting seasons that we either embrace now or miss entirely.

"To be able to share those memories with him there is priceless," Jillian tells us.

This understanding shapes her approach with her other children too. From a 10-week road trip to 10 national parks in a pop-up camper to a recent six-month journey across the eastern United States with her five younger children (now ages 8-17), Jillian prioritizes experiences that fit each season of family life.

Planning your own mini retirement? Jillian recommends focusing on four key areas: managing your time (pick just 2-3 priorities), addressing career logistics (craft a compelling story for your employer), saving money (about 6.5 percent of your income for a month off every other year), and preparing for emotional revelations.

Jillian emphasizes the importance of separating your mini retirement fund from long-term retirement savings. This separate fund, which she calls the "in-between bucket," allows you to spend freely on experiences now rather than postponing all enjoyment until traditional retirement age.

As Jillian puts it: "You can't postpone every good thing in your life."

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

(0:00) Introduction to mini-retirements (0:59) Definition of mini-retirement: stepping away from work for 30+ days to focus on something meaningful (3:03) Jillian shares her first mini-retirement story after experiencing personal loss (8:28) Taking time off to enjoy important life moments before they pass (12:12) Jillian's trip to Glacier National Park with her son Micah before he passed away (20:33) Four components of planning a mini-retirement: time, career, finances, unexpected challenges (34:14) Time management: choosing 2-3 clear goals rather than trying to do everything (42:39) Career strategies: how to present your mini-retirement to employers (1:01:29) Financial planning: saving 6.5% of income for monthly breaks every other year (1:14:34) Handling unexpected challenges that arise during your time off (1:20:01) How mini-retirements reveal personal issues you've avoided through work (1:33:32) Jillian's recent family adventures with five children Learn more about your ad choices. Visit podcastchoices.com/adchoices

#599: Becky and her husband are about to semi-retire. But the four percent retirement withdrawal rule doesn’t make sense for them. Are there other financial frameworks they should explore?

Kris is excited about a potential boost in local real estate values when the World Cup comes to town. Will this have any significant impacts on his property? 

Peyton’s parents are pressuring her to buy a house, but she’s worried this will cripple her early retirement goals. Is she right to be concerned?

Former financial planner Joe Saul-Sehy and I tackle these questions in today’s episode. Enjoy! P.S. Got a question? Leave it here (https://affordanything.com/voicemail)

For more information, visit the show notes at https://affordanything.com/episode599 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#598: Tax day is approaching, and if you're like most people, you might be overlooking deductions that could save you money.

In our latest podcast episode, tax strategist Natalie Kolodij joins us to reveal common tax misconceptions and share strategies that could potentially lower your tax bill.

"The tax code is 70,000 pages," Natalie explains. "There's so much. So I really like to have people focus on a handful of things to be mindful of."

For W-2 employees who often have fewer tax advantages, Natalie highlights several overlooked deductions. If you live in a state without income tax (like Florida or Washington), you can deduct sales tax instead — especially on major purchases. Don't forget about personal property taxes on vehicles, boats or RVs either.

Medical expenses can be deductible, but only amounts exceeding 7.5 percent of your adjusted gross income. Natalie suggests consolidating elective procedures into a single tax year to maximize this benefit.

Charitable deductions offer surprising opportunities too. Miles driven while volunteering, expenses from fostering animals, and even home renovation materials donated to organizations like Habitat for Humanity can all qualify. Natalie also explains how "bunching" donations in alternate years can significantly increase tax savings compared to giving the same amount annually.

The interview tackles major misconceptions about selling your primary residence. While many believe living in a home for two years makes all gains tax-free, Natalie clarifies that any "non-qualified use" periods (like when it was a rental property) can still be taxable.

For small business owners and real estate investors, Natalie recommends tracking all business-related expenses — even seemingly minor ones like industry-related books or educational materials. She emphasizes the importance of proper record-keeping and having separate accounts for business expenses.

As we navigate tax law changes following the recent election, Natalie's advice rings true: maintain flexibility in your tax planning and consider working with professionals who specialize in your specific situation.

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

(0:00) Intro to tax day discussion (2:46) Common tax savings for W-2 employees (4:12) Standard vs itemized deductions explained (5:46) Often forgotten property tax deductions (6:58) Sales tax deductions for no-income-tax states (9:06) Medical expense deduction thresholds (12:53) Charitable giving strategies and overlooked deductions (17:51) Bunching donations in alternate years (22:20) Home sale tax exclusion misconceptions (30:44) Tax withholding changes and common mistakes (44:35) Bonus payment tax myths debunked (52:52) Finding the right tax professional (1:02:02) Small business and real estate investor tips (1:09:38) Best practices for tax record keeping (1:15:14) Preparing for potential tax code changes

For more information, visit the show notes at https://affordanything.com/episode598 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#597: A recession is coming, and it might be worse than most people expect. That's the sobering assessment from Bob Elliott, former Head of Ray Dalio's Investment Team at Bridgewater Associates, when he joins us on the podcast.

Bob explains that several economic factors are converging to create challenging conditions. The combination of current trade policies, persistent inflation issues, and a Federal Reserve that's constrained in its response is creating significant economic headwinds.

Tariffs play a central role in this economic outlook. While their inflationary impact remains debatable, their growth-negative effects are more certain. When imported goods become more expensive, consumers have less money to spend on other things. This reduces demand across the entire economy.

Manufacturing and reshoring aren't simple solutions either. Bob points out that building new factories takes about five years, with payback periods stretching 30 years. This timeline explains why CEOs hesitate to make such investments, especially in an environment where policies change unpredictably.

This uncertainty has driven CEO confidence to its lowest levels since the 2008 financial crisis, further complicating economic prospects.

For individual investors, Bob offers surprisingly straightforward advice. Despite his sophisticated background managing billions, he follows a simple personal investment strategy: dollar-cost averaging and diversification. He even limits himself to reviewing his investments just once annually — typically the Wednesday before Thanksgiving.

This disciplined approach prevents overtrading and removes emotion from investment decisions — principles that apply whether you're investing regular income or handling a windfall.

Throughout our conversation, Bob emphasizes that the US economy fundamentally runs on consumer spending. When policies redirect money from discretionary spending toward necessities, the effects ripple throughout the entire system. Want to hear more of Bob's insights on recession probability, investment strategy, and economic policy? Listen to the full episode now.

Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. (0:00) Introducing Bob Elliott, former head of Ray Dalio's investment team at Bridgewater (2:56) Bob discusses high probability of recession due to growth-negative policies (7:00) Tariffs likely growth negative in short-term despite long-term manufacturing goals (14:20) Transition from global supply chains to parallel and redundant manufacturing systems (19:50) Four economic levers: tariffs, tax policy, monetary policy, and government spending (26:15) Stock market reacts to short-term expectations despite positive long-term outlook (34:15) Bond markets performing well as growth slows; potential recession duration of 1-1.5 years (45:40) Long-term productivity growth creates wealth despite short-term volatility (53:15) Dollar-cost averaging and diversification recommended for individual investors (59:15) Bob discusses founding GiveWell to identify highest-impact charitable giving (1:11:10) Bob explains Unlimited Funds, making hedge fund strategies accessible to everyday investors

For more information, visit the show notes at https://affordanything.com/episode597 Learn more about your ad choices. Visit podcastchoices.com/adchoices