Get ready to dive in! In this episode, Pete and Damian spare no details exploring our writers’ financial lives. There is far too much to discuss; let’s get into it, post haste!
Can’t listen? Check the Show Notes!
- Scenario: Writer, Jake and his wife bring in over $250,000 jointly, per year. She’s maxing out her 401K, he’s contributing 11% and increasing it by 2% each year. He currently has $20,000 saved, she has $50,000 saved. They are renters at $2100 per month, have student loans, car payments, live in Southern California, and are considering IVF ($20,000) in their family planning. They want to take out a $235,000 mortgage on an investment property.
- Question 1: – Should they make this home purchase or do something else with cash flow? — Pete and Damian have a lot to say about this! Using every bit of information, they present some compelling arguments for not going through with this move. Click PLAY to hear how they dissect the facts!
- Question 2: Pete and Damian help settle a 5-year debate between co-workers: Co-worker #1 says his 401(k) – comprised of 6 funds – is more diversified than the S&P 500. Co-worker #2 believes the S&P is in itself (already) diversified because it’s made up of 500 different holdings. …Who’s right? — Peter swings for the fences saying, “Having a large number of financial holdings…IS in itself a diversity of money, but not diversification of styles. The S&P 500 is not diverse enough to be your only holding.” Listen to understand more about what that means.
- Question 3: A young, 19 year-old student needs to learn how a credit card works, asking: “What happens when you hit your limit? Do you just get more?” — Pete speculates if the absence of “No” has created so many financial behavior issues…
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Click PLAY below to venture down into the details!
Brent Lyle is the Digital Marketing Coordinator for Your Money Line, the financial help line serving all Pete the Planner® Financial Wellness clients. Brent is a marketing wünderkind who delights in telling the story of brands. On nights, weekends, and anywhere in between, you’ll find him lending his skills to a number of charitable organizations.