Ep. 358: Coronavirus Domino Effects + Pete Was Wrong!

Have a question? Get answers. Email us: askpete@petetheplanner.com

This week on the show we return to the fundamentals: Q&A!  Pete and Damian answer some tough questions. In these trying times, people all over and across income levels are weathering this storm. Let’s all learn to do better, together:

::whisper:: Remember, keep this link in your bookmarks!  HEY MONEY!

Can’t listen? Check the Show Notes!

Show Notes:

  • Submitted Question 1:
    • Tim and his sister were gifted their parents’ +$200k house at their death. It’s in disrepair and in need of renovations. Tim wants a HELOC (Home Equity Line of Credit) to source the funds to do the work, but his sister doesn’t. What alternatives are there?
      • Option 1) They could be both looking at this situation differently or need different things out of it. The amount of the loan makes a major difference in securing a loan to cover these expenses. The current economic environment makes it extremely difficult to get a HELOC.
        Option 2) Try to sell the house as-is, unless the price must be dropped below a critical value.
        Option 3) Do nothing (for now). Large purchases like this are slowing down as people’s fear is. HELOC may not be the best option right now, as there is concern that the house may not sell in this climate..

  • Submitted Question 2:
    • Megan’s financial life is going to take a big hit this year. With her base salary of $75K, + another $75 – 125k from bonuses, their lifestyle is based on a $150-200K per year income stream; not just the base salary she’s likely to only have for 2020.  She fears losing out on her bonuses, doesn’t have much money saved, and is far from having a decent 401k. What should they do?
      • First, let’s understand that Megan is not alone in this. So many people of a variety of income levels are struggling with similar circumstances.
      • She’s got to get extremely intimate with their expenses. They need to acknowledge what is needed and spend appropriately and thoughtfully.
      • Stability is the answer. She hasn’t created stability with this high income. She’s used it to crate a lifestyle she finds stability in when in fact there is no stability within that. Press reset and make some tough decisions. 
  • Submitted Question 3:
    • Should Robert retire this October?



Click PLAY below to find out and to get your special Hey Money offer code!

Leave a Reply

Your email address will not be published. Required fields are marked *