#568: Jason is confused by the recent discussions about the efficient frontier and Paul Merriman’s four-sector strategy. It seems a lot like another form of stock-picking. What’s the difference?

Michelle straddles the Roth income threshold and is frustrated that she never knows if she’ll qualify for a Roth contribution until tax season. Is her current savings plan too complicated?

Evan has $100 to spend on personal finance books for his high school’s library. What books would Paula and Joe put on this limited shelf space?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

P.S. Got a question? Leave it here.

For more information, visit the show notes at https://affordanything.com/episode568

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#567: What happens when an astronaut goes blind during a spacewalk?

For Chris Hadfield, this wasn't a hypothetical scenario. While working outside the International Space Station, cleaning solution from his helmet visor spread into both eyes, leaving him completely blind in the vacuum of space.

His response? Stay calm and methodically evaluate options. He could call Houston. He could have a crew member rescue him. He could try to cry to flush out his eyes - though that's tricky in zero gravity.

This story opens our conversation with Polina Marinova Pompliano, former Fortune Magazine reporter and author of the new book "Hidden Genius."

Through her interviews with high-performers across fields — from astronauts to investors to extreme athletes — she uncovers patterns in how people handle uncertainty and build resilience.

Take trust, for example. Reid Hoffman's formula is simple: Trust = Consistency + Time.

It's not enough to show up sporadically when it's convenient. Trust builds through meeting deadlines, following through on commitments, and maintaining clear communication — even during challenges.

Reliable consistency compounds over time, much like interest in an investment account.

Or consider Charlie Munger's approach to beliefs. Rather than defending positions "to the death," he argues you should only claim to believe something if you can argue the opposition's viewpoint better than they can. This forces you to genuinely understand different perspectives rather than just reflexively disagreeing.

The conversation explores how people navigate major setbacks, from Conrad Anker surviving an avalanche that killed his climbing partners to Polina's own experience of quitting Fortune magazine right before COVID hit. A key theme emerges: resilience isn't about avoiding difficulty, but about training yourself to handle it through small daily practices.

Former Navy SEAL David Goggins calls this "callusing the mind." By deliberately doing one uncomfortable thing each day - whether that's running in the rain or having a difficult conversation - you build your capacity to handle larger challenges. The goal isn't to become superhuman, but to expand your comfort zone step by step.

Other topics include:

- How immigrant experiences shape risk perception

- The shift from institutional to individual trust in media

- Reframing "failure" as redirection

- Building competence as an antidote to fear

- Finding signal in the noise of information overload

Enjoy the conversation!

For more information, visit the show notes at https://affordanything.com/episode567

Resources:

• James Clear Episode 156: https://affordanything.com/156-how-to-build-incredible-habits-with-james-clear/
• Annie Duke Episode 281: https://affordanything.com/281-the-art-of-decision-making-with-annie-duke/
• Annie Duke Episode 424: https://affordanything.com/424-the-power-of-knowing-when-to-walk-away-with-annie-duke/

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#566: Jackie is sold on Paul Merriman’s “Four Funds” approach, but she’s overwhelmed by the logistics of diversifying her single fund portfolio.. What are the best practices to redistribute her investments, handle taxes, and manage rebalancing?

Heidi’s mother recently passed and she’s struggling to decide between distribution options, their tax implications, and investment options for the annuity she inherited. 

An anonymous caller and her husband want to buy a second home, pay for their children’s college, buy a car in cash, travel well, and save $3 to $4 million for retirement. How do they prioritize and manage their competing goals?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

P.S. Got a question? Leave it at https://affordanything.com/voicemail

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#565: When Codie Sanchez worked in finance, she wasn't planning to buy a laundromat. But facing 60-70 hour workweeks and realizing she didn't want her boss's job, she started looking for an exit strategy. Instead of buying a fancy car during her "midlife crisis," she purchased that first laundromat - a decision that would lead her to acquire multiple laundromats, car washes, and other local businesses.

Codie joins us to break down how regular people can buy and run profitable local businesses, even without previous ownership experience. These "Main Street" businesses - think laundromats, car washes, landscaping companies, and other local services - often generate steady cash flow without requiring complex technology or massive scale.

She shares eye-opening stats about business ownership in America: while 80 percent of Americans owned a business in the 1800s, today that number has dropped to just 6 percent. Meanwhile, private equity firms have increased their ownership of small businesses from 4 percent in 2000 to 20 percent by 2020.

But there's good news for aspiring business owners. Codie breaks down 21 different ways to finance a business acquisition, from seller financing to equipment loans. She explains that 60 percent of businesses sell with some form of seller financing, making ownership more accessible than many realize.

Want to avoid common pitfalls? Codie introduces her RICH framework:

- Research: Define what type of business fits your goals and skills

- Invest: Get skin in the game, but never risk bankruptcy

- Command: Use systems and metrics to avoid accidentally buying yourself a job

- Harness: Build toward bigger goals if desired

She emphasizes starting small — master one business before attempting to build an empire. A successful acquisition requires understanding the "roadmap to making money" - the 5-7 key steps that drive profit in any business.

The numbers tell an encouraging story: while 90 percent of startups fail within 10 years, small business acquisitions have a 75-95 percent success rate. Codie attributes this to buying proven business models rather than starting from scratch.

Perhaps most importantly, she challenges the notion that "boring" businesses can't generate serious wealth. From a roofing company founder becoming one of the world's wealthiest women to a garbage collection entrepreneur building a billion-dollar enterprise, Main Street businesses have created numerous millionaires and billionaires.

Want to learn more? Check out Main Street Millionaire.

For more information, visit the show notes at https://affordanything.com/episode565

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#564: Our economy just gave us two big surprises that shape how we'll do business and invest in 2025.

Our job market is going through major changes. Sure, we added 227,000 jobs - way more than anyone expected. Healthcare and hospitality are booming. But here's what you need to watch: our unemployment rate just climbed to 4.2%. When you look at how many people are joining or leaving the workforce, you'll spot some interesting signals about where we're headed.

You've probably heard about these new trade proposals making waves. They're targeting our biggest trading partners - Mexico, Canada, and China. Let's talk about what tariffs really mean for your wallet. Some industries win, others lose. Your grocery bill? That might change. Your job prospects? That depends on your industry. We'll help you connect these dots.

This matters because you need to know how these shifts affect your money, your job, and your business decisions. Our markets are changing. Our policies are evolving. But when you understand what's happening, you can make smarter moves.

Join us as we break down these economic changes into practical insights you can actually use.

For more information, visit the show notes at https://affordanything.com/episode564

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#563: Bitcoin is hitting new all-time highs. Is this just another bull cycle, or are we witnessing a fundamental shift in how the world thinks about money?

That's the question at the heart of our conversation with Tatiana Koffman, General Partner at Moonwalker Capital and author of "The Myth of Money."

Koffman joins us to explain why Bitcoin might be considered "digital property" rather than just a currency. She breaks down how Bitcoin derives its value from mathematical scarcity – similar to how gold becomes harder to mine over time, Bitcoin becomes more difficult and expensive to create every four years through events called "halvings."

The conversation moves through several key developments in cryptocurrency. We discuss the recent approval of Bitcoin ETFs and how traditional financial institutions like JPMorgan Chase (whose CEO Jamie Dimon once openly criticized crypto) are now embracing these products. Koffman shares insights about crypto adoption worldwide, from El Salvador's experiment with Bitcoin as legal tender to Dubai's emergence as a crypto hub.

When discussing Africa's cryptocurrency landscape, Koffman explains how Nigeria's unstable banking system has driven crypto adoption, with many young people using decentralized exchanges to participate in global markets. She describes how some Nigerians have built significant wealth starting from nothing, using "airdrops" (free tokens given to early adopters) to begin trading.

The interview includes a debate about inflation rates and economic data reporting, with Koffman expressing skepticism about official figures, while I push back on claims made without supporting evidence.

Koffman also explains different categories of crypto investments, distinguishing between Bitcoin as a potential store of value and what she calls "meme coins" – speculative assets she compares to gambling. She provides context about stable coins, particularly USDC and Tether, and their role during the Silicon Valley Bank collapse.

For those interested in investing in cryptocurrency, Koffman suggests starting with exposure to Bitcoin through regulated platforms like Coinbase or ETFs, while emphasizing the importance of proper security measures. She explains concepts like "cold wallets" and "seed phrases," comparing them to different levels of bank security.

Looking ahead, Koffman discusses cryptocurrency's potential role in reducing dependence on the U.S. dollar, particularly in developing economies, while acknowledging the challenges of creating stable alternative currencies.

Find Koffman's weekly newsletter at mythofmoney.com or follow her on Twitter and Instagram @TatianaKoffman

For more information, visit the show notes at https://affordanything.com/episode563

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#562: More than 90 percent of people who ask to get their credit card annual fee reduced are successful. Yet most people never ask. 

Why? They assume the answer will be no.

Matt Schultz, the author of “Ask Questions, Save Money, Make More,” joins us to explain the psychology and tactics behind successful negotiation. 

The key insight: companies want to keep your business. Banks, employers, and service providers invest in long-term relationships because it's more profitable than constantly finding new customers. 

This gives you more leverage than you might think.

For credit cards, Schultz points out that calling the retention department directly (rather than general customer service) often leads to better results. He shares his own experience of getting his $600 annual fee cut in half just by making a yearly call.

With mortgage negotiations, Schultz suggests getting quotes from 3-5 lenders on the same day, since rates change frequently. A quarter-point rate reduction on a $360,000 mortgage saves $20,000 over the life of the loan. The fees themselves can differ by $5,000 between lenders.

When it comes to workplace negotiations, Schultz recommends keeping a weekly log of your accomplishments. Note both your regular duties and times you went above and beyond. This creates a strong foundation for salary discussions.

The most effective negotiations frame requests as win-win scenarios. Instead of just asking for tuition reimbursement, explain how additional education will help you contribute more to the company. Rather than demanding a lower rent, offer to sign a longer lease that reduces the landlord's vacancy risk.

Schultz emphasizes building relationships during negotiations. The person at the call center has likely dealt with angry customers all day. Being pleasant and making a human connection can lead to better outcomes.

The interview also covers negotiating with family members about money, choosing when to negotiate versus pay full price (like at charity shops or with small businesses), and how to time requests effectively. 

The common thread: success comes from understanding the other party's interests and finding ways to align them with your own.

This episode will show you how to save hundreds — or thousands — in your regular spending, simply by asking. 

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: Most people fear asking for discounts/negotiations

(1:37) Keep weekly notes of work accomplishments for better negotiations

(3:38) Companies want long-term customers - use this as negotiating leverage

(6:04) Credit card fee negotiations - 90% success rate when asking

(8:36) How to negotiate mortgage rates and compare lender quotes

(13:15) Open-ended questions get better results than yes/no questions

(19:41) How to handle pushy mortgage reps who bash competitors

(26:41) Tips for millennials who hate phone calls but need to negotiate

(31:17) Framing tuition reimbursement as benefit to company

(39:19) Building rapport during negotiations vs being aggressive

(44:42) When to walk away from difficult negotiations

(49:20) Negotiating with small businesses vs large corporations

(54:53) Red flags in workplace negotiations

(58:38) How companies signal if they value employee growth

(1:06:38) Final thoughts on customer lifetime value and negotiating power

For more information, visit the show notes at https://affordanything.com/episode562

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#561: Joanne is confident that her short and long-term financial plans are set, but she’s not certain about the medium-term. What’s the proper way to allocate money for different time horizons?

Jessie is intrigued by Paul Merriman’s simple portfolio recommendations but wonders about his lean away from growth stocks. Are value funds generally better for everyday investors?

Nancy is worried she’ll miscalculate her financial independence number because her net worth includes pre and post-tax money, plus liquid and illiquid investments. What’s the right approach? 

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

For more information, visit the show notes at https://affordanything.com/episode561

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.

(00:00) Joe, did your clients severely miscalculate their own FIRE number?

(03:14) Joanne

(31:42) Jesse

(47:00) Nancy

P.S. Got a question? Leave it at https://affordanything.com/voicemail

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#560: Bill Bengen, the former rocket scientist who discovered the "4 percent rule" of retirement planning, joins us at the Bogleheads conference in Minnesota.

Bengen clarifies that calling it a "rule" is misleading since it doesn't fit everyone's situation. The 4 percent figure came from studying the worst-case scenario since 1926, when someone who retired in 1968 could only safely withdraw 4.2 percent annually. Out of 400+ retirees in his database, that was the only one who had such a low safe withdrawal rate — most could take out much more.

Recent research has pushed the "safe" withdrawal rate closer to 5 percent. But Bengen identifies eight key factors that affect how much you can withdraw, including how long you'll be retired and whether you're drawing from taxable or tax-deferred accounts.

For early retirees planning for 50-60 years, Bengen says the safe withdrawal rate asymptotically approaches 4.2 percent — meaning even with an infinite time horizon, it won't drop below that. He thinks the common advice to use 3 percent for early retirement is unnecessarily conservative.

Bengen shares what he calls the "four free lunches" in retirement planning:

1. Using an equity glide path (reducing stocks at retirement, then increasing later)

2. Diversification across asset classes

3. Regular portfolio rebalancing

4. Slightly overweighting higher-returning assets like small-cap stocks

When it comes to market drops versus inflation, Bengen has clear advice: Don't panic during bear markets — they typically recover. But if you hit extended high inflation early in retirement, it's time to "head for the bunkers" and cut expenses drastically.

Beyond finance, Bengen shares his excitement about space exploration as a former rocket scientist who graduated from MIT just months before the moon landing. He hopes to live long enough to see humans reach Mars and believes space tourism helps people appreciate Earth's beauty and fragility.

The interview ends with a light-hearted discussion about whether Pluto should still be considered a planet (Bengen still calls it one, out of habit) and speculation about future tourism to Saturn's moon Titan once the sun's expansion makes it warmer in a few hundred million years.

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 Paula introduces Bill Bengen, creator of the 4% withdrawal rule

2:19 Bengen explains how the 4% rule represents a worst-case scenario from 1968

10:14 Bengen warns against using a fixed percentage withdrawal method, as it could lead to dangerously low income in down markets

17:32 Discussion of the "smile" pattern in retirement spending - high at start, dips in middle, rises at end for medical costs

23:22 Bengen shares the four "free lunches" in retirement planning, including equity glide path and diversification

34:25 Conversation shifts to bonds and stocks no longer being inversely correlated in 2022

35:44 Deep dive into Black Swan events and how to prepare for unpredictable market crashes

42:14 Bengen advises when to panic (inflation) and when not to panic (bear markets) during retirement

49:20 Analysis of spending categories that rise faster than inflation, like healthcare and housing

51:27 Bengen discusses graduating MIT in 1969, just before the moon landing

51:56 Conversation turns to current space exploration and plans for Mars missions

53:39 Bengen speculates about future tourism to Saturn's moon Titan

54:17 Light-hearted debate about Pluto's planetary status

Resource Mentioned

https://affordanything.com/377-how-i-discovered-the-4-percent-retirement-rule-with-bill-bengen

For more information, visit the show notes at https://affordanything.com/episode560

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#559: An anonymous caller, whom we name “Samantha,” and her husband are financially strained and feeling torn. Shortly after purchasing two rental properties, their income dropped dramatically. Should they sell?

Tina is a full-time environmentalist. She’s worried that her index funds don’t align with her values on sustainability. Is there a world where she can be a savvy investor and fight climate change?

Another anonymous caller, whom we name “Sarah,” is excited and uncertain about her growing business. Should she hold steady or invest more resources into it? And how does she know if she’s making the right call?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

P.S. Got a question? Leave it at https://affordanything.com/voicemail.

For more information, visit the show notes at https://affordanything.com/episode559

The Efficient Frontier:

Join Joe for an exclusive live session all about the efficient frontier (aka the secret sauce of smarter investing). This 90 minute online event is Thursday November 21st at 8pm ET / 5pm Pacific. Head on over to http://stackingbenjamins.com/efficient to grab your spot.

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#558: What happens when you spend three decades talking to retirement experts? You learn that most of what people think they know about retirement planning is oversimplified or wrong.

Christine Benz, director of personal finance and retirement planning at Morningstar, joins us on the Afford Anything podcast to share what she's discovered after 31 years of interviewing experts across personal finance, tax planning, and Social Security.

One key insight: The standard advice about withdrawing 4 percent of your portfolio annually in retirement misses the mark. Real-life spending isn't that simple. In your 60s, you might spend more on travel. By your 80s, healthcare costs often rise.

Benz suggests creating separate "pots" of money for different purposes - like a travel fund you aim to deplete within your first decade of retirement.

Want to protect against market crashes early in retirement? Benz recommends keeping 5-8 years of planned withdrawals in cash and high-quality bonds. This prevents having to sell stocks during downturns.

We talk about why retirement doesn't need to be all-or-nothing. Instead of going from 40 hours to zero, Benz describes how many people benefit from a phased approach. This might mean keeping the parts of your job you enjoy while dropping the rest, or finding new ways to use your skills.

The conversation shifts to housing choices. While many assume retirees move to Florida or Arizona, the data shows most stay put. Those who do move often end up near their oldest daughter. And while single-family homes tend to make people happier until around age 75, apartment dwellers report more satisfaction after that — largely due to increased social interaction.

Benz shares her own retirement planning process. Despite being a retirement expert herself, she works with an hourly financial planner who tells her she'll likely struggle to spend as much as she could in retirement. It's a common problem — after decades of saving habits, many retirees find it psychologically difficult to spend their money.

The interview wraps up with a discussion about relationships in retirement. Research shows that while older adults often have smaller social circles, these relationships tend to be deeper and more meaningful. They've pruned away the "good enough" friendships to focus on their closest connections.

Benz's insights come from her new book "How to Retire" and her work at Morningstar, where she creates free model portfolios and hosts The Long View podcast. Beyond the financial aspects, she emphasizes that successful retirement planning involves thinking about purpose, relationships, and how you want to spend your days — not just your money.

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 What 30 years of retirement expert interviews reveal

1:34 Why spending in retirement is harder than saving for it

3:12 Beyond money: need purpose, not just leisure

4:00 The challenge: planning for an unknown time horizon

8:52 Should market fears delay your retirement?

13:42 How much cash and bonds to keep safe

15:49 When bonds don't protect against stock crashes

18:33 Phased retirement: keep what you love, drop what you don't

29:24 Take mini-retirements throughout your career

33:20 Spending shifts: from travel to healthcare costs

46:14 Why most retirees don't actually move

57:31 After 75, apartment living beats houses

1:00:42 Friendship patterns change: quality over quantity

1:04:58 Virtual vs real-life connections

1:06:25 Where to find more info

For more information, visit the show notes at https://affordanything.com/episode558

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