Bethany's partner is keen on investing a significant portion of their finances in gold and silver, but there's a lack of discussion surrounding this type of investment. Should this be seen as a warning sign or a possible opportunity?
Diana fears she might be saving excessively for her children's education, having set aside hundreds of dollars a month since their birth. How can she tell when to stop?
Wendy's pension and Social Security benefits will fully cover her essential expenses during retirement. Is the four percent rule applicable to her discretionary savings, or are there alternative strategies?
Joe Saul-Sehy, a former financial planner, and I address these inquiries in today’s episode.
Enjoy!
P.S. Have a question? Feel free to leave it here.
_______
Bethany asks (at 02:01 minutes): I’m in my mid-thirties, calling from Australia. My partner and I, who have been together for over five years and mostly share our finances, are considering a more unified investment plan. He comes from the U.S. and is particularly drawn to investing in gold and silver. He has little faith in the stock market and prefers to dedicate as much of his funds as possible to precious metals. I seldom hear discussions about gold and silver investing, so I’d appreciate your insights. What should we consider, what potential issues might arise, and what common mistakes should we avoid—aside from storing large quantities of these metals?
Diana asks (at 27:23 minutes): How can I determine the right time to stop saving for college? We have three kids, ages 13, 11, and 7, and I’ve contributed $600 monthly per child—totaling $1,800—to their 529 accounts since their birth. We currently have $150,000 set aside for our oldest son, who will likely start college in four to five years. If we can provide additional funds through cash, should I reduce or halt my contributions with the assumption that the account will grow enough by the time he needs it? Am I saving excessively? What factors should I consider?
Wendy asks (at 48:17 minutes): How should asset allocation be adjusted when part of your retirement income is guaranteed versus relying solely on a savings nest egg? Do traditional withdrawal methods, such as the four percent rule, still apply? My husband and I aim to retire at 59 and a half with a conservatively managed fund until we reach 65. After that, we will have $100,000 yearly from pensions, adjusted for inflation, and an additional $70,000 from Social Security, which will cover our basic needs—housing, healthcare, food, transportation, and minimal discretionary expenses. Beyond that, we have a flexible budget of $100,000 to $125,000 each year for extensive travel, gifts for our children, and maintaining our current $300,000 standard of living. Since this expenditure is discretionary, we can modify it during economic downturns. A typical strategy involves holding 50 to 75 percent in equities like a low-cost index fund, with the rest in safer assets like bonds or cash equivalents. However, if the lump sum isn't required for essential expenses and acts as a flexible source for discretionary spending, is there a better investment strategy for long-term growth without taking on too much risk? Should we include bonds in our portfolio, or would a four-fund efficient frontier approach be more advantageous? Additionally, we have $2 million in real estate equity that we haven't incorporated into our retirement planning but could consider downsizing if necessary. How should this factor into our investment strategy?
Thanks to our sponsors!
Indeed
If you're seeking exceptional talent to enhance your team, you should try Indeed. Head to indeed.com/paula and start hiring today.
Policygenius
Visit policygenius.com for free quotes and comparisons from various insurers. With Policygenius, you can discover life insurance policies starting at just $292 annually for $1 million in coverage.
Wayfair
Wayfair is your ultimate destination for all home-related needs, regardless of style or budget. Check out wayfair.com or the Wayfair mobile app for holiday discounts.
Square
Square allows you to grow your business at your own pace and even set up an online store with just a few clicks. Enjoy up to $200 off Square hardware when you sign up at square.com/go/paula.
Pestie
Pestie eliminates over 100 types of pests, from spiders to scorpions. Safeguard your home from insects with Pestie. For a 10% discount on your order, visit pestie.com/PAULA.
Shopify
Expand your business by selling both physical and digital products on Shopify’s all-in-one platform. An entrepreneur makes their first sale on Shopify every 28 seconds! Go to shopify.com/paula for a one-dollar-per-month trial for one month
Bethany's partner is interested in investing a significant portion of their funds in gold and silver, yet discussions about this type of investment are scarce. Should this be considered a warning sign or a possible opportunity?