An anonymous caller feels cornered in a difficult situation with her financially irresponsible mother. She has the ability to assist her, but it doesn’t seem right. What should she do?
Shannon is eager to invest in various overseas companies, but she can only do so through American Depository Receipts. What are these, and how do they function?
Jennifer calls back to provide an update on financing a vacation with a credit card and navigating the rewards system.
Former financial planner Joe Saul-Sehy and I address these inquiries in today’s episode.
Enjoy!
P.S. Have a question? Leave it here.
An anonymous caller asks (at 01:27 minutes): My mother has always spent beyond her means, and it’s finally resulting in serious consequences. My sister and I are very worried.
A few years ago, she and my stepdad purchased a new, larger house complete with a garage and pool. We expressed our concern about them stretching their finances, but they proceeded regardless. Now they’re financially burdened and looking to sell.
Their marriage is also struggling, and my mother is seeking a divorce. In her mid-sixties, she relies on $2,800 a month from Social Security and a small pension, while her husband earns little as well.
A one-bedroom apartment near my sister costs $2,000 monthly. My mother has a car payment, medical expenses, and they have less than $100,000 combined in savings. The figures just don’t add up.
She is reluctant to relocate or downsize further, but neither my sister nor I can accommodate her moving in with us. We reside in high-cost areas, have children, and are managing our own financial priorities, such as saving for college, covering expenses, and planning for retirement.
Both of us are in solid financial situations due to years of diligent work and wise spending, but we’re uncomfortable with the idea of giving her hundreds of dollars each month for years to come.
Yet, she is our mother, and eventually, her crisis becomes ours.
How can we support a parent facing serious financial trouble without her being willing to make necessary lifestyle adjustments? Should we step in now to potentially mitigate long-term financial and emotional impacts?
Would purchasing a rental property for her to live in be a feasible compromise—assisting her while allowing us to build equity?
We are seeking a compassionate, realistic, and sustainable solution.
Shannon asks (at 26:58 minutes): What should I understand about investing in American Depository Receipts, or ADRs?
After a divorce nine years ago, I had to start from square one. Since then, I've accrued $130,000—mainly in retirement accounts that align with the Efficient Frontier—and I’ve saved cash in a high-yield savings account for a home purchase within the next two to three years.
I’m 39 years old, debt-free, and on track for early retirement. Recently, I decided to set aside a small “fun fund” for picking individual stocks—just 2 to 3 percent of my overall portfolio.
I've identified several companies in Finland and Switzerland that I would like to invest in, but here’s the twist: they are not primarily listed on U.S. exchanges. However, both offer ADRs that are traded over-the-counter in the U.S.
And… I’m unclear on what that entails.
I’ve been listening to Afford Anything since 2020 (and I went back to catch up on past episodes), but I can’t recall hearing anything about ADRs. Could you explain what they are, how they operate, and any precautions I should take before investing?
Jennifer shares (at 38:01 minutes): I reached out a few months ago to discuss the potential downsides of charging my vacation costs on a credit card and paying them off later. I value your feedback, and to clarify, you questioned whether I had the funds to pay it back immediately.
Yes, I do. My savings account has more than enough. In the worst-case scenario, I could pay it back right away. Essentially, I was attempting to game the system to invest my money now and defer paying my expenses. I asked about potential drawbacks to this approach, and guess what?
I discovered a downside after all my efforts to work the credit card system and benefit from their 15 or 18 months of interest-free periods—I finally got caught in a trap. For the first time, I was denied a credit card recently because I had opened too much credit in the past 24 months.
Interestingly, the credit score reported by certain bureaus—TransUnion being one—was in the 800s. However, the rejection came from Experian, which reported my credit score around 750. Thus, there was a 50-point discrepancy between the two bureaus.
Anyway, I just wanted to follow
An anonymous caller finds herself in a difficult position with her financially irresponsible mother. Although she has the ability to help her out, it doesn’t sit well with her. What should she consider doing?