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!

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…

Something Special

• REMEMBER: We’re rolling out a new thing! Hey Money – our new service for everyone! Get instant access to financial experts whenever you need it to help you solve your toughest (or easiest) money conundrums. Get on the Hey Money Launch List for EXCLUSIVE first access. The Launch List is the only way to access Hey Money for the first few weeks when we launching in early February.