Home Financial Advice #507: How One Ex-Inmate is Constructing a Higher Future

#507: How One Ex-Inmate is Constructing a Higher Future


Suzy is happy to deploy her first company bonus however scared to speculate every thing in a lump sum. Ought to she persist with what’s labored up to now and simply greenback cost-average?

Meghan doesn’t perceive how inventory pricing impacts capital appreciation. Is it at all times higher to purchase when share costs are low?

Robert was just lately launched from jail and needs to begin his life on the appropriate foot. What’s Joe and Paula’s recommendation for him?

Former monetary planner Joe Saul-Sehy and I sort out these three questions in at present’s episode.

Take pleasure in!

P.S. Acquired a query? Go away it right here.


Suzy asks (at 04:23 minutes): I’m about to get my first giant company bonus. Ought to I make investments the lump sum or greenback price common into the market?

I’ve been a sluggish and regular saver for my total profession, and because of greenback price averaging, I’m in good monetary form for retirement.

I’m on monitor to max out my 401k, HSA, and SEP IRA for the yr, so the majority of the cash shall be put right into a post-tax funding account.

Letting the cash sit in a financial savings account for a protracted whereas doesn’t attraction to me. Then again, greenback price averaging over a shorter window doesn’t really feel like greenback price averaging in any respect.

How ought to I feel via this?

Meghan asks (at 22:33 minutes): How do the variety of shares and the worth per share of a inventory relate to capital appreciation and compounding?

With all issues being equal, is it higher to spend money on an index fund whose shares are cheaper than in an index fund whose shares are costlier?

Say I’ve two totally different index funds that monitor the whole inventory market. If one fund’s shares price $200 and the opposite prices $100, is it higher to purchase the fund with the cheaper shares?

It appears it’d be the identical as a result of the returns would develop as a share, however I’m questioning if there’s one thing else to think about.

Robert asks (at 41:10 minutes):  I’m 24 years outdated and just lately launched from jail. I wish to transfer out of my mother’s home inside a yr.

As soon as I begin working, I plan to avoid wasting $510 per week. I additionally wish to begin investing in index funds after I meet my financial savings targets.

I wish to get into actual property ultimately, probably shopping for foreclosed properties to get began. However first I must get my life on monitor.

What’s your recommendation for just lately launched or present inmates who take heed to this podcast? Extra importantly, what’s your recommendation for me to get my life began?

Assets Talked about:

Work Alternative Tax Credit score | Inner Income Service (irs.gov) | Web site

About | U.S. Division of Labor (dol.gov) | Web site

listen to afford anything on itunessubscribe on android afford anything

Because of our sponsors!

For those who’re searching for superb expertise to bolster your staff, you want Certainly. Go to certainly.com/paula for a $75 job credit score to improve your itemizing and begin hiring at present.

Diversify your small business by promoting bodily and digital merchandise via Shopify’s all-in-one platform. Go to shopify.com/paula for $1/month trial and get full entry to Shopify’s total suite of options.

Quince presents a variety of high-quality gadgets at costs inside attain. Go to Quince.com/paula without spending a dime transport in your order and 365-day returns.

Monarch Cash
Monarch is the top-rated, all-in-one private finance app. It provides you a complete view of all of your accounts, investments, transactions, money move, internet value, and extra. Go to monarchmoney.com/paula for an prolonged 30 day free trial.

Supply hyperlink


Please enter your comment!
Please enter your name here