The guys tackle five great listener questions today. For full answers listen to the episode below.
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I have noticed that you tend to be drinking beer on each of the podcasts, let me just first say, fuck I’m jealous.I would like to know what kind of job I can get that will let me drink beer in the morning (without the whole judgey this guys probably an alcoholic vibe). If you do respond to this email please don’t use my name as my current job frowns on asking questions like these.
This question is great. You have to work for yourself or work for some hipster-ass startup that has beer on tap all the time. But even then they’ll probably give you the stink eye if you’re drinking it at 8 a.m.
Do you feel Lending Club is still a prudent investment given the recent scandal issues they’ve run into? Is that something we can ignore, or will it have long-term impacts on the business and the quality of loans? I’m considering a 50/50 split of my available investment funds between Betterment and Lending Club (in addition to my 401k where I’m already contributing 12%). – Matt
So, a little background in case you didn’t hear. LendingClub CEO Renaud Laplanche resigned after it was found that the company had altered application dates on some large loans. It was also found that Laplanche “failed to fully disclose to the company’s risk committee a personal interest he held in a third party fund while the company was considering an investment in the same fund, which purchased LendingClub loans.” Tisk-tisk
With that said, after deeper digging and a full internal analysis of company reporting, it was found that 99.9 percent of loans were above board. Since, the companies stock has plummeted but their loans were not effected.
Many people were fired so the few bad eggs are gone. Although Andrew lost money with his stock, he still has some money invested in loans. Thomas thinks he will wait this one out and see if and when the company gets back on it’s feet.
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Need advice on relative who’s saying we owe them money So to make a very long story short I’ve been married 4 years and late last year my wife & I became debt free and were well on our way to saving up a down payment for an investment property.
Last night I find out that my mother-in-law is demanding a large sum of money from my wife. Instead of being like a normal family where parents actually help their children, she kept every receipt from when my wife was age 18 onward (she’s 36) and now wants to be paid back. The list includes things like brakes on my wife’s first car and new basketball shoes from her senior year.
My wife never signed anything but apparently verbally agreed at the time to payback some of this money. I realize that from a legal stand point we probably owe nothing but I feel as though morally we are responsible for whatever my wife agreed upon. Just where should the line be drawn?
We can probably all agree that this is a pretty terrible parent. At first glance, the situation can make you cringe, but you have to ask yourself, what is really going on here? Is her mom desperate for money or is she just crazy. Keeping receipts for 18 years shows intent, like she has been waiting deviously to cash out.
Staying out of it would be the easiest thing but because they are married paying back this loan will be effecting both of them. The guys think that the most important aspect is to try an salvage the relationship. Sit down and have a talk with the mom and try to come to some sort of middle ground. If she needs financial help she should just ask and they can figure it out together. Don’t lead with anger and find her intent before making any moves.
My name is Matthew, I’m 25 and just recently married and am on my way to having my first child. I have been looking at buying a house for the last few months but after recently finding your podcast and listening to them non stop I’m not sure if I’m heading in a bad direction.
We don’t have a lot of debt besides one car. I have a good credit score and make around 70 thousand a year while my wife for now makes roughly 24 thousand a year until the baby arrives but we don’t have a lot in savings. The loan I was looking into is a navy federal loan which is 0 down with no mortgage insurance but 5 percent interest, which sounds a bit high.
Price wise I’m looking into 230 to 275 thousand dollar homes with no HOA or at least very low. I’m wondering if I should just go for it with that loan or rent and save up. I’m also looking into betterment for my retirement but that’s a whole other deal. Thanks for your time. -Matt
First, 5% isn’t inherently bad but I think you’re looking at the wrong number. It’s really a monthly payment/cash flow decision. If you buy a 230k home with 0 down and no PMI you’re looking at a monthly payment of about 1,430.
Sure it’s affordable about your joint income, but I don’t know your spending/saving situation. Also, with a child on the way, you’ll have considerably more expenses so something to consider.
My biggest worry is your current saving situation. Do you have anything saved at this point? Don’t get caught up in the false need to own a home. In most cases owning the home, you live in is a terrible investment compared to most everything else.
Owning a bank $200k+ is nothing to take lightly. I’d think long and hard about why you’re doing this now. Being that your so young it may make more sense to stay flexible and save. Then you can always upgrade/downgrade your lifestyle without the burden of this crazily expensive house.
Hey guys! Just started listening to your podcast. I am loving it! I have never invested before and am hoping to start. One of the problems I have with mutual funds is that I don’t know all the companies I am investing in. Do you have any advice on finding more “green” mutual funds? Thanks so much! -Annie C.
There are a few companies that bundle groups of companies in funds based on their ideology. Motif is an online broker that build buckets of stocks or ETFs to reflect an investment theme or innovative trend. You can choose a prebuilt one or build your own.
Hey LMM, Currently I am struggling with getting myself to use money for fun. I am using my income to the maximum capacity to pay off a car loan, save for retirement, save for a future graduate degree and fund my current degree. It’s all productive but I’m stretching things too thin and have difficulty spending money on fun things like travel.
Not sure if others get caught up in making their money work for them in different ways and forget to have fun with it. Looking for some strategies to make sure I save for fun things.
For the love of beer,
There are many people with this same problem. They are generally very financially secure but also want to lets say travel more. Once they feel financially secure, its hard to start spending money on fun things because they fear they will veer off course.
Start by allocating time for fun and find some free or cheap actives you enjoy. There are so many fun things to do that don’t cost a lot. You should work hard and play hard; that’s why Thomas recommends high-density fun. Few people look back at their life and think they should have spent more time working.
We also recommended looking into the Southwest Companion Pass. It will allow your significant other, mom, sister, etc… travel for free with you for five years with minimal effort. Effectively combining traveling and saving, perhaps tricking your brain into letting you play responsibly. Worst case you just take all those savings and buy a rental property in another state – it will force you to travel!
Thank you to FreshBooks for sponsoring this episode.
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