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An anonymous caller, whom we name “Samantha,” and her husband are financially strained and feeling torn. Shortly after purchasing two rental properties, their income dropped dramatically. Should they sell?
Tina is a full-time environmentalist. She’s worried that her index funds don’t align with her values on sustainability. Is there a world where she can be a savvy investor and fight climate change?
Another anonymous caller, whom we name “Sarah,” is excited and uncertain about her growing business. Should she hold steady or invest more resources into it? And how does she know if she’s making the right call?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it here.
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Anonymous asks (at 04:08 minutes): My husband and I are feeling the strain of owning two vacation rentals after a major hit to our income. Should we sell one of our properties or exit the rental game altogether?
We bought our first cabin in 2020 and it’s been easy to maintain. It nets us $10,000 to $14,000 annually with $80,000 in equity. The second, bought in 2023, has been more challenging. We have little to no equity and don’t anticipate any profit for the next two to three years.
We used a $60,000 Home Equity Line of Credit (HELOC) for the down payment and it’s unclear how or when we’ll have the HELOC paid off. We bought it because it’s next door to the first. We hoped for easier management and portfolio growth, with plans to keep them both for decades.
Our first property’s profit allows us to break even collectively, while the HELOC’s principle remains untouched. Paying off the HELOC quickly would’ve been easy a year ago, but we’re currently dealing with significant financial strains.
My husband made an intentional job change to pursue a passion, but it comes with half his previous salary. Additionally, my old position was terminated unexpectedly. I took a small pay cut for a new job I enjoy, but I have less time for my real estate business.
Without my $15,000 to $30,000 annual commissions as a realtor, our ability to pay off the HELOC is in jeopardy. My husband’s new career path could lead us to move around the country and increase our income significantly but there’s no guarantee.
With so much up in the air, what should we do?
Tina asks (at 33:43 minutes): I’m very interested in personal finance. I also care a lot about the environment. Can these things coexist?
I’m 20 years away from retirement, and I want the world to remain accommodating and nice when I retire. Many indexes invest in coal, gas, and other environmentally detrimental companies that contribute to climate change.
What’s your take on this? Are there companies, index funds, mutual funds, or ETFs that prioritize growth and environmental consciousness? I’ve always been concerned about this, but it seems like this topic has been gaining more traction recently.
Are there better options for people like me and how do I sort through them?
Anonymous “Sarah” asks (at 51:54 minutes): How do you know when the time has come to invest in business growth, specifically, in a podcast?
I started a spirituality-based podcast in August 2022 and it’s steadily accumulated 2,300 subscribers. With minimal marketing, the podcast has grown 19 percent since the beginning of this year.
I do everything, including editing, social media, and guest research. I make money from the podcast by using it to promote products and services that I offer outside of the podcast.
I’d love to be an entrepreneur and work on the podcast full-time, but I’m conscious about not leaving my 9-to-5 until the business can support me financially.
Any tips on knowing when to step it up? Did you invest in a business or podcast coach in the early stages of your business? Are there key indicators I should look out for to know when it’s time to invest in the growth of this budding small business?
SPECIAL ANNOUNCEMENT
The Efficient Frontier:
Join Joe for an exclusive live session all about the efficient frontier (aka the secret sauce of smarter investing. This 90 minute online event is Thursday November 21st at 8pm ET / 5pm Pacific. Head on over to http://stackingbenjamins.com/efficient to grab your spot ————————————————————————————————————————————————————
Resources Mentioned:
Database of environmentally-friendly ETFs: Environmentally Responsible ETF List
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