Reaching FINANCIAL FREEDOM in 7 Steps, with Joshua Sheats | Afford Anything Podcast (Ep. #39)

[@bahijarhafiri]

I have been buying some stocks since the beginning of the year, but nothing substantial. Why am I treating this poorly? However, people in the same profession are earning six figures on articles, which inspires me to aim toward becoming the first woman in my polygamous family to hit the million dollar mark. I am perfectly aware that working harder to gain more money is expensive.....

[@GhanYt]

I experienced the same thing; within the year, my growing tech portfolio was completely destroyed.

[@GhanYt]

True, Many people minimize the importance of financial gurus up until they suffer emotional harm. I can clearly recall requiring encouragement to keep my company afloat after a protracted divorce. I looked at license advisors-or portfolio coaches, as some individuals might refer to them-a few summers ago. Fortunately, I came across a diligent individual who helped me significantly expand my reserve, which has since grown from $300k to a stunning $900k despite inflation.

[@GhanYt]

you may search her online with this name ROCHELLE DUNGCA-SCHREIBERine, of course. But I'm not sure if I have authorization to talk about this. She received a lot of media attention in 2020. She manages my portfolio and serves as my mentor.

[@colinpritchard5066]

Stage 0 - Total Financial Dependence. Stage 1 - Financial Solvency. Stage 2 - Financial Stability. Stage 3 - Debt Freedom. Stage 4 - Financial Security. Stage 5 - Financial Independence. Stage 6 - Financial Freedom. Stage 7 - Financial Abundance

[@Dakkaroni]

It starts at 03:50

[@thepumpchumppp]

Thanks 👍

[@carmenlugo1326]

Thanks for the Video clip! Excuse me for butting in, I am interested in your thoughts. Have you heard the talk about - Renannah Tiyily Release (google it)? It is a great exclusive guide for learning how to get the ultimate millionaire mind without the headache. Ive heard some amazing things about it and my good mate called Gray at last got cool results with it.

[@yington]

Thanks for most useful comment by far

[@Marie-cp4yf]

i applied the advice about testing an idea..i just tested the idea 3 days ago without taking too much time on planning. i just did it...i was surprised about the outcome...i was selling sausages that i made from scratch and sold out. and now i got a lot of orders and i cant meet the numbers. i was not ready for it...i was only testing it...but thanks Joshua...ROI is 60%.

[@2legit2Kwit]

Bulking up my savings so I can invest on the lows. I’m also an emotional saver who requires a large emergency fund. This is the first time I have ever heard a financial advisor say that having a substantial savings hedges panicking selling on lows and selling for lifestyle changes. Great stuff!!! Keeping a savings frees you up for an abundance mindset and not a scarcity mindset.

[@jerryredfern76]

I've listened to this interview 3 times in 3 days. Amazing information shared, prompted by amazing commentary questions!! Just what I needed

[@ayofrtho7014]

So you rich yet or nah

[@TheRealJohnMadden]

RPF was the first podcast about finances that I ever listened to and it absolutely kickstarted my journey to financial stability.

[@mabellim8996]

I'm surprised with the contents of this show. I certainly learned a lot shared by Joshua Sheats from a new angle. He's quite a contrarian! I now can make my financial plan more dynamic. Great show, keep up the good work!

[@xxlalbatross3287]

I'm from Sweden and so far I've listened to this interesting interview more than 20 times. Greetings from Scandinavia.

[@Calvertmarian]

Taking early notes from Warren as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.

[@BryanMcCann-ks9jh]

Very true. Despite having no prior investing knowledge, I started investing before the pandemic and pulled in a profit of approximately $950k that same year. In reality, all I was doing was getting professional advice

[@BryanMcCann-ks9jh]

The adviser I'm in touch with is Stephanie Kopp Meeks’’’ She was interviewed on CNBC Television. You can use something else, for me her strategy works hence my result. She provides entry and exit point for the securities I focus on........

[@jasonvaughan8415]

I am shocked by how few views this quality interview has. This is awesome content.

[@1800options]

Jason Vaughan it's a podcast. She gets her views there ...

[@RicharddtheStar]

I agree.

[@storyofscripture]

@@RicharddtheStar she should do video

[@lai7034]

I agree! I've listened to it twice for notes!!

[@reba2876]

Amazing as always, Paula. Listening on repeat. Cheers to everyone here chasing FI.

[@sinatra187]

What I love about this podcast is not only the guests and contents but the questions asked. Keep up the great work

[@2legit2Kwit]

This is one of the best interviews I’ve heard. Going to follow this Joshua Sheats fella. 🙏🏻

[@lylan8737]

Best financial advise i have heard so far from any financial advisor. Thanks for sharing

[@aeksinsang932]

Great- but my personal favorite is JL Collins: simple practical and low maintenance with following 3 core principles

[@purushottamsharma3525]

Thank you for financial advice I am from India Darjeeling listening from you.

[@natalieschreiber1078]

One of the best interviews you've done. Amazing!

[@financialgladiator7490]

Great interview, Paula. Love the breadth of content and topics covered. Even if you have nothing to do with the US the advise is very transferable. Thanks.

[@michaelswami]

Wow. Powerful. Especially loved the discussion of the tax implications of Roth vs Traditional IRA. The notion that you’ll be in a lower tax bracket, or even the same, upon retirement is suspect given today’s environment.

[@evilzzzability]

This guy is a financial planning doyen. His podcast is awesome.

[@kilquik88]

Find it very interesting that he prefers taxable investments but to use a business as a vehicle for tax deductions. He makes a valid argument about a retirement account limiting wealth enjoyment until your 60s. I've thought about that a lot recently. Great discussions!

[@tacrewgirl]

Great interview with lots of good points

[@affordanything]

Thanks! Happy you liked it!

[@JimmyHuynhdesign]

This podcast is exactly what I was looking for!

[@DawitMel]

I like putting money in both Roth and pre-tax accounts in general. As an informed investor, I want to diversify my taxes for the unknown future tax rate that might be different from my current tax rate, either because I get richer (good for me) or the tax law changes. Note that even if your net worth increases in the future, as long as your spending/withdrawal is not more than your current income, you might end up paying less tax because you'll be in a lower tax bracket.

[@lisajackson3743]

I was not ready for the discussion after 1:09:40. This was excellent.

[@millionaire99i]

This is very great information. Never realized how much taxes I actually pay. I'm determined to minimize my expenses and increase my emergency fund.

[@cathleensmith4717]

What step have you made to decrease your basic expenses? Your plans are the same as mine I'm currently learning about investing apps for when i have surplus from decreasing fixed expenses.

[@jn8559]

Roth is a better retirement vehicle if your tax rate at retirement will be higher than the tax rate during the working years. Given the current federal deficits, higher taxes in the future is a likely possibility. It is wise to prepare. If taxes are not higher, I like the flexibility of the Roth.

[@JimmyHuynhdesign]

Correct! I choose a Roth for the security of knowing how much tax I am paying now. Maybe more or less, but at least the tax is locked in and paid for. Another reason is the predictability of my money. I know that all that money is mine and I dont need to factor in taxes when I eventually start withdrawing. Also, I can afford to pay the tax now and not have it bother me since i'm still young and have plenty of time to make more money.

[@t.h.nguyen5193]

Love the interview! I love the number crunching at 59:00 time stamp regarding the Roth IRA. Excellent interview!

[@texastanjore]

OK Paula, at the 1:16:27 mark you state that a Roth IRA will come out ahead of a traditional IRA if the same amount is invested. What you fail to take into account is the opportunity cost/investment of the upfront tax that is paid for the Roth IRA amount. In the example cited in the podcast, if you invest $5K under either scenario, at the 20% tax bracket, you still have to account for the $1K not paid in taxes and which also grows with tax only on the earnings. Roth IRA withdrawals before 591/2 also trigger taxes and penalties on the earnings. The higher the tax rate, the higher the up front tax deduction, the better the traditional IRA .

[@philistineau]

This is the same guy that said not to marry a career woman because you don’t want competition with your own career. He tried to argue that specialization of tasks justifies having someone at home to wash dishes. We’re not talking about high skill labor people. I married an attorney who makes a solid 6 figure salary. That means we can both retire sooner.

[@eldogg4life]

That, "You don't?" when Joshua says he doesn't use a 401k and IRA made me laugh. What a genuine moment.

[@silo3com]

The hostess voice tastes like silk in my ears

[@underdogprime]

Insightful, Informative and very valuable. Thank you.

[@boyztoyz6583]

Thank you for all of the content you post. I follow you a lot and I love your show. It seems you do not get the attention you deserve in the industry, in this forum.

[@tamarsnir3324]

One of the best episodes!

[@yashodhanphatak5382]

Regarding the traditional vs roth, I think roth is a better choice when withdrawals are considered. In traditional one has to withdraw more to pay the taxes owed vs roth one can withdraw the amount needed. In case of roth more money will be preserved in the retirement account during withdrawal and it can keep growing with compounding effect. Only exception to this would be one is withdrawing the amount upto standard deduction and not paying any taxes. Given that I also agree with Joshua's point that contributions to roth means less money available to you currently and that could lead to stiffer lifestyle choices.

[@askvanita]

I am a BIG FAN of Paula & Joshua Sheats. YOU GUYS ROCK !!!

[@LifeAs_Kiki]

Life changed ❤️❤️❤️ great interview

[@DaMainDiSh]

Has anyone heard of a Roth Conversion Ladder?! Look it up! You don’t have to wait till you’re 60 to access your 401k, just 5 years!

[@toddray275]

Love Love Love the show! I am late to the Dance but boy did you make me stomp my feet.

[@Orunk777]

Dope podcast!!!

[@sararush6951]

Can’t find his app. Anyone know if there is anywhere I can find his content?

[@KRscience]

Joshua Sheats is full of wisdom!

[@idiocracyishere4531]

And noise

[@jonm80]

Regarding the ROTH IRA, wouldn't it be better to go the ROTH IRA route rather than a traditional as this would have a more 'fixed' tax rate? Who knows what the tax rate will be like in 30-40 years. The rate might change as you continue to invest, but at least your whole retirement wouldn't be taxed at that later rate.

[@DrDianeThompson]

Great content!

[@ntuthukongema4823]

Thank you for this.

[@lylan8737]

Great. I don't get why i put most of my money in an account that i can't access it until im 65. Who garentee i will be alive or if im alive what would i do with that money. Travel the world or pay doctor bill. What would be my quality of my life. Why use that money to invest in assets and live a rich life.

[@BFArch0n]

The difference with the roth is that it doesnt matter what your finances look like when you retire, you pay zero tax. It will never be more than the 20 % example you gave. It's more flexible.

[@qmakesithappen]

This was amazing, Paula sounds so automated that I was confused lol. 1st vid watched from this channel and I'm subbing! Keep the content coming.

[@michaelweyenberg6238]

She does sound like a computer. fast and monotone

[@joenzegang1305]

Even her laugh sounds pre-recorded.

[@MeMe-wz5hv]

Really quality information. Finally.

[@jting10777]

Not everyone can contribute to a tax deductible traditional IRA due to stricter income limits so contributions to a backdoor Roth IRA is the only option after maxing out the 401k contribution limit. Further Roth IRA does not have a minimum distribution limit after turning 70 years old so that the investment can grow tax free forever until death or till it gets passed down. It's also uncertain whether income tax rate will be higher or lower in the future but given the historical trend it's likely to be higher so that Roth IRA would be a safer bet to make sure there are no unexpected reduction of avalible income in retirement.

[@quartytypo]

After being retired early for a while you begin to understand that working wasn't so bad.

[@manishkothule3078]

Really nice, details one, good one

[@kristaladcock7194]

Came here because I ran out of madfientist and mmm episodes .. not disappointed.

[@joshuamorris2908]

Learned so much thx for sharing!

[@congxdinh]

You can take money out from IRA by using the 72T distribution without the 10% penalty. I still contribute to the 401k so company match while taking out from IRA on the other side. This way you can balance what to take out versus what you put in and not 401k rich and cash poor.

[@qwertykid18]

59:00 is gold 👍🏻

[@jorgeferreiro9783]

The downside of contributing to a 401k is that the money is taxed as income at age 70 when RMDs are taken out. In an index fund in a conventional account the tax drag is minimal (0.5% per year) and you don't have to take a RMD and therefore can pay lower taxes.

[@timstrand2523]

@1:04 when running through a Roth vs traditional scenario why do you make the assumption that taxes 40 years from now will be the same? I know you can't determine what they will be, but to assume they will be flat seems unlikely. With a smaller percentage of the population in the workforce it would seem likely down the road that taxes increase. So any percentage that you tick taxes up over time disadvantages the traditional account, giving in my opinion an edge to the Roth.

[@malimish]

"Most people should be able to go to the top 4% of their field." Ummm... That does not calculate. The concepts are great. But this statement is very contradictory.

[@jayg1438]

65% of people think they are above average too....

[@brianmcgrath5977]

Of course only 4 % can be in the top 4% 65 % of people could be above average. Only 50% can be above the median.🤓

[@aeksinsang932]

SHOULD be able, but don’t put in the work self improvement or are too lazy

[@malimish]

The point is even if they put in total effort and no one was lazy, this mathematically can not happen. Because 'most' means greater than 50%. No where close to 4%.

[@rebeccajones9757]

I am at stage 3. I want to be at stage 5.

[@nappyscribe1987]

Wonder how I could put this interview on my channel?

[@mikepalkocpa576]

Except Roth IRA's don't have an RMD, Traditional IRA's do

[@sammyalabamy111]

1:10:53 So true, people connect money to consumption. People buy this, buy that, buy here, buy there, everywhere, not knowing where the money is going or coming... Then the product just goes in the attic, garage, closet... then have to pay for a storage unit.

[@idontwantachannelimjustcom7745]

Are you more likely to hit the lottery or retire as a best selling author?

[@CRCCPastor]

Totally agree about the retirement system in the U.S. (around 51:00).

[@llouvakates]

1:09:32 wise words

[@SimplyDafDaf21]

2nd time listening!!!

[@prasendiprasendi3074]

Menit 27 sampai 31 tentang pentingnya punya uang cash dan tidak menginvestasikan semua

[@vulpixelful]

"Leisurely morning with the kids" that's a man's description alright

[@thomasreedy4751]

Smh. Financial Independence for the day trader? No IRA? No 401k??? These accounts cannot be accessed without penalty??? All you need is a 5 year buffer of savings/investments to access your 401k penalty free. Better to max out your ROTH IRA, Roth 401k to get a buffer of contributions so you can crack your regular 401k. And did we factor in tax on dividends on a taxable account? So are we saying that it is better to invest in a taxable account at the same initial cost of a Roth with additional tax added on?

[@candecarro]

I am 73, living from my isocial security, and my investments: monthly income from a personal loan of $280,000, and real estate LLC investments of $430,000.

[@SenorJuan2023]

Sheats happens.

[@28jonmark]

So i just listened to this and I am baffled by one particular point about 55 minutes to an hour in. There is the discussion about Roth vs. Traditional. I do not understand why Joshua Sheats would say that the Roth can have more money put into it because you 'pay taxes on that money from a different source'. Really? You think that is not giving the Roth calculation an unfair, supposed advantage? Can someone help me understand how you can put more into the Roth by paying the taxes on that money from another source? I always believed you could put more into a traditional because you didn't have to pay taxes on those dollars. Secondly, while I know the benefits of the Roth allow for no RMDs if you don’t need them as well as allowing you flexibility in withdrawing contributions without tax or penalty, how can he say they are equal in retirement given a pre and post tax rate being the same? You put in the contributions avoiding your highest marginal tax rate and you get to pull out the traditional at an average/effective tax rate which ALWAYS will be less. Why is that point not made? I personally advocate for having 50-50 between the two accounts or perhaps 60-40. Thanks for helping me understand the nuances perhaps that he is trying to make.

[@imageadvisorsinternational7935]

17:16

[@CEsquivel91]

51:20 Spot on the 401K. That's why I don't contribute myself.

[@darbyohara]

The story about the couple with 100k in checking is just stupid. Money management is based on numbers and data more than feelings. Earning little to no interest is foolish. The correct advice is to compromise for both and split the difference and leave 50k in and invest the other 50k.

[@fatiic4841]

What he said about ROTH was just not true!

[@DerivCapital]

Roth's hv income and contribution limitations ...par. Whole Life ins contracts do not!

[@pegasus8873]

So you basically bully people into doing what you want even if they are not comfortable with the decision? I’m more convinced than ever to not trust a financial advisor. It’s not what you make, it’s what you save. Trusting the market makes Wall Street wealthy.

[@gert-jank8992]

This is a commercial.

[@Nate1975]

a few thousand dollars a month to live on? expenses low? doesnt add up. who has thousands a month to live on?

[@anthonymatteson8218]

HE SAYS YOU PAY THE SAME AMOUNT IN TAXES ON A ROTH IRA AS A TRADITIONAL. THIS IS AN ASSUMPTION BECAUSE HE HAS NO IDEA WHAT THE TAX RATES ARE GOING TO BE OR WHAT TAX BRACET PEOPLE WILL FALL UNDER. IF YOU ARE 25 AND IN THE 12 PERCENT BRACET THEN YOU MAY OWN A BUISNESS OR BECOME A DOCTOR AT AGE 35 OR 40 AND BE IN A MUHC HIGHER TAX BRACET, THERFORE PAYING TAXES NOW WOULD SAVE YOU MONEY. YOU CANNOT ASSUME BUD

[@AB-qo2xq]

Your first question is so generic...

[@m.a.i.a6430]

23:00...if people did this this for real.. You be an atheist!!!

[@Abridoda]

Weird robot like voice. How you listen to this?

[@philistineau]

God. This is some terrible advice. You could do Roth conversions once you retire. By definition 96% of people will not be in the top 4%. The business tax stuff is all Rich Dad Poor Dad nonsense. The power to not pay tax on earnings is huge. In one you pay $1000 in tax, the other $30,000+. The percentage is the same BUT THE COST IS WIDELY DIFFERENT. If you can afford the $1,000 tax up front, you gain $30,000 tax free at retirement. That is a huge benefit especially if you are saving and will have taxable income.

[@manuel25mco]

Intro was too long, wasted time

[@LMCEK]

This interview was painful to listen to. I got about 38 minutes in an had to stop. The host calling the guest's answers 'nuanced' was a polite way of saying that he didn't make any affrimative statements. His voice kept droning on and on but he wasn't actually saying anything. Basically, he leaves it up to you to decide for yourself what to do because after all, he doesn't know your personal situation. Non advice at it's best.

[@idiocracyishere4531]

Lissa K you nailed it, he talks a lot and doesn’t say anything

[@marshhen]

You just cannot tolerate someone not speaking in ABSOLUTES. You want dogma to blindly follow. You do not want to have to interpret and apply principles for yourself. There are plenty of dogmatic retire early people out there.Go listen to that and follow their rules if that reassures you.

[@idiocracyishere4531]

I stopped listened by to this guy because he talks too much

[@aeksinsang932]

You’re listening to an audio podcast, jackwagon 😆

[@joseph2707]

This guy is dishonest. "Recognize you're going to have far more money than you need. Make sure you're prepared for it." This is true for almost no one. This was a complete waste of time! At least you got a comment out of it and a thumbs down.