Ep. 379: The Economic Chaos Coming This Holiday Season

HAVE A QUESTION? GET SOME EXPERT ANSWERS.EMAIL US: [email protected] this episode of the Pete the Planner Show, Peter and Damian realize that the show is so good, we’ve got return visitors! There are actually people who have emailed us back! Don’t forget! HEY MONEY is your new secret weapon for advice in your personal finances. No time to listen? BUMMER. Here’s some of what happened: Show Notes: Question 1: “I was previously featured on episode 291. I bought a home in New Jersey for $148,000 with $1110 monthly payment on the $114K mortgage at 2.75%. My other expenses come to $400 per month. I’m making $47,000 per year, hoping to increase my income in the future. My Roth IRA is up to $34K now, and my student loans are down to $11K at 3%. A 1-year emergency fund is about $20K to me, so what do I do with that money?“ Pete: She lives well within her means and is incredibly stable. What should she do? With relief options available, wiping out student loan debt wouldn’t be the highest item on my list. Damian: She’s got some opportunities as this point. with nearly two years of savings sitting there waiting. She could get rid of student loans entirely. She could max out funding retirement accounts. And she’s not in a rush, not even being 30 years old yet. Question 2: “Bryan here again…my girlfriend and I, both 26, currently lease an 700 sq. ft. apartment in Westchester, NY for $2600 per month. For our next place, I’ll be working from home more due to COVID-19. We want more space now, so I see our options as rent a 2 BR apartment for $3K per month, but hearing of a possibly disastrous rental market coming. Or purchase a townhome, running at least $750K with 15% down, and 3% interest, for a monthly fee of about $4K per month. I’m hesitant to commit due to other homeownership costs and our short-term interest in a house. What do you two think?“ Damian: I would not want to be tied into an interest-only mortgage with all that’s coming. Renting is the only answer here. Pete: I hate interest-only mortgages with a passion. Ask the landlord for a month-to-month agreement for added flexibility. Tune in for the featured segment. The light-hearted conversation about the serious topic of finances never stops! Click PLAY below for the full show.