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#729: The U.S. added 57,000 jobs in June. Economists expected 115,000.

Meanwhile, inflation hit a three-year high. The Personal Consumption Expenditures index - the Fed's favorite inflation gauge - jumped 4.1 percent year-over-year.

That combination creates a problem. Weak jobs usually push the Fed to cut rates. Hot inflation pushes them to hike. In this First Friday episode, we break down which way the Fed might lean at its September meeting, and why traders see an 80 percent chance rates stay frozen for now.

We also dig into Kevin Warsh's debut as Fed Chairman. His first official statement ran only 132 words, one of the shortest in Fed history. He cut forward guidance – the practice of making guesses about what the Fed will do next. He removed the names of dissenting voters. His statement mentioned price stability but skipped maximum employment, and we explain why that omission matters.

Central banks around the world moved in the opposite direction. The European Central Bank raised rates for the first time since 2023, responding to a 10.9 percent surge in energy prices. The Bank of Japan hiked rates to their highest level in 31 years. Australia, Norway, Indonesia, the Philippines and Israel joined in. Brazil was the only country to cut rates – down to 14.25 percent.

We cover China's consumer spending decline, the first since the pandemic ended, driven by a 16.1 percent drop in auto sales and a real estate crash that drained middle-class wealth.

We end the episode with a deep dive into NYC's rent freeze – who gets the benefit, and who pays the price?

⏱️ Timestamps:

Note: Timestamps will vary on individual listening devices based on dynamic advertising segments.

(00:00) US Job Market Cooling Off

(04:52) Fed’s Stance on Interest Rates

(07:29) New Fed Chair Kevin Warsh’s Priorities

(17:21) Global Interest Rate Hikes

(21:47) Impact of Stable US Rates & Global Trends

(26:24) Inflation Data and Predictions

(30:38) Consumer Sentiment: US vs. China

(40:00) NYC Rent Freeze: History, Policies, and Today

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#728: What do you do when you suddenly have $850,000 and no idea what to do with it?

GET TOTAL CLARITY ON WHERE EVERY DOLLAR BELONGS 👉 https://affordanything.com/cornerstone

On today’s Q&A, one caller recently inherited $850,000 from his mother. He's already wealthy, earns over $500K a year, and has a solid net worth — but he's anxious, lost, and doesn't want to make a decision he can't undo. Paula and Joe walk him through exactly what they'd do.

Then, a federal law enforcement officer responds to Jane from episode 722. He pushes back on our diagnosis of her stress — and makes a compelling case that it's not the mandatory retirement age that's the problem. It's the minimum. He shares how he's survived the final stretch of a career he no longer loves, and what he'd tell Jane about the years she still has ahead.

Finally, a caller who is pregnant, recently promoted, and about to have a very hard conversation with her employer. She wants to go part-time after maternity leave — but HR is bureaucratic and the stakes are high. When should she ask? How should she ask? And should she be saving differently right now just in case they say no?

Mentioned in today's episode:

Interview with Family Law Attorney Aaron Thomas https://affordanything.com/episode582

Full show notes at https://affordanything.com/episode728

Download the Four Cornerstones worksheet to see exactly where every dollar belongs https://affordanything.com/cornerstone

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727: Not sure what your next money move should be? Start with the free FiiRE Playbook 👉 https://affordanything.com/fiire

Dr. Julia Garcia is a psychologist, behavioral researcher, and author of The Five Habits of Hope — and she's spent years studying why smart, hardworking people stay stuck.

What if the biggest thing standing between you and your financial goals isn't your income, your debt, or the housing market — but your own brain?

I sat down with Dr. Garcia to unpack the neuroscience of hope, why apathy is more dangerous than despair, and the five habits that can rewire your brain — and your relationship with money — for good.

(00:00) Hope is not a feeling — it's a cognitive process

(05:00) The real reason you can't save money (it's not imposter syndrome)

(08:11) Hopelessness vs. despair — and why the difference matters

(13:05) The biggest danger isn't despair — it's apathy

(21:10) How avoiding feelings leads to avoiding financial decisions

(23:45) The "maybe" technique that interrupts negative thought loops

(39:26) Habit 2: Risk — why comfort is killing your courage

(54:59) Habit 4: Receive — why you can't hold onto wealth you don't feel worthy of

(01:01:41) Habit 5: Repurpose — seeing worth where others see waste

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#726: Hey, we're mixing it up today with a super deep dive. We normally go fairly deep on this show, but today we're going even deeper and turning one caller's question into a case study.

Download the Four Cornerstone Worksheet to follow along: ⁠www.affordanything.com/cornerstone⁠

An anonymous caller is reevaluating their finances after a series of health challenges, caregiving responsibilities, and major life changes. With most of their wealth tied up in retirement accounts, they’re wondering how to balance tax advantages against the need for greater flexibility and access to their money.

We spend most of the episode answering this question in deep detail. At the end of the episode, we talk to another caller whose HOA hit her with a massive unexpected bill.

She bought into an HOA, turned her former home into a rental, and years later was hit with a surprise $15,000 special assessment—with only months to pay and no payment plan available. Now she's wondering why the risks of HOA ownership, especially the possibility of massive special assessments, aren't discussed more often—and what prospective buyers should know before purchasing in an HOA community.”

We'll dig into that in today's episode.

Resources:

Download the Four Cornerstone Worksheet: www.affordanything.com/cornerstone

7 Expensive Mistakes Real Estate Investors Make: http://afforanything.com/mistakes

Video: Japan's Soccer Fans with Blue Bags

Video: Norway's Vikings Fans on Escalator

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#725: Most people assume their financial advisor is legally required to put their interests first. That's not always true.

Andrea Baumann Lustig, a wealth advisor with 30 years of experience, joins us to walk through the blind spots she sees most often in legacy planning -- the deeply held beliefs that quietly undermine people's financial futures.

We start with something most people never think to ask: how is your advisor actually registered?

There are three categories.

Registered representatives (stockbrokers) are held to a "best interest" standard - but they don't have to disclose when they earn a higher commission for recommending a specific investment.

Fiduciaries are held to a stricter standard - they must put your interests ahead of their own.

And 45 percent of advisors are dually registered, meaning they can switch between those two standards depending on which account they're discussing with you.

Most clients have no idea this is happening.

From there, we dig into what Lustig calls the "quarterback" problem. Many people have a financial advisor, an estate planning attorney, an accountant, and an insurance agent - but those specialists never talk to each other. Without someone coordinating the full picture, opportunities get missed and risks go unseen.

We also talk through what happens when people try to manage everything themselves, why having multiple investment advisors can actually backfire (think: wash sale rule violations and hidden concentration risk), and why a revocable trust matters even if you don't think you're wealthy enough to need one.

Lustig explains the three Ps a revocable trust protects against - probate, incapacitation, and privacy - and why even people in their 30s and 40s should consider setting one up now.

The conversation closes with advice for small business owners on how to think about a business that might not be sellable - and how to plan around it anyway.

Timestamps:

Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths.

(00:00) Intro

(04:52) Three types of financial advisors explained

(07:11) Fiduciary vs. best interest standard

(13:21) Dangers of dually registered advisors

(17:26) Why you need a planning quarterback

(22:42) Risks of using multiple investment advisors

(35:10) Who benefits from holistic wealth management

(38:50) The three Ps of a revocable trust

(42:19) Returning to the blind spots overview

(45:40) Risks of managing money yourself

(55:13) Key questions to ask a new advisor

(1:03:34) Index funds vs. active management

(1:10:04) Asset allocation and rebalancing strategy

(1:19:10) Legacy planning for small business owners

(1:25:54) How to spot your own blind spots

Resources:

Book: Legacy on the Line: Overcome Blind Spots to Grow and Transfer Your Wealth by Andrea Baumann Lustig

Free download: The FiiRE Playbook

Share this episode with a friend, colleagues, and your estate attorney: https://affordanything.com/episode725
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