Afford Anything Podcast — January 6, 2026
Episode: Q&A: We Want to Save Senior Dogs … But Should We Sell Our Rental to Do It?
Host: Paula Pant | Guest: Joe Salsihai

Overview:

This episode’s central theme is about aligning your money decisions with your real dreams and values. Paula Pant and Joe Salsihai tackle three in-depth listener questions—each caller is at a crossroads that brings together personal finance with big life choices, including the desire to open a senior dog (and cat) sanctuary, Roth conversion decisions in early semi-retirement, and optimizing savings/investments before a year-long backpacking adventure.

1. Should I Sell My Rental to Fund a Senior Dog Sanctuary?

(Caller: Victoria [Anonymized], 01:59–29:43)

Caller Background:

• Age: 39, married
• Emigrated to the U.S. 3.5 years ago
• Soon-to-be debt-free ($100k paid off)
• Ready to ramp up retirement savings (Roth IRAs, HSA, solo 401k)
• Owns two properties:
  • One current rental (about $100k equity, presently $200/mo negative cash flow; likely to flip to +$600/mo as a voucher rental)
  • Primary residence (will become a rental)
• Dream: Buy land and open a sanctuary for senior dogs and cats; fund operational costs with on-site Airbnbs

Options Victoria’s Considering:

1. Sell rental, use equity to launch the sanctuary
2. Refinance rental, pull out $30k, reduce interest rate (currently at 10%) & monthly payment, and achieve some positive cash flow
3. Sell and use funds for down payments on two cheaper rentals, and max out Roth IRAs/HSA
4. Sell and split proceeds: buy established cash-flowing business AND fund sanctuary

Key Points & Insights

Nonprofit Funding and Due Diligence (06:02–13:26)

• Paula: "You don’t necessarily need to self-fund the entire project... There’s a lot of assistance out there for people who want to start nonprofits." (06:02)
• Look for endowments, grants, and individual donors—not just your own money.
• The journey of starting a nonprofit is hard but has plenty of resources (referenced Scott Harrison of Charity: Water).

Elimination Framework (08:16–14:51)

• Joe: "I would not begin a separate business… You presumably have none of the skills around the business you’d purchase… Surprises happen. It’s a lot of time and effort." (08:44)
• Joe’s Rule-Outs:
  • Avoid starting/purchasing a separate business (too distracting, high risk unless you have experience, not passive).
  • Avoid using proceeds to buy more rentals now — you need liquidity.

Remaining Options: Sell vs. Refinance

• Joe's Vote: Sell for a bigger, safer cash cushion to fund your dream. "The knowledge is more important than keeping this property." (14:51)
• Paula's Vote: Refinance and retain the property due to a 9% total return. “If the property is a funding source for the sanctuary, it doesn’t need to be co-located—any property generating income can serve that role.” (18:05–19:15)

Actionable Homework (13:26, 19:44)

• Paula:

  1. Speak to 10 founders/leaders of similar animal nonprofits.
  2. Learn from their struggles, scaling, stability, and differences from for-profits.
  3. Examine IRS 990 forms for similar nonprofits — review their revenues, expenses, executive salaries, and how they're structured.

• Memorable Moment:
  “I actually… looked up their 990, and then I called the founder and director, Jackie... I had a conversation with her on the phone, and I told her: hey, I looked up your 990, and based on that, I have a couple of questions.” —Paula, on diligence (21:56)

Broader Advice—Retirement and Emergency Fund (26:49–29:43)

• Fully prioritize building an emergency fund and robust retirement savings.
• Joe: Keep a firewall between personal and nonprofit finances: “So many entrepreneurs violate that consistently… it becomes this furnace. It’s insatiable.” (28:04)
• Leverage outside funding for the sanctuary to ensure you’re not constantly sacrificing your retirement.

Final Takeaway

• Both options 1 and 2 (sell or refinance) are good; avoid options 3 & 4.
• Celebrate major debt payoff; prioritize retirement, and "let the heart lead and the mind follow" when it comes to your dream project.

2. Roth Conversion Strategy for a 51-Year-Old Considering Semi-Retirement

(Caller: Gwyneth [Anonymized], 34:37–48:15)

Caller Background:

• Age: 51, single, healthy; targets Social Security at 70
• Assets: $1.2M taxable, $1M traditional, $1M Roth, $60k HSA; salary through mid-2026
• Side business just launched
• Conservative retirement target: $3.3M (already very close)
• Wants Roth conversions: lower future RMDs, flexibility, avoid tax spikes

Main Concerns:

• What if I don't have enough cash to pay Roth conversion taxes?
• Pitfalls of too much in pre-tax versus Roth?
• Framework to consider taxes, health insurance, IRMAA, timing

Key Points & Insights

Cash Flow First, Conversions Second (39:26–40:56)

• Paula: “The first thing… is how do we manage your cash flow once you depart from this job in mid-2026?”
• Budget for Roth conversion tax bills before committing to large conversions.

Tax Diversification (41:00–43:27)

• Joe: "Gwyneth, you're in an awesome place because you already have so much money sitting in the Roth position. Now you can worry about IRMAA, health care subsidies... But I would not be upset if you began retirement with this 50/50 split."
• Tax triangle is perfectly balanced—which is rare and flexible for different tax regimes.

Roth Conversion Timing (44:10–45:55)

• Use lower-income years (after leaving W2) to ramp up conversions when your tax rate will be lower.
• Paula: "I'd be much more worried about 2027."
• Set aside after-tax (brokerage) funds for taxes if you wish to continue conversions.

RMDs and Bracket Filling (45:55–48:15)

• Ideal amount to keep pre-tax: just enough to fill lower tax brackets, not so much RMDs spike your taxes/IRMAA.
• Joe: "Don’t save the money in the pre-tax account until you have to take it out. Keep a lid on how large your pre-tax problem would be."

Broader Reflections

• Seek purpose and alignment in your next work phase.
• “I love being able to see people do the things that they want to do and not the things that they have to do.” —Paula (48:15)

3. Financial Strategies Before a Yearlong Backpacking Adventure

(Caller: Soyman, 52:27–69:17)

Caller Background:

• Age: 25, $70k salary in a high-cost city, ~60k invested, no debt
• Plans to max 401k (traditional), Roth IRA, and save in brokerage; projects $100k invested before trip
• Saving aggressively—expense ~$2k/month
• Wants to hike the “calendar year Triple Crown” (AT, PCT, CDT) in 2027
• Strategy:
  • Earn enough for Roth IRA contribution via side gigs
  • Convert ~$21k from traditional to Roth (at zero/negative effective tax)
  • Cover shortfall by selling $7k from brokerage (total budget $10k for the year)
  • Minimize taxes, optimize for far-term goals like farmland in ~10 years

Key Points & Insights

Tax Optimization vs. Lifestyle Flexibility

• Paula: “Don’t be so hung up on doing everything in the financially optimized way that you undercut or undersell this year that you spend hiking." (58:04)
• For the Roth conversion and tax-gaming: sounds fine, but confirm with a tax pro. (55:14)
• Don’t shortchange adventure for the sake of squeezing every optimization.

Investing for Intermediate-Term Goals (60:03–60:56)

• Joe: For the farmland/10-year money, equities are appropriate: “Treat it like ten-year money, not one-year money.”
• For the $10k trip fund, keep enough in cash/CDs to avoid liquidating investments at a loss during your hike.

Behavioral Caution for Super Savers (64:16–64:55)

• Paula: “The Achilles heel of being a super saver in your 20s… is a tendency to live in the future at the expense of the present. Plan for the future, yes—but don’t live in it.”

Quick Technical Notes (60:56–63:59)

• When doing Roth conversions, “sell in taxable, buy same investment in Roth,” investment timing matters only in the long run.
• Don’t overthink “market highs/lows”—the transaction is mostly a tax event, not a change in investment risk.

Memorable Quotes:

• “Let the heart lead and the mind execute, not vice versa.” —Paula (68:09)
• “Everyone who called in today has big goals.” —Joe (59:40)

Notable Quotes & Timestamps

• Paula: “You can afford anything, but not everything.” (Opening, 01:05)
• Joe: “The real win with real estate is your knowledge, not this particular property.” (16:45)
• Paula: “Let the heart lead and the Mind execute, not vice versa.” (68:09)
• Joe: “Many entrepreneurs violate that firewall [between personal and business finances] consistently… it becomes this furnace. It’s insatiable.” (28:04)
• Paula: “Don’t make that mistake. If, for an amount of money your future self will regard as a rounding error, you can do something that is going to be a core life memory—do it.” (58:04)
• Paula: “Plan for the future, yes—but don’t live in it.” (64:55)
• Joe: “I would not be upset if you began retirement with this 50/50 split that you're sitting with right now.” (43:21)

Timestamps for Major Segments

• 02:00 — Victoria’s (Dog Sanctuary) question
• 06:02 — Funding a nonprofit: alternatives, grants, due diligence
• 08:44 — Joe’s options elimination logic
• 17:46 — Cap rate discussion, recap of property’s role
• 19:44 — Homework: Talking to 10 nonprofit leaders, reviewing IRS 990s
• 26:51 — Retirement and emergency fund advice
• 34:37 — Gwyneth’s (Roth conversions at 51) question
• 39:48 — Roth conversion cash flow framework
• 43:38 — Tax triangle analysis
• 45:17 — 2027+ Roth conversion tactics
• 52:27 — Soyman’s (Backpacking/Tax optimization) question
• 55:26 — Short-term vs. intermediate goal investing
• 58:04 — Paula’s caution against over-optimizing at the expense of enjoying your dream
• 60:03 — CD vs equities; investment strategy for flexibility
• 69:17 — Wrap-up and reflections

Key Takeaways

• Align financial decisions with long-term values, remembering to optimize life (not just money).
• For big dreams (like a nonprofit), seek outside funding and do rigorous due diligence—don’t rely solely on your own equity or retirement.
• For Roth conversions, balance current and projected tax rates, and use periods of low income to make the most of contributions/conversions.
• For major adventures (and other life goals) — plan well, invest for the timeline, but give yourself permission to spend for joy and core memories.
• The best financial plan is the one that balances prudence and passion.

Tone & Style

Warm, wise, practical, and mission-driven — the advice is detailed, empathetic, and tailored to each caller’s unique dreams and situation. Both Paula and Joe blend technical knowledge with encouragement to live boldly and authentically.