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Do You Know Your FIRE Number? Here’s What That Means

00:00 intro

01:56 Starting Salary and First Home

04:01 Rental Investing and Finding FIRE

07:13 Thoughts of Quitting

08:05 Real Estate Portfolio Timeline

13:58 Savings Rate and Reinvesting

15:47 Using HELOC to Buy Rentals

20:31 Achieving FIRE, But...

24:07 Rising Lifestyle Expenses?

31:55 Advice for FIRE

36:32 Connect with Caitlin!

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560: Dude ACTUALLY Withdraws From His 401(k) and Retires at 47 Sep 03, 2024

Show notes

Did you know you can use your 401(k) to retire early? Yep, it’s possible. And today’s guest, Eric Cooper, is doing it atage 47! Most FIRE chasers search for how to withdraw from a 401(k) early but know that doing so will hit them with substantial penalties. The best way around this? The 72(t) rule—which is precisely what Eric has been taking advantage of. Eric uses the 72(t) rule’s “substantially equal periodic payments” to take early withdrawals from his 401(k) of $30K per year, starting at age 47. But how does it work?

Eric comes on the show to describe exactly how this early withdrawal rule works, how much you can take out, the regulations to follow so you avoid penalties, and why early retirement may be much closer than you think. But this isn’t the only early retirement income Eric has got. We’ll review his substantial real estate portfolio and detail Eric's almostunbelievable tax savings from combining tax-advantaged rental properties with rule 72(t).

Plus, Eric shares how he built a multimillion-dollar nest egg by his mid-forties and why those starting young on the path to early retirement can repeat his strategy to be much richer in retirement. Do you have money sitting in retirement accounts that you’re ready to use? The 72(t) rule might be just what you need.

In This Episode We Cover

How to access retirement funds early with the often overlooked 72(t) rule

Escaping the “middle-class trap” that stops you from retiring on your terms

Avoiding 401(k) penalties and using retirement accounts to actually retire early

The rules and regulations you MUST follow to withdraw penalty-free

How Eric amassed such a massive retirement account balance (and how you can, too)

Early retirement healthcare and how to lower your taxable income to greatly reduce premium costs

And So Much More!

Links from the Show

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How to Access Retirement Funds Early

72(t) Calculator

How the “Middle-Class Trap” Stops Your Early Retirement

00:00 intro

01:14 What is Rule 72(t)?

05:30 Avoiding Early Withdrawal Penalties

11:12 Building a BIG Nest Egg

17:14 Retiring Early at 47!

18:00 Different Investment Accounts

21:41 Why Withdraw Early?

24:52 Rental Income and Healthcare

30:44 Selling the Rentals?

32:54 Calculating Your 72(t) Income

38:40 Advice for Early Retirement

41:18 Connect with Eric!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-560

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559: How I Retired in My Mid-30s While Working Just 4 Hours a Week Aug 30, 2024

Show notes

What if you could “retire” early, working only FOUR hours a week? Coast FIRE achiever Diania Merriam did just that! After a decade of hustle in corporate America, Diania found herself financially behind with $30,000 in debt. Dreaming of a life-changing adventure but lacking the funds, she decided to overhaul her finances. Fast forward, and now in her mid-thirties, she’s debt-free, successfully self-employed (or, as she puts it, happily “unemployed”), living life on her terms.

So, how did Diania save enough to walk away from her nine-to-five? The answer might surprise you. She didn’t need millions in the bank, and neither do YOU, to embrace early retirement. Diania asks, “Do you have enough to take a risk?” If you do, you could live the Coast FIRE lifestyle, just like her, working minimal hours and maximizing time freedom.

Ready to slash your workweek and dive into what you love? Stick around—by following Diania’s example, early retirement could be within your reach, EVEN if you’re just getting started on your FIRE journey!

In This Episode We Cover

Why you must be financially prepared to quit a soul-sucking job

Achieving Coast FIRE without millions in the bank and how to be happy living off of little

Why self-employed health insurance isn’t as big of an expense as most people think

Burning out before you hit FIRE and why being hyper-fixated on a financial goal could kill your drive

How starting your own business can save you a ton on taxes

How to “retire” early without replacing your full-time salary

And So Much More!

Links from the Show

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Coast FI: The Calculated Way to Retire Early WITHOUT Giving Up What You Love

00:00 Intro

01:03 $30K in Debt!

03:22 Quitting Her "Toxic" Job

09:23 What About Health

12:02 How Much She Makes

20:53 You Have ENOUGH Money!

25:24 Connect with Diania!

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558: How to Start Investing for Retirement: 401(k), IRA, Roth? Aug 27, 2024

Show notes

The IRA vs. 401(k). You’ve heard of these retirement accounts before, but do you know the difference between the two? Maybe you have a 401(k) at work and have been diligently getting your employer match but struggle to describe what you’re investing in. You’ve heard top financial experts talk about how a Roth IRA is crucial for saving on taxes long-term, but are you eligible to invest in one? Today, we’re discussing top retirement accounts and how to start investing with just $100.

CFP (Certified Financial Planner) Kyle Mast joins Mindy on today’s show to answer common questions about 401(k)s, IRAs, Roth IRAs, and HSAs! We’ll first describe when you should invest in a 401(k) vs. an IRA, why their Roth equivalents are so valuable, especially if you’re itching to save on taxes in retirement, and the best account for beginners that (most) Americans will get free money from.

What happens after you leave a job and your 401(k) remains? Kyle discusses the options to ensure your money stays invested, even after leaving an employer. We’ll also get into the triple-tax benefit HSA (health savings account) that you should take advantage of IF you qualify, which accounts to invest in first, and what to do once you’ve maxed out your retirement accounts!

In This Episode We Cover

401(k)s vs. IRAs and which to invest in first (especially if you’re employed!)

Roth IRAs and 401(k)s explained and when to choose a Roth over a traditional account

The best retirement account for beginners and how to get free money for retirement

How to take control of a 401(k) after leaving an employer

Health Savings Accounts (HSAs) and who qualifies for these extremely tax-benefited accounts

Which accounts to invest in first when maximizing retirement savings

How we would start investing for retirement if we only had $100/month extra

And So Much More!

Links from the Show

Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Buy Scott’s Book “Set for Life”

BiggerPockets Money - Episode 549: Is FIRE Dead? No, But Here’s Why Most WON’T Achieve It

See Mindy at BPCON2024 in Cancun!

Traditional 401(k) vs. Roth IRA: Which One Wins?

00:00 Intro

02:17 401(k)s vs. IRAs

05:07 Roth IRAs and 401(k)s

11:21 Best Account for Beginners

14:31 401(k)s After Ending Employment

19:58 Health Savings Accounts (HSA)

26:46 How to Invest $100

32:00 Connect with Kyle!

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557: Buying at the Peak, Surviving a Crash, and STILL Being Able to Quit at 38 Aug 23, 2024

Show notes

Have you ever made a poor financial decision? You’re not alone! But can a bad blunder disqualify you from FIRE? Today’s guest made a huge investment at the worst possible time, a move that had consequences a decade later. Despite this, he was still able to reach early retirement in just fifteen years!

Welcome back to the BiggerPockets Money podcast! Ryan Connell had a picture-perfect start to his financial independence journey—saving money at a young age and living well below his means. But then 2007 arrived, and Ryan made the “worst financial decision” of his life. He bought a house just weeks before the housing market began its historic collapse. But a move that could have derailed his quest for FIRE proved to be a minor setback because Ryan was still able to retire at the age of thirty-eight!

In this episode, you’ll learn why you should treat real estate as less of a “sure thing” and more like the stock market. Ryan discusses his current portfolio, which consists of 100% index funds, and what led him to pivot from real estate investing entirely. He even gives us a peek into the average day as an early retiree and shares why he has never had a FIRE number!

In This Episode We Cover

How Ryan rebounded from his “worst financial decision” to reach FIRE at thirty-eight

Real estate versus stocks and why you don’t need properties to retire early

Why time in the market is still more important than timing the market

Whether you can reach financial independence without stress and sacrifice

How to enjoy retirement with less productivity and more “negative time”

And So Much More!

Links from the Show

Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

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Check Out Ryan’s Camp FI Talk

Buy the Book “Rich Dad Poor Dad"

BiggerPockets Real Estate 955: BiggerNews: Real Estate vs. Stocks, the Ultimate Wealth-Building Debate

00:00 Intro

02:02 Buying a House...in 2007

09:42 Digging His Way Out

18:46 Ryan’s Journey to FIRE

28:25 Saving TOO Much?

35:00 Life After Early Retirement

40:49 Find Freedom Faster!

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556: FIRE in 2024: What We’d Do Differently If We Started Over Today Aug 20, 2024

Show notes

2013 was a pivotal year for our hosts. Scott was fresh out of college and just beginning his journey to financial independence, while Mindy and her husband were well on their way to FIRE and had just launched their blog, 1,500 Days, to document their progress. But if they were starting over today, would they change anything?

Welcome back to the BiggerPockets Money podcast! In today’s episode, Scott and Mindy are winding back the clock ten years and sharing what they would do differently if they were beginning their FI journey in 2024. Spoiler alert: they wouldn’t have changed very much regarding the fundamentals of frugality, saving money, and investing. But, as you’re about to find out, they would make some MAJOR tactical changes, and they even have a few regrets about not spending money!

Whether you’re brand new to FIRE or are already on track for financial freedom, you don’t want to miss this episode! You’ll learn about the real estate investing strategy Scott would prioritize in 2024, the stock investments that helped Mindy overshoot her FI number, and the lifestyle changes our hosts wish they had made along the way!

In This Episode We Cover

What Scott and Mindy would change if they were starting their FI journey today

Three types of investments that will carry you to financial independence

How to invest in real estate in 2024 (and which strategy to use)

When to prioritize saving cash over contributing to retirement accounts

The cash-flowing investment property WE would be buying in 2024

The individual stocks that catapulted Mindy toward FIRE

How to save thousands of dollars in taxes with live in flips

And So Much More!

Links from the Show

Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Buy Scott’s Book “Set for Life”

BiggerPockets Money - Episode 549: Is FIRE Dead? No, But Here’s Why Most WON’T Achieve It

00:00 Intro

01:24 Chasing FIRE in 2013

05:54 Where to Invest & Live In Flips

12:00 Starting from Zero in 2024

23:03 Lifestyle Changes with FI

27:34 Save and Invest!

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555: Retiring Early Before 30 and Why You DON'T Need Millions for FIRE Aug 16, 2024

Show notes

This might be the fastest path to FIRE we’ve ever seen. In just two years, Emily and James were able to retire early and travel the world full-time. They didn’t have a trust fund, some huge inheritance, or a winning lottery ticket. But they did make some serious sacrifices, cutting almost everything unnecessary out of their lives to retire early and quit the jobs they were itching to get out of. How’d they do it?

After realizing they were throwing away every cent they made, James stumbled upon a popular personal finance blog. He devoured it that day at work and came home a changed man. The AC temperature was going up, the restaurant expenses were going down, and he was deadset on achieving financial freedom. His wife, Emily, needed some convincing. But, with time, they both became locked in on FIRE. They moved to a cheaper house, rode bikes to work, and rarely ate out anymore.

Just two years after discovering FIRE, they achieved it, and they did it without millions of dollars in the bank. And here’s the thing: you might be able to do it, too, IF you’re willing to put in the work. How much money are they living on? How did they cut their expenses so significantly? And how do you convince your partner or spouse to follow you on the path to financial independence? Emily and James are showing you how in today’s episode!

00:00 Intro

01:21 Poverty to Overspending

06:12 Convincing Your Spouse on FI

09:09 0% to 85% Savings Rate

16:30 Buying $50K Rentals

23:29 Retiring on $31K/Year

29:40 The Secret to FIRE

32:43 Are They Still Retired?

34:36 Advice for Finding FIRE

36:24 Connect with James and Emily!

37:19 Use These FIRE Tips

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554: Should I Pay Off My Mortgage or Invest? (We Did the Math) Aug 13, 2024

Show notes

Pay off your mortgage or invest? If you’re on the path to FIRE, you’ve probably asked yourself this question. Without a mortgage payment, you could put thousands more in your pocket every month, and your FIRE number would decrease significantly. On the other hand, investing all the money you could have spent on paying off your mortgage may allow you to build considerably more wealth and reach Fat FIRE with more assets to your name. So, which move do you make?

Mindy and Scott are coming on to debate this common investing question. On team “Don’t pay it off!” is Mindy, who just recently made a six-figure profit by NOT paying off her mortgage. How did she do it? Stick around to find out. Scott, who just bought his recent home in cash, is pro-paying off the mortgage (for some), as it may lead you to FIRE much faster than you thought.

In this episode, Scott and Mindy discuss WHO should pay off their mortgage early, the pros and cons of investing vs. going debt-free, and why one move may be MUCH better for those closer to FIRE. Want more money for your future retirement? Sick of your job and want to quit quickly and retire on your terms? We’ve got options for BOTH!

In This Episode We Cover

Whether you should pay off your mortgage early or invest instead

How Mindy made a six-figure stock profit by NOT paying off her home

Why paying off your low-interest rate mortgage may make sense EVEN in 2024

How those close to retirement can shave off a BIG portion of their FIRE number and retire now

Whether you should keep cash in a high-yield savings account instead of paying down a low-rate mortgage

Other BIG cost-saving benefits of paying off your mortgage early

And So Much More!

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Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

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BiggerPockets Money 543 - How the “Middle-Class Trap” Stops Your Early Retirement

00:00 Intro

01:27 Why You SHOULDN’T Pay It Off

05:35 Why You SHOULD Pay it Off

15:07 Keep Cash in the Bank?

20:54 Big Benefits of Paying it Off

27:51 What Would You Do?

29:29 Scared of Stock Performance?

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553: $100K by 23, Coast FI by 27 Thanks to One Smart Money Challenge Aug 09, 2024

Show notes

Once you hit Coast FI, you don’t need to worry about retirement. While traditional FIRE may take a bit more extra work, Coast FI allows you to let your foot off the gas and enjoy life NOW, knowing that you’ll be set for retirement by the time you’re sixty-five. Lisa hit her coast FI number at the (very) young age of twenty-seven, and she will have millions of dollars waiting for her in retirement, even if she stops investing now. How’d she do it so quickly?

When her father challenged her to save $100K by age twenty-five, Lisa said, “Why not!” She hit the goal—actually, she got there two years earlier! After much saving and significant sacrifice, Lisa had a six-figure net worth in her early twenties. From there, she began heavily investing in her retirement accounts, which now boast over a quarter of a million dollars, and she’s on track to have half a million at thirty!

How did Lisa get so far ahead of the average twenty-seven-year-old, and what can you teach your kids, grandkids, nephews, nieces, or siblings to get them on the same path? Tune in because Lisa shares how to save $100K, the easiest way to invest for retirement, the tax-free account that will make your future self rich, and her best advice for growing wealth at a young age.

Support today’s show sponsor, BAM Capital, your path to generational wealth with premier real estate investment opportunities!

In This Episode We Cover

How to save $100K in just a few years (even if you’re starting your career)

The tax-free retirement account you can’t afford to overlook

Coast FI 101 and how to hit it early so you can enjoy spending again

The sacrifice of saving and whether or not it’s worth it to go fully frugal

Index fund investing and why it’s one of the easiest ways to start investing

Lisa’s retirement portfolio and exactly what she’s investing in now

And So Much More!

Links from the Show

Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Scott on BiggePockets

The Simple Path to Wealth—Index Funds Explained with JL Collins

Connect with Amanda

See Mindy at BPCON2024 in Cancun!

BiggerPockets Money 124 - Starting From $0 at Age 35 as a Teacher and Becoming ‘The Millionaire Educator’

00:00 Intro

01:37 Early Financial Education

03:53 $100K by 25 Challenge

07:08 Sacrificing to Save

10:26 Current Salary and Spending

13:13 What She Invests In

15:15 Coast FI at 27

21:45 Save Your First $100K!

24:56 Follow Her Lead!

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552: From Making $40K/Year as a Teacher to Reaching FI in 4 Years by Doing THIS Aug 06, 2024

Show notes

You can take your time to reach financial independence, but why wait? With a combination of hard work, savvy investing, and additional income streams, today’s guest reached FI by the age of twenty-eight. In this episode, she provides the blueprint that teachers and other middle-class workers can use to fast-track their financial goals!

Welcome back to the BiggerPockets Money podcast! Today, Brooke Coughlin is a business owner, real estate agent, investor, and author. But, just FOUR years ago, she was a seventh-grade teacher earning a $40,000 salary. The key to her rapid success? Brooke’s workday starts at 5 a.m. and ends well after 10 p.m. This relentless work ethic has helped her build a successful cleaning business, sell over $100 million worth of real estate, and pen her very own book!

Now, working from sunup to sundown isn’t for everyone. Perhaps you just want a reasonable nest egg for a comfortable retirement or some money to pass down to your children. Whatever your financial goals, there are all kinds of helpful nuggets to take away from today’s episode. You’ll learn about the first steps of entrepreneurship, how to build a business or side hustle alongside your W2 job, and how to become financially free from any starting point!

In This Episode We Cover

How Brooke went from a $40,000 salary to financial independence in FOUR years

The BEST ways to increase your income while working a nine-to-five job

What teachers should do today to build a nest egg for retirement

The first steps you must take to become a successful entrepreneur

How to build a real estate business that allows you to leave your W2 job

And So Much More!

Links from the Show

Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums