540: Renting vs. Buying a Home in 2024 and Do You Have Enough in Your 401(k)?
BiggerPockets Money Podcast
Analyzing the Average 401k Balance and Retirement Concerns
Exploring the disparity between average and median 401k savings for individuals aged 55 to 65, along with concerns about retirement readiness and strategies for saving more effectively.
Renting vs. buying a house: when it comes to FIRE, many people assume that you must own a home and preferably have it paid off to reach financial freedom. But is this really true? With renting so much cheaper than buying in 2024, would it be wiser to rent a place and send the savings to your investment accounts? Today, we’re tackling this topic and a few other heavy hitters as we give our takes on four of the hottest financial headlines.
Kyle Mast, certified financial planner, joins Scott Trench to share FIRE-first thoughts on these not-so-easy-to-answer questions. First, we give our take on the ever-relevant renting vs. buying debate and ask whether things have changed since high mortgage rates have made buying a home much more expensive. Then, how do you manage savings and investments with interest rates so high—should you keep your money in a high-yield savings account or search for better opportunities even with savings yields so high?
Think your nest egg is a little too light? We share the average 401(k) balance for those close to retirement and give our strategies to boost retirement savings before you leave full-time work. Finally, for those struggling to take care of elderly parents, our last headline is for you. We talk about the growing number of Americans physically, mentally, andfinancially caring for aging parents and how you can set yourself up in the best position possible to care for those in your life.
In This Episode We Cover
Buying vs. renting a house in 2024 and whether homeownership is required for FIRE
The best housing investments you can make to propel your net worth and savings rate
Saving and investing during higher interest rates and the type of “opportunities” you must be looking out for
The shocking average 401(k) balance and what you can do to increase income in retirement
How to ensure your children DON’T have to financially care for you in your old age
And So Much More!
Links from the Show
BiggerPockets Money Facebook Group
Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums
Finance Review Guest Onboarding
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Apply to Be a Guest on The Money Show
Find an Investor-Friendly Agent in Your Area
Find Investor-Friendly Lenders
Renting is Increasingly Cheaper Than Buying a Home
How to manage retirement savings with interest rates remaining elevated
This Is the Average 401(k) Balance for Ages 55 to 64
When Caring for Your Parents Comes at a Cost to Your Career
See Scott at BPCON2024 in Cancun!
Grab the Book, “First-Time Home Buyer”
Hear Our Episodes with “Catching Up to FI”:
BiggerPockets Money 537 - Late Start, Early Retirement: A Step-by-Step Guide to Get On Track to FI
00:00 Intro
01:57 Renting vs. Buying a House
10:49 Best Home Purchase for FI?
13:35 Saving and Investing with High Rates
25:05 Average 401(k) Balance
33:02 Caring for Elderly Parents
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-540
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