BiggerPockets Money Podcast

Finance Friday: Can I Still Reach FI by 45 If I Quit My Job?

Dec 13, 2024

Alex Preziosi, a savvy real estate agent and house hacker, is on a mission to achieve financial independence by 45. She discusses her decision to potentially leave her W2 job to dive into full-time entrepreneurship while managing impressive cash reserves. Alex shares the benefits of house hacking to reduce housing costs, the advantages of her growing real estate side hustle, and strategies for investing her growing cash pile. Can she make the leap without jeopardizing her FI goal? Tune in to find out!

54:29

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Episode guests

Alex Preziosi

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Episode notes

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Quick takeaways

Alex has leveraged house hacking to significantly reduce her housing costs while generating substantial rental income from her duplex.

With a robust income surplus and $120,000 in cash reserves, Alex is well-positioned to explore full-time entrepreneurship in real estate.

The discussion underscores the importance of advanced financial strategies, such as a solo 401(k) and tax optimization methods, as Alex plans her transition.

Deep dives

Alex's Financial Journey

Alex shares her financial background, highlighting her upbringing in a financially constrained environment raised by a single mother and grandmother. This shaped her money mindset, leading her to take on $40,000 in debt following college due to student loans and a car purchase. After becoming diligent about paying off her debt and subsequently achieving financial goals, Alex found herself with a significant amount of cash savings, prompting her to consider investment options in real estate and the stock market. Her personal experiences illustrate the challenges and opportunities she faces on her path to financial freedom.

Intro

3min

Navigating Real Estate Investment: A Personal Journey

4min

Navigating Real Estate Investment Decisions Towards Financial Independence

5min

Navigating Financial Freedom Through Real Estate

11min

Jumping into Real Estate

7min

Navigating Financial Transition in Real Estate

18min

Navigating Career Transitions in Real Estate

3min

Empowering Financial Foundations and Opportunities

3min

Alex Preziosi wants to reach financial independence by the age of forty-five, and with several hundred thousand dollars in retirement accounts, brokerage accounts, and savings, she’s on pace to do just that. But now, she’s thinking about quitting her W2 job. Can she still hit her FI goal? Today’s guest has good problems, but problems, nonetheless!

Welcome back to the BiggerPockets Money podcast! Since we last spoke with Alex, she has made two major leaps on her journey to financial independence. First, she has taken up house hacking, which pays for most of her mortgage in an expensive area of the US. But that’s not all. She has also grown her side hustle as a real estate agent into a full-fledged business, where she now earns more than she does at her W2 job! These moves have only widened the gap between her income and her expenses, and, as a result, she’s sitting on an even bigger pile of cash.

Now, Alex finds herself at yet another crossroads. Is her W2 holding her back? Should she pursue full-time entrepreneurship while she has such a strong cash position? Stay tuned as we dive into the numbers and try to figure out Alex’s best path to FI by forty-five!

In This Episode We Cover

The best path for Alex to reach financial independence by forty-five

When to leave your W2 job and pursue full-time entrepreneurship

How to lower (or eliminate!) your housing cost with the house hacking strategy

Where to invest a large amount of cash (stock market versus real estate)

Tax strategies that could help you save a fortune over your lifetime

And So Much More!

Links from the Show

Mindy on BiggerPockets

Scott on BiggerPockets

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