BiggerPockets Money Podcast

Are You Headed for FIRE or the Middle-Class Trap? (Finance Friday)

Mar 7, 2025

Join Leah Landis, a tech sales account executive, and her husband Zach as they share their ambitious plan to retire by 45. They expertly navigate the challenges of the middle-class trap and offer insights on balancing spending and investing. Discover their strategies for mindful financial habits and how family planning could impact their journey. They also dive into housing market dynamics and explore alternative investment options like house hacking and REITs, all while aiming for financial independence and smarter retirement planning.

55:46

Episode guests

Leah Landis

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Episode notes

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Quick takeaways

Leah and Zach prioritize tracking their spending to avoid lifestyle inflation, thus maintaining a healthy gap between income and expenditures.

They have strategically shifted their investments towards index funds like Vanguard's VTSAX to significantly enhance their wealth accumulation for early retirement.

The couple is thoughtfully considering the implications of purchasing a forever home, exploring real estate options like house hacking for financial flexibility.

Deep dives

Avoiding the Middle Class Trap

Leah and Zach aim to retire by age 45, expressing concerns about falling into the middle-class trap that can come from unwise financial decisions. They recognize that they have approximately 15 years to reach their financial independence goal and are seeking ways to strategically plan their finances to avoid this economic pitfall. The discussion highlights their commitment to making informed financial choices and the importance of tracking their spending patterns to stay on course. This awareness aids in their decision-making as they explore options for early retirement without compromising their lifestyle or financial security.

Intro

5min

Navigating Financial Goals and Family Finances

5min

Navigating Financial Independence Through Mindful Spending

4min

Navigating Early Retirement and Homeownership

12min

Navigating Financial Goals and Investment Strategies

5min

Navigating Financial Independence

25min

If there’s an issue that keeps aspiring early retirees up at night, it’s the dreaded middle-class trap. At just 28 years old, this financially savvy couple is already looking for ways to avoid this issue. Whether you’re just starting your FIRE journey or approaching early retirement, we’ll show you how to do the same in today’s episode!

Welcome back to the BiggerPockets Money podcast! So far, Leah and Zach Landis are doing everything right. They earn high incomes, they spend very little, and they invest the difference. Well on their way to retiring early, they plan to quit their jobs by age 45 or sooner! But will their current asset allocation get in the way of their big goal? What kind of bridge will they need to tide them over until traditional retirement age? Will having children impact their financial freedom?

Fortunately, Leah and Zach have all kinds of options. Tune in as Scott and Mindy dive into the couple’s budget and discuss their best path forward. Along the way, we’ll debate whether they should pause their 401(k) contributions, double down on brokerage accounts, and deploy their cash savings on their “dream” home!

In This Episode We Cover

Breaking down Leah and Zach’s best path to FIRE by 45 (or sooner!)

The middle-class trap explained and how to avoid (or escape) it

The BEST ways to invest your cash and make it work harder for you

How much you should expect to pay in taxes once you reach retirement

When to stop growing your 401(k) plan (and where to invest instead)

And So Much More!

Links from the Show

Mindy on BiggerPockets

Scott on BiggerPockets

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