Rich Habits Podcast

Q&A: Taking Social Security Early, Building Two ADUs, & Whole Life Insurance For Children?

9 snips
Sep 11, 2025
This discussion dives into the nuances of taking Social Security early and the implications of financial choices. It also covers the benefits of building accessory dwelling units (ADUs) for income generation. Plus, the speakers tackle the idea of using whole life insurance for children, exploring its potential as a long-term financial strategy. The conversation emphasizes informed investing, retirement planning, and the critical role of early financial decisions in wealth accumulation.
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ADVICE

Plan Retirement Around Passive Income And Side Work

  • If you want to retire at 62, define retirement as part-time work and calculate whether passive income plus part-time earnings covers expenses.
  • Keep investing but add a side hustle to aggressively pay down high-interest student loans so they don't derail retirement plans.
ADVICE

Attack Student Loans With Dedicated Side Income

  • Prioritize accelerating student loan repayment using a dedicated side income of about $1,000/month to reduce interest drag.
  • Continue investing but avoid letting long-term loans compound and force you to work far longer than planned.
INSIGHT

Equity Liquidity Beats Small Rental Cashflow

  • Holding concentrated real estate equity and adding debt to build ADUs can reduce optionality and hurt long-term net worth.
  • Selling a high-equity property and investing proceeds broadly often outperforms marginal rental cashflow from ADUs.
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