You dream of retiring early, but you’re stuck in the “middle-class trap.” You’ve built up a solid net worth, maybe own a rental property or two, and on paper, you look like you’re on track to make it rich. But in reality, you don’t feel that way. With all your wealth tied up in home equity or retirement accounts, your “early” retirement may have to be pushed to the traditional age of sixty-five. So, how do you free up some of this wealth so you can start accessing it today to retire early tomorrow?
This is the question Emily and Justin are struggling to answer. They’ve gone from nothing to a substantial net worth—$1,500,000! With big dreams to travel internationally and retire from their jobs in twelve years, they’re wondering if they can still make it to early retirement AND if they can do so while enjoying life a little bit more today. Mindy and Scott offer some unconventional advice for the personal finance space, but it may help this couple feel more secure so they can start living today instead of waiting to finally retire in twelve years!
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In This Episode We Cover
The “middle-class trap” that stops even millionaires from retiring early
Why you should NOT sacrifice everything now just to retire a few years earlier
What to do when you struggle to spend more, even on the things you love
Paying off your primary residence early vs. keeping a low-interest mortgage (and what to do with the money instead!)
Putting your pension into your net worth calculation (and how it can get you closer to FIRE!)
Roth conversion ladders and the smart way to save significantly on taxes in retirement
And So Much More!
Links from the Show
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Finance Review Guest Onboarding
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Mindy on BiggerPockets
Scott on BiggePockets
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Podcast Talent Search!
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How to Access Retirement Funds Early
How to Estimate Capital Expenses On a Rental Property
See Mindy and Scott at BPCON2024 in Cancun!
Ramit Sethi’s Money Advice for Couples: Live a Rich Life, Together
00:00 Intro
02:19 Frugal Beginnings
07:58 Big Retirement Goals
13:48 Financial Snapshot
14:50 Struggling to Spend Money?
24:18 Can We Retire in 12 Years?
36:45 A HUGE Extra Income Source
45:46 Loosen Up Your Budget!
52:13 Retire Even Earlier?
01:02:09 Emergency Reserves for Rental Properties
01:07:51 Don't Get Caught in The Trap!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-543
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