Finance Friday: FI by 40? Make These Career and Investment Moves Now

6 snips

Oct 25, 2024

Dreaming of financial independence by 40? A couple shares their journey towards being work-optional, weighing options like house hacking and live-in flips. They explore the balance between investing in retirement accounts and immediate cash flow. Strategies to enhance income, such as job hopping and certifications, get a spotlight. Plus, insights on aligning careers with passions and diversifying investments keep the conversation lively. If you're eager to fast-track your path to financial freedom, this discussion is packed with practical tips!

Ask episode

AI Snips

Chapters

Transcript

Episode notes

ANECDOTE

BiggerPockets Book Influence

Travis discovered the BiggerPockets "First-Time Homebuyer" book.
This sparked his financial journey and led him to learn about index funds and retirement accounts.

ADVICE

Work Optional Goal

Consider a "work optional" approach, not full retirement.
Pursue part-time passions like mountain biking or gardening for income.

INSIGHT

Savings vs. Expenses

Travis saves $91,000 annually, but his expenses require $2.5 million to retire by the 4% rule.
He needs additional income or lower expenses to reach FI faster.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Everyone wants to become “work-optional” at some point. Having enough money in investments and the bank would allow you to choose the job you love most, whether that’s running your own business, working part-time, or today’s guest, Travis’ dream, becoming a mountain biking guide. With a solid salary, dual income, and no plans for kids, he and his wife are on the fast track to FIRE, but can they get there by his goal of forty years old?

Travis’ wife may have an option to get a significant salary bump, allowing them to travel the country while she works, and Travis stays making money from his computer. But, even this may not be enough to get them to the “work optional by forty” goal they had set out for themselves. Scott and Mindy believe they need a financial “oomph” to get them over the edge, but what’s the next best move?

Should he stop his retirement account contributions to have more cash to invest for early retirement? Should he perform a live-in flip to make more money on the side while working his job? Would a side hustle or part-time job bridge the investing gap between where they are and where they need to be? If you’re stuck feeling like you can’t get to FI fast enough, this episode is for YOU!

In This Episode We Cover

How to fast-track your FIRE and become work optional in under ten years

House hacking and why it’s one of the best ways to lower expenses and build wealth

Live in flipping and how to turn your next home purchase into a money-making investment

Whether you should stop investing or double down on your retirement accounts when shooting for early retirement

Roth conversion ladders, HSAs (health savings accounts), and how to access retirement funds even earlier

Increasing your income by job hopping and leveling up the skills that’ll make you more

And So Much More!

Links from the Show

Mindy on BiggerPockets

Scott on BiggerPockets

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Join BiggerPockets for FREE

Email Mindy: Mindy@biggerpockets.com

Email Scott: Scott@biggerpockets.com

BiggerPockets Money Facebook Group

cFIREsim

How to Access Retirement Funds Early

Support Today’s Show Sponsor, Connect Invest, the Alternative Way to Earn Passive Income Through Real Estate

Grab the Book “First-Time Home Buyer”

Property Manager Finder

Finance Friday: How to Get to Early Retirement Even Faster

(00:00) Intro

(01:07) Goal: FI by 40!

(03:13) Money Snapshot

(04:14) Work Optionality!

(05:50) Stay at His Job?

(15:00) Traveling to Make More Money

(20:38) Stop Investing in 401(k)?

(31:13) Live in Flipping

(42:39) Can Travis Hit FI by 40?

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-575

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com

Learn more about your ad choices. Visit megaphone.fm/adchoices