BiggerPockets Money Podcast

538: Late Start, Early Retirement: The Huge Advantages of Investing Later in Life

Jun 18, 2024

Bill Yount and Jackie Cummings Koski discuss the advantages of late-start retirement investing, from retirement accounts to healthcare planning. They share tips on reducing expenses, making smart investments, and maximizing retirement savings. Topics include downsizing, tax planning, utilizing HSAs, and contributing to retirement accounts. The episode explores catch-up opportunities for individuals over 50 and strategies for financial success.

01:05:41

Episode guests

Bill Yount

Jackie Cummings Koski

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Episode notes

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Quick takeaways

Track net worth and create a budget for retirement planning.

Save 25 times annual expenses for retirement in the FIRE community.

Maximize catch-up contributions in retirement accounts for those over 50.

Deep dives

Determining Retirement Financial Needs

To achieve financial independence, understanding the amount needed for retirement is crucial. Start by tracking net worth and creating a budget to assess cash flow. Define your retirement vision, analyze past financial decisions, and create a solid financial plan. Factors like investor policy statements and simplifying investment strategies can guide you in building a reliable retirement plan.

Intro

2min

Strategies for Simple Investing and Retirement Planning

14min

Unlocking Superpowers of Experience and Healthcare Tools for Retirement

2min

Planning for Retirement and Managing Major Expenses

2min

Retirement Challenges: Downsizing, Social Security, and Tax Planning

2min

Healthcare Expenses in Early Retirement Planning

7min

Strategic Financial Planning Tips for Late Start Investors

2min

Maximizing Retirement Savings with Health Savings Accounts (HSAs)

4min

Investment Strategies for Catching Up to Retirement

5min

10.

Advantages of Investing Later in Life for Individuals Over 50

16min

11.

Strategies for Financial Success

6min

12.

Retirement Planning, Learning Styles, and Community Support

4min

Are you a late starter who wants to reach retirement (or early retirement)? Then we’ve got just what you need! We’re back with Bill Yount and Jackie Cummings Koski from the Catching Up to FI podcast as we share how to invest for retirement as a “late starter.” Did you know there are some serious advantages to investing later in life? Some of these advantages are so secret that even our hosts didn’t know about them! But today, we’re sharing them with you so you can achieve financial freedom on your terms!

From top to bottom, we’re sharing everything you need to retire sooner—from the best retirement accounts to debating 401(k)s vs. Roth IRAs vs. HSAs and more! Worried about healthcare if you retire before you turn sixty-five? DO NOT put your retirement plans on pause because of this! With some smart healthcare saving and investing, you won’t have to worry about visits to the doctor’s office!

But before you start investing, we need to get your spending in check. Bill shares how he went from paycheck to paycheck to exploding his savings rate by “downsizing” his spending, which makes reaching financial independence even easier! If you’re ready to retire, stick with us and follow these steps to a tee if you want to be financially free!

Missed part one? Listen to it here!

Support today's show sponsor, BAM Capital, your path to generational wealth with premier real estate investment opportunities!

In This Episode We Cover

How much do you need to retire? Here’s the exact calculations we use

The best retirement accounts to invest in that have substantial tax advantages

Social Security and whether or not you can plan on receiving it when you retire

The “triple tax benefit” healthcare account that you’ll wish you knew about sooner

How to “downsize” your life so you can invest more and retire faster

“Catch up” retirement investing and the investment accounts that late starters must take advantage of

401(k)s vs. Roth IRAs vs. HSAs: Which should you invest in first?

And So Much More!

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