BiggerPockets Money Podcast

The hosts reflect on whether their focus on financial independence, particularly FIRE, resonates with everyday listeners. They discuss the challenges many face in achieving financial goals and the need for relatable finance strategies. Key insights into essential financial tools, such as HSAs and 401ks, are shared to empower listeners. The episode invites engagement, asking for listener preferences on content, highlighting the contrast between traditional retirement advice and real-life success stories. It's a thought-provoking examination of pathways to financial freedom!

Achieving your FI number in just four years? If you want to do it too, you must try something different. This couple found a niche within a niche, allowing them to hit the coveted “1% rule” in real estate, skyrocketing their cash flow and passive income and allowing them to make more than almost any other landlord in their area. So, how did they do it, and what was the investment that got them there?David and Morgan Stanhope weren’t real estate investors five years ago. They didn’t come from investor families and had zero real estate investing experience. One day, at his job as a New York State Police Investigator, David met a mentor who would change how he thought about money, financial freedom, and passive income. This was perfect because David and Morgan were already in a great place to invest—Upstate New York. But David chose NOT to invest in his home market, and for good reason.They went south to a state known for higher home prices and crushingly high insurance costs. There, they found acreative rental property investing strategy, allowing them to make much more cash flow than regular rentals. Four years later, they’ve surpassed their $10,000/month FI goal. Now, they’re on track to hit an even bigger achievement: $70,000 per MONTH. Today, we’re talking to them about exactly how they’re getting there with investment properties you’ve probably never heard (or thought) about.In This Episode We CoverHow to hit real estate’s “1% rule” with creative, high-cash flow rentalsBorrowing from your 401(k) to fund your first real estate dealMaking real estate cash flow EVEN with eight percent mortgage rates (yes, it’s possible)Why David WON’T quit his job, even though he has already hit his FI numberFinding contractors and vendors when out-of-state real estate investing Using other people’s money to invest in real estate (and why you may want experience before you do)And So Much More!Links from the ShowBiggerPockets Money Facebook GroupNetwork with Other Investors on The Path to FIRE Through the BiggerPockets ForumsFinance Review Guest OnboardingJoin BiggerPockets for FREEMindy on BiggerPocketsScott on BiggerPocketsListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Find an Investor-Friendly Agent in Your AreaFind Investor-Friendly LendersBiggerPockets Money GroupStanhope CapitalStart Investing with “The Book on Rental Property Investing”See Mindy and Scott at BPCON2024 in Cancun!Socially Conscious Investing: How to Start a Sober Living Home00:00 Intro01:17 Early Financial Education 05:13 Finding a Money Mentor 09:06 Hitting the 1% Rule in...Florida?17:31 Current Cash Flow Numbers20:41 $70K/Month Goal!?24:09 Is Sober Living Investing Stable?29:11 Borrowing Money to Invest32:04 How Much Time Does It Take?34:46 Connect with David and Morgan!Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-562Interested 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

Achieving financial independence brings new challenges. Rising expenses can threaten your dream lifestyle, especially after reaching your FIRE goals. A guest shares her journey from house hacking to building a thriving real estate portfolio. Discover how she navigated increased costs and the decision to potentially return to work. Explore the balance of leveraging financial strategies while maintaining a sustainable lifestyle. This discussion highlights the evolving nature of financial aspirations and the importance of strategic planning.

Eric Cooper, an early retiree who exited the workforce at just 47, shares his journey to financial freedom by utilizing the 72(t) rule. He reveals how this strategy allows him to withdraw $30K annually from his 401(k) without penalties. Eric discusses the intricacies of this rule, his sizable real estate portfolio, and significant tax benefits he enjoys. He emphasizes that early retirement is achievable for many and encourages listeners to explore smart investment choices and disciplined savings to unlock their retirement dreams.

Diania Merriam, a Coast FIRE achiever who retired in her mid-30s while only working four hours a week, shares her inspiring journey from being $30,000 in debt to living life on her terms. She emphasizes achieving early retirement without needing millions in savings and encourages listeners to take calculated risks. Diania discusses the importance of financial preparation for quitting a draining job and dispels myths around self-employed health insurance. Her transformative experience redefines retirement as a pathway to creativity and personal fulfillment.

Explore the key differences between 401(k)s and IRAs, and discover when to choose a Roth over a traditional account. Learn how to maximize employer matches and effectively manage your investments when changing jobs. Delve into the triple-tax benefits of Health Savings Accounts, and see why even small investments can pave the way to significant financial security. Plus, gain insights on starting your investment journey early and creative strategies for generating extra income!

Ryan Connell, who achieved early retirement at 38 after making a massive investment just before the 2007 housing crash, shares his incredible journey. He discusses how a bad financial decision didn't derail his dreams and emphasizes treating real estate like stocks. Ryan explains his shift to a 100% index fund portfolio, the importance of time in the market over timing, and what life looks like as an early retiree. He also underlines the need for flexibility in financial planning to maintain happiness and balance in life.

The hosts reflect on their financial paths since 2013, sharing key lessons for starting a journey to financial independence today. They discuss major tactical shifts they'd make, including prioritizing real estate investing and adapting to market changes. The importance of balancing frugality with enjoying life is emphasized, alongside insights into effective investment strategies amid current market conditions. Listeners will gain practical tips on saving and investing for a brighter financial future.

Emily, who retired early and traveled the world within two years, and James, who transformed their financial habits, share their inspiring journey. They discuss how radical lifestyle changes, like downsizing and adopting frugal habits, led them to an impressive 85% savings rate. They also reveal practical advice on convincing a partner to embrace financial independence and the realities of living on just $31K a year. Their journey proves that achieving FIRE doesn't require millions, just determination and sacrifice.

Mindy, a savvy investor who made a six-figure profit by not paying off her mortgage, argues in favor of investing. Scott, who recently purchased his home outright, advocates for early mortgage payoff as a path to financial independence. They delve into the pros and cons of each strategy, exploring how individuals approaching retirement can significantly reduce their FIRE numbers. With insights on opportunity costs and tailored financial strategies, this discussion is packed with valuable advice for those navigating their financial futures.