Retirement investing is a crucial part of planning for financial freedom. While early retirement is a status that almost everyone would love to achieve, the second-best thing is standard retirement, where you can use your smart investments to make the later years of your life that much easier. But, oftentimes those who are born with a strong work ethic don’t know when the right time to ease off retirement investing is. In some cases, even intelligent investors can find themselves with a lot of retirement income that can’t be touched until decades later.
Jill is trying to end up with a future of financial flexibility. She wants to be able to travel the world with her family, leave her W2 job (if she feels like it), and invest more in assets that give her the power of choice today. She has a very good income, impressive retirement accounts, and wants to take her first step into real estate investing. She’s planning on turning her primary residence into a short-term rental, while her family moves into the live in flip she’s buying next.
This rental property income should give her and her family a cushion of passive income to rely on, but she’ll need much more than this to become truly financially free. Scott and Mindy debate the “invest for later” vs. “invest for now” frames of mind, tackling which one will work best for Jill in her high-income but low passive cash flow situation.
00:00 Intro 03:10 Income and Expenses 09:14 Assets and Liabilities 11:08 The Goal of Getting Into Real Estate 15:12 Turning Her Primary Into a Short-Term Rental 27:28 Making Live in Flip Profits 35:20 The Path to Financial Flexibility 50:43 The Consequence of Only Investing
