How to Fast Track Your Path to FIRE | The Wealth Ladder
In this insightful episode of the BiggerPockets Money Podcast Mindy Jensen and Scott Trench delve into the practical steps for building wealth with financial writer Nick Maggiulli. They discuss his new book, 'The Wealth Ladder,' which introduces a six-level wealth ladder for assessing and enhancing one's financial strategy.
From establishing emergency savings in level one to focusing on investment choices in level three and contemplating business decisions in levels five and six, Nick provides a comprehensive guide across different stages of wealth. The episode is perfect for anyone aiming to grasp a structured approach to financial independence and learn how to adapt their strategies as their wealth grows.
This episode cover:
The Wealth Ladder (All 6 Levels)
How to adjust your portfolio over time
The importance of increasing your income
Balancing lifestyle upgrades with sustainable financial growth
And SO much more!
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How to Achieve Financial Independence in the Military
In this episode of the BiggerPockets Money Podcast, hosts Mindy Jensen and Scott Trench, along with guest David Pere, delve deep into achieving financial independence while serving in the military. They discuss the unique advantages of military benefits, such as zero-cost healthcare and housing allowances, and how these can be leveraged to fast-track financial independence. The episode is packed with actionable advice and real-life examples to inspire military personnel to build wealth and achieve financial freedom.
This Episode Covers:
Budgeting effectively while enlisted
Understanding military pay structures
The power of house hacking and live-in flips, and investment strategies tailored specifically for service members.
They explore the potential of achieving substantial net worth through disciplined savings and smart investing, even within an eight-year service commitment.
And SO much more!
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The Portfolio Strategy That Could Double Your Safe Withdrawal Rate
In this episode of the BiggerPockets Money podcast, hosts Mindy Jensen and Scott Trench welcome Frank Vasquez back on to challenge everything you thought you knew about safe withdrawal rates. Frank reveals how a properly constructed risk parity portfolio can support a 5% withdrawal rate—meaning you could comfortably pull $125,000 annually from a $2.5 million portfolio without the traditional fear of running out of money. This isn't theoretical; it's a practical strategy that sophisticated investors have been using for decades.
Frank takes listeners step-by-step through building this portfolio on Fidelity, demonstrating real-world implementation rather than just concepts. You'll discover how mathematical principles like the Fibonacci sequence can guide your allocation decisions, why traditional diversification falls short, and how to rebalance effectively without overthinking the process. Most importantly, Frank shows how to customize this approach to your specific situation, making risk parity accessible whether you're approaching FIRE or already financially independent.
This Episode Covers:
Risk parity fundamentals - Understanding true diversification beyond stocks and bonds
Asset class breakdown - Specific investments across equities, bonds, commodities, and alternatives
Rebalancing strategies - When and how to adjust your portfolio without constant tinkering
Withdrawal techniques - Practical methods for taking income from multiple asset classes
And SO much more!
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The Portfolio that Supports a 5% Safe Withdrawal Rate | Frank Vasquez
In this episode of the BiggerPockets Money Podcast, hosts Mindy Jensen and Scott Trench are joined by Frank Vasquez, host of the Risk Parity Radio Podcast. Frank introduces the concept of a risk parity portfolio. Rather than relying on traditional stock-heavy portfolios, Frank reveals how strategic diversification across asset classes can potentially support higher withdrawal rates while actually reducing your risk of running out of money.
The conversation covers the nuances of structuring a portfolio with equities, bonds, and alternative assets like gold and managed futures. They also explore the implications of real estate investments and the timing of transitioning from an accumulation to a decumulation strategy. Frank shares insights on the importance of balanced withdrawals, the challenges of adhering to conventional investment philosophies, and the need to move towards a holistic view of financial independence that includes well-being and responsible spending.
We Discuss:
Why the standard 60/40 portfolio may be failing FIRE investors
Optimal allocation strategies across equities, bonds, and alternative assets
The critical timing of portfolio transitions as retirement approaches
Strategic withdrawal approaches that prioritize longevity over accumulation
The psychological shift from wealth accumulation to wealth optimization
And SO much more!
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How Much Do You Need for Early Retirement? (How to Calculate Your FI Number)
What’s your financial independence number (FI/FIRE number)? Are you being too conservative, or are you cutting things close? Do you even have one? Today, we’re taking a deep dive into this hotly debated topic to help you build a nest egg that will support your early retirement!
Welcome back to the BiggerPockets Money podcast! How much money do you actually need to retire? For years, the four-percent rule has been the “official” stance of the FI community. But why is it, then, that so many people continue saving and investing when they can comfortably retire? In this episode, Scott and Mindy talk about their own FI numbers, how they calculated them, and how their financial positions have evolved over time. You’ll learn whether the four-percent rule still works today or if you need a larger buffer!
If you’re worried about inflation, one of the best things you can do is keep your living expenses in check. This might seem out of your control, but there are several ways to either lock in certain costs or eliminate them entirely. We’ll discuss the many advantages of a paid-off house, self-managing your rental properties in retirement, and a one-time investment that could help you save thousands of dollars over your lifetime!
In This Episode We Cover
How to calculate your financial independence number (and when to adjust it!)
The four-percent rule explained (and whether it still works in 2024)
Why most people chasing FIRE don’t retire on the four-percent rule
How to control your expenses and protect against inflation in retirement
The “home run” investment that could save you thousands of dollars
And So Much More!
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For those who have money… or want more of it!
Join Mindy Jensen and Scott Trench (from BiggerPocketsMoney.com) weekly for the BiggerPockets Money Podcast. Each week, financial experts Mindy and Scott interview unique and powerful thought leaders about how to earn more, keep more, spend smarter, and grow wealth.
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