Artwork

Content provided by BiggerPockets. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by BiggerPockets or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.
Player FM - Podcast App
Go offline with the Player FM app!

The Middle-Class Trap That Could Keep You from FIRE (How to Escape It)

41:46
 
Share
 

Manage episode 463536098 series 2566047
Content provided by BiggerPockets. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by BiggerPockets or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.

Buying a house, maxing out your 401(k), and leveraging real estate can help you achieve financial independence. But suppose your goal is to retire early. Could relying too heavily on these principles actually delay early retirement? Today, we’re going to show you how to break free from the “middle-class trap” that stops so many from retiring early!

Welcome back to the BiggerPockets Money podcast! Is most of your net worth “stuck” in home equity and retirement accounts? This is a widespread issue in the FIRE community. On one hand, you could sell your home or refinance your mortgage to tap into your equity, but interest rates are too high! Meanwhile, you can’t withdraw money from your 401(k)—not without incurring severe penalties. In theory, you could already be a millionaire but have little to no cash flow to fuel your retirement. So, what should you do?

In this episode, you’re going to learn all about the middle-class trap, how to avoid it, and, if you’re in it, how to get out! Mindy and Scott will share the “ideal” portfolio for an early retiree and the bridge accounts you need to retire today. Finally, is the FIRE community wrong about the 100% index fund portfolio? Stay tuned to find out!

In This Episode We Cover

The middle-class trap explained and how to avoid (or escape) it

The “ideal” investment portfolio for the early retiree

Tweaking your asset allocation to achieve financial freedom

The power of owning a paid-off rental property in retirement

Bridge accounts and investments that will allow you to retire today

Why a 100% index fund portfolio could come back to bite you

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: [email protected]

Email Scott: [email protected]

BiggerPockets Money Facebook Group

Land More Off-Market Deals with Crucial Property Owner Contact Information from DealMachine

Achieve FIRE with Scott’s Book “Set for Life”

Find Investor-Friendly Lenders

BiggerPockets Money 554 - Should I Pay Off My Mortgage or Invest? (We Did the Math)

(00:00) Intro

(00:42) What Is the Middle-Class Trap?

(03:42) The “Ideal” Retirement Portfolio

(10:31) Scott’s Path to Financial Freedom

(16:13) Mindy’s Early Retirement Roadmap

(24:12) The Power of Paid-Off Property

(29:18) Middle-Class Trap “Timeline”

(33:55) Share YOUR Portfolio!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-602

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]

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

  continue reading

657 episodes

Artwork
iconShare
 
Manage episode 463536098 series 2566047
Content provided by BiggerPockets. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by BiggerPockets or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.

Buying a house, maxing out your 401(k), and leveraging real estate can help you achieve financial independence. But suppose your goal is to retire early. Could relying too heavily on these principles actually delay early retirement? Today, we’re going to show you how to break free from the “middle-class trap” that stops so many from retiring early!

Welcome back to the BiggerPockets Money podcast! Is most of your net worth “stuck” in home equity and retirement accounts? This is a widespread issue in the FIRE community. On one hand, you could sell your home or refinance your mortgage to tap into your equity, but interest rates are too high! Meanwhile, you can’t withdraw money from your 401(k)—not without incurring severe penalties. In theory, you could already be a millionaire but have little to no cash flow to fuel your retirement. So, what should you do?

In this episode, you’re going to learn all about the middle-class trap, how to avoid it, and, if you’re in it, how to get out! Mindy and Scott will share the “ideal” portfolio for an early retiree and the bridge accounts you need to retire today. Finally, is the FIRE community wrong about the 100% index fund portfolio? Stay tuned to find out!

In This Episode We Cover

The middle-class trap explained and how to avoid (or escape) it

The “ideal” investment portfolio for the early retiree

Tweaking your asset allocation to achieve financial freedom

The power of owning a paid-off rental property in retirement

Bridge accounts and investments that will allow you to retire today

Why a 100% index fund portfolio could come back to bite you

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: [email protected]

Email Scott: [email protected]

BiggerPockets Money Facebook Group

Land More Off-Market Deals with Crucial Property Owner Contact Information from DealMachine

Achieve FIRE with Scott’s Book “Set for Life”

Find Investor-Friendly Lenders

BiggerPockets Money 554 - Should I Pay Off My Mortgage or Invest? (We Did the Math)

(00:00) Intro

(00:42) What Is the Middle-Class Trap?

(03:42) The “Ideal” Retirement Portfolio

(10:31) Scott’s Path to Financial Freedom

(16:13) Mindy’s Early Retirement Roadmap

(24:12) The Power of Paid-Off Property

(29:18) Middle-Class Trap “Timeline”

(33:55) Share YOUR Portfolio!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-602

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]

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

  continue reading

657 episodes

All episodes

×
 
Loading …

Welcome to Player FM!

Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.

 

Quick Reference Guide

Copyright 2025 | Privacy Policy | Terms of Service | | Copyright
Listen to this show while you explore
Play