I retired at age 53 and am now in my early 60s. Many people resisted me because they couldn't understand the idea of not working if you don't have to. I considered my life to be in phases. I worked very hard to achieve what I have now, but in my last years, I owe it to myself to "stop and smell the roses." After I retired, I left the nation and now reside in Latin America. I was able to enjoy my new surroundings and escape from all the bad things that were going on in America. I haven't yet encountered anyone who laments their retirement.
Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement fund has grown way more than it would have with just the 401(k). Haha.
@@kyrenfei I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
@@henryfelch I definitely share your sentiment about these firms. Finding financial advisors can be a personal choice sometimes, but I work with Elizabeth Louise Greak. She can assist you shape your portfolio and that would be a very creative option
Unfortunately, the majority of people lack this knowledge. I don't hold panickers accountable. A major obstacle may be a lack of knowledge. With only investing through an advisor, I've been earning over a million dollars with little effort on my part.
Great video, one that folks really need to watch. I' m 50, retired a while at 45. 1 have 35% of my capital invstments in an IRA. 25% in index funds, and the balance spread across other investment accts. in cumulative of over $ 5M. I receive income from my rental properties too. Zero debt and all is going accordingly. My financial consultant has been patient and has done a wonderful job for me throughout the years.
Thanks for sharing your experience! I've been managing my portfolio myself, but it's not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
Please could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation and I seek a more lucrative investment strategy to effectively utilize before I consider retirement
I just turned 44 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I'm getting worried about retirement, my intention is to retire at How best do l maximize my savings of over $220k
Missing a few important factors not provided: 1) Is that salary just hers, or is it household income? Split? 2) What is there current cash reserve safety fund, because having an HSA means very high deductible, so a major medical issue could wipe there savings out. 3) Cash reserves for rental properties? 4) Kids college? (Though Cali schools are cheap.) 5) Cali property taxes aren't going down. Scott knows that her plan of being so concentrated in real estate in one small area is quite risky....it's one thing to be concentrated in liquid assets, it's another in I'll liquid. EX. Cali fire during end of 6 month rent...smoke damage to home(s), no new renters, they need to move during repairs...sure insurance will bay for restorations, but not the TWO motgages...realistic risk in Cali... My reccomendation from what I heard: invest 100-150k in ADU and bump home value by $1mill (Sorry Scott, but 8-10x value is more ROI than investing $1mil and increasing value by only 3x. Work 5 more years, build up cash reserves, and then start buying instead of needing everything to as planned work on leveraged debt.... Because as Morgan preache...margain of safety...and "you need a plan so when your plan doesn't go according to plan." Oh...and please don't f your kids futures up by stealing 500k in capital gains deductions like Mindy suggested.
This is a perfect example that you shouldn’t include your primary residence in your net worth, her 2m+ house is not an asset but a liability that cost her 4k per month (mortgage/tax payment) as long as she continues own the house, until she sell the house, her real net assets is about 1.4M, with 4% rule, that will generate about 60k per year, her living expenses is over 100k per year, she is far from be able FIRE with that money.
This really didn’t seem like a “can I retire early” podcast but a “how to maximize real estate returns in Laguna Beach” podcast. Without retirement cash flow projections for the scenarios discussed not sure how her original question can be answered.
She won the lottery by having a house in that area. And she assumes she’s going to keep winning the lottery. (she said she thinks it will double every eight years, which is a 9% annual growth rate.) which is insane to assume.
Not necessarily. I went back over 40 years in my beach town and properties have doubled every 8.5 years on average. Impossible to say if that trend will continue indefinitely but not at all unfathomable. Also, Laguna Beach is tucked between the ocean and the mountains, there isn't more land to build on.
The last 40 years saw the mortgage rates go from a record high in the early 80’s and steadily declined for 40 years to a low of 2.5% during Covid. So home prices are artificially high because of all of the money printing and artificially low interest rates. If we have 10% inflation every year for the NEXT 40 years, then yes, homes will also go up 10% per year on average, which means doubling every 7-8 years. If someone thinks that a house will double every 8 years going forward, then in 40 years, that lady’s $3 million house will be worth $100 million dollars. Short of the hyper inflation that’s crazy to assume.
Interesting case! To the best of my knowledge, you can turn a primary home into a rental and then 1031 it. Allie, you may also want to think of buying a 4-plex in San Clemente instead.
I retired at 54 and honestly, I wish I’d done it sooner. The 9-to-5 grind steals your freedom for a paycheck that barely scratches the surface. My advice? If you’re in your late 30s or early 40s, start saving for FIRE now - Financial Independence, Retire Early. And if you’re in your 50s, invest smartly and break free from relying on your job. Market trends, like the Trump Effect, have made millions for many, including me. Stay focused, stay consistent, and remember: financial freedom is within reach if you make it a priority.
Working with Monica Mary Strigle , a financial advisor, was a game changer. She helped me refine my savings strategy, including retirement planning, and provided expert guidance on investments and budgeting to maximize my savings.
I’m working on the goal you wish you had when you were my age right at this very exact moment in my life. I’m 36 years old. I’ll be 37 December 1st. Just a few days away. I Just finally managed to reach $50,000 a month in dividend income from the stock market. I’m literally right around the corner from retirement. I can’t decide if I’m going to pull the plug at 40 or 45. Either age would put me in a very good financial position to retire not only comfortably but wealthy also. I would really like to get my dividend income up from $50,000 a month to $100,000 a month so that I can officially say that I make over $1 million a year in passive income which is way more income than any high level career that I would have to do absolutely nothing for. It would just make me feel a lot more comfortable with a million dollar annual income compared to where I’m at now just to make sure I never have to go back to work again for the rest of my life. A retirement can be a long period to financially sustain. I see so many old folks going back to work out of retirement because they retired without enough money.
This episode is basically my life. Similar age, numbers, SoCal beach location, etc. I haven't figured it out either. One thought, which may end up being my reality, is to accept that you may have to work another 10 years. If you can save 8k/month into pre and post-tax accounts starting with your 1.4M and compounding at 8%, you would end up with roughly 4.5M. That leaves you with plenty of money to pay off your outstanding mortgage/HELOC balances and live comfortably with relatively low expenses. But I get wanting a way to be done sooner. I also spent 3 years and $60k getting plans approved for an ADU thinking that would be my ticket but I can't stomach borrowing at 8.75% on a variable HELOC.
If she thinks it’s gonna double every eight years, then she should put the house in a trust fund, because in 50 years that means the house would be worth $100 million. Unless we have hyper inflation, that’s obviously not gonna happen.
I never take my house into consideration when I value assets. The only way to really make use of it's equity is to move to a lower cost location - moving out of Laguna beach. In Denver here, we looked at downsizing our house but with the cost of selling and current mortgage rates, all we would have ended up with is a smaller cheaper house and no improvement of finances. If you plan on leveraging the real estate by buying another house make sure you have a large enough cash cushion to handle losing your job AND the renter at the same time. A recession can cause these things to coincide with each other.
The issue is diversification. California may be great now but how will it look in 30 years if we can’t get climate change under control? A huge real estate portfolio should be diversified in location. Also, I feel like the market speculation is due to recency bias. Maybe high inflation won’t impact rich Texans. But at some point, the proposed economic policies (Tariff wars) are likely to make it harder for everyone to afford the basic necessities. Let alone prime vacation zones in California that already have inflated prices.
Seriously. This episode is like first world problems amplified. How can a person who works in supply chain with focusing on cost savings not even be able to manage their own finances? I have a hundred billion, can I retire? 😂
She pays 50% tax rate. CALI government keeps her poor. Unfortunately it’s her situation. Could move anywhere in America and be very wealthy and feel rich. The choice is hers
I retired at age 53 and am now in my early 60s. Many people resisted me because they couldn't understand the idea of not working if you don't have to. I considered my life to be in phases. I worked very hard to achieve what I have now, but in my last years, I owe it to myself to "stop and smell the roses." After I retired, I left the nation and now reside in Latin America. I was able to enjoy my new surroundings and escape from all the bad things that were going on in America. I haven't yet encountered anyone who laments their retirement.
Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement fund has grown way more than it would have with just the 401(k). Haha.
@@kyrenfei I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
@@henryfelch I definitely share your sentiment about these firms. Finding financial advisors can be a personal choice sometimes, but I work with Elizabeth Louise Greak. She can assist you shape your portfolio and that would be a very creative option
Unfortunately, the majority of people lack this knowledge. I don't hold panickers accountable. A major obstacle may be a lack of knowledge. With only investing through an advisor, I've been earning over a million dollars with little effort on my part.
Thank you for sharing your success journey . I just search her name up and found her website
Great video, one that folks really need to watch. I' m 50, retired a while at 45. 1 have 35% of my capital invstments in an IRA. 25% in index funds, and the balance spread across other investment accts. in cumulative of over $ 5M. I receive income from my rental properties too. Zero debt and all is going accordingly. My financial consultant has been patient and has done a wonderful job for me throughout the years.
Consulting with a financial advisor can provide personalized insights and help align your investment strategy with your retirement goals.
Thanks for sharing your experience! I've been managing my portfolio myself, but it's not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
Honestly this cannot be overemphasized, helping people mitigate unforseen circumstances and mistakes .It's always good to have a financial plan,
Please could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation and I seek a more lucrative investment strategy to effectively utilize before I consider retirement
I just turned 44 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I'm getting worried about retirement, my intention is to retire at
How best do l maximize my savings of over $220k
Missing a few important factors not provided:
1) Is that salary just hers, or is it household income? Split?
2) What is there current cash reserve safety fund, because having an HSA means very high deductible, so a major medical issue could wipe there savings out.
3) Cash reserves for rental properties?
4) Kids college? (Though Cali schools are cheap.)
5) Cali property taxes aren't going down.
Scott knows that her plan of being so concentrated in real estate in one small area is quite risky....it's one thing to be concentrated in liquid assets, it's another in I'll liquid. EX. Cali fire during end of 6 month rent...smoke damage to home(s), no new renters, they need to move during repairs...sure insurance will bay for restorations, but not the TWO motgages...realistic risk in Cali...
My reccomendation from what I heard: invest 100-150k in ADU and bump home value by $1mill (Sorry Scott, but 8-10x value is more ROI than investing $1mil and increasing value by only 3x.
Work 5 more years, build up cash reserves, and then start buying instead of needing everything to as planned work on leveraged debt....
Because as Morgan preache...margain of safety...and "you need a plan so when your plan doesn't go according to plan."
Oh...and please don't f your kids futures up by stealing 500k in capital gains deductions like Mindy suggested.
This is a perfect example that you shouldn’t include your primary residence in your net worth, her 2m+ house is not an asset but a liability that cost her 4k per month (mortgage/tax payment) as long as she continues own the house, until she sell the house, her real net assets is about 1.4M, with 4% rule, that will generate about 60k per year, her living expenses is over 100k per year, she is far from be able FIRE with that money.
This really didn’t seem like a “can I retire early” podcast but a “how to maximize real estate returns in Laguna Beach” podcast. Without retirement cash flow projections for the scenarios discussed not sure how her original question can be answered.
She won the lottery by having a house in that area. And she assumes she’s going to keep winning the lottery. (she said she thinks it will double every eight years, which is a 9% annual growth rate.) which is insane to assume.
Not necessarily. I went back over 40 years in my beach town and properties have doubled every 8.5 years on average. Impossible to say if that trend will continue indefinitely but not at all unfathomable. Also, Laguna Beach is tucked between the ocean and the mountains, there isn't more land to build on.
The last 40 years saw the mortgage rates go from a record high in the early 80’s and steadily declined for 40 years to a low of 2.5% during Covid. So home prices are artificially high because of all of the money printing and artificially low interest rates. If we have 10% inflation every year for the NEXT 40 years, then yes, homes will also go up 10% per year on average, which means doubling every 7-8 years. If someone thinks that a house will double every 8 years going forward, then in 40 years, that lady’s $3 million house will be worth $100 million dollars. Short of the hyper inflation that’s crazy to assume.
Interesting case! To the best of my knowledge, you can turn a primary home into a rental and then 1031 it. Allie, you may also want to think of buying a 4-plex in San Clemente instead.
I retired at 54 and honestly, I wish I’d done it sooner. The 9-to-5 grind steals your freedom for a paycheck that barely scratches the surface. My advice? If you’re in your late 30s or early 40s, start saving for FIRE now - Financial Independence, Retire Early. And if you’re in your 50s, invest smartly and break free from relying on your job. Market trends, like the Trump Effect, have made millions for many, including me. Stay focused, stay consistent, and remember: financial freedom is within reach if you make it a priority.
Exactly My point! The 9to5 grind is just not worth it the stress and low payoff. What specific steps did you take to break free?
Working with Monica Mary Strigle , a financial advisor, was a game changer. She helped me refine my savings strategy, including retirement planning, and provided expert guidance on investments and budgeting to maximize my savings.
Got it! I looked her up and found her consulting page. I’ve got to say her credentials are truly impressive! I've scheduled a call to discuss further
I have 5 more years and I can’t wait!
I’m working on the goal you wish you had when you were my age right at this very exact moment in my life. I’m 36 years old. I’ll be 37 December 1st. Just a few days away. I Just finally managed to reach $50,000 a month in dividend income from the stock market. I’m literally right around the corner from retirement. I can’t decide if I’m going to pull the plug at 40 or 45. Either age would put me in a very good financial position to retire not only comfortably but wealthy also. I would really like to get my dividend income up from $50,000 a month to $100,000 a month so that I can officially say that I make over $1 million a year in passive income which is way more income than any high level career that I would have to do absolutely nothing for. It would just make me feel a lot more comfortable with a million dollar annual income compared to where I’m at now just to make sure I never have to go back to work again for the rest of my life. A retirement can be a long period to financially sustain. I see so many old folks going back to work out of retirement because they retired without enough money.
This episode is basically my life. Similar age, numbers, SoCal beach location, etc. I haven't figured it out either. One thought, which may end up being my reality, is to accept that you may have to work another 10 years. If you can save 8k/month into pre and post-tax accounts starting with your 1.4M and compounding at 8%, you would end up with roughly 4.5M. That leaves you with plenty of money to pay off your outstanding mortgage/HELOC balances and live comfortably with relatively low expenses. But I get wanting a way to be done sooner. I also spent 3 years and $60k getting plans approved for an ADU thinking that would be my ticket but I can't stomach borrowing at 8.75% on a variable HELOC.
If she thinks it’s gonna double every eight years, then she should put the house in a trust fund, because in 50 years that means the house would be worth $100 million. Unless we have hyper inflation, that’s obviously not gonna happen.
46,000 for 2 months rental? Wow thats wild. $766 a night
Welcome to California beach life
I never take my house into consideration when I value assets. The only way to really make use of it's equity is to move to a lower cost location - moving out of Laguna beach. In Denver here, we looked at downsizing our house but with the cost of selling and current mortgage rates, all we would have ended up with is a smaller cheaper house and no improvement of finances. If you plan on leveraging the real estate by buying another house make sure you have a large enough cash cushion to handle losing your job AND the renter at the same time. A recession can cause these things to coincide with each other.
Nice spreadsheet 👍
What does this person hate living in her house so much. Every year she rents it out for a long time. Where does she live at these times?
The issue is diversification.
California may be great now but how will it look in 30 years if we can’t get climate change under control?
A huge real estate portfolio should be diversified in location.
Also, I feel like the market speculation is due to recency bias. Maybe high inflation won’t impact rich Texans. But at some point, the proposed economic policies (Tariff wars) are likely to make it harder for everyone to afford the basic necessities. Let alone prime vacation zones in California that already have inflated prices.
BP has really gone downhill. Sad.
Seriously. This episode is like first world problems amplified. How can a person who works in supply chain with focusing on cost savings not even be able to manage their own finances?
I have a hundred billion, can I retire? 😂
Middle class trap? Is earning 300k Pa with a 3m dollar house middle class nowadays?
She pays 50% tax rate. CALI government keeps her poor. Unfortunately it’s her situation. Could move anywhere in America and be very wealthy and feel rich. The choice is hers
@@andrewscott5548 Exactly. Self inflicted problems that is easily remedy if she choose to.
These numbers are insane, she could call it a day in a place like Portugal -
She could call it a day even where she is living, if she doesn't continue to live a lifestyle that is unstainable.
She has great problems.