Fear and uncertainty create major wealth. It's those who take the risk and have strong gut to endure the bloody days. When i notice extreme dips i tend to actually move more money to Bitcoin
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I've been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
My outlook on money changed when I realized that is better to invest on or before retirement, some people are just putting $15k or $20k With the current market movement at the end of the year they are making millions.
Omg! This is exactly my situation and been wanting to get more information on 72T and thank you Mindy and Scott for inviting Eric to talk about this topic! Thank you SO much Eric!❤
This advice will likely get buried into the comments and the guest won’t be able to read it but here you go. For the rental properties specifically. 1.) do seller financing with some sort of lease to own set up. You can keep getting the same annual cash flow, the sale could be work out were it’s only the down payment they give you as income. They pay you monthly but if something goes out (water heater hvac etc it’s they rent to own person that pays it. If they default and done pay you you can repossess the house and now you have both the “rent” and the asset. 2.) I own multiple short term rental properties. Plan is for me to move into each of them for 2 years during my retirement so that I don’t have to pay taxes on the 250k of application or have to worry about the depreciation recapture. This should be even easier for you to do the same as all of your properties are in the same spot so the hassle of moving/relocation is essentially not present. Good luck and congrats on early retirement
The 457 that public sector employers frequently receive allow you to start taking withdrawls from tax deffered contributions provided you have permanently separated from service.
Wonderful guest! I did not know about the 72t, so this was very helpful. I heard of someone who, similar to the guest, reached millions in his 401k and was in despair when he realized how much in taxes he had to pay since he was nearing or at rmd age. He regretted not addressing this issue earlier in his life. I was thinking that a roth conversion ladder might not be a bad idea, especially since the guest is still young and has the time. But it is interesting how everyone has their own preferences. A 15 year growth on 2.7 mil at 6% interest is 6.4 mil, so I can see the reasons for sitting back and letting it grow. It would be great to have the guest return and maybe talk more about not wanting to do a roth conversion and to also use this to discuss all the different paths that one can take.
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?
Agreed, having a good financial advisor is invaluable, my portfolio is well-matched for every season of the market and has just yielded 120% from early last year. I and my advisor are working on a 7 figure ballpark goal, tho this could take another year.
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
that's right. Investing in stocks can be a key component of your retirement strategy, but it's essential to approach it wisely. A trusted financial advisor can guide you in making informed investment decisions, diversifying your portfolio, and maximizing returns. By partnering with a financial expert, you can confidently invest in stocks and build a secure financial foundation that supports your retirement goals and aspirations.
Absolutely! A key to success in stock investing is to avoid impulsive decisions based on fear, which can lead to premature selling. It's essential to recognize that stocks are long-term investments, not get-rich-quick schemes. seeking the expertise of a financial advisor is essential to help make informed decisions.
This is why I've entrusted a fiduciary with my investment decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to $780k, generating sufficient dividends for my household's needs.
Wow! Eric Cooper has this figured out with tax advantage assets and solid strategy. Something just about anyone can do with time and proper planning. It's possible even with having a less net worth than Eric.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
Very relatable topic. Great job on asset accumulation. Probably even better at asset management job in retirement. Enjoyed every minute. He seems like a really genuine guy. Happy for his success
The revenue from the rental property does not include expenses, property tax, maintenance and any HOA fees, so definitely lower cash flow but still great! The big thing to me is the huge annual return he got on his 401k, my largest one is about 1/4 of this!
only have a 2 year degree, did 3 years in military, worked for the feds for 37 years + 3 years in military total of 40.5 years, no debt, pension I have a great pension, wife has a smaller fed pension + SS, I won't take mine until FRA, been retired 3 years, not touching IRA/TSP except to roth convert. Having pensions ( with COLA) that cover all expenses, with health insurance still at the same rate as when employed + medicare, no debt and pensions are a game changer
😅Questions for all Americans😅 What is the use of your Millions if you can barely Enjoy it and you have few years left in your Lifetime. What now??????? wasted time. Rich Americans=Money Rich but Time Poor⏰⏰⏰⏰⏰⏰
This was such a cool episode! The way Eric leverages the 72t rule makes me think a lot about different retirement strategies. I've been getting into crypto lately with My Digital Money, and it’s got me thinking about the future in a whole new way. Anyone else here experimenting with crypto in their retirement plans?
Wow, is this guy a professionally licensed advisor? No...OK. As an FYI... using the 72t without the assistance of an actual professional is like doing dentistry on yourself...it can be done, but not reccomended. Is his FI Camp shirt like Band Camp? Nothing like interrupting the miracle of compounding early in life. Oh nice...he used a HELOC to buy property...Scott loves that...😂😂
Aloha! I’m not following how he has $65k in cash flow, and hence the $85k income after the additional $20k from the 72T- But how is that only $26k AGI? Or was the $65k cash flow really revenue and before expenses? Just trying to understand that important tax element of the pod. Mahalos!
He is likely taking depreciation on his rental portfolio, offsetting his taxable income. This is also part of the reason he is kind of stuck with his properties. Depreciation recapture would be a major impact to him.
You open as many accounts as you want and transfer as much as you want in each of them. Once you set 72(t) process on 1 of those accounts you are pretty much stuck with that, but if you want/need more you set up 72(t) on your next account
Why do you continue to have "breaks" and then....no break....just find it extremely strange. edit it out please. small thing - but killing me to hear every episode...
This guy should not be getting any healthcare benefits. We shouldn’t be paying taxes so he can retire early. This is immoral, and biggerpockets shouldn’t be promoting it. If you’re taking early retirement account distributions without penalty, you shouldn’t be allowed healthcare subsidy. If you can’t afford the $500 monthly premium you shouldn’t be retired.
I thought about this too. Should BiggerPockets opine about the morality or politics of who should and should not received benefits? Or is our place simply to share the rules of the game and how people play it and let folks make their own choices. For what it’s worth, I do not condemn Eric for taking this benefit, but would personally feel uncomfortable claiming low income health benefits. Perhaps hypocritically, on the other hand, I’d have no problem generating $100K in real estate cash flow and paying little to nothing in federal taxes. Something, for me, makes me uncomfortable taking a handout, but totally comfortable designing a portfolio that legally gives as little as possible to federal coffers. A tough line. We choose not to judge.
I prefer to pay for Eric's health insurance than to pay for many who get same benefit but get paid cash(contractor jobs/tips) and not reporting their full income. Eric worked hard, and paid his fair amount in taxes before his retirement.
You pick on one dude and you're not taking into acct that he paid taxes for over 20yrs. How about the people who get subsidies almost their whole lives that didn't pay jack into the system? There are many. Illegals getting handouts now like and living better than many poor citizens and our vets??
Fear and uncertainty create major wealth. It's those who take the risk and have strong gut to endure the bloody days. When i notice extreme dips i tend to actually move more money to Bitcoin
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I've been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
My outlook on money changed when I realized that is better to invest on or before retirement, some people are just putting $15k or $20k With the current market movement at the end of the year they are making millions.
Omg! This is exactly my situation and been wanting to get more information on 72T and thank you Mindy and Scott for inviting Eric to talk about this topic! Thank you SO much Eric!❤
This advice will likely get buried into the comments and the guest won’t be able to read it but here you go. For the rental properties specifically.
1.) do seller financing with some sort of lease to own set up. You can keep getting the same annual cash flow, the sale could be work out were it’s only the down payment they give you as income. They pay you monthly but if something goes out (water heater hvac etc it’s they rent to own person that pays it. If they default and done pay you you can repossess the house and now you have both the “rent” and the asset.
2.) I own multiple short term rental properties. Plan is for me to move into each of them for 2 years during my retirement so that I don’t have to pay taxes on the 250k of application or have to worry about the depreciation recapture. This should be even easier for you to do the same as all of your properties are in the same spot so the hassle of moving/relocation is essentially not present.
Good luck and congrats on early retirement
The 457 that public sector employers frequently receive allow you to start taking withdrawls from tax deffered contributions provided you have permanently separated from service.
Wonderful guest! I did not know about the 72t, so this was very helpful.
I heard of someone who, similar to the guest, reached millions in his 401k and was in despair when he realized how much in taxes he had to pay since he was nearing or at rmd age. He regretted not addressing this issue earlier in his life.
I was thinking that a roth conversion ladder might not be a bad idea, especially since the guest is still young and has the time. But it is interesting how everyone has their own preferences. A 15 year growth on 2.7 mil at 6% interest is 6.4 mil, so I can see the reasons for sitting back and letting it grow.
It would be great to have the guest return and maybe talk more about not wanting to do a roth conversion and to also use this to discuss all the different paths that one can take.
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?
keep contributing to your 401K, remember you are in for the long haul, but I'd suggest you consider financial advisory
Agreed, having a good financial advisor is invaluable, my portfolio is well-matched
for every season of the market and has just yielded 120% from early last year. I and my
advisor are working on a 7 figure ballpark goal, tho this could take another year.
Economy and stock market boomed since covid. Your poor portfolio performance is only on you.
@@beautifulpeopleonearthok...😅😅😅😅😅
This was a really rewarding episode. I enjoyed his story
Good stuff as always Scott and Mindy!
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
that's right. Investing in stocks can be a key component of your retirement strategy, but it's essential to approach it wisely. A trusted financial advisor can guide you in making informed investment decisions, diversifying your portfolio, and maximizing returns. By partnering with a financial expert, you can confidently invest in stocks and build a secure financial foundation that supports your retirement goals and aspirations.
Absolutely! A key to success in stock investing is to avoid impulsive decisions based on fear, which can lead to premature selling. It's essential to recognize that stocks are long-term investments, not get-rich-quick schemes. seeking the expertise of a financial advisor is essential to help make informed decisions.
This is why I've entrusted a fiduciary with my investment decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to $780k, generating sufficient dividends for my household's needs.
Wow! Eric Cooper has this figured out with tax advantage assets and solid strategy. Something just about anyone can do with time and proper planning. It's possible even with having a less net worth than Eric.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
Very relatable topic. Great job on asset accumulation. Probably even better at asset management job in retirement. Enjoyed every minute. He seems like a really genuine guy. Happy for his success
The revenue from the rental property does not include expenses, property tax, maintenance and any HOA fees, so definitely lower cash flow but still great! The big thing to me is the huge annual return he got on his 401k, my largest one is about 1/4 of this!
ThNk you soon much. If it wasn't for you, I would be soo lost
He’s from my hometown of Louisville! Awesome story, keep killing it! 👍🏾
Best show by far. 72T:)
only have a 2 year degree, did 3 years in military, worked for the feds for 37 years + 3 years in military total of 40.5 years, no debt, pension I have a great pension, wife has a smaller fed pension + SS, I won't take mine until FRA, been retired 3 years, not touching IRA/TSP except to roth convert. Having pensions ( with COLA) that cover all expenses, with health insurance still at the same rate as when employed + medicare, no debt and pensions are a game changer
great episode, and im cracking up at the subject line ahaha
Affordable Care Act with 1.7 mil in 401k???
Yes, it doesn't make sense. The $$$ out of his 401k and retal income is all counted into MAGI.
😅Questions for all Americans😅 What is the use of your Millions if you can barely Enjoy it and you have few years left in your Lifetime. What now??????? wasted time. Rich Americans=Money Rich but Time Poor⏰⏰⏰⏰⏰⏰
Wow, you think at 47 he only has a few years left? That is a sad thought process, especially considering the average life expectancy is 75...
Louisville KY! Nice!
I remember that commercial
This was such a cool episode! The way Eric leverages the 72t rule makes me think a lot about different retirement strategies. I've been getting into crypto lately with My Digital Money, and it’s got me thinking about the future in a whole new way. Anyone else here experimenting with crypto in their retirement plans?
Wow, is this guy a professionally licensed advisor? No...OK. As an FYI... using the 72t without the assistance of an actual professional is like doing dentistry on yourself...it can be done, but not reccomended.
Is his FI Camp shirt like Band Camp?
Nothing like interrupting the miracle of compounding early in life.
Oh nice...he used a HELOC to buy property...Scott loves that...😂😂
❤❤❤
$500/month is not bad at all, and funny he thinks it's a big deal. I expect my cost will be $30k per year without the subsidy and $10k with.
Aloha! I’m not following how he has $65k in cash flow, and hence the $85k income after the additional $20k from the 72T- But how is that only $26k AGI? Or was the $65k cash flow really revenue and before expenses? Just trying to understand that important tax element of the pod. Mahalos!
He is likely taking depreciation on his rental portfolio, offsetting his taxable income. This is also part of the reason he is kind of stuck with his properties. Depreciation recapture would be a major impact to him.
@@scotttrench4169 Okay, yes I think that makes sense! Mahalo for the reply! :-)
Gaydar going off hard
Option for multiple 72ts? How does that work? Only one is allowed per account I thought.
You open as many accounts as you want and transfer as much as you want in each of them. Once you set 72(t) process on 1 of those accounts you are pretty much stuck with that, but if you want/need more you set up 72(t) on your next account
He’s wealthy and retiring early as he has no kids
He's gay
Why do you continue to have "breaks" and then....no break....just find it extremely strange. edit it out please. small thing - but killing me to hear every episode...
This guy should not be getting any healthcare benefits. We shouldn’t be paying taxes so he can retire early. This is immoral, and biggerpockets shouldn’t be promoting it. If you’re taking early retirement account distributions without penalty, you shouldn’t be allowed healthcare subsidy. If you can’t afford the $500 monthly premium you shouldn’t be retired.
I thought about this too. Should BiggerPockets opine about the morality or politics of who should and should not received benefits? Or is our place simply to share the rules of the game and how people play it and let folks make their own choices.
For what it’s worth, I do not condemn Eric for taking this benefit, but would personally feel uncomfortable claiming low income health benefits.
Perhaps hypocritically, on the other hand, I’d have no problem generating $100K in real estate cash flow and paying little to nothing in federal taxes. Something, for me, makes me uncomfortable taking a handout, but totally comfortable designing a portfolio that legally gives as little as possible to federal coffers.
A tough line. We choose not to judge.
I prefer to pay for Eric's health insurance than to pay for many who get same benefit but get paid cash(contractor jobs/tips) and not reporting their full income. Eric worked hard, and paid his fair amount in taxes before his retirement.
You pick on one dude and you're not taking into acct that he paid taxes for over 20yrs.
How about the people who get subsidies almost their whole lives that didn't pay jack into the system? There are many. Illegals getting handouts now like and living better than many poor citizens and our vets??
You sound salty as hell