Hello from Austin, Texas! I’m living in an Airbnb here for the next 5 weeks. Listen to the end of today’s episode to find out why … and discover how these next 5 weeks, for me, exemplify the “why” of financial independence.
In the meantime, though, the show must go on! Here are the questions that we’re answering in today’s episode.
An anonymous listener named Seeking FIRE wants to know how she can talk about financial independence with people who ridicule the topic. What do you say to those who laugh at the very idea?
Russell owns a landscaping company and is also a part-time student. He’d like to earn more money on the side, but his schedule is overbooked. What can he do?
Nick and his family are moving to the Washington D.C. area for approximately two to six years. They own two rental properties free-and-clear, and would like to buy a personal residence when they move. How should he save for the downpayment?
Gerardo lives in Mexico and wants to retire on his investment portfolio, using the 4 percent withdrawal rule. How should he invest, given currency fluctuations and other international factors?
Anonymous left her job and wants to know if she should roll over her 401k from her old employer.
We tackle these five questions in today’s episode. We also answer a comment from a listener who says that individual stock-picking and active management doesn’t get the credit it deserves.
Here are more details:
Seeking FIRE asks:
How can you get people interested in FIRE who aren’t even interested in the concept? I have friends with whom I share my FIRE plans, and they laugh at me because they have children that they need to put through college. They say they’ll think about retirement plans once college is saved for.
I still think they can retire early, or at least think differently about how to approach retirement. Any advice on how to get them interested, or are they not ready to hear about it?
Nick asks:
We’re transferring to the DC area in August 2018, where our family will be living for two to six years. We’re considering buying a single-family house in Virginia or Maryland, but they’re looking pretty expensive.
To save up 20% for a downpayment, I’m considering reducing my TSP contributions for a few months. We have $80,000 saved already. Do you think this is a good idea?
Gerardo asks:
I want to retire according to the four percent rule, as you’ve previously mentioned on the podcast. To do this, I want to follow The Simple Path to Wealth, but I need to replicate it for my country (Mexico). Here, the only tax benefit that we have is that we pay 10% on stock capital gains and nothing more.
- Currency risk: does the currency fluctuations… negatively over time?
- Invest only in US or worldwide? I have access to Vanguard only by ETFs like VTI. Given my position with my rental properties, do you think I should invest more aggressively?
- Vanguard has plans to bring investment funds to Mexico. When that happens, should I sell all my ETFs and send them to the investment fund?
Anonymous asks:
I left my old job and started a new job in September 2018. Should I roll over my old 401(k) to my new employer’s plan now, or wait a little since the market is in a downturn?
I don’t know a ton about the markets, but I know I want to roll my old 401(k) over so everything is in one account and easily trackable.
Russell asks:
What’s the best way for people who are totally overbooked to earn extra money (as passively as possible)?
I’m the single owner and operator of a landscaping business, but because I also attend school, I can only work three days a week. I feel like I’m missing out on earning extra income, and I’m looking for other easy-to-implement ideas.
My friend and former financial planner Joe Saul-Sehy and I answer these questions on today’s episode. Enjoy!
Resources Mentioned:
- How I Save Half of My Income as Firefighter, While Living in an Expensive City – with Kim E.
- AI and the Future of Jobs – with Author Darrell West
- Above the Clouds Retreats
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