176: How to Grow Retirement Accounts Before Having Kids | Finance Friday with Steve

BiggerPockets Money Podcast

BiggerPockets

Education, Investing, Business

4.5 • 3K Ratings

🗓️ 5 March 2021

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

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Summary

Most listeners of the show will know that a cash cushion is always great to have and should be mandatory for almost everyone. Having a cash reserve of 6-12 months can help you cover unexpected expenses or life events like a sudden medical bill or losing your job. That being said, sometimes you can have a cash cushion that’s too big for your lifestyle. Today we talk to Steve, who has been paying off his mortgage quickly with the help of his wife. They both have respectable salaries, retirement accounts, and a large cash cushion. Steve wants to know whether or not he should move some of his cash out of his reserve and into retirement accounts or real estate. Since Steve has such a large cash cushion to rely on, he could take out a fraction of it to use as a down payment on a rental property and still have tens of thousands left over! Scott and Mindy walk Steve through the different options he has, such as paying off his primary mortgage then buying real estate, pausing his mortgage prepayments and going all in on real estate, and other strategies. Steve is in such a secure position that it makes it hard to criticize his current standing. That being said, he could be using leverage to springboard his investment property portfolio and be on the path to financial freedom sooner! In This Episode We Cover How much of a cash cushion you should have available Eliminating big loans like mortgages and student debt Buying rental properties before you pay off your primary home Leveraging debt in order to grow your wealth quicker Getting a real estate agent to start browsing the market for rentals And So Much More! Check the full show notes here: https://www.biggerpockets.com/moneyshow176 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the bigger pockets money podcast show number 176 finance Friday episode where we chat with Steve and talk about
0:08.3	paying off your mortgage
0:09.8	Maybe not paying off your mortgage investing in real estate and being more intentional with your retirement investments
0:16.0	You know talking with my wife making sure we're both on the same page
0:18.8	And yeah, I think talking to a real estate pro it's something that we've probably been hesitant on because I think once we start doing that
0:24.2	We automatically think like we're locked in and this gets you know serious
0:28.0	But it's not you know it ultimately teaches us more and maybe we realize that this central Pennsylvania housing market
0:33.8	It's a great time to invest in an parental property and I think that's probably an action
0:38.9	I am that I'll take from this is there's no harm in in reaching out to someone getting listings coming our way and we love doing that
0:46.0	Anyway, so that should be fun
0:48.0	Hello, hello, hello, my name is Mindy Jensen and with me as always is my compulsive reader co-host Scott Trech
0:53.6	Oh, thank you for calling attention to my auto-didactic nature look it up and shout out to Marques Griffin for introducing me to that word
1:03.3	Scott and I are here to make financial independence less scary less just for somebody else to introduce you to every money story
1:10.7	Because we truly believe that financial independence is attainable for everyone no matter when or where you starting
1:17.2	That's right whether you want to retire early and travel the world go on to make big-time investments in assets like real estate
1:22.3	Start your own business or optimize and already pretty strong financial position will help you reach your financial goals and get money out of the way so that you can launch yourself towards those dreams
1:34.4	Scott, I'm super excited to talk to Steve today. I really love these finance reviews
1:39.1	These are a lot of fun for me and I know that they're a lot of fun for you because I see your face light up when you're telling people what to do with their money
1:46.3	I'm sorry making suggestions
1:48.3	Because as my attorney says the contents of this podcast are informational in nature and are not legal or tax advice and that they're Scott nor I nor bigger pockets is
1:57.3	Engaged in the provision of legal tax or any other advice you should seek your own advice from professional advisors including lawyers and
2:03.4	Accountants regarding the legal tax and financial implications of any financial decision you contemplate
	...

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