426 | What to do with $2.5 Million & Real Estate Update | Scott Trench
ChooseFI
Brad Barrett | Choose FI Media
4.8 • 5K Ratings
🗓️ 27 February 2023
⏱️ 56 minutes
🧾️ Download transcript
Summary
In this episode: the 2.5 million dollar inversion, looking at the incentives, interest rates, your biggest asset, and potshots.
When you begin your FI journey, you may feel like you must follow a certain path or plan in order to achieve your desired outcome. However, the longer you are this journey the more you realize that it is a personal one that requires adaptability when so many factors can affect your bottom line. This week we are back with Scott Trench from BiggerPockets as he shares his insights on investing and looking at your portfolio from an “outset” perspective, as well as touch on the shape of the real estate market. It is important to remember that there is a lot of push and pull on this journey, and it is not meant to be perfect. While you may have expectations for your portfolio and your long term plans, there will be times where you will have to make tradeoffs. Just as the markets change and may signal uncertainties to come, remember that flexibility while maintaining your long term goals will allow you to feel more equipped to move through these times.
Scott Trench:
- Website: BiggerPockets
- Podcast: The BiggerPockets Money Podcast
- Instagram: @scott_trench
Timestamps:
- 0:57 - Introduction
- 2:05 - The 2.5 Million Dollar Inversion
- 8:52 - Always Look At The Incentives
- 12:49 - The Traditional Path To FI And PotShots
- 17:45 - Your Biggest Asset/Should You Be Inefficient?
- 25:52 - Executing The Concept
- 31:12 - The Impact Of Interest Rates Today
- 42:21 - The Commercial Impact
- 52:10 - Buying Properties With Cash
- 56:21 - Conclusion
Resources Mentioned In Today’s Episode:
- Scott Trench | Set For Life | ChooseFI Ep 63
- First-Time Home Buyer | BiggerPockets | ChooseFI Ep 312
- "Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!" by Robert Kiyosaki
- Mr. Money Mustache on Life After FI: The Truth About Retiring Early in Your 30s
- BiggerPockets Rental Property Calculator
- Subscribe to The FI Weekly!
More Helpful Links and Resources:
- Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
- Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
- Keep learning or start a new side hustle with one of our educational courses
- Commission-Free Investing with M1 Finance
Transcript
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| 0:00.0 | Hello and welcome to Choose a Five. Today on the show we have my good friend Scott Trench, |
| 0:04.7 | who is the CEO of Bigger Pockets. He's also the co-host of the Bigger Pockets Money podcast, |
| 0:10.9 | along with Mindy Jensen, also our good friend. So yeah, we have had Scott on first way back in |
| 0:17.2 | episode 63 and then again in episode 312 and I just touched base with him recently because it's |
| 0:23.8 | been way way way too long and we decided of course we'd love to have him back on and he sent me |
| 0:30.1 | two of just the absolute best ideas for a podcast episode and I was blown away and even though |
| 0:35.6 | it's kind of like a cardinal scene of podcasting to do two completely different ideas in one episode, |
| 0:42.0 | I said we absolutely have to do this so we are going to get right into it and with that welcome to choose a five. |
| 0:55.7 | All right Scott welcome back to choose a five it's good to see you my friend. |
| 0:58.9 | Good to see you thanks for having me back on bread yeah this should be fun so like I kind of alluded |
| 1:03.7 | to at the beginning here we have two amazing ideas for an episode so first let me set the stage and |
| 1:10.3 | then we'll kind of rock and roll with this so the first was actually an inversion of how we normally |
| 1:16.8 | think about five and I whenever I hear inversion or invert I think of Charlie Munger who's talking |
| 1:22.0 | invert always invert and it was how would you invest one to two and a half million dollars if I |
| 1:28.3 | handed it to you and cash and I think your idea here is to work backwards from that point and see |
| 1:38.0 | how ultimately because we're not working that way in real life how you would get to that point |
| 1:43.4 | and I think a lot of us just kind of fall backwards into a portfolio that is less than ideal so |
| 1:50.5 | that we're going to talk about first and then of course there's some interesting things going on |
| 1:55.9 | in the world of real estate which is obviously CEO bigger pockets you have the pulse of real estate |
| 2:01.6 | and with interest rates specifically so can't wait to dive into that but let's start with this |
| 2:06.5 | first one so this inversion talk me through because I think you've really thought about this over |
| 2:12.6 | a bunch of your episodes and bigger pockets money so I'm going to just throw it to you to |
... |
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