Why Rent vs. Buy Is the Wrong Question with Jeremy Schneider

Stay Wealthy Retirement Podcast

Taylor Schulte, CFP®

Financialplanning, Retirement, Money, Taxplanning, Stocks, Wealth, Business, Investing, Retirementplanning

2.4 • 606 Ratings

🗓️ 3 March 2020

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today we're breaking down rent vs. buy with Jeremy Schnider, founder of Personal Finance Club.

You've probably heard people say: "if you rent, you're just throwing your money away every month!"

Or... "owning a home is a safe investment."

And yeah, there might be some truth to those statements.

But they don't tell the whole story.

In my experience, doing the math and running the numbers is more helpful.

Also, as Jeremy shares, rent vs. buy is probably the wrong question altogether.

Join us today as we take a look at some real-life numbers.

We also share:

What the right questions are when making a real estate decision
How to approach rent vs. buy in retirement
Jeremy's two-step plan to retire in 12 years!

If you want to learn how to make smart real estate decisions, you'll love today's episode.

(Plus: Jeremy, a multi-millionaire, shares some actionable retirement & investing tips you don't want to miss.)

Transcript

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0:00.0	The math changes dramatically when it's an investment, not your primary home. If you're living there and not sharing an income, not a great investment. If you buy a piece of investment real estate, have renters or buy a reet or other sorts of investment real estate, then it can be great. We can have 10% plus returns per year. But if you're just living there and no one's paying you rent, then it's not so great.
0:23.1	Welcome to the Stay Wealthy podcast.
0:27.9	I'm your host, Taylor Schulte, and today I'm joined by one of my favorite new friends in the personal finance world, Jeremy Schneider.
0:31.4	Jeremy started his first company at age 22, and he sold it in 2014 for $5 million. In 2017, he quit his job, he made work
0:44.8	optional and then he launched the Personal Finance Club. In today's episode, you're going to walk
0:50.4	away learning three main things. One, how to think about renting versus buying, both as a working professional and in retirement.
0:59.3	Two, Jeremy shares his two-step plan for reaching your retirement goal in 12 years.
1:05.6	And then three, he's going to be sharing a handful of actionable tips and tricks that you can implement immediately
1:12.4	to improve your financial situation and change some of your behaviors towards money.
1:18.6	For all the links and resources, and there are a lot of them today, head over to you staywealthy.com
1:24.6	forward slash 64.
1:30.1	Okay, so I just shared in the introduction, Jeremy, that you started your first company
1:35.3	at 22 years old and you sold it in 2014 for $5 million.
1:39.6	So at age 34, you became a millionaire and you're very open about sharing this. But one of the questions
1:46.3	that I've never had a chance to ask you and I wanted to kick things off with is like, how did that
1:50.4	feel? Like what was the first feeling when you saw $5 million or, you know, whatever you netted after
1:55.3	taxes? Like just how did that feel? It was weird. I actually took a video of the moment that I became a millionaire. I had a checking
2:03.7	account with Fidelity. And I know that when they send you a wire, they send you an email.
2:09.1	And so the day of the close of selling my company, I literally opened up my bank account website
2:15.0	and just had it sitting there open in a browser.
2:19.7	And then my phone buzzed, I got this email.
2:26.8	So I clicked refresh and my net worth at that point was about $100,000 just from normal try and true investing in my Roth IRA.
	...

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