In this episode of the BiggerPockets Money podcast, hosts Mindy Jensen and Scott Trench welcome Frank Vasquez back on to challenge everything you thought you knew about safe withdrawal rates. Frank reveals how a properly constructed risk parity portfolio can support a 5% withdrawal rate—meaning you could comfortably pull $125,000 annually from a $2.5 million portfolio without the traditional fear of running out of money. This isn't theoretical; it's a practical strategy that sophisticated investors have been using for decades.

Frank takes listeners step-by-step through building this portfolio on Fidelity, demonstrating real-world implementation rather than just concepts. You'll discover how mathematical principles like the Fibonacci sequence can guide your allocation decisions, why traditional diversification falls short, and how to rebalance effectively without overthinking the process. Most importantly, Frank shows how to customize this approach to your specific situation, making risk parity accessible whether you're approaching FIRE or already financially independent.

This Episode Covers:

• Risk parity fundamentals - Understanding true diversification beyond stocks and bonds
• Asset class breakdown - Specific investments across equities, bonds, commodities, and alternatives
• Rebalancing strategies - When and how to adjust your portfolio without constant tinkering
• Withdrawal techniques - Practical methods for taking income from multiple asset classes

And SO much more!

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In this episode of the BiggerPockets Money Podcast, hosts Mindy Jensen and Scott Trench are joined by Frank Vasquez, host of the Risk Parity Radio Podcast. Frank introduces the concept of a risk parity portfolio. Rather than relying on traditional stock-heavy portfolios, Frank reveals how strategic diversification across asset classes can potentially support higher withdrawal rates while actually reducing your risk of running out of money.

The conversation covers the nuances of structuring a portfolio with equities, bonds, and alternative assets like gold and managed futures. They also explore the implications of real estate investments and the timing of transitioning from an accumulation to a decumulation strategy. Frank shares insights on the importance of balanced withdrawals, the challenges of adhering to conventional investment philosophies, and the need to move towards a holistic view of financial independence that includes well-being and responsible spending.

We Discuss: 

• Why the standard 60/40 portfolio may be failing FIRE investors

• Optimal allocation strategies across equities, bonds, and alternative assets

• The critical timing of portfolio transitions as retirement approaches

• Strategic withdrawal approaches that prioritize longevity over accumulation

• The psychological shift from wealth accumulation to wealth optimization

And SO much more!

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What’s your financial independence number (FI/FIRE number)? Are you being too conservative, or are you cutting things close? Do you even have one? Today, we’re taking a deep dive into this hotly debated topic to help you build a nest egg that will support your early retirement!

Welcome back to the BiggerPockets Money podcast! How much money do you actually need to retire? For years, the four-percent rule has been the “official” stance of the FI community. But why is it, then, that so many people continue saving and investing when they can comfortably retire? In this episode, Scott and Mindy talk about their own FI numbers, how they calculated them, and how their financial positions have evolved over time. You’ll learn whether the four-percent rule still works today or if you need a larger buffer!

If you’re worried about inflation, one of the best things you can do is keep your living expenses in check. This might seem out of your control, but there are several ways to either lock in certain costs or eliminate them entirely. We’ll discuss the many advantages of a paid-off house, self-managing your rental properties in retirement, and a one-time investment that could help you save thousands of dollars over your lifetime!

In This Episode We Cover

• How to calculate your financial independence number (and when to adjust it!)

• The four-percent rule explained (and whether it still works in 2024)

• Why most people chasing FIRE don’t retire on the four-percent rule

• How to control your expenses and protect against inflation in retirement

• The “home run” investment that could save you thousands of dollars

And So Much More!

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In this episode of the BiggerPockets Money Podcast, hosts Mindy Jensen and Scott Trench discuss the order of operations for investing your money to achieve FIRE. They outline the steps for both traditional early retirees and those looking to invest in real estate (or start a business). 

If you’re a beginner in the FIRE movement, start here and work through these steps to FIRE the fastest. If you’re close to FIRE already or at a significant financial milestone, don’t worry. We have tips you can use right now to retire earlier and avoid the “middle-class trap” that kills so many FIRE dreams.The episode dives deep into why each step is essential and provides actionable tips for maximizing your investment strategy based on your personal goals.

What We Discuss:

• Investing Order of Operations for FIRE

• Invest Order of Operations for Real Estate Investors

• Why we prioritize a Fully Funded 401(k) over a Roth IRA

And SO much more!

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Want to access your IRA before turning 59½ without paying the brutal 10% early withdrawal penalty? You're not alone, and there are completely legal ways to do it that most people never learn about. In this comprehensive guide, John Bowens from Equity Trust will walk us through the exact strategies that allow you to tap into your IRA funds for early retirement, major expenses, or financial emergencies while staying on the right side of the IRS.

This episode delves into the serious considerations and potential consequences of accessing IRA funds before retirement age. It highlights the penalties and tax implications of early withdrawals, emphasizing the disruption to the growth of retirement savings. The discussion includes valid exceptions for penalty-free withdrawals, such as higher education expenses and first-time home purchases, while stressing the importance of evaluating all options and consulting with a financial advisor. Listeners are encouraged to weigh the immediate need against long-term financial health to make informed decisions.

What You'll Learn in This Episode:

• Legal penalty-free withdrawal strategies that bypass the 10% early withdrawal penalty
• IRS-approved exceptions including first-time home purchases, higher education costs, and medical expenses
• Tax implications of early IRA withdrawals and how they affect your overall financial picture
• Long-term impact analysis of early withdrawals on your retirement savings growth
• Alternative funding sources to consider before tapping into your IRA
• When to consult a financial advisor and what questions to ask
• Step-by-step evaluation process for weighing immediate needs against future financial security
• Documentation requirements and proper procedures for penalty-free withdrawals

And SO much more!

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The FIRE (Financial Independence, Retire Early) movement has transformed how people think about work, money, and retirement. In this comprehensive episode, Mindy and Scott break down everything you need to know about achieving financial independence and potentially retiring decades earlier than traditional retirement age.

We explore the mathematics behind FIRE, different approaches to the movement, and practical strategies for dramatically increasing your savings rate. From understanding the 4% rule to optimizing your investment portfolio, this episode provides a complete roadmap for anyone interested in financial independence. Perfect for both beginners exploring the concept and those already on their FIRE journey looking to optimize their approach.

What We Discuss:

• The 4% Rule Explained

• How to calculate your FIRE number 

• Proven strategies to save 50%+ of your income 

• Best investment vehicles for FIRE (401k, IRA, taxable accounts) 

• Common FIRE mistakes to avoid 

• Updated strategies for 2025 market conditions

• Withdrawal strategies

And SO much more!

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In this episode of the BiggerPockets Money podcast, Mindy and Scott speak with Victor Haghani, a seasoned financial expert whose journey from Wall Street titan to FIRE advocate will transform how you think about wealth building.

Victor's path from Salomon Brothers and Long-Term Capital Management to founding Elm Wealth reveals the shocking truth: the complex strategies that made millions on Wall Street pale in comparison to simple index fund investing for achieving financial independence.

What We Discuss:

• Why Victor's billion-dollar trading experience led him to index funds

• The age-based asset allocation strategy that adapts as you approach FI

• The psychological traps that derail FIRE journeys (even for Wall Street pros)

• Practical portfolio management for the path to financial independence

And SO much more!

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You're eager to build serious wealth, but the idea of managing tenants, fixing toilets, handling trash issues, and dealing with the endless headaches that come with real estate investing makes you cringe. Even though we're the world's largest platform for real estate investors, we totally understand that the landlord life isn't suited for everyone. The great news? Real estate is definitely not your only ticket to wealth. There are five other proven methods to accumulate serious money that won't have you answering frantic tenant calls at 2 A.M.

On today's episode of the BiggerPockets Money podcast, Mindy and Scott team up to reveal the five most effective wealth-building strategies that don't require purchasing a single rental property. These approaches are accessible to virtually anyone, regardless of your current salary or existing savings account balance. Some of these strategies are extremely passive, needing only a few minutes monthly to kickstart your wealth accumulation, while others have the potential to dramatically boost your earnings but demand considerably more active participation.

In this episode, you'll learn:

• The five ways to get rich WITHOUT investing in real estate 

• The four “levers” of wealth you can pull to level up your financial lifestyle

• “Boring” businesses and HUGE investment opportunities for those in their 20s, 30s, or 40s

• Job hopping and why you could be underpaid and overworked at your current role

• The investment accounts that can expedite your path to becoming a millionaire

• The super passive investment anyone can use to build massive wealth in the background

And SO Much More!

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Buying a house, maxing out your 401(k), and leveraging real estate are considered the gold standard for building wealth, but what if these strategies are actually sabotaging your early retirement?

Today, we're diving into the controversial "middle-class trap" debate with Brad Barrett from the ChooseFI podcast! Welcome back to the BiggerPockets Money podcast! Is your net worth locked up in home equity and retirement accounts you can't access? Brad, Mindy, and Scott are having a friendly but fierce debate about whether this middle-class trap is real or just financial fear-mongering, breaking down strategies to avoid it and revealing the ideal portfolio for early retirees.

In this episode, you'll learn:

• If the Middle Class Trap is real or not!

• The difference between your Net Worth vs. FI Number

• The Psychological Barriers to Financial Freedom

And SO Much More!

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On this episode of the BiggerPockets Money Podcast, hosts Mindy Jensen and Scott Trench sit down with Dave Fleischer, a teacher who's proving that you don't need a six-figure salary to achieve financial independence. If you've ever felt discouraged because your FI number seems impossibly high or your current salary feels too small to build real wealth, this episode will completely shift your perspective by showing that financial independence isn't about how much you make, but how strategically you manage what you have. 

Whether you're a teacher, earn a median income, or simply want to see how creative financial planning can accelerate your journey to freedom, you'll discover actionable strategies that work regardless of your income level and prove that YOU can follow this simple path to achieve financial freedom too.

In this episode, you'll learn:

• How Dave and his wife became net worth millionaires at 39 years old.

• Can one move change your life?

• Living below your means is key to building wealth.

• If you can downsize your lifestyle, it is a cheat code.

And SO Much More!

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On this episode of the BiggerPockets Money Podcast, hosts Mindy Jensen and Scott Trench sit down with John Bowens from Equity Trust. John is an expert on the often-overlooked 72(t)t rule that could be a game-changer for early retirees.

This often misunderstood withdrawal strategy allows people under 59.5 to tap into their retirement accounts without facing the brutal 10% early withdrawal penalty that typically guards these funds. John breaks down the complex world of Substantially Equal Periodic Payments (SEPP), walking listeners through the different calculation methods, critical liquidity considerations, and smart investment strategies that can make or break a 72T IRA approach.

In this episode, you'll learn:

• How to access retirement funds early with the often overlooked 72(t) rule

• Avoiding 401(k) penalties and using retirement accounts to actually retire early 

• The rules and regulations you MUST follow to withdraw penalty-free 

And SO Much More!

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