224: Finance Friday: Paid-Off House Peace of Mind vs. Investing Opportunity

Making too much money is a good problem to have, and it’s one that many people in the Bay Area experience. Today we talk to Laurin, a mother of two, making $281,000 a year when combining her salary with her husband’s. They’re doing everything right: paying off the mortgage, contributing to their 401(k)s, and saving up for an emergency reserve. 

With all these investments and income, Laurin is wondering whether or not her investing strategy is optimized. Her mortgage spans 15 years, so she’s dedicating a large amount every month to pay off her house before she retires. While some people prefer the financial security of not having a mortgage, others (like Scott), prefer having a mortgage for longer while investing in other assets. 

With the goal of enjoying her life more, Scott and Mindy bring up a handful of options that can help Laurin achieve a massive net worth by the time she is ready to retire. She could work less and contract more, she could refinance and invest for cash flow, she could look into real estate investing, all while she’s setting up a massive nest egg for herself upon retirement!

In This Episode We Cover
Always taking the 401(k) match your company offers (when available)
Using “event-based” planning when you’re closer to retirement age
Pre-tax retirement accounts vs. post-tax retirement accounts  
Saving for children’s college with a 529 plan 
The two main real estate investing traps to avoid when investing out of state
And So Much More!

Learn more about your ad choices. Visit megaphone.fm/adchoices

Making too much money is a good problem to have, and it’s one that many people in the Bay Area experience. Today we talk to Laurin, a mother of two, making $281,000 a year when combining her salary with her husband’s. They’re doing everything right: paying off the mortgage, contributing to their 401(k)s, and saving up for an emergency reserve. 

With all these investments and income, Laurin is wondering whether or not her investing strategy is optimized. Her mortgage spans 15 years, so she’s dedicating a large amount every month to pay off her house before she retires. While some people prefer the financial security of not having a mortgage, others (like Scott), prefer having a mortgage for longer while investing in other assets. 

With the goal of enjoying her life more, Scott and Mindy bring up a handful of options that can help Laurin achieve a massive net worth by the time she is ready to retire. She could work less and contract more, she could refinance and invest for cash flow, she could look into real estate investing, all while she’s setting up a massive nest egg for herself upon retirement!

In This Episode We Cover

Always taking the 401(k) match your company offers (when available)

Using “event-based” planning when you’re closer to retirement age

Pre-tax retirement accounts vs. post-tax retirement accounts  

Saving for children’s college with a 529 plan 

The two main real estate investing traps to avoid when investing out of state

And So Much More!

Learn more about your ad choices. Visit megaphone.fm/adchoices