Let's talk about the average net worth by every age, and how to make sure you save and invest enough money to stay on track. In this episode of the BiggerPockets Money podcast, Mindy Jensen and Scott Trench break down actual data to reveal the net worth benchmarks for the median, top 10%, top 5%, and top 1% of every age.
If that isn’t enough they then highlight specific strategies that work at each age to hit those benchmarks—from aggressive wealth-building tactics in your 20s and 30s to business ownership and real estate scaling in your 40s, to preservation strategies in your 50s and 60s. Whether you're behind and need to catch up or ahead and want to optimize, this episode gives you the roadmap for your decade so you can hit your financial independence goals.
00:00 Net Worth by Age - Are You on Track?
01:09 Defining Net Worth and FIRE Portfolio
02:44 Analyzing Net Worth by Age
03:58 Key Takeaways from Net Worth Data
12:03 How to Be in The Top 1-10% in Your 20s
16:17 How to Be in The Top 1-10% in Your 30s
21:17 How to Be in The Top 1-10% in Your 40s
25:22 How to Be in The Top 1-10% in Your 50s
30:51 How to Be in The Top 1-10% in Your 60s
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39:51
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39:51
Should You Keep or Sell Your House? (Best Choice for FIRE)
Should you sell your house right now or turn it into a rental property? In this episode of the BiggerPockets Money podcast, hosts Mindy Jensen and Scott Trench dive deep into one of the biggest financial decisions you'll ever make with their guest Sean. He is sitting on serious equity but isn't sure what his next move should be. We break down his entire financial situation using a custom spreadsheet model that analyzes net worth, mortgage rates, rental income potential, cash flow projections, and long-term wealth building strategies. This isn't just theory—we're crunching real numbers to show you exactly how to think through this decision.
We examine market conditions, tax implications, opportunity costs, and the hidden expenses most people forget when they become landlords. Whether you're dealing with a primary residence, investment property, or house hack situation, this episode gives you a replicable decision-making process you can use for your own real estate choices.
By the end of this episode, you'll understand the financial trade-offs between liquidity and long-term appreciation, how to calculate true rental yields, and when holding onto property actually destroys wealth instead of building it. If you're facing a similar decision or planning your real estate exit strategy, this is the most comprehensive breakdown you'll find anywhere.
00:00 Should You Sell or Keep Your House?
01:17 Financial Overview: Net Worth, Income & Equity
02:33 Mortgage Rate Analysis and Current Housing Market Conditions
03:07 Rental Property Cash Flow Calculator
13:41 Hidden Rental Property Expenses and Long-Term Investment Returns
19:30 How Selling vs Renting Impacts Your Cash Flow and Net Worth
21:11 Net Worth Projections: Sell Now vs Hold 5, 10, 20 Years
23:27 Rental Property Cash Flow vs Home Sale Proceeds Analysis
24:29 Best Time to Sell Your House
26:26 Which Option Builds More Wealth?
31:14 Final Verdict: Should You Sell Your House Now?
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43:01
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43:01
FI at 44 AFTER Taking a Year Off at 31
What if you could take a year off at 31 and still retire early? Alex Morales, also known as Girl Chasing Wealth, is doing exactly that. In this BiggerPockets Money episode, she sits down with Mindy Jensen and Scott Trench to reveal how she's funding a year-long sabbatical while staying on track to achieve financial independence by 44, all on a median salary in a high-cost-of-living area. Alex's journey proves you don't need a six-figure income or to live in a low-cost city to make FIRE work—you just need the right strategies.
Alex shares her unconventional approach to building wealth, including managing roommates to slash housing costs, ruthlessly cutting expenses that don't align with her values, and building side income streams for flexibility. But this isn't just about saving money—it's about designing a life that lets you take meaningful breaks without derailing your financial goals. Whether you're burned out, curious about sabbaticals, or convinced early retirement requires constant hustle, this conversation will change how you think about the path to financial freedom.
This Episode Covers:
How to calculate if you can afford a career break without ruining your FIRE timeline
The exact house hacking strategy that saved Alex thirty thousand dollars per year
Which expenses to cut first when living in a high-cost area
How to maintain a high savings rate on a median income
Alex's investment portfolio breakdown and FIRE number
What she's actually doing during her sabbatical year
Her strategic plan for returning to work at a higher salary
Why taking time off might accelerate your financial independence journey
And SO much more!
00:00 Taking a Year Off at 31 Without Ruining FIRE
01:39 How She Started
03:17 The Lifestyle Cuts That Actually Worked
07:46 Roommates Saved Her $30K/Year
12:10 Her Exact Investment Strategy Revealed
14:29 Why She Left Her Job
15:50 The Return Plan: Higher Pay, Same Freedom
22:30 What She's Actually Doing on Sabbatical
32:06 Follow Her FIRE Journey!
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38:16
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38:16
The Four Fundamentals of Retirement Drawdown
Join Mindy Jensen and Scott Trench on the BiggerPockets Money Podcast as they welcome retirement tax experts Sean Mullaney, The FI Tax Guy, and Cody Garrett, a certified financial planner, to break down their game-changing retirement drawdown order of operations. This isn't your typical retirement advice - it's a strategic blueprint that could save early retirees and traditional retirees thousands in taxes while ensuring their money lasts a lifetime.
Discover the four critical retirement drawdown fundamentals that form the backbone of any successful retirement strategy, plus advanced tactics for optimizing your tax burden, managing healthcare costs, and timing Roth conversions for maximum impact. Sean and Cody don't just explain what to do - they walk through exactly when and why each strategy matters most, covering everything from your retirement date through the challenging widow and widower years.
This episode covers:
The four fundamental retirement drawdown rules that could save you thousands
Why you should spend taxable accounts first and traditional accounts second
The strategic case for delaying Social Security until age 70
How to use HSAs and Roth IRAs as powerful tax-free tools
The five distinct phases of retirement and what each one means for your strategy
Advanced Roth conversion tactics and optimal timing
How to keep income low to maximize ACA premium tax credits
Managing required minimum distributions and minimizing their impact
Healthcare cost planning and insurance strategies for retirees
Why working with a qualified tax planner is essential for your unique situation
And SO much more!
00:00 Retirement Drawdown Strategies
01:22 Fundamentals of Retirement Drawdown
03:37 Phases of Retirement and Taxable Accounts
07:23 Managing Income and Premium Tax Credits
09:22 Roth Conversions and Standard Deductions
19:52 Hidden Roth IRA and Tax Planning
28:36 Navigating Healthcare Subsidies and Early Retirement
29:26 Balancing Benefits for Early Retirees and Self-Employed
33:34 Strategic Tax Planning for Retirement
35:50 Understanding Required Minimum Distributions (RMDs)
36:59 Mitigating the Impact of RMDs
40:51 The Widow's Tax Trap and Effective Tax Planning
46:30 Connect with Sean and Cody!
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59:54
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59:54
Why Early Retirement Means Paying Less in Taxes
In this episode of the BiggerPockets Money Podcast, hosts Mindy Jensen and Scott Trench are joined by tax experts Sean Mullaney and Cody Garrett to reveal how early retirement can actually be your smartest tax strategy. The conversation immediately tackles one of the biggest misconceptions holding people back from FIRE - the fear that retiring early means facing higher taxes. Instead, they demonstrate how lower retirement income typically translates to significantly lower tax bills, completely flipping the conventional wisdom about retirement tax planning.
The discussion dives deep into their comprehensive approach to tax planning for early retirement, centered around the powerful concept of "Pay Tax When You Pay Less Tax." This isn't just theory - they break down practical, tax-efficient strategies that can save you thousands, including optimizing traditional 401k contributions, maximizing Roth IRA conversions, and strategically managing taxable investment accounts. These aren't complex maneuvers requiring a team of accountants; they're accessible strategies that any early retiree can implement.
Beyond the big-picture tax strategies, this episode tackles the real-world challenges that derail many FIRE plans. Learn how to build robust emergency reserves that won't trigger unnecessary tax consequences, handle unexpected income disruptions without destroying your tax efficiency, and leverage advanced techniques like qualified charitable distributions to further reduce your tax burden. Whether you're years away from retirement or already making the transition, this episode provides actionable insights to minimize your lifetime tax burden while maximizing your financial independence.
The discussion is intended to be for general educational purposes and is not tax, legal, or investment advice for any individual. Mindy, Scott, and the BiggerPockets Money podcast do not endorse Sean Mullaney, Mullaney Financial & Tax, Inc. and their services.
00:00 Taxes in Early Retirement
00:54 Debunking Tax Myths in Early Retirement
03:03 Understanding Taxable Income in Retirement
04:10 Effective Tax Strategies for Early Retirees
05:37 Capital Gains and Tax Rates
12:25 Tax Planning Tools and Calculators
23:43 Tax Optimization Strategies
24:27 Debate: 401k vs Roth IRA
24:56 Order of Operations for Financial Independence
25:42 Roth IRA Conversion Strategies
32:33 The Middle Class Trap
39:09 Tax Strategies for New Investors
44:21 Connect with Sean and Cody
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For those who have money… or want more of it!
Join Mindy Jensen and Scott Trench (from BiggerPocketsMoney.com) weekly for the BiggerPockets Money Podcast. Each week, financial experts Mindy and Scott interview unique and powerful thought leaders about how to earn more, keep more, spend smarter, and grow wealth.
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