334: Finance Friday: The 5 Questions to Ask if You Want to Fast-Track FI
If someone told you that financial freedom could be achieved by traveling the world, you probably wouldn’t believe them. How can going on a work vacation to Europe make you richer? Surprisingly, doing this can help cut years off your retirement horizon, allowing you to save more, spend less, and invest for your future faster than ever before. Don’t believe it’s possible? Scott and Mindy prove the profits behind doing so in this Finance Friday episode!
Today we’re talking to James, who is inches away from retirement. He has only a few years left before he can sail off into the sunset, but James wants to know how he can reach his goals even faster. He keeps his spending low, continuously invests, and has a remote work position, allowing him to work wherever he wants. He dreams of living in other areas of the United States but wants to ensure he has enough money to do so.
His highest monthly cost? Housing! Like most Americans, a majority of James’ spending is for the roof over his head, but could geographic arbitrage turn his travel plans into a seriously profitable excursion? For those who are trying to hit FI, are close to FI, or simply want to spend more time enjoying life abroad, this episode is for you!
In This Episode We Cover
Calculating your FI number and getting to early retirement faster
Defining your retirement goals and knowing what you want to do and where you want to be
The 4% rule and whether or not it holds up as stock values have taken a tumble
Geographic arbitrage and using it to reduce your largest monthly cost
Coast FI and why a more gradual retirement option may work for you
The five questions every investor should ask themselves when planning for retirement
And So Much More!
Links from the Show
Click here to check the full show notes: https://www.biggerpockets.com/blog/money-334
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