310: Finance Friday: Sell (Don’t Rent) Your Primary Residence When You Move Out

Retirement investing is a crucial part of planning for financial freedom. While early retirement is a status that almost everyone would love to achieve, the second-best thing is standard retirement, where you can use your smart investments to make the later years of your life that much easier. But, oftentimes those who are born with a strong work ethic don’t know when the right time to ease off retirement investing is. In some cases, even intelligent investors can find themselves with a lot of retirement income that can’t be touched until decades later.

Jill is trying to end up with a future of financial flexibility. She wants to be able to travel the world with her family,leave her W2 job (if she feels like it), and invest more in assets that give her the power of choice today. She has a very good income, impressive retirement accounts, and wants to take her first step into real estate investing. She’s planning on turning her primary residence into a short-term rental, while her family moves into the live in flip she’s buying next.

This rental property income should give her and her family a cushion of passive income to rely on, but she’ll need much more than this to become truly financially free. Scott and Mindy debate the “invest for later” vs. “invest for now” frames of mind, tackling which one will work best for Jill in her high-income but low passive cash flow situation.

In This Episode We Cover

• How to get over your fear of debt when investing in real estate
• Why you may want to sell your primary residence instead of rent it out (once you move)
• Avoiding capital gains taxes and taking home a BIG profit when selling a primary residence
• Building equity and net worth through simple cosmetic live in flips 
• Achieving financial flexibility and how overinvesting in retirement can hurt you in the short-run
• The Rule of 72 and using it to quickly calculate how much you’ll have in retirement
• And So Much More!

Links from the Show

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• Check Out Mindy’s 2022 Live Spending Tracker and Budget

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