If you’re waiting to invest, your hard earned money may be slowly losing value. Would you rather be sitting on months (or even years) worth of emergency reserves or have your money be challenging inflation by sitting in investments like index funds or real estate? This is the question that many people have, and also one that today’s guest, Phil, is having as well.

Phil and his wife live in a relatively low cost area and bring in a very solid income. They’ve been maxing out HSAs, 401(k)s, and other accounts all while having a significant amount of cash on the sidelines, just waiting for the right investment. While Phil wants to go into an unconventional type of real estate investing, both Scott and Mindy believe he should focus on the long-term goals he has set for himself and find asset classes that fit within his strategy.

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Episode 120 with Michael Kitces:
https://www.biggerpockets.com/blog/biggerpockets-money-podcast-120early-retirementasset-allocation-safe-withdrawal-rates-michael-kitces
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Side Money Discussion in the BiggerPockets Money Facebook Group:
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@mindyatbp or https://www.instagram.com/mindyatbp/

Episode 226

Show notes at: https://www.biggerpockets.com/moneyshow226

0:00 Intro
5:25 Income and Expenses
15:32 Selling Tradelines
20:29 Assets and Liabilities
23:36 Calculating an Accurate Emergency Fund
28:16 A $64,000 Opportunity
35:15 Aligning Your Investing with Retirement Goals
48:16 Solo 401(k) and Side Businesses
1:00:14 Jumping On The Right Investment
1:10:19 From Negative to Positive Net Worth
1:18:05 Reviewing Phil’s Optimizations