Renting vs. Buying a House: Do You NEED to Own a Home for FIRE?

Episode #540
Renting vs. buying a house: when it comes to FIRE, many people assume that you must own a home and preferably have it paid off to reach financial freedom. But is this really true? With renting so much cheaper than buying in 2024, would it be wiser to rent a place and send the savings to your investment accounts? Today, we’re tackling this topic and a few other heavy hitters as we give our takes on four of the hottest financial headlines.
Kyle Mast, certified financial planner, joins Scott Trench to share FIRE-first thoughts on these not-so-easy-to-answer questions. First, we give our take on the ever-relevant renting vs. buying debate and ask whether things have changed since high mortgage rates have made buying a home much more expensive. Then, how do you manage savings and investments with interest rates so high-should you keep your money in a high-yield savings account or search for better opportunities even with savings yields so high?
Think your nest egg is a little too light? We share the average 401(k) balance for those close to retirement and give our strategies to boost retirement savings before you leave full-time work. Finally, for those struggling to take care of elderly parents, our last headline is for you. We talk about the growing number of Americans physically, mentally, and financially caring for aging parents and how you can set yourself up in the best position possible to care for those in your life.
Show Notes at:
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00:00 Intro
01:57 Renting vs. Buying a House
10:49 Best Home Purchase for FI?
13:35 Saving and Investing with High Rates
25:05 Average 401(k) Balance
33:02 Caring for Elderly Parents

[@Jbridge621]

We have been teaching our kid about coast FI. They have their first summer jobs and we helped them set up a Roth and a traditional 401(k). We keep reminding them about putting 25% of their income in every month since we are taking Care of all their regular expenses since they still live at home this is an easy way for them to get the extra boost for the future with very little pain. The kid also wants to own their own home, which we tell them that’s gonna be pretty hard to pull off if you don’t aggressively fund retirement now.

[@JJ-jn7ei]

This is so awesome ❤

[@waleedalhamidy1265]

I love the part-time in retirement idea. I believe it can help a lot of people mentally,physically, and, of course, financially.

[@YIWOTY]

The fed’s dot plot waa calling for 3 rate cuts for 2024 heading into the year. So someone projecting four wasn’t as insane as you imply.

[@charmcrypto824]

Informative episode on achieving financial independence and the factors that influence the rent vs. buy decision. As a complement to real estate investing, have you considered adding cryptocurrencies to your retirement portfolio? My Digital Money offers a secure and user-friendly platform to help you get started with a crypto IRA.

[@ryanthrives5152]

This video is a load of sh*t 😂

[@jaen-fmbacu3166]

Why is it?

[@bobknob8440]

Just now watching. Why do you think that?