Coronavirus: Is it Time To Give Up On Financial Independence? | BiggerPockets Money Podcast #119

TL;DR

Five retirees discuss how market changes affect their financial independence plans.

Transcript

this is the bigger pockets money podcast show number 119 where we are bringing back four previous guests Andy Hill from marriage kids and money Amy and Tim from Goeth less the mad scientist and Christian and Bryce Leung from millennial Revolution we're also throwing in a new and future guest Doug Nordmann from the military guide why are we having a... Read More

Key Insights

• Andy Hill transitioned to self-employment in January, relying on a year's worth of expenses saved to support his new venture without regret.
• Amy and Tim from Go With Less are navigating travel restrictions by focusing on flexibility and maintaining low spending, relying on their financial independence to adapt.
• The Mad Fientist emphasizes the importance of maintaining a consistent investment strategy despite market volatility, sharing his personal challenges with market timing.
• Kristy and Bryce from Millennial Revolution have a robust cash cushion and are taking advantage of lower Airbnb rates, demonstrating the effectiveness of their financial strategies.
• Doug Nordman highlights the importance of having a long-term view and maintaining a diversified portfolio, having experienced multiple market downturns.
• All guests reinforce the value of financial independence, emphasizing the resilience it provides during economic downturns.
• Despite market fears, the guests advocate for continued investment and adherence to financial plans, underscoring the long-term benefits of financial independence.
• The episode reassures listeners that financial independence is a viable and worthwhile pursuit, even in uncertain economic times.

Questions & Answers

Q: How is Andy Hill managing his finances after leaving his job?

Andy Hill is managing his finances by relying on a 12-month expense cushion he saved before leaving his job. He is confident in his decision to pursue self-employment and continues to invest in the stock market despite the current downturn.

Q: What are Amy and Tim doing since their travel plans are on hold?

Amy and Tim are focusing on flexibility and maintaining their low-cost lifestyle during the travel lockdown. They are adapting by exploring local travel options and leveraging their financial independence to navigate this period without significant stress.

Q: How is the Mad Fientist handling the market downturn?

The Mad Fientist is staying the course with his investment strategy, despite initial feelings of anxiety. He emphasizes the importance of not reacting impulsively to market fluctuations and maintaining a consistent investment approach.

Q: What strategies are Kristy and Bryce using during the market changes?

Kristy and Bryce are utilizing their cash cushion and yield shield strategy, which has proven effective. They are also taking advantage of lower Airbnb rates to offset their postponed geographic arbitrage plans, demonstrating the resilience of their financial approach.

Q: What advice does Doug Nordman offer for dealing with market volatility?

Doug Nordman advises maintaining a long-term perspective and sticking to a diversified portfolio. Having experienced multiple market downturns, he reassures that financial independence is achievable and valuable, even during economic instability.

Q: How do the guests view the future of the financial independence movement?

The guests collectively assert that the financial independence movement is not dead. They emphasize that the principles of spending less than you earn, investing for the long term, and building multiple income streams are more relevant than ever.

Q: What is the general sentiment among the guests about current market conditions?

The general sentiment among the guests is one of resilience and confidence. They acknowledge the challenges posed by current market conditions but maintain that their financial independence strategies are robust and effective in weathering the storm.

Q: What are the key takeaways from this episode for those pursuing financial independence?

Key takeaways include the importance of having a financial plan, maintaining a diversified portfolio, and staying the course during market downturns. The episode reinforces that financial independence is a worthwhile pursuit that provides security and flexibility.

Summary & Key Takeaways

• Andy Hill left his job in January and is now self-employed, using savings to support his transition. He remains confident in his decision despite market changes.

• Amy and Tim's nomadic lifestyle is on pause due to travel restrictions, but they are adapting by focusing on domestic travel and maintaining low expenses.

• Kristy and Bryce are successfully managing their finances with a cash cushion and are benefiting from reduced Airbnb rates, showing the strength of their strategies.