How Elon Musk Made Them Rich... But Risked Their Retirement
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What is the main topic discussed in this episode?
You can see right now, you guys are creeping right up on DecaMillionaire status. And I thought it'd be helpful for us just kind of understand perhaps where some of these assets came from. Cash on hand that you have. I see $70,000 and I just heard that we're building a million dollar house. Something does not seem aligned right here.
Things can happen. When it rains, it pours. We're big believers in index funds, but I didn't know- Are you though? I think you'll say on paper, you have a die with zero mentality. But when I look at how you're structured, it's more of, hey- I'm gonna die with as much as possible. Those two don't coexist when you're in the consumption side of your life. Mutants, today we have something extremely special for you.
Yeah, we recently had Mindy from BiggerPocketsMoney and her husband Carl into the studio to do some real-life financial planning for them.
It ended up being one of the deepest dives we've ever taken on camera. And some of the things about their high-risk portfolio, their unique money philosophy, and even their journey to wealth were absolutely eye-opening.
In all honesty, we thought it was so powerful and fascinating that we actually wanted to share it with you guys right here on our channel.
So we hope you enjoy this special episode of Making a Millionaire.
There's a lot of people out there when we kind of go through the numbers, like, holy cow, I would trade places with you guys. But there are some things that with some strategic thinking and some strategic planning, I think you're going to be able to solve for. So it's not as perhaps dire as maybe it sounds, but there are some things that you're going to be able to do. And I don't think there are a lot of folks that are dissimilar to this. They find themselves at the stage of life you are saying, oh, wow, we have this ticking time bomb. What are we going to do about it?
Well, and I think people aren't thinking 20 years ahead. If I do nothing and the stock market returns, the rule of 72, I could be facing incredibly large RMDs, required minimum distributions, where I am now paying a lot of taxes to the government. And frankly, I'm a better steward of my money than the government is, so I don't want to do that. I think that there are ways to pull money out of the 401k so that I can reduce my RMDs down the road. Plus we have two children and I don't want to leave them a pile of traditional money when I could leave them potentially a pile of Roth money.
It's way better to do it that way.
I want to hear more of y'all's story, but I do think just because people go jump in and go, what's this trap that y'all are talking about? And I consider it, you said the middle class, but I think it's more of an achiever's trap is because you guys, in a lot of ways, every year, and we see this with prospects all the time, every year, y'all maximize to minimize taxes, but to help build and grow assets by owning stuff. That is great, but it has created this potential tax issue for the future. And then y'all are also getting squeezed probably on your liquidity to some degree too. But I want to hear, before we get into, I just want to tease up some of the big overarching, that's why I love that your self-awareness already, you kind of know, because you're living this, you know what y'all are struggling through.
even though it's kind of a blessing or a good problem to have. But we want to know more about y'all's story so that people, when they watch this, can also figure out how they can apply this to their own life as well.
Because if I understand, Carl, you're retired. Is that right?
That is true. Not a bad place to be.
Not a bad place to be. What were you doing in your previous life?
I was a software developer.
Software developer. How long have you been retired now?
Oh, it was April of 2017. So coming up on 10 years.
Wow. Retired for a decade. For those out there that are thinking about retirement, how's it been? Do you recommend it? Oh, it's been great.
You have to work at retirement just like you have to work at your job.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:00–10:31
2
How did Carl and Mindy build a nearly $10M net worth and what’s their financial background?
10:31–36:53
3
Why is their low cash position a problem while building a $1M house and paying college tuition?
36:53–45:34
4
How are they funding the house build and what risks do margin loans and personal loans create?
45:34–1:22:35