Net Worth vs Investable Assets - There's a BIG DIFFERENCE! | 9 to FI 047

Net Worth vs Investable Assets - There's a BIG DIFFERENCE! | 9 to FI 047

Net Worth vs. Investable (Liquid) Assets: What Really Funds Financial IndependenceJosh and Elliot discuss the difference between net worth and investable assets (liquid net worth) and why confusing them can mislead financial independence planning. Net worth is assets minus liabilities and can include a primary residence, cars, and real estate equity, but those assets may not be easily tapped to fund living expenses without selling. Investable assets—such as a 401(k), Roth IRA, and brokerage accounts—are the liquid holdings typically used for withdrawal-rate calculations like the “$1M for $40k at 4%” baseline. They explore how real estate adds complexity because equity doesn’t translate predictably into cash flow due to rents, appreciation, vacancies, repairs, and capital expenditures, and they emphasize the importance of decumulation mechanics, withdrawal strategy, and understanding where retirement income will actually come from.00:00 Net Worth Basics02:03 Defining Investable Assets03:06 Liquid Net Worth Explained05:36 The Million Dollar Myth06:52 Real Estate Equity Limits09:10 Returns and Leverage Tradeoffs11:28 Real Estate Cash Flow Reality15:29 Baseline FI and Projections21:51 Decumulation and Drawdown Plan26:46 Wrap Up and Take Action Do you have feedback or suggestions? We want to hear from you! Contact Elliot: Elliot@ninetofipod.com [Elliot@ninetofipod.com] Contact Josh: Josh@ninetofipod.com [Josh@ninetofipod.com] Josh’s other podcast: Stuck In Beta [https://open.spotify.com/show/4foNu6PXBBTnj7LRPUWeSd?si=380e77ecc4524baf] Josh’s YouTube channel: How To Fix It Workshop [http://www.youtube.com/@howtofixitworkshop] Any of these products help the show. Thanks for your support! Mint Mobile - We both use ⁠Mint Mobile⁠ [http://fbuy.me/vgAmz] and save a ton on our phone plan: ⁠ [http://fbuy.me/vgAmz]https://my.mintmobile.com/refer/aEWp5rL ⁠Empower⁠ [https://empowerreferral.link/joshuaepley] is Josh’s choice for Net Worth and Budgeting Wanna create a podcast? We use ⁠Descript⁠ [https://descript.cello.so/IVNVNzQT7Gf] Looking for a new credit card?  We’re big fans of ⁠Chase⁠ [https://www.referyourchasecard.com/226d/VXSG31N8OF] ⁠Buy Us a Coffee⁠ [https://buymeacoffee.com/9tofi] - One time donation or monthly, it’s up to you Want to save money on gas? Try ⁠Upside!⁠ [https://upside.app.link/JOSH56339] Books mentioned in this episode: Come find us and subscribe on YouTube [http://www.youtube.com/@9toFI]: http://www.youtube.com/@9toFI [http://www.youtube.com/@9toFI]

WHY Pursue FI?: Our Personal Journeys | 9 to FI 046

Finding Your "Why" for Financial Independence: Security, Time, Health, and Giving BackJosh and Elliot open with a humorous aside about “newspapers,” then discuss a Choose FI podcast episode featuring Allen Hansen and Kristen Knapp that raised the question of why people pursue financial independence beyond the math. They share how early experiences shaped their motivations: Josh describes childhood money trauma, being teased for Walmart clothes, and later bankruptcy, foreclosure, and divorce, leading him to seek financial security and better money habits; Elliot recalls private-school comparisons with wealthier peers and wanting to ensure he had enough. Their “why” evolves to autonomy and buying time, being more present for kids (including the value of FU money), improving physical and mental health by escaping sedentary screen-based work, and helping others through volunteering and sharing lessons. They emphasize planning what FI life will look like, expecting change, and using intentional, flexible time-bucketing.00:00 Cold Open Banter02:10 Why Pursue FI04:05 Money Trauma Origins10:19 Autonomy And Time12:09 A Perfect Retired Day14:28 Parenting And FU Money16:47 Health Wellness Benefits22:06 Giving Back And Service29:16 Retire To Something36:07 Planning Time And Change40:30 Wrap Up And Farewell Do you have feedback or suggestions? We want to hear from you! Contact Elliot: Elliot@ninetofipod.com [Elliot@ninetofipod.com] Contact Josh: Josh@ninetofipod.com [Josh@ninetofipod.com] Josh’s other podcast: Stuck In Beta [https://open.spotify.com/show/4foNu6PXBBTnj7LRPUWeSd?si=380e77ecc4524baf] Josh’s YouTube channel: How To Fix It Workshop [http://www.youtube.com/@howtofixitworkshop] Any of these products help the show. Thanks for your support! Mint Mobile - We both use ⁠Mint Mobile⁠ [http://fbuy.me/vgAmz] and save a ton on our phone plan: ⁠ [http://fbuy.me/vgAmz]https://my.mintmobile.com/refer/aEWp5rL ⁠Empower⁠ [https://empowerreferral.link/joshuaepley] is Josh’s choice for Net Worth and Budgeting Wanna create a podcast? We use ⁠Descript⁠ [https://descript.cello.so/IVNVNzQT7Gf] Looking for a new credit card?  We’re big fans of ⁠Chase⁠ [https://www.referyourchasecard.com/226d/VXSG31N8OF] ⁠Buy Us a Coffee⁠ [https://buymeacoffee.com/9tofi] - One time donation or monthly, it’s up to you Want to save money on gas? Try ⁠Upside!⁠ [https://upside.app.link/JOSH56339] Books mentioned in this episode: Come find us and subscribe on YouTube [http://www.youtube.com/@9toFI]: http://www.youtube.com/@9toFI [http://www.youtube.com/@9toFI]

Asset Allocation vs. Asset Location: Yes, There’s a Difference

Asset Allocation vs. Asset Location: Building Flexibility and Tax EfficiencyElliot and Josh discuss the concepts of asset allocation and asset location, noting that financial terminology can be unclear and that fee-only fiduciary advice may be useful, while the AUM model is discouraged. They review common asset types (stocks, bonds, cash equivalents/treasuries, real estate, alternatives like gold, derivatives, crypto, and collectibles) and why cash can be a depreciating asset due to inflation, though it can serve as an emergency fund. They explain allocation as the mix of assets based on time horizon and risk (more stocks when younger, de-risking toward bonds/cash/fixed income nearer retirement), sharing their aggressive allocations and Josh’s real-estate-heavy net worth. They define location as placing assets across taxable, tax-deferred, Roth “tax-free,” and HSA accounts, highlighting tax impacts (e.g., bonds in tax-advantaged accounts), ACA subsidy cliffs, and withdrawal flexibility, and they reflect on the complexity of decumulation strategies such as Roth conversions and 72(t).00:00 Welcome and Setup02:15 Why Finance Feels Vague05:09 Asset Types Overview07:45 Cash as an Asset11:06 Allocation Basics and Risk14:09 Their Current Allocations17:33 Fixed Income Explained20:57 Asset Location Accounts25:41 Tax Efficient Placement34:41 Decumulation Mindset Shift38:41 Wrap Up and Farewell Do you have feedback or suggestions? We want to hear from you! Contact Elliot: Elliot@ninetofipod.com [Elliot@ninetofipod.com] Contact Josh: Josh@ninetofipod.com [Josh@ninetofipod.com] Josh’s other podcast: Stuck In Beta [https://open.spotify.com/show/4foNu6PXBBTnj7LRPUWeSd?si=380e77ecc4524baf] Josh’s YouTube channel: How To Fix It Workshop [http://www.youtube.com/@howtofixitworkshop] Any of these products help the show. Thanks for your support! Mint Mobile - We both use ⁠Mint Mobile⁠ [http://fbuy.me/vgAmz] and save a ton on our phone plan: ⁠ [http://fbuy.me/vgAmz]https://my.mintmobile.com/refer/aEWp5rL ⁠Empower⁠ [https://empowerreferral.link/joshuaepley] is Josh’s choice for Net Worth and Budgeting Wanna create a podcast? We use ⁠Descript⁠ [https://descript.cello.so/IVNVNzQT7Gf] Looking for a new credit card?  We’re big fans of ⁠Chase⁠ [https://www.referyourchasecard.com/226d/VXSG31N8OF] ⁠Buy Us a Coffee⁠ [https://buymeacoffee.com/9tofi] - One time donation or monthly, it’s up to you Want to save money on gas? Try ⁠Upside!⁠ [https://upside.app.link/JOSH56339] Books mentioned in this episode: Come find us and subscribe on YouTube [http://www.youtube.com/@9toFI]: http://www.youtube.com/@9toFI [http://www.youtube.com/@9toFI]

Is Early Retirement still achievable for a 25 year old starting now? | 9 to FI 044

Is Financial Independence Still Repeatable? Talking “Beating the System,” Time, and Modern OptionsJosh asks Elliott about co-presenting an FI 201 session, which Elliott says went well with positive feedback and a turnout in the mid-60s to 70s, and they discuss continuing educational events to complement the group’s social focus. Josh then shares a comment from his 25-year-old son Caleb after Josh’s one-year “quitiversary,” saying Josh “beat the system” and implying retirement is getting harder, prompting a discussion about generational doom-and-gloom versus broader historical data. Elliott argues time is a 25-year-old’s advantage and that FI remains achievable by creating a savings gap and investing rather than holding cash, while Josh notes past high mortgage rates and today’s broader lifestyle options enabled by the internet and gig work. They discuss Caleb’s low-cost van-travel lifestyle, investing for long horizons, ignoring market-prediction headlines, and avoiding speculation like crypto or gambling. 00:00 FI 201 Recap 02:31 Quitiversary Reflection 05:44 Is FI Still Possible 08:32 Boomers Rates And Housing 10:07 Caleb Van Life Economics 14:14 Alternative Paths To Work 20:45 Spending Less Superpower 25:38 Markets Headlines Noise 30:06 Wrap Up Advice Do you have feedback or suggestions? We want to hear from you! Contact Elliot: Elliot@ninetofipod.com [Elliot@ninetofipod.com] Contact Josh: Josh@ninetofipod.com [Josh@ninetofipod.com] Josh’s other podcast: Stuck In Beta [https://open.spotify.com/show/4foNu6PXBBTnj7LRPUWeSd?si=380e77ecc4524baf] Josh’s YouTube channel: How To Fix It Workshop [http://www.youtube.com/@howtofixitworkshop] Any of these products help the show. Thanks for your support! Mint Mobile - We both use ⁠Mint Mobile⁠ [http://fbuy.me/vgAmz] and save a ton on our phone plan: ⁠ [http://fbuy.me/vgAmz]https://my.mintmobile.com/refer/aEWp5rL ⁠Empower⁠ [https://empowerreferral.link/joshuaepley] is Josh’s choice for Net Worth and Budgeting Wanna create a podcast? We use ⁠Descript⁠ [https://descript.cello.so/IVNVNzQT7Gf] Looking for a new credit card?  We’re big fans of ⁠Chase⁠ [https://www.referyourchasecard.com/226d/VXSG31N8OF] ⁠Buy Us a Coffee⁠ [https://buymeacoffee.com/9tofi] - One time donation or monthly, it’s up to you Want to save money on gas? Try ⁠Upside!⁠ [https://upside.app.link/JOSH56339] Books mentioned in this episode: Come find us and subscribe on YouTube [http://www.youtube.com/@9toFI]: http://www.youtube.com/@9toFI [http://www.youtube.com/@9toFI]

FI 201 - Moving to Crypto and Gambling | 9 to FI 043

Previewing FI 201: Investing, Risk, Accounts, and SpeculationJosh and Elliot discuss Elliot’s upcoming FI 201 presentation for their local Choose FI group, co-presented with Alan Hansen, after their well-attended FI 101 session drew about 75 people and was later shared within the Choose FI community. Elliot outlines FI 201 topics including saving vs investing vs speculating, investment risk and risk tolerance, market-history return graphs and whether to panic during downturns, types of accounts (tax-deferred, Roth/after-tax, HSA), asset types, asset allocation and asset location, and sharing real examples of their households’ asset distribution (taxable, tax-deferred, cash, equities, 529s) plus mistakes and resources. Taxes are being moved to a separate future class, and they mention the book “Tax Planning To and Through Early Retirement.” They also note covering crypto, gambling, options/futures, and hard assets, and discuss compounding and long-term comparisons among inflation, T-bills, and the S&P 500.00:00 Welcome And Setup00:04 Why FI 201 Now01:34 FI 101 Recap Impact03:39 FI 201 Agenda Overview07:07 Asset Location Questions09:51 Future Classes And Taxes11:57 Terminology And Nomenclature15:09 AI Slides Experiment18:00 Speculation Crypto And Gambling22:20 Young Investors Day Trading26:25 Net Worth Milestones27:51 Compounding And Returns Demo29:06 Wrap Up And GoodbyeDo you have feedback or suggestions? We want to hear from you! Contact Elliot: Elliot@ninetofipod.com [Elliot@ninetofipod.com] Contact Josh: Josh@ninetofipod.com [Josh@ninetofipod.com] Josh’s other podcast: Stuck In Beta [https://open.spotify.com/show/4foNu6PXBBTnj7LRPUWeSd?si=380e77ecc4524baf] Josh’s YouTube channel: How To Fix It Workshop [http://www.youtube.com/@howtofixitworkshop] Any of these products help the show. Thanks for your support! Mint Mobile - We both use ⁠Mint Mobile⁠ [http://fbuy.me/vgAmz] and save a ton on our phone plan: ⁠ [http://fbuy.me/vgAmz]https://my.mintmobile.com/refer/aEWp5rL ⁠Empower⁠ [https://empowerreferral.link/joshuaepley] is Josh’s choice for Net Worth and Budgeting Wanna create a podcast? We use ⁠Descript⁠ [https://descript.cello.so/IVNVNzQT7Gf] Looking for a new credit card?  We’re big fans of ⁠Chase⁠ [https://www.referyourchasecard.com/226d/VXSG31N8OF] ⁠Buy Us a Coffee⁠ [https://buymeacoffee.com/9tofi] - One time donation or monthly, it’s up to you Want to save money on gas? Try ⁠Upside!⁠ [https://upside.app.link/JOSH56339] Books mentioned in this episode: Tax Planning To And Through Early Retirement - https://amzn.to/4396bro Come find us and subscribe on YouTube [http://www.youtube.com/@9toFI]: http://www.youtube.com/@9toFI [http://www.youtube.com/@9toFI]