Saying "NO" is hard | 9toFI 040

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]

Should I Take An EARLY WITHDRAW From My 401k to Fund Discretionary Spending? | 9 to FI 042

Should We Tap a 401(k) Early for Home Upgrades? A Middle-Class Trap Liquidity DebateJosh and Elliot discuss the “middle class trap” idea—having most wealth tied up in 401(k)s and home equity—and how it affects liquidity and flexibility. Josh is retired with nearly $2.9M net worth, outlines cash ($65K), taxable brokerage (~$95K), $1.4M tax-deferred 401(k)s, paid-off home with a $135K HELOC at 7.75%, rental property equity (~$600K), and his wife Lori’s income (~$4,500/month) and pension value. They consider funding roughly $60K of long-delayed home projects (deck, fence, hardscaping). Josh explores early 401(k) withdrawal while Lori works (12% bracket plus 10% penalty) versus using cash/taxable, HELOC, rental cash flow, Roth conversions, 72(t) strategies, or a margin loan, debating taxes, penalties, opportunity cost, and psychological comfort with liquidity and debt.00:00 Basement Backdrop Banter01:05 Hybrid Worker Setup02:09 Middle Class Trap Debate06:56 Real Estate vs Liquidity10:53 Home Projects Wish List12:15 Net Worth Breakdown14:18 Income and Rental Cash Flow17:39 Spending Goals and Timeline19:23 Why Spend Now22:03 401k Withdrawal Idea28:09 Elliot Runs the Numbers31:54 Lori Cash Flow Mindset33:54 Equity Return Reality Check35:08 Liquidity Options Beyond 401k36:44 Psychology Versus Math39:44 Early Withdrawal Penalty Math42:56 FI Tax Strategies 72t And Roth46:43 Opportunity Cost Of Cashing Out48:38 Option A Spend Taxable Cash49:55 Hybrid Plan And ACA Angle52:35 Replenish Reserves And Debt Aversion54:46 HELOC Bridge Versus Penalty56:18 Middle Class Trap And Money Trauma57:56 Drawdown Order And Account Strategy59:40 Margin Loans And Market Risk01:04:03 Wrap Up And Next Episode Tease 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]

Continue MORNING ROUTINES in Early Retirement? | 9toFI 041

Morning Routines After FI: Slow Mornings, Habits, and StructureJosh and Elliot discuss the value of routines—especially morning routines—after retirement and in working life, sparked by Sarah sharing an Inside Out Money episode about compounding habits. Josh recounts the host’s early-retirement lack of structure and how adopting morning habits (sunlight, water, exercise) improved her feelings of laziness, prompting reflection on their own routines. Elliot describes minimal weekday routines shaped by hybrid commuting (up around 5:15–5:30 for office days; 6:30 for work-from-home) and weekends influenced by young kids, meal planning, and shared calendars. Josh outlines a long-standing 5:00 AM “slow morning” routine with water, coffee, reading/creative work, and workouts, plus consistent bedtime habits, limited news/social media, and discussion of experimenting with exercise schedules and subscription “money leaks.” 00:00 Why Routines Matter 00:17 Podcast Spark 02:10 Elliot Morning Schedule 04:54 Josh Slow Mornings 12:09 Habits And Motivation 19:05 Making Workouts Work 27:10 Evening Routine Talk 32:23 Social Media And Shopping 35:24 Streaming Subscriptions 38:41 Final Routine Takeaways 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: ⁠https://fbuy.me/vgAmz⁠ [http://fbuy.me/vgAmz] ⁠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]