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Published Dec 24, 2021

How Do I Hit a $10M Retirement Goal? (Stocks vs. Real Estate)

Scott Trench and Mindy Jensen explore the debate between real estate and stock investments to help Madison reach a $10M retirement goal, focusing on aligning financial strategies with personal aspirations and optimizing income after relocating from the Bay Area to Texas.
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  • Income Management

    Madison and her husband are navigating a significant financial transition as they move from the high-cost San Francisco Bay Area to Texas. They maintain their income levels, earning a combined monthly take-home salary of $12,000, which includes bonuses and other benefits 1. This move allows them to optimize their income streams and focus on long-term financial goals. and emphasize the importance of maximizing investment returns and planning for financial independence 2.

    We max out our IRAs, have a brokerage account, and save about $900 a month in personal savings.

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    With these strategies, Madison and her husband aim to enhance their financial stability and growth.

       

    Expense Reduction

    The move to Texas offers Madison and her husband a chance to significantly reduce their expenses. They anticipate a decrease in housing costs, with their mortgage expected to be lower than their previous rent in San Francisco 3. Additionally, they foresee savings in childcare and other living expenses, despite the need for a car in their new location 4. highlights the potential for a better quality of life in Texas due to these financial adjustments.

    You probably get a really nice neighborhood and a really huge house for less than what you were paying previously.

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    These changes are expected to free up $35,000 to $45,000 annually, enhancing their ability to invest and save.

       

    Cash Flow Strategies

    Madison and her husband are exploring strategies to enhance their cash flow through effective budgeting and expense management. By implementing basic budgeting processes, they can potentially save an additional $2,000 to $3,000 per month 5. suggests tracking every penny to identify unnecessary spending and optimize their budget.

    The game is how little can I spend? Like I said, I'm a huge nerd.

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    With these strategies, they aim to increase their annual savings to $70,000, allowing for meaningful investments in real estate and other ventures.

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