Financial Guilt and Coast FI Strategies - Mailbag | MHFI 239

Doug and Dusti answer questions from the Facebook mailbag.

• Sam – I’m Coast FIRE, currently working part-time to cover expenses without touching my portfolio. I have a NW just shy of $2M, with $1.5M in broad, low-cost ETFs, and the rest in my house and retirement account. My NW fluctuates daily, sometimes by $1K-$3K, or up to $10K-$30K with market volatility.  Here’s my dilemma: even with a solid NW, I still stress over expenses like a $600 home repair, higher home insurance, or an unexpected water bill. I spend time researching and finding the best deals, but I’m wondering if these minor expenses are worth worrying about when compared to my overall financial picture. Should I let go of the guilt and focus on long-term goals instead?
• Angela – Getting close to CoastFI.  We will need about 10 years worth of money to fill the “gap” until we hit 60.  Do we… A) Slow down our contributions to our 401ks, so that we just get our “free money” and then redirect those funds to our after tax brokerage account (we would obviously pay more in taxes on our income).  B) Continue what we are doing and keep maxing out 401k with “leftovers” going in to brokerage, buffer our HYSA account/cd ladder/whatever for 5 years, and just plan on doing Roth conversions for the first 5 years so we can access that money for the other 5 years.  C) Some other idea?
• Rakesh – Would you rather inherit a $500k house with rent income or $500k in index funds? Why and why not?

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Links

(*Some affiliate links so we might earn a commission if you buy something)

• Doug’s Instagram
• Connect with Dusti:
  • Instagram
  • Facebook
• Dusti on MHFI
  • Episode 172
  • Episode 178
  • Episode 223
  • Episode 224
• Mile High FI Facebook Group
• Barry Schwartz, “The Paradox of Choice”
  • Kindle
  • Hardcover
  • Paperback
  • Audiobook
•  Eric Cooper discussing the 72T
  • BiggerPockets Money, “Dude ACTUALLY Withdraws From His 401(k) and Retires at 47”
  • Forget About Money, “Secret IRS Rule 72(t) Explained! | Eric Cooper Reveals Early Withdrawal Power Move!”
• Darren & Jolene on MHFI episode 228
• Doug’s site
• Check out Producer Chris’s new blog: Epic Financial Journey

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**Disclaimer: The podcast is for informational purposes. Maybe entertainment but we won’t even make such a claim. You shouldn’t take the info as financial, legal, or tax advice. We aren’t certified financial planners or advisors. We’re not qualified for much. So get advice from professionals.**

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0:00 Introduction

2:06 Question – Letting go of guilt

8:08 Maximizers vs Satisficers

15:44 Question – Planning for CoastFI

18:55 Taxes

25:05 Question – $500K house or $500K in index funds

29:55 Real estate is scammy

36:56 Soundcheck – Phone issues