Podcast Summary: BiggerPockets Money Podcast

Episode: Did She Already Reach Coast FI at 46? (Finance Friday)

Original Air Date: October 10, 2025

Hosts: Mindy Jensen & Scott Trench

Guest: Crystal

Main Theme & Purpose

This episode of the BiggerPockets Money Podcast focuses on listener Crystal’s financial journey, primarily addressing two pressing questions:

1. Has she already reached Coast FI at age 46?
2. Should she keep or sell her house as she approaches an empty nest?

Mindy and Scott break down Crystal’s assets, income, and expenses, analyze her FIRE (Financial Independence, Retire Early) prospects, and discuss strategies regarding her primary residence. The conversation centers around creating optionality for her next life phase, balancing financial security and lifestyle, and mapping realistic "bridges" to independence.

Key Discussion Points & Insights

1. Crystal’s Financial Background (01:11–04:09)

• Upbringing & Early Adulthood:

  • One of six kids, raised with a "scarcity mindset" and strong frugality.
  • Early marriage to a service member; started her own money journey by focusing on maxing out a Roth IRA.
  • Saved diligently, despite limited investment knowledge.

• Discovery of FIRE:

  • Became interested in personal finance podcasts (Dave Ramsey, then FIRE).
  • Divorce in 2019 spurred a closer look at finances.

2. Crystal’s Current Financial Snapshot (04:10–05:55)

• Net Worth: $1.32 million at age 46.
• Assets:
  • $422,000 in cash (some in private money notes)
  • $31,000 in 401(k)
  • $320,000 in Roth IRA
  • $32,000 in Traditional IRA
  • Primary residence worth $764,000, with $241,000 mortgage (about $500,000 equity)
• Income: $123,000/year (full-time job, some child support, investment income)
• Expenses: $4,800/month (~$60,000/year)
• Savings Rate: ~50%
• Debts: Only mortgage
• Other: No pension, no life insurance payout

“You are 46 years old with a net worth of 1.3. Where that money is is a little different than what have. We've got $422,000 in cash…” — Mindy [04:21]

3. Crystal’s Dilemma: The House & Next Chapter (05:55–09:33)

• Wants to live more simply after children move out; only one child left at home.
• Questions whether to keep the large 5-bedroom house or downsize.
• Interested in optimizing for simplicity and low stress (“optimize for simple...easy”).

“I have this asset of this beautiful house, but I really only need a couple bedrooms...what do I want next?...I'd love to optimize for simple.” — Crystal [05:55]

4. Sell, Keep, or House Hack? (09:33–12:28; 15:18–23:42; 28:30–38:14)

• Selling Pros/Cons:
  • Mortgage payment and renting in the same area would cost about the same monthly.
  • Selling could free up ~$500,000 equity for investment.
  • Market valuation checked via Zillow, but hosts recommend a realtor consult.

“From a monthly spend perspective, that's not going to really save you anything. But from an investment perspective, that could be huge.” — Mindy [10:14]

• House Hack Possibilities:

  • If she finds a property with house hacking (e.g., short-term rental/ADU potential) in a new location, it could create income and flexibility.
  • Restrictions in her current small town limit Airbnb and similar opportunities.

• Timing Considerations:

  • Suggests “staying put” until her last child finishes school.
  • Keeping job for mortgage qualification on next property; may want to preserve W2 income until transition is complete.

“If you give up the income, the job, the salary, then you're going to give up the option to take on a mortgage probably ...that's going to be the bigger barrier.” — Scott [22:48]

5. Portfolio & Withdrawal Strategies (18:13–23:42; 31:15–34:52; 40:41–44:12)

• Investment Approach:
  • Scott suggests transitioning to a balanced, defensive “Golden Ratio” (or “Traditional 60/40”) portfolio, factoring in near-term withdrawals and a non-aggressive investment approach.

“We build a very traditional retirement portfolio ... that could be able to spit off 4 to 5% in most traditional retirement models. That gives you at 5%, 40 grand a year.” — Scott [15:18]

• Withdrawal Rates:

  • Debate over 3.5% vs 5%: For Crystal’s situation, considering part-time work and possible house hack, 5% could be justified—with buffers.

• Tax Considerations:

  • Discusses likely negligible capital gains tax on the home sale, but urges a CPA check.
  • No tax consequence when reallocating within retirement accounts or money maturing from private notes.
  • Taxable gains only realized when actually withdrawing funds from accounts.

6. Personal Fulfillment, Work, and Lifestyle Vision (12:28–15:18; 31:15–44:12)

• Crystal desires to return to a schedule reminiscent of her rewarding stay-at-home-mom years:
  • Cooking, volunteering, family support, part-time work aligned with values and interests.
  • Not tied to office management; prefers human interaction.
• Open to “barista FIRE” — supplementing investments with flexible part-time income.

“I would love to move to part time work if I could or pick, you know, a side gig that would more or less bring in some income while...hitting those boxes of fulfillment.” — Crystal [13:24]

• Planning Exercises (Suggested by Scott):
  • Write down hypotheses for:
    • Portfolio allocation
    • Ideal next house or house hack property
    • Desired type of part-time work

7. Is Crystal Coast FI or FIRE Already? (34:52–38:14)

• Calculator Analysis:
  • Using Coast FI calculators: With current net worth, she easily exceeds the Coast FI threshold for traditional retirement age; but FIRE at age 49 will depend on withdrawal rates and buffer.
  • Flexibility improves via part-time work and house hacking.
  • Key constraint is remaining in current house/school district three more years.
• “You are certainly coast fi... The question is, are you fire right now? ... You will be able to fire under the current assumptions.” — Scott [36:53]

8. Other Financial Planning Considerations (40:41–44:12)

• Crystal should factor in health insurance, Social Security, and other “blocking and tackling” checklist items in planning.
• Consult professionals—especially about home sale tax and social security implications.

Notable Quotes & Memorable Moments

• On Empowerment and Options:

  • “What it boils down to is you have set yourself up very well for success in, in almost any scenario. You just have to pick which one sounds the most fun.” — Mindy [39:47]
  • “I have really good cards. It's just how to and when to play.” — Crystal [43:15]

• On the Nature of FIRE Transitions:

  • “The game is so much easier to play in this fire world than it is with somebody who's just like, I want to be completely done... This margin of safety and the ability for more to come into my life is a really key ingredient.” — Scott [44:43]

Important Timestamps & Segments

• 01:11 — 04:09: Crystal’s financial upbringing and path to FIRE discovery.
• 04:10 — 05:55: Crystal’s current net worth, asset breakdown, income, expenses.
• 05:55 — 09:33: Crystal’s housing dilemma and lifestyle vision.
• 09:33 — 12:28: Discussion on home equity, mortgage, and investment potential.
• 12:28 — 15:18: Crystal’s ideal life and work fulfillment.
• 15:18 — 23:42: Scott’s hypotheses for portfolio and housing moves.
• 28:30 — 38:14: Tactical housing and investment considerations, tax advice.
• 34:52 — 38:14: “Coast FI” math, retirement timing, and withdrawal rates.
• 40:41 — 44:12: Wrapping up with planning checklists, health insurance, and professional advisement.

Conclusion & Actionable Takeaways

Crystal is in a strong financial position with many good options. The core advice:

• Get clarity around desired lifestyle, housing, and portfolio allocation—write down hypotheses and revisit them.
• Don’t rush; timing around the house sale, the transition to part-time work, and keeping stable income are key.
• Consult professionals regarding tax planning and social security as you approach each major move.
• Remember: Your financial “cards” are strong. It’s about playing them in the way that brings the most fulfillment, freedom, and fun.

For Listeners

If you want a snapshot of your own finances, Mindy and Scott recommend downloading the DIY Personal Financial Statement at biggerpocketsmoney.com/DIY.

Summary compiled by AI based on provided transcript. All quotes, timestamps, and attributions are accurate as per the original episode.