Podcast Summary: BiggerPockets Money Podcast - "How 'Regular' People Can Achieve FIRE (Early Retirement) by 40!"
Introduction
In the August 1, 2025 episode of the BiggerPockets Money Podcast, hosts Mindy Jensen and Scott Trench welcome Cody Garrett, a musician-turned-financial planner, to discuss his journey toward achieving Financial Independence, Retire Early (FIRE) by the age of 40. The episode delves into Cody's strategies, mindset shifts, and practical steps that have propelled him closer to early retirement, offering valuable insights for listeners aspiring to secure their financial future.
Guest Background: Cody Garrett's Journey
Cody Garrett has been an active member of the FIRE community for seven years and is now just four years away from achieving his FIRE goals. Transitioning from a professional musician to a financial planner, Cody brings a unique perspective to wealth-building and financial independence.
Transition from Musician to Financial Planner
Cody’s career shift from music to financial planning was not merely a pursuit of higher income but a deliberate effort to design a life that allowed him to prioritize personal time and maintain a desired lifestyle. Reflecting on his transition, Cody shares:
“The number one catalyst was how can I create a life where I get to eat dinner with my wife every day.”
—Cody Garrett [04:52]
He navigated this career change by investing heavily in education, enrolling in the Certified Financial Planner (CFP) program, and immersing himself in personal finance podcasts to accelerate his learning.
Strategies for Achieving FIRE
Cody outlines several key strategies that have aided his progress toward FIRE:
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Education and Knowledge:
- Prioritizing financial education through formal training and continuous learning via podcasts and community engagement.
- Accelerating his experience by immersing himself in financial planning resources and networking within the FIRE community.
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Avoiding Lifestyle Creep:
- Notable Quote:
“We are avoiding unintentional lifestyle creep.”
—Cody Garrett [07:23] - Implementing an intentional spending strategy to maintain financial discipline, such as limiting dining out to once a week and opting for affordable meal options.
- Notable Quote:
-
Investment Strategies:
- Focusing on broad, diversified, low-cost index funds.
- Notable Quote:
“We're still investing in low-cost index funds only, earning quote unquote like ten percent annualized.”
—Cody Garrett [32:18] - Building a substantial taxable brokerage account to maintain liquidity and flexibility, essential for entrepreneurial ventures and unexpected expenses.
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Entrepreneurship:
- Launching and owning multiple businesses to drive additional income and financial growth.
- Notable Insight: Cody emphasizes the importance of building businesses that offer long-term growth rather than short-term gains, providing stability and financial independence.
Mindset Shifts and Core Values
Cody emphasizes aligning financial goals with personal values, notably transparency and generosity. He redefines FIRE as "Financial Independence Recreational Employment," focusing on the freedom to engage in meaningful and enjoyable activities without the constraints of traditional employment.
“Financial independence recreational employment… gives me permission to do more things without expecting anything in return.”
—Cody Garrett [19:04]
Portfolio Theory and Investment Allocation
Cody shares his investment philosophy, which centers around simplicity and global diversification:
- Current Allocation: Primarily invested in worldwide diversified equity index funds (e.g., VTI and VXUS), maintaining a 100% equity portfolio given his short timeline until FIRE.
“If I were four years in the future at one point two five million fire number, I would still be one hundred percent equity.”
—Cody Garrett [35:27]
- Fixed Income Strategy: Allocates funds intended for spending within seven years to fixed income assets, such as total bond index ETFs and bond ladder ETFs, to ensure liquidity and reduce risk for near-term needs.
- Asset Location: Strategically places international equities in tax-deferred accounts and U.S. equities in taxable accounts to optimize tax efficiency.
Redefining FIRE
Cody introduces a personal twist to the FIRE concept by focusing on recreational employment rather than traditional retirement. This approach emphasizes continued engagement in work or entrepreneurial activities that are fulfilling and align with his values, rather than complete cessation of professional endeavors.
“Financial Independence Recreational Employment… allows me to help others without expecting something in return.”
—Cody Garrett [19:04]
Advice on Financial Planning Services
Cody provides practical advice for listeners seeking financial planning services:
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Types of Services:
- Hourly Basis: Paying for advice as needed.
- Project-Based: Engaging in comprehensive financial planning over a set period.
- Ongoing Support: Monthly or continuous accountability and planning.
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Cost Expectations:
- Comprehensive financial planning can range from $2,500 to $5,000 for a full engagement.
- Hourly consultations typically cost between $250 to $450 per hour, depending on expertise.
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Choosing a CFP:
- Identify the specific financial services you require and select a planner who aligns with those needs without unnecessary add-ons.
Conclusion
Cody Garrett’s journey from a professional musician to a sought-after financial planner exemplifies the practical steps and mindset shifts necessary to achieve FIRE by 40. His emphasis on education, disciplined spending, strategic investing, and entrepreneurship provides a comprehensive roadmap for listeners aiming to attain financial independence early. By redefining FIRE to include recreational employment, Cody underscores the importance of aligning financial goals with personal fulfillment and flexibility.
Final Thoughts from the Hosts
Mindy and Scott commend Cody for his passionate approach to personal finance and his dedication to helping others achieve their financial goals. They highlight the importance of aligning career choices with financial aspirations and express excitement for Cody’s upcoming ventures, including his educational content and forthcoming book on tax planning for early retirement.
“I love your redefinition of FIRE because recreational employment… has the flexibility to do what you love.”
—Mindy Jensen [19:30]
Notable Quotes
-
Cody Garrett [04:52]:
“The number one catalyst was how can I create a life where I get to eat dinner with my wife every day.” -
Cody Garrett [07:23]:
“We are avoiding unintentional lifestyle creep.” -
Cody Garrett [19:04]:
“Financial independence recreational employment… allows me to help others without expecting something in return.” -
Cody Garrett [35:27]:
“If I were four years in the future at one point two five million fire number, I would still be one hundred percent equity.” -
Cody Garrett [32:18]:
“We're still investing in low-cost index funds only, earning quote unquote like ten percent annualized.”
This episode serves as an inspiring guide for individuals seeking to align their careers and financial strategies to achieve early retirement, offering actionable insights and a fresh perspective on what it means to be financially independent.