Rich Habits Podcast – Episode 116: How to Retire Early (Seriously) Release Date: May 5, 2025

Hosts:

• Austin Hankwitz – An entrepreneur in his late 20s with a background in finance and economics. He has built a seven-figure media business and advises well-known fintech companies.
• Robert Croke – A seasoned entrepreneur in his 50s with over 30 years of business experience and $200M+ in company exits. He is a decamillionaire approaching retirement age.

1. Introduction to Early Retirement Blueprint

Robert Croke [01:50]:

"In this week's episode of the Rich Habits Podcast, we're going to share with you all the step by step blueprint on how anyone listening can retire early."

The hosts introduce the episode's focus: providing a comprehensive blueprint to achieve early retirement. Robert shares his personal perspective, having been retired for over a decade while still actively working on projects he is passionate about.

2. The Six-Section Blueprint for Early Retirement

Austin Hankwitz [02:38]:

"This episode will be the blueprint of sorts, and it's broken down into six sections, which each section will be building upon the previous one."

Austin outlines the six foundational sections essential for early retirement, emphasizing the importance of a structured approach.

a. Foundation: Budgeting and Financial Awareness

• Know Your Money Flow:

  • Budgeting is fundamental. Track every income source and expense to understand financial habits.
  • Quote [02:50]: "Having a written budget where you've got every line item of what you expect to spend for the next month... it will change your life."

• Essential vs. Non-Essential Spending:

  • Prioritize essentials like rent, groceries, utilities, and necessary transportation.
  • Minimal payments on debts and elimination of high-interest debts are crucial.

b. Building an Emergency Fund

Robert Croke [04:54]:

"Set aside three months worth of expenses... that's going to be about $10 to $15,000."

• Target an emergency fund covering three months of expenses.
• This fund acts as a buffer against unexpected financial setbacks, ensuring stability as you work towards early retirement.

c. Managing Debt and Investing

Austin Hankwitz [06:32]:

"Build it out of high interest debt first before investing in the stock market because you cannot out invest high interest debt."

• Debt Management:

  • Prioritize paying off high-interest debts such as credit cards before investing.
  • Example: Eliminating a $10,000 credit card debt at 30% interest is more beneficial than investing that amount in the stock market with a 10% return.

• Investment Strategy:

  • Maximize employer 401(k) matches.
  • Open and contribute to a Roth IRA, targeting the maximum annual contribution ($7,000).
  • Invest in diversified index funds and ETFs through platforms like Public.com.

d. Aggressive Wealth Building

Robert Croke [09:28]:

"This $21,200 in annual investments between you and your spouse could turn into $1.7 million over just 20 years."

• Consistent and aggressive investing can significantly grow wealth.
• Example Scenario:
  • Household income: $120,000/year
  • 401(k) contributions and Roth IRA investments leading to a substantial nest egg of $1.7 million in 20 years, potentially allowing retirement at 55.

e. Adjusting Spending and Lifestyle

Austin Hankwitz [13:36]:

"The less you spend per year, the less you need in retirement and your nest egg to sustain that lifestyle that you want."

• Spending Control:
  • Living below your means reduces the required retirement fund.
  • Emphasize simplicity and contentment over flashy, unsustainable lifestyles.

f. Personalizing Retirement Goals

Robert Croke [16:40]:

"Build the life you desire, not the life you perceive other people think you desire."

• Retirement is personal and varies for everyone.
• Define what retirement means to you, whether it's traveling, pursuing hobbies, or continuing entrepreneurial projects.

3. Guest Interview: Mike Venuto on FIRS and FIRI ETFs

Introduction to Mike Venuto [17:09]: Mike Venuto, Chief Investment Officer and Co-founder at Title Financial Group, joins the podcast to discuss innovative ETFs designed to support early retirement strategies.

a. Overview of FIRS and FIRI ETFs

Mike Venuto [17:48]:

"FIRS is the Wealth Builder. It's designed to help you build wealth and save and beat inflation... FIRI for Fire Income. It's designed to get you at least a 4% distribution while protecting the preservation of your capital."

• FIRS ETF (Wealth Builder):

  • Focused on accumulating wealth through diversified investments including bonds, stocks, cash alternatives, and gold.
  • Designed to minimize risk and provide stability.

• FIRI ETF (Fire Income):

  • Aims to provide consistent income while preserving capital.
  • Utilizes a diversified approach to ensure steady distributions.

b. Permanent Portfolio Theory

Mike Venuto [19:00]:

"Based off of what's called the permanent portfolio theory... invest in economic regimes being inflation, deflation, recession, prosperity."

• Theory Breakdown:

  • Stocks for prosperity.
  • Cash Alternatives and Hedges for recessions.
  • Gold and Commodities for inflation.
  • Long-Term Bonds for deflation.

• Practical Application:

  • Equally weighting these four components ensures the portfolio can weather various economic conditions.
  • Active rebalancing maintains the desired allocation, reducing volatility.

c. Portfolio Management and Performance

Robert Croke [20:13]:

"The permanent portfolio theory stands out because of its ability to mitigate volatility... That's why we've been able to mute the volatility of the market."

• Performance Insights:
  • FIRS ETF has demonstrated resilience during volatile markets by adhering to the permanent portfolio approach.
  • Diversification across different asset classes helps maintain stability and growth.

4. Audience Q&A

Question 1: Combining Finances in Marriage Submitted by Mitch on Instagram

Mitch's Query:

"My fiance and I are getting married... we're thinking that we will just fully combine our finances and take everything and put it all into one account. Do you have any thoughts on combining finances with your partner?"

Austin Hankwitz [35:00]:

"I'm a big believer... combine your finances. I think it's a wonderful idea... If you're on the same page and you got it all in the same account... that divorce statistic drops dramatically."

Robert Croke [36:22]:

"Spell it out and really have a serious conversation... this is going to be wonderful because you want to make sure that you have that budget, you live within your means, and you can really, really set yourself up for financial success."

Takeaway:

• Combining finances can enhance transparency and alignment in financial goals.
• Regular budgeting and open communication are essential to maintain financial harmony.

Question 2: Entering Real Estate at a Young Age Submitted by Blake on Instagram

Blake's Query:

"I want to get into real estate, but I don't think I can get a decent loan based on my age and lack of history of income... Would it be smart for my dad to take out a loan against his paid-off real estate investments to give to me?"

Robert Croke [38:08]:

"I would rather see him go help you get a mortgage... building credit through being on a mortgage... helps you get started."

Austin Hankwitz [38:58]:

"There are so many ways you can do this... be patient... learn everything you can about real estate."

Takeaway:

• Building credit through personal mortgages is preferable over taking loans against a family's assets.
• Gaining experience and knowledge in real estate is crucial before making significant investments.

5. Featured Tools and Platforms

Public.com Promotion:

• Public.com is highlighted as a user-friendly investment platform offering stocks, bonds, crypto, and more.
• Austin Hankwitz [31:05]:

  "Go max out your Roth IRA on public.com, Go move your portfolio over to Public and take advantage of that $10,000 bonus that they're offering as well."

Blossom Promotion:

• Blossom is introduced as a social investing app focused on transparency and community.
• Austin Hankwitz [40:39]:

  "If you've not yet joined Blossom, we really encourage you to do so... It's a very easy way for you to find both your community of like minded investors and also manage your portfolio in a really clean way."

6. Closing Remarks and Final Advice

Austin Hankwitz and Robert Croke emphasize:

• Consistency and Action: Implementing the blueprint requires consistent effort and adherence to financial plans.
• Active Management: Regularly review and adjust investments to align with changing market conditions and personal goals.
• Education and Community: Utilize platforms and communities like Public.com and Blossom to enhance financial literacy and support.

Robert Croke [49:34]:

"The more valuable you are, the more money you can require for your time and your services... always be looking to improve on your income through side hustles."

Austin Hankwitz [48:46]:

"We just talk about how transparency is key... There's a ton of other shows that people talk through the sauce like, this is just so much fun."

Final Thought: Retiring early is achievable through disciplined budgeting, strategic investing, managing debt, and continuously enhancing personal financial knowledge. Personalizing your retirement goals and leveraging the right financial tools are essential steps toward financial independence.

Resources Mentioned:

• Public.com: public.com
• Blossom Investing App: Available on the Apple App Store
• FIRS and FIRI ETFs: fire-etf's.com (as mentioned by Mike Venuto)

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This summary encapsulates the key discussions and insights from Episode 116 of the Rich Habits Podcast, providing actionable steps and valuable advice for those aiming to retire early.