Why You Shouldn't FIRE with Just Index Funds (Very Risky) | Life After FIRE | Bigger Pockets Video

Why You Shouldn't FIRE with Just Index Funds (Very Risky) | Life After FIRE
Youtube Description

Join BiggerPockets for FREE 👇
link

Get to FIRE Faster with “Set for Life”:
link

Sign Up for the BiggerPockets Money Newsletter:
link

Find an Investor-Friendly Agent in Your Area:
link

Has the FIRE Formula Changed? Why 100% Index Funds Isn’t the Answer:
link

Connect with Carl:
link

Connect with Mindy: link

Does a 100% index fund portfolio break the FIRE formula? If you caught our episode from a couple of weeks back (link you know that Scott made a BIG move—selling a chunk of his index fund portfolio and moving it into real estate.

This was the right move for Scott’s situation, but would we, being so much closer to retirement age than Scott, do the same? And if we did sell our index funds and stocks, what would we do with the money? Hoard cash, buy property, buy…beanie babies?

In this episode of “Life After FIRE,” we’re saying what most FIRE-chasers don’t want to hear: You CANNOT (and should NOT) try to FIRE with just index funds! And, with high price-to-earnings ratios, there’s growing speculation that index funds and stocks are already overvalued. If a mass selloff happens, is this good news for those prudent index fund investors, or will it completely put out your FIRE?

00:00 Is Your FIRE Portfolio Wrong?
02:43 Why Scott Sold His Index Funds
05:41 Stock Prices Are Getting Crazy
09:06 Are We Selling Our Stocks?
11:44 What to Do IF You Sell
15:20 Don't Be Scared of Downturns