540: Renting vs. Buying a Home in 2024 and Do You Have Enough in Your 401(k)?

Renting vs. buying a house: when it comes to FIRE, many people assume that you must own a home and preferably have it paid off to reach financial freedom. But is this really true? With renting so much cheaper than buying in 2024, would it be wiser to rent a place and send the savings to your investment accounts? Today, we’re tackling this topic and a few other heavy hitters as we give our takes on four of the hottest financial headlines. Kyle Mast, certified financial planner, joins Scott Trench to share FIRE-first thoughts on these not-so-easy-to-answer questions. First, we give our take on the ever-relevant renting vs. buying debate and ask whether things have changed since high mortgage rates have made buying a home much more expensive. Then, how do you manage savings and investments with interest rates so high—should you keep your money in a high-yield savings account or search for better opportunities even with savings yields so high? Think your nest egg is a little too light? We share the average 401(k) balance for those close to retirement and give our strategies to boost retirement savings before you leave full-time work. Finally, for those struggling to take care of elderly parents, our last headline is for you. We talk about the growing number of Americans physically, mentally, andfinancially caring for aging parents and how you can set yourself up in the best position possible to care for those in your life. In This Episode We Cover Buying vs. renting a house in 2024 and whether homeownership is required for FIRE The best housing investments you can make to propel your net worth and savings rate Saving and investing during higher interest rates and the type of “opportunities” you must be looking out for The shocking average 401(k) balance and what you can do to increase income in retirement How to ensure your children DON’T have to financially care for you in your old age And So Much More! Links from the Show BiggerPockets Money Facebook Group Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums Finance Review Guest Onboarding Join BiggerPockets for FREE Scott on BiggePockets Listen to All Your Favorite BiggerPockets Podcasts in One Place Apply to Be a Guest on The Money Show Podcast Talent Search! Find an Investor-Friendly Agent in Your Area Find Investor-Friendly Lenders Property Manager Finde Renting is Increasingly Cheaper Than Buying a Home How to manage retirement savings with interest rates remaining elevated This Is the Average 401(k) Balance for Ages 55 to 64 When Caring for Your Parents Comes at a Cost to Your Career See Scott at BPCON2024 in Cancun! Grab the Book, “First-Time Home Buyer” Hear Our Episodes with “Catching Up to FI”: BiggerPockets Money 537 - Late Start, Early Retirement: A Step-by-Step Guide to Get On Track to FI BiggerPockets Money 538 - Late Start, Early Retirement: The Huge Advantages of Investing Later in Life 00:00 Intro 01:57 Renting vs. Buying a House 10:49 Best Home Purchase for FI? 13:35 Saving and Investing with High Rates 25:05 Average 401(k) Balance 33:02 Caring for Elderly Parents Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-540 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices