Brennan and Erin Schlagbaum, a couple in their 30s, have achieved an impressive net worth of almost $2 million. His journey began by addressing and paying off more than $300,000 in debt, which included paying off a hefty $234,000 mortgage.
Once free of the burden of debt, they turned their attention to investing, keeping things simple. Brennan, a certified public accountant who runs Budgetdog, a financial education company, shared his down-to-earth approach that has proven successful.
The Schlagbaums invest their money primarily in three types of investment funds called “index funds.” These funds track the overall performance of a group of stocks, making it easier for people to invest without getting too complicated. In fact, more than 95% of your invested money is in these three funds: Vanguard Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, and Vanguard Emerging Markets Stock Index Fund.
In addition to these index funds, the couple also invested a small portion of their money in shares of a single company: Meta Platforms. Brennan carefully researched and analyzed this investment, feeling confident in its long-term potential.
Brennan emphasized that while they keep most of their money in these simple index funds, they also add a little more risk by investing a small percentage in individual stocks like Meta Platforms and even cryptocurrencies like bitcoin and ethereum. However, he stressed that this additional risk is manageable and represents only a small part of his total investments.
Recently, the Schlagbaums decided to further diversify their investments by venturing into real estate. Brennan made a passive investment in a real estate syndication, a form of investing in which several people pool their money to buy a property. This allows Brennan and Erin to be a part of real estate without the hands-on work that comes with owning rental properties.
Brennan explained that they looked at what rich people do with their money and found that they often invest in three things: the stock market, business, and real estate. With a strong presence in the stock market and Brennan running his own business, real estate was the missing piece. His first real estate move through syndication aligned with his desire for a less interventionist approach to real estate investing.
In the end, Brennan stressed that generating wealth doesn’t have to be complicated. The couple’s strategy involves keeping it simple and consistent, proving that anyone can move toward their financial goals without unnecessary complexity.
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