Financial Success: 30s Couple Reaches $1 Million Net Worth with 95% in Index Funds and a Dash of Individual Stock – Know Their Investment Strategy

30s couple's journey to $1 million net worth: Over 95% in index funds, explore their winning investment strategy!

Nov 25, 2023 - 09:26
Nov 25, 2023 - 09:27
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Financial Success: 30s Couple Reaches $1 Million Net Worth with 95% in Index Funds and a Dash of Individual Stock – Know Their Investment Strategy
30s Couple Reaches $1 Million Net Worth with 95% in Index Funds and a Dash of Individual Stock – Know Their Investment Strategy

Brennan and Erin Schlagbaum, a couple in their 30s, have achieved an impressive net worth of nearly $2 million. Their journey began with tackling and clearing more than $300,000 in debt, which included paying off a hefty $234,000 mortgage.

Once free from the burden of debt, they turned their attention to investing, keeping things simple. Brennan, who is a CPA and runs Budgetdog, a financial literacy company, shared their down-to-earth approach that has proven successful.

The Schlagbaums put their money mainly into three types of investment funds called "index funds." These funds follow 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 their 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 part of their money in a single company's stock—Meta Platforms. Brennan carefully researched and analyzed this investment, feeling confident about its long-term potential.

Brennan emphasized that while they keep the majority of their money in these simple index funds, they also added a bit more risk by investing a small percentage in individual stocks like Meta Platforms and even in cryptocurrency like bitcoin and ethereum. However, he stressed that this additional risk is manageable and forms only a small part of their overall investments.

Brennan and Erin Schlagbaum

Recently, the Schlagbaums decided to diversify their investments even further by venturing into real estate. Brennan made a passive investment in a real estate syndication, a way of investing where multiple people pool their money to buy a property. This allows Brennan and Erin to be part of real estate without the hands-on work that comes with owning rental properties.

Brennan explained that they looked at what wealthy people do with their money and found that they often invest in three things: the stock market, business, and real estate. With a strong foothold in the stock market and Brennan running his own business, real estate was the missing piece. Their first real estate move through the syndication aligned with their desire for a more hands-off approach to real estate investment.

In the end, Brennan highlighted that building wealth doesn't have to be complicated. The couple's strategy involves keeping it simple and consistent, demonstrating that anyone can make progress toward financial goals without unnecessary complexity.

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