Brennan and Erin Schlagbaum, a couple who paid off significant student loan and mortgage debt in their 20s, transformed their finances by focusing on saving and investing. With low living expenses, they saved most of their income, primarily investing in low-cost ETFs. As of December 2024, their brokerage account exceeded $1 million. They recently switched all their index funds to ETFs to capitalize on slightly lower costs and potential tax advantages. Brennan emphasizes the importance of staying invested long-term in index funds rather than stock picking. They also dabble in real estate syndications and hold a small portion of their portfolio in bitcoin, highlighting their balanced yet strategic approach to building wealth.
Brennan and Erin Schlagbaum: How This Young Couple Became Millionaires Through Smart Investing
In their 20s, Brennan and Erin Schlagbaum managed to pay off a six-figure mortgage and eliminate student loan debt. By keeping their expenses low, they focused on saving and investing most of their income. Through their disciplined financial habits, they even shared a stunning detail: their investment portfolio has surpassed $1 million.
After clearing their debts, the couple shifted their focus from paying off loans to building wealth. With no mortgage, they could save a higher percentage of their income. They primarily invested in low-cost index funds, particularly Vanguard’s ETFs, which are known for their efficiency and low fees.
Brennan, a certified public accountant who runs a financial literacy company called Budgetdog, discussed their investment strategy. Initially, their investments were centered around three Vanguard index funds: VTSAX, which focuses on the total stock Market; VTIAX, which covers international stocks; and VEMAX, covering emerging markets. However, in October 2024, they transitioned all of their index fund investments to ETFs, opting for the corresponding Vanguard ETFs.
Why did they make this switch? The couple found that ETFs provide a slight edge in terms of costs and tax efficiency. With ETFs, investors are taxed only at the time of selling the investment, while traditional mutual funds may incur taxes when the fund manager sells assets at a profit.
Despite their transition to ETFs, the Schlagbaums still adhere to a long-term investment strategy. They believe in a buy-and-hold approach, emphasizing that staying invested is crucial to achieving financial success.
In addition to their ETF holdings, Brennan also made a notable investment in Meta Platforms (formerly Facebook) when its stock dipped in October 2022. This stock has since skyrocketed, marking it as one of his biggest investment successes.
Although they own a primary residence, the Schlagbaums choose not to manage rental properties. Instead, they participate in real estate syndications, where they invest in multi-family properties without having to manage them directly. This strategy allows them to diversify their portfolio while avoiding the hassles of being a landlord.
Furthermore, a small portion of their portfolio—about 1.5%—is invested in Bitcoin. This investment has grown significantly, showing their willingness to take calculated risks after ensuring their finances are secure.
Overall, Brennan and Erin Schlagbaum demonstrate that with careful planning, low expenses, and strategic investing, young individuals can achieve financial independence and create wealth.
Tags: financial literacy, young millionaires, investment strategy, ETFs, wealth building
What types of investments do millionaire couples prefer?
Millionaire couples often choose a mix of investments to grow their wealth. Common choices include Exchange-Traded Funds (ETFs), individual stocks like those from Meta, and cryptocurrencies like Bitcoin. This mix helps spread risk and increase potential returns.
Why do millionaire couples invest in ETFs?
ETFs are popular among millionaire couples because they offer diversification. This means they can invest in many different stocks or bonds at once. ETFs also have lower fees compared to regular mutual funds, making them a cost-effective choice for long-term investing.
What attracts millionaire couples to invest in Meta?
Meta, the parent company of Facebook, attracts millionaire couples due to its strong position in the tech industry. Many believe in its potential for future growth, especially with trends like virtual reality and social media expanding. Investing in meta shares can provide high returns if the company continues to perform well.
How do millionaire couples view Bitcoin as an investment?
Millionaire couples often see Bitcoin as both an investment and a hedge against inflation. Even though it’s quite volatile, they believe it can provide good returns in the long run. Some view it as the future of currency, while others see it as a way to diversify their portfolio.
Is it risky for millionaire couples to invest in these options?
Yes, investing in ETFs, Meta, and Bitcoin carries risks. The Market can be unpredictable, and prices can fluctuate. However, millionaire couples typically have strategies to manage risks, like diversifying their investments and having a financial advisor to guide them.
