Brennan and Erin Schlagbaum, a couple in their 20s, successfully paid off a six-figure mortgage and student loan debt. With low living expenses, they were able to save and invest most of their income, ultimately growing their investment portfolio, largely composed of ETFs, to over $1 million. They switched entirely from index funds to ETFs to take advantage of lower costs and better tax efficiency. While they still focus on long-term, buy-and-hold strategies, they also invest a small portion of their portfolio in Bitcoin and participate in real estate syndications. The couple emphasizes the importance of sound financial habits and investing primarily in low-cost funds for wealth-building.
Brennan and Erin Schlagbaum: A Remarkable Journey to Financial Freedom
Brennan and Erin Schlagbaum, a couple in their 20s, have accomplished an impressive financial feat. They successfully paid off a six-figure mortgage and student loan debt, demonstrating financial discipline and smart money management. By keeping their living expenses low, they managed to save and invest the majority of their incomes, ultimately leading them to a millionaire status.
Investing Smartly with ETFs
After eliminating their debts, the Schlagbaums turned their attention to building wealth. They began investing heavily in low-cost index funds, primarily through Vanguard ETFs. By strategically placing their money in diversified funds, they saw their investment portfolio grow significantly, surpassing the $1 million mark according to their recent brokerage statements.
Brennan, who is a CPA and founder of the financial literacy company Budgetdog, emphasizes the importance of a long-term investment strategy. As of December 2024, their assets included various Vanguard ETFs, namely the Total Stock Market Fund, Total International Stock Fund, and Emerging Markets Fund. In October 2024, they transitioned fully to ETFs, transitioning their index funds to ETFs to take advantage of lower costs and improved tax efficiency.
Real Estate and Alternative Investments
While the couple owns their primary residence, they have opted not to manage multiple investment properties. Instead, they invest in real estate syndications, allowing them to participate in real estate investments without the hassles of ownership. This strategy proves beneficial for those who want to diversify their portfolio while minimizing day-to-day responsibilities.
In addition to real estate, a small portion of their investments is allocated to Bitcoin. They believe that speculative assets like cryptocurrencies should only be considered once basic financial goals—such as paying off debts and securing retirement—are met.
The Takeaway
The Schlagbaums’ journey highlights the importance of financial literacy, smart investing, and managing debt. For young couples looking to achieve financial independence, their story serves as inspiration to both live within one’s means and make informed investment choices. Their focus on ETFs, real estate syndication, and prudent allocation to cryptocurrencies showcases a balanced approach to wealth-building in today’s financially complex world.
Tags: financial freedom, debt payoff, wealth building, investing tips, ETFs, real estate syndication, cryptocurrency.
What types of investments do Millionaire Couples prefer?
Millionaire couples often invest in a mix of things like ETFs (Exchange-Traded Funds), stocks in big companies like Meta, and cryptocurrencies like Bitcoin. This helps them to spread their money across various assets and reduce risk.
Why do they choose ETFs?
ETFs are popular because they are easy to buy and sell, and they usually have lower fees than mutual funds. They also allow investors to own many stocks or bonds in one fund, making it simple to diversify their investment.
What makes Meta a good investment choice?
Meta, known for platforms like Facebook and Instagram, is seen as a strong investment because it has a large user base and continues to grow. They invest in new technologies and innovations, which can lead to even more profit in the future.
Is Bitcoin a safe investment?
Bitcoin can be risky because its price goes up and down a lot. However, some millionaire couples see it as a chance for high returns. They often only invest a small part of their money in Bitcoin to balance the risk.
How can I start investing like a millionaire couple?
You can start small by choosing ETFs that interest you and learning about companies like Meta. Consider putting a little money into Bitcoin if you’re comfortable, but make sure to do your research and understand the risks first.
