How I Invest my Nurse Salary to achieve Financial Freedom (almost 2M net worth)

About this video

• Video Title: How I Invest my Nurse Salary to achieve Financial Freedom (almost 2M net worth)
• Channel: Ellaine | Nursewhoinvests
• Speakers: Ellaine
• Duration: 00:20:43

Overview

This video details the speaker's comprehensive investment strategy as a nurse aiming for financial freedom. She breaks down her investments into various "buckets," explaining each type, its purpose, and her personal approach to utilizing them, including retirement accounts, taxable brokerage accounts, real estate, business investments, and investments for her children.

Key takeaways

• Investment Strategy: The speaker is a long-term investor focused on slow, consistent wealth building through automation and intentional choices, leveraging compound interest rather than seeking high, risky returns.
• Investment Buckets: She outlines six main investment areas: workplace retirement accounts (like a 403b with a 10% employer match), individual retirement accounts (Roth IRA, utilizing a backdoor Roth due to high income), taxable brokerage accounts (favored for early retirement due to lack of withdrawal restrictions), real estate (rental property managed by her husband), business investments (online educational platform), and investments for her children (529 and custodial accounts).
• Workplace Retirement Accounts: These are tax-deferred accounts that lower taxable income, with her employer offering a significant 10% match, which she considers "free money."
• Roth IRA: Contributions are made after taxes, with growth and withdrawals being tax-free. She emphasizes maxing this out annually and mentions using a backdoor Roth due to income limits.
• Taxable Brokerage Account: This account offers flexibility with no contribution or withdrawal limits or penalties, making it ideal for early retirement. She holds individual stocks here.
• Real Estate: While she owns a rental property, she advises caution due to the significant maintenance and headache involved, suggesting REITs or syndications as alternatives.
• Business Investment: Investing in oneself through education and skills is highlighted as crucial for increasing income. Her online business serves as both an income generator and a platform to teach others, with a solo 401k for business investments.
• Children's Investments: She prioritizes her own financial freedom to avoid burdening her children later. She invests for them through 529 plans for education and custodial accounts, while also educating them about money.
• Diversification: The speaker stresses the importance of diversifying investments across different "baskets" and not putting all assets into one category.