Todd, thanks for reading and leaving a comment. I do have a 401k and take full advantage of my employer match. I maxed it out for years, but I’ve stopped maxing it out in preference for other investments. I agree that 401ks are good for a lot of people, but not very helpful if you are trying to retire early with good investment income.

I’m also a landlord and am fully aware of the pros and cons of home ownership. The point I’m making is that owning your home isn’t an investment, it is an expense. I never said you shouldn’t own a home. I own seven, in fact, but they are all investment properties. I rent because I live overseas.

It is often better to own than rent, but that doesn’t mean you are investing. Expenses are costs that should be minimized, while investments should be maximized. So your cost of living should be minimized as much as practical so that you have more money to buy investment property or other assets that appreciate at high rates of return.

Everyone has to do their own math to find the right answer for them, but knowing what to minimize and what to maximize makes a lot of difference to your wealth.