Brennan and Erin Schlagbaum accumulated a substantial amount of money by investing primarily in index funds. After paying off over $300,000 in debts and reaching a net worth in the millions, the Schlagbaums focused on making smart investment decisions. This decision led to the majority of their wealth being invested in three main index funds. Preferring a straightforward approach, Brennan and Erin Schlagbaum’s investment strategy revolves around index funds, which have proven to be successful for them.
Their journey to financial freedom began with eliminating their debt, including a $234,000 mortgage. Once they achieved debt-free status, they made the decision to fully commit to index funds. Their net worth has steadily increased, reaching close to $2 million. A significant portion of their assets is invested in their new home in Arlington, Texas, which they purchased for $495,000 in cash. However, more than half of their net worth is devoted to market investments, showing their confidence in this strategy.
Brennan Schlagbaum, who has a CPA and operates the financial-literacy company Budgetdog, shared their investment choices, which primarily include index funds and Meta stock. The couple’s stock portfolio is diverse, consisting of four retirement-specific accounts, a health-savings account, and a brokerage account. Index funds, such as the Vanguard Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, and Vanguard Emerging Markets Stock Index Fund, account for the majority of their stock-market investment. Additionally, they hold a small percentage of stock in Meta Platforms. Despite typically avoiding individual stocks, Brennan conducted extensive research before deciding to invest in Meta, a decision that paid off when the stock’s value soared.
As Brennan quit his job to run his company, Budgetdog, full-time, their financial freedom has given them the flexibility to take on more investment risks. This led them to invest in additional assets, such as real estate syndication and cryptocurrency, including bitcoin and ethereum, allowing for further diversification of their portfolio. Following their desire to adopt an asymmetrical approach to risk and reward, they chose to invest in real estate syndication, which offers a passive way to engage in real estate investments.
Despite their expanding asset portfolio, the Schlagbaums believe in keeping their investment strategies simple and consistent. Brennan emphasized that building wealth does not have to be overly complicated and can be achieved by maintaining a consistent approach. Their decision to invest in a variety of assets, from index funds to real estate syndication, demonstrates their dedication to smart financial planning.
