Net Worth at age 55

[rowsdower88]

Okay we could maybe use a border bill. My point was, we don’t need a border bill to control the border now. We just need to actually do it. And never release anyone here. Send them back. If they came illegally, there should never be any path to citizenship or any claims of asylum even considered. If you have a legitimate asylum claim, go to a port of entry.

I just really don't care that much about undocumented immigration and it boggles my mind why other Americans do.

They're less violent than US born citizens.

They pay their taxes (insofar as they're able).

They can't vote.

Their kids who are born here are guaranteed birthright citizenship and that isn't ever going away. (Corollary: Deporting American citizens seems crazy assuming you want to get rid of the kids, and taking kids away from parents is also crazy if you just want to get rid of the adults.)

Unless you're so far gone that you believe they're "poisoning the blood of the country" which seems to be the mainstream Republican position, I don't know why so much energy is devoted to them.

https://www.cnn.com/2023/04/18/us/undocumented-immigrants-taxes-cec/index.html

So when you say: "we don’t need a border bill to control the border now. We just need to actually do it. And never release anyone here. Send them back. If they came illegally, there should never be any path to citizenship or any claims of asylum even considered."

My response would be: we're already doing it. Biden has deported more migrants than Trump and Trump released more migrants into the US than Biden has. The border patrol is actually underfunded for what you want and even if Biden wanted to catch more of them there are legitimate funding issues with that... that the border bill would have helped address. With the existing resources available (enforcement and judicial), Biden did direct resources to prioritize criminal offenders over others which I think is fine but upset a lot of other people.

https://www.cato.org/blog/new-data-show-migrants-were-more-likely-be-released-trump-biden

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Members don't see this ad.

 

[Splenda88]

I just really don't care that much about undocumented immigration and it boggles my mind why other Americans do.

They're less violent than US born citizens.

They pay their taxes (insofar as they're able).

They can't vote.

Their kids who are born here are guaranteed birthright citizenship and that isn't ever going away. (Corollary: Deporting American citizens seems crazy assuming you want to get rid of the kids, and taking kids away from parents is also crazy if you just want to get rid of the adults.)

Unless you're so far gone that you believe they're "poisoning the blood of the country" which seems to be the mainstream Republican position, I don't know why so much energy is devoted to them.

https://www.cnn.com/2023/04/18/us/undocumented-immigrants-taxes-cec/index.html

So when you say: "we don’t need a border bill to control the border now. We just need to actually do it. And never release anyone here. Send them back. If they came illegally, there should never be any path to citizenship or any claims of asylum even considered."

My response would be: we're already doing it. Biden has deported more migrants than Trump and Trump released more migrants into the US than Biden has. The border patrol is actually underfunded for what you want and even if Biden wanted to catch more of them there are legitimate funding issues with that... that the border bill would have helped address. With the existing resources available (enforcement and judicial), Biden did direct resources to prioritize criminal offenders over others which I think is fine but upset a lot of other people.

https://www.cato.org/blog/new-data-show-migrants-were-more-likely-be-released-trump-biden

Is there one thing Biden has done that you don't agree with?

 

[nimbus]

Wasn’t Trump nodding off at his own trial last week?

 

[nimbus]

I just really don't care that much about undocumented immigration and it boggles my mind why other Americans do.

They're less violent than US born citizens.

They pay their taxes (insofar as they're able).

They can't vote.

Their kids who are born here are guaranteed birthright citizenship and that isn't ever going away. (Corollary: Deporting American citizens seems crazy assuming you want to get rid of the kids, and taking kids away from parents is also crazy if you just want to get rid of the adults.)

Unless you're so far gone that you believe they're "poisoning the blood of the country" which seems to be the mainstream Republican position, I don't know why so much energy is devoted to them.

https://www.cnn.com/2023/04/18/us/undocumented-immigrants-taxes-cec/index.html

So when you say: "we don’t need a border bill to control the border now. We just need to actually do it. And never release anyone here. Send them back. If they came illegally, there should never be any path to citizenship or any claims of asylum even considered."

My response would be: we're already doing it. Biden has deported more migrants than Trump and Trump released more migrants into the US than Biden has. The border patrol is actually underfunded for what you want and even if Biden wanted to catch more of them there are legitimate funding issues with that... that the border bill would have helped address. With the existing resources available (enforcement and judicial), Biden did direct resources to prioritize criminal offenders over others which I think is fine but upset a lot of other people.

https://www.cato.org/blog/new-data-show-migrants-were-more-likely-be-released-trump-biden

If only there was a way to swap some native born deadbeats for some hard working immigrants.

 

[rowsdower88]

Is there one thing Biden has done that you don't agree with?

I think he should have pushed back against Netanyahu earlier and more forcefully than he ended up doing. I can understand the political and practical reasons for not doing so, but I think morally it has been damaging.

He cozied up to the Saudis despite MBS being a horrible human being. Once again, I understand the practical reasons for doing so (remember the concerns about gas prices 2 years ago?), but it was a broken campaign promise that I remember.

On domestic policy, I think he's been the best president of my lifetime. His transformation of the NLRB has been amazing for which he deserves 100% of the credit and the subsequent union drives we've been seeing across the country. His appointment of Lina Khan to the FTC has been to mixed reviews but I'm pretty happy about it. Her administration was involved in the USAP break in Colorado and the ongoing lawsuit against them in Texas. Then there's the legislation he has guided through Congess; the Inflation Reduction Act, CHIPS Act, Bipartisan Infrastructure Law... all great and take the country in a positive direction. No real complaints come to mind with domestic policy. He tried to fulfill his student loan forgiveness campaign promise but was stymmied by SCOTUS unjustly (that case was crazy and absolutely should have been tossed on standing).

Edit: Oh, he should have gotten rid of Dejoy as postmasater general. No idea why he has kept that dude on for another 4 years. Maybe he picked the wrong people for the board? Haven't looked into it to deeply.

 

[nimbus]

Why not just boycott all the businesses that hire undocumented immigrants as loudly and publicly as people did for Bud Light? I assume you are doing that already, though….

But what if he likes to eat food?

 

[nimbus]

Mostly true except refugees should have to stay in the first safe country they enter, which is never this one.

Then my best friend would still be in Thailand. I can assure you that he contributes more to this country than 99.9% of natives.

 

[We'llBeDoneIn15Minutes]

Then my best friend would still be in Thailand. I can assure you that he contributes more to this country than 99.9% of natives.

But what will his net worth be at age 55??

 

[nimbus]

But what will his net worth be at age 55??

A LOT

 

[pgg]

Wasn’t Trump nodding off at his own trial last week?

I'm honestly reluctant to hold this against him.

The guy is a turd, but I have a long and glorious history of nodding off when I'm bored ... at meetings, in class, at airports. I don't think I'm demented.

I've never been a defendant in court, and I think if I was I'd be too interested in the proceedings to fall asleep, but I don't know. Sounds like jury selection is some tedious ****.

 

[emergentmd]

Man I check on this thread about once a week when bored at work. Usually a few new posts but then I saw 8 more pages. I knew something must have been up. There have been the same Trump Biden threads that goes no where, I have been part of them so know it well. Can we truncate the last 8 pages and create a new thread b/c I know where it is going. It is not even worth jumping into the filth on both sides and you just come out a worse person.

Back to the financial thread and my opinion.

1. Have kids if you want, its a personal choice. Kids are expensive and will put back retirement 10+ years and decrease your net worth probably by 10+M but it is the best 10+M I will have ever spent. You don't believe me that they are expensive esp for a high earning doc who can afford it?
I have a 15/13/11 yr old kid. All have been in private school since preK and their private school which will average about 12k/yr. Through HS that is 14 Yrs x 3kids x 12k = 504K. So assuming 8% market appreciation, at 65, that 504K would be about 2-3. Add club sports, all expenses, college, cars and I think that 2-3M will be closer to 10M of net worth when I hit 70.

2. If I did not have kids, I would be semi retired in 10 years. Work an avg amount, save 100K/yr, spend the other 300K living a lavish lifestyle. After 10 yrs, I should have about 2M. Cut back to half and live off the 200k letting the 2 M ride another 20yrs to about 10M. It is VERY easy to retire early without kids. As there is no legacy or estate concerns, I would just spend most of it and enjoy life. Life would be so simple and at least for me not rewarding. Just took my daughter to an out of state Volleyball and just this trip prob cost 2k but the bonding/memories is worth more than the 2k golf clubs I could get.

3. All concerns for this generations like home prices/inflation/stock market are the same for every generation. Invest in RE, do it now, do it smartly and things will work out. So what rates are 8%, if you can buy a good property then buy it. Prices are down, its a buying opportunity. Buy at 8%, refinance when rates drop to 5%, and you will have a 30% appreciation in 2-3 yrs. Don't do anything and in 5 yrs, people will have the complaints about a missed opportunity. I just bought a 1M/DOWN 300k investment property at 7% and understand that this place would have been going for 1.3-1.5 M 2 yrs ago when rates were 3%. Ill wait it out, refinance when rates drop pulling out 3-500K cash being net cash positive.

 

[rowsdower88]

Through HS that is 14 Yrs x 3kids x 12k = 504K. So assuming 8% market appreciation, at 65, that 504K would be about 2-3. Add club sports, all expenses, college, cars and I think that 2-3M will be closer to 10M of net worth when I hit 70.

This is insane spending to me. There is a middle ground between this level of spending and your number 2 option of "not having kids". I have one kid and my expenses will not amount to 3.3M (1/3 of your spending on 3 kids) nor will my kid push back retirement by 10+ years. This level of spending is a personal choice.

 

[emergentmd]

It may sound insane but our private schools is on the low end too. Most private schools are 15K+.

An avg family spends 250K til kids are 18 and this likely does not involve any private school/sports activities. Assume kid at 27, in college at 45. 250K over that 18 yrs would be about 500K at 45. At 70, that is 25 yrs with doubling every 8; 500K is 4M.

I am guessing we will spend about 500-750K cash per kid so its a high amount but the best $$$ ever spent. Either spend on them now or give it to them when I die. Rather spend now than having my in laws spend it

Insane spending is all relative. If you make 100k/yr and spend 35k/yr in private then its insane. If you make 500k and spend 35K, its not. If you make 1M+, then 35K is a rounding error.

Also I said total cash was 2-3M for all 3 kids but that amount in the 8% market will be about 10M.

 

[rowsdower88]

It may sound insane but our private schools is on the low end too. Most private schools are 15K+.

An avg family spends 250K til kids are 18 and this likely does not involve any private school/sports activities. Assume kid at 27, in college at 45. 250K over that 18 yrs would be about 500K at 45. At 70, that is 25 yrs with doubling every 8; 500K is 4M.

I am guessing we will spend about 500-750K cash per kid so its a high amount but the best $$$ ever spent. Either spend on them now or give it to them when I die. Rather spend now than having my in laws spend it

Insane spending is all relative. If you make 100k/yr and spend 35k/yr in private then its insane. If you make 500k and spend 35K, its not. If you make 1M+, then 35K is a rounding error.

Also I said total cash was 2-3M for all 3 kids but that amount in the 8% market will be about 10M.

This is a personal choice. Your earlier post presented two options: $3.3M per kid (factoring in lost savings), or not having any.

Private schooling is a choice in most of the country.

If you recognize that you can raise a kid on less, then I'm done.

 

[GassYous]

It may sound insane but our private schools is on the low end too. Most private schools are 15K+.

An avg family spends 250K til kids are 18 and this likely does not involve any private school/sports activities. Assume kid at 27, in college at 45. 250K over that 18 yrs would be about 500K at 45. At 70, that is 25 yrs with doubling every 8; 500K is 4M.

I am guessing we will spend about 500-750K cash per kid so its a high amount but the best $$$ ever spent. Either spend on them now or give it to them when I die. Rather spend now than having my in laws spend it

Insane spending is all relative. If you make 100k/yr and spend 35k/yr in private then its insane. If you make 500k and spend 35K, its not. If you make 1M+, then 35K is a rounding error.

Also I said total cash was 2-3M for all 3 kids but that amount in the 8% market will be about 10M.

All the fatfire people I read about with a burn rate of 250-500k a year has a significant portion of that in their kids. Nanny is like 120k a year, private school like 20k a year each, etc. It's insane.

 

[emergentmd]

This is a personal choice. Your earlier post presented two options: $3.3M per kid (factoring in lost savings), or not having any.

Private schooling is a choice in most of the country.

If you recognize that you can raise a kid on less, then I'm done.

Do you even read before you respond? This is taken directly from my post "Have kids if you want, its a personal choice. Kids are expensive and will put back retirement 10+ years "

Who said I don't know how to raise kids for less. I could have kids and make it profitable like my homeland where kids work starting in middle school. I could easily make them cost positive.

Go back to arguing politics b/c your good at it.

 

[emergentmd]

All the fatfire people I read about with a burn rate of 250-500k a year has a significant portion of that in their kids. Nanny is like 120k a year, private school like 20k a year each, etc. It's insane.

Kids are expensive. If the avg American spends about 250K, its really not bad for an MD making 4x as much spending 500K per kid. But 500K does equate to about 3-4M net worth at age 70

 

[nimbus]

I think this was discussed earlier in this thread.

 

[rowsdower88]

Anybody on here with low spending/high savings looking to retire or significantly cut back by 40? I'm thinking >80% savings rate with a real FIRE mindset.

Anyone pulled the trigger yet on retirement/part time transition at a relatively young age?

 

[DocMcCoy]

Kids are expensive. If the avg American spends about 250K, its really not bad for an MD making 4x as much spending 500K per kid. But 500K does equate to about 3-4M net worth at age 70

Non working spouses aren’t cheap either

 

[emergentmd]

Non working spouses aren’t cheap either

Nope. My non working spouse volunteers and spends. Its all good. The benefits we get from her being at home is way more than her 6 figure career she quit.

 

[rick roller pump]

Anybody on here with low spending/high savings looking to retire or significantly cut back by 40? I'm thinking >80% savings rate with a real FIRE mindset.

Anyone pulled the trigger yet on retirement/part time transition at a relatively young age?

We are saving probably over 75% (post tax). Funny thing is I don't even feel that our spending is that low. No kids though, if we do savings rate takes a big hit. More interested in Coast/barista FI. 0.8 fte at age 45, no call when I'm 50 or something would be nice.

 

[rowsdower88]

We are saving probably over 75% (post tax). Funny thing is I don't even feel that our spending is that low. No kids though, if we do savings rate takes a big hit. More interested in Coast/barista FI. 0.8 fte at age 45, no call when I'm 50 or something would be nice.

I'm in a similar boat +1 kid. I suspect LCOL area helps? Maybe having friends/neighbors with similarly frugal hobbies?

I imagine my spending would be higher if I felt the need to keep up with the Jones' more.

 

[GassYous]

I'm in a similar boat +1 kid. I suspect LCOL area helps? Maybe having friends/neighbors with similarly frugal hobbies?

I imagine my spending would be higher if I felt the need to keep up with the Jones' more.

Get rid of the boat and the kid

 

[nimbus]

Get rid of the boat and the kid

Boarding school is really expensive.

 

[cchoukal]

Boarding school is really expensive.

Maybe, but I heard the boat was included.

 

[Splenda88]

That is remarkable, but also alarming.

https://www.cnbc.com/2021/10/18/the-wealthiest-10percent-of-americans-own-a-record-89percent-of-all-us-stocks.html

 

[DirtDocMD]

Anybody on here with low spending/high savings looking to retire or significantly cut back by 40? I'm thinking >80% savings rate with a real FIRE mindset.

Anyone pulled the trigger yet on retirement/part time transition at a relatively young age?

Went to .5 fte at age 48. The weekend call, and having my entire life revolve around a full-time call-taking position was making me angry enough, that I knew it was time to back off.

Don’t want to give every personal detail, but probably at around $8-$8.5 mil “individual” total net worth. Wife is also an MD, so you can add at least another couple mil, to it (she worked part-time when the kids were young, and is now closer to “full-time”).

I had planned to be “fully retired”, by now (50), but inflation, and the fact that “part-time” (20 weeks) has been easily manageable, has “kept me in the game”. I had thought about maybe trying another “career”, but finding something that pays over $300k a year, especially while only working 20 weeks, just isn’t happening without some serious luck, or without getting some serious education/training in another field.

I have some large pieces of land (paid off), house is paid off (relatively “modest” 3500 sq ft), and school loans were paid off within 2-3 years of entering practice (buckled down, lived simply, and got it over with).

Main thing was putting away LOTS of money when I was young/single, “pacing” myself on expenditures (I’ve got nice things, but didn’t get crazy on too many toys that depreciate horribly), and marrying someone who brings money IN, rather than spending it as fast/faster than I make it ABSOLUTELY helps. With that said, I’m still the one who made the mortgage payments and paid for health insurance and put money away for the kids’ college (wife pays for day-to-day stuff with kids, her vehicle/toys, paid her school loans, she covers most vacations). I don’t mention that to be nitpicky, just giving an honest breakdown.

If you can tolerate it, you’d do much better to plan on going half-time around age 50. You might find that age 40 is too early (certainly for any serious attempt at FULL retirement). Going to .75 fte at age 45 is certainly do-able, if you AND your spouse’s spending habits are reasonable. It’ll keep you from touching the “nest egg”, keep you “in the game” for a few more years (You’d be surprised how many folks are getting divorced in their 50’s/60’s, these days, which could REALLY mess up some early retirement plans.), and you’ll have enough money coming in to throw at some “toys”/activities you might otherwise have passed up if you were living off ONLY your retirement funds.

 

[aneftp]

Man I check on this thread about once a week when bored at work. Usually a few new posts but then I saw 8 more pages. I knew something must have been up. There have been the same Trump Biden threads that goes no where, I have been part of them so know it well. Can we truncate the last 8 pages and create a new thread b/c I know where it is going. It is not even worth jumping into the filth on both sides and you just come out a worse person.

Back to the financial thread and my opinion.

1. Have kids if you want, its a personal choice. Kids are expensive and will put back retirement 10+ years and decrease your net worth probably by 10+M but it is the best 10+M I will have ever spent. You don't believe me that they are expensive esp for a high earning doc who can afford it?
I have a 15/13/11 yr old kid. All have been in private school since preK and their private school which will average about 12k/yr. Through HS that is 14 Yrs x 3kids x 12k = 504K. So assuming 8% market appreciation, at 65, that 504K would be about 2-3. Add club sports, all expenses, college, cars and I think that 2-3M will be closer to 10M of net worth when I hit 70.

2. If I did not have kids, I would be semi retired in 10 years. Work an avg amount, save 100K/yr, spend the other 300K living a lavish lifestyle. After 10 yrs, I should have about 2M. Cut back to half and live off the 200k letting the 2 M ride another 20yrs to about 10M. It is VERY easy to retire early without kids. As there is no legacy or estate concerns, I would just spend most of it and enjoy life. Life would be so simple and at least for me not rewarding. Just took my daughter to an out of state Volleyball and just this trip prob cost 2k but the bonding/memories is worth more than the 2k golf clubs I could get.

3. All concerns for this generations like home prices/inflation/stock market are the same for every generation. Invest in RE, do it now, do it smartly and things will work out. So what rates are 8%, if you can buy a good property then buy it. Prices are down, its a buying opportunity. Buy at 8%, refinance when rates drop to 5%, and you will have a 30% appreciation in 2-3 yrs. Don't do anything and in 5 yrs, people will have the complaints about a missed opportunity. I just bought a 1M/DOWN 300k investment property at 7% and understand that this place would have been going for 1.3-1.5 M 2 yrs ago when rates were 3%. Ill wait it out, refinance when rates drop pulling out 3-500K cash being net cash positive.

Houses prices don’t appreciate 30% in 3 years.

It happens 2001-2005/6 ish than tanked and stayed flat 2011-2020. An entire decade.

Similar thing happen after Cold War 1989-1991 homes prices depressed 10-15%. Than it stayed flat 1991-2000

Normal housing application is 3%.

 

[Dr. Rude]

Houses prices don’t appreciate 30% in 3 years.

It happens 2001-2005/6 ish than tanked and stayed flat 2011-2020. An entire decade.

Similar thing happen after Cold War 1989-1991 homes prices depressed 10-15%. Than it stayed flat 1991-2000

Normal housing application is 3%.

On a national average over decades....The same rate as inflation. Obviously there are time periods and metro areas that deviate hugely. Why people have historically done very well on their homes is leverage and tax breaks.

 

[Splenda88]

Houses prices don’t appreciate 30% in 3 years.

It happens 2001-2005/6 ish than tanked and stayed flat 2011-2020. An entire decade.

Similar thing happen after Cold War 1989-1991 homes prices depressed 10-15%. Than it stayed flat 1991-2000

Normal housing application is 3%.

It did not tank and stay flat, at least in south Fl. It appreciated 3+% from 2008-2020.

 

[aneftp]

It did not tank and stay flat, at least in south Fl. It appreciated 3+% from 2008-2020.

That’s normal appreciation 3-%. What I meant if u read my quote

 

[aneftp]

On a national average over decades....The same rate as inflation. Obviously there are time periods and metro areas that deviate hugely. Why people have historically done very well on their homes is leverage and tax breaks.

Yes but with trump tax 10k (state local and property taxes) salt tax restrictions and not being able to deduct mortgage (or home equity loans) above 750k. The leverage is becoming less and less

 

[aneftp]

It did not tank and stay flat, at least in south Fl. It appreciated 3+% from 2008-2020.

Housing prices tanked in south Florida 2006-2010. Both my cousins homes went under home prices still went down 2008-2009 due to dominos effect. The bottom was closer to end of 2010/2011

 

[Splenda88]

Housing prices tanked in south Florida 2006-2010. Both my cousins homes went under home prices still went down 2008-2009 due to dominos effect. The bottom was closer to end of 2010/2011

Might be right. Bought in 2011 and I saw 100%+ appreciation from 2011 to 2019.

 

[aneftp]

Might me right. Bought in 2011 and I saw 100%+ appreciation from 2011 to 2019.

It’s just Perfect timing. A 1.5 million dollar distress home (built in 2006) was purchased by my plastic surgeon buddy for $475k as foreclosure in 2011. He recently sold it for 1.7 million in 2023.

The real value at the time likely was $600-650k in 2011 but he had the cash and brought it at foreclosure.

 

[Splenda88]

It’s just Perfect timing. A 1.5 million dollar distress home (built in 2006) was purchased by my plastic surgeon buddy for $475k as foreclosure in 2011. He recently sold it for 1.7 million in 2023.

The real value at the time likely was $600-650k in 2011 but he had the cash and brought it at foreclosure.

The 2006-2011 real estate crash might never happen again in our lifetime. That stuff was wild.

 

[We'llBeDoneIn15Minutes]

The 2006-2011 real estate bubble might never happen again in our lifetime. That stuff was wild.

I assume you mean crash of the bubble.

 

[Splenda88]

I assume you mean crash of the bubble.

Yeah. I meant to say crash.

 

[Splenda88]

Anyone here has the Tesla model Y or any tesla?

Do you like the car?

 

[aneftp]

Anyone here has the Tesla model Y or any tesla?

Do you like the car?

Me.

I used it as a commuter car. I drive a lot. 30-40 miles each way each day. I put like 80k miles on it since I got in in late 2020

The early model rides was rougher like a Subaru or Honda civic.

My max range is now 290 miles so battery degrades about 13% now too bad for 3.5 years old. 326 miles was the original range

It’s a car. It’s fast. It’s doesn’t ride like my old Range Rover. But I’m fine with it.

U real life battery range if u drive 80-85 mph on highway means u will lose around 15-20-% efficiency. So a 80 mile commute for me will really consume 100 miles range real life

So the faster u go the more battery u will consume.

Lots of interior space. It’s very roomy inside for a smaller car

 

[emergentmd]

Anyone here has the Tesla model Y or any tesla?

Do you like the car?

I had a 2021 MY and replaced with a 2023 MY. Its the best commuter car. 2023 much better than 2021. I hear the new model which may be this year or next will be even better. Better across the board. Better rid, quietness, range, battery management.

I average about 125miles/day. Currently at 20K miles at 8 months. Best car I have had, my other BMWs have nothing over it.

Between my 2 Model Y, driven 100K miles over 3 years and went to a supercharger 6 times for a total about 2-3hrs charging. Saved about 8-10K in gas over that time. Have not taken either cars for any maintenance.

 

[emergentmd]

Houses prices don’t appreciate 30% in 3 years.

It happens 2001-2005/6 ish than tanked and stayed flat 2011-2020. An entire decade.

Similar thing happen after Cold War 1989-1991 homes prices depressed 10-15%. Than it stayed flat 1991-2000

Normal housing application is 3%.

Home prices do not appreciate as fast but its the tax benefits and leverage that are the biggest benefit. Plus, if you paid off the home, you would have essentially a 8-10% dividend investment that appreciates with tax deductions.

I bought a 400K duplex, paid all cash (I always leverage but this was a unique situation). Past year, rent has been 60K. After carrying costs, I net about 35K or 8.5%. I have a property now that produces 35K and if I ever need money would just get a 70%LTV and pull out about 300K.

Its all about diversification and RE is a good piece of someone's net worth that could pay for your living expenses without ever selling anything.

 

[Splenda88]

I had a 2021 MY and replaced with a 2023 MY. Its the best commuter car. 2023 much better than 2021. I hear the new model which may be this year or next will be even better. Better across the board. Better rid, quietness, range, battery management.

I average about 125miles/day. Currently at 20K miles at 8 months. Best car I have had, my other BMWs have nothing over it.

Between my 2 Model Y, driven 100K miles over 3 years and went to a supercharger 6 times for a total about 2-3hrs charging. Saved about 8-10K in gas over that time. Have not taken either cars for any maintenance.

I will likely order a 2024 model Y next month but I hate that I won't be able to get the $7500 tax credit. Is there any loophole if one makes > 300k/yr?

 

[emergentmd]

Not giving any advice or opinion but this is likely the only option

 

[aneftp]

Home prices do not appreciate as fast but its the tax benefits and leverage that are the biggest benefit. Plus, if you paid off the home, you would have essentially a 8-10% dividend investment that appreciates with tax deductions.

I bought a 400K duplex, paid all cash (I always leverage but this was a unique situation). Past year, rent has been 60K. After carrying costs, I net about 35K or 8.5%. I have a property now that produces 35K and if I ever need money would just get a 70%LTV and pull out about 300K.

Its all about diversification and RE is a good piece of someone's net worth that could pay for your living expenses without ever selling anything.

Yes but how much is that duplex now? 700k?

If you aren’t generating 7k a month in rents on a 700k investment it’s not that good.

Now if u got it at 400k and generating 6k a month in rents. That’s it’s positive cash flow as you well know.

 

[emergentmd]

Yes but how much is that duplex now? 700k?

If you aren’t generating 7k a month in rents on a 700k investment it’s not that good.

Now if u got it at 400k and generating 6k a month in rents. That’s it’s positive cash flow as you well know.

I just got it a year ago so prob 450K. There are more benefits than just appreciation relative to the market.

Say I have 100K to invest.

1. Put in S&P for a 8% return. After year 1 its worth 108K, 2nd year 116K, 3rd yr 126K, 4th 136K. You sell and assume 20% cap gains you end up with 128K to invest in something

2. Put 100K into a 400K property with 25% down. Lets assume your NOI is zero just to keep things simple and 3% RE appreciation. After yr 1 its worth 412K, yr 2 424K, Yr 3 437K, Yr 4 450K. Assume you sell and there is no closing cost. I know this is not realistic but I think this balances out my zero NOI. If you are going to do RE investment, your NOI should be positive. I have never bought a RE property and be negative ROI.

I forgot to add that in the 4 yrs of RE ownership, I am paying down my mortgage too with the income.

You sell the home and your 100K investment is now worth 150K. You can do a 1031 exchange and rinse/repeat avoiding taxes.

Once you get enough rentals and it starts to become a business, I have 8, then there are so much deductions. Take a trip to Florida, spend a few hrs a day driving looking at home, write off the trip. Buy a car, write that off as business expense. Once you get deeper into RE, there are more write offs

 

[Splenda88]

I just got it a year ago so prob 450K. There are more benefits than just appreciation relative to the market.

Say I have 100K to invest.

1. Put in S&P for a 8% return. After year 1 its worth 108K, 2nd year 116K, 3rd yr 126K, 4th 136K. You sell and assume 20% cap gains you end up with 128K to invest in something

2. Put 100K into a 400K property with 25% down. Lets assume your NOI is zero just to keep things simple and 3% RE appreciation. After yr 1 its worth 412K, yr 2 424K, Yr 3 437K, Yr 4 450K. Assume you sell and there is no closing cost. I know this is not realistic but I think this balances out my zero NOI. If you are going to do RE investment, your NOI should be positive. I have never bought a RE property and be negative ROI.

You sell the home and your 100K investment is now worth 150K. You can do a 1031 exchange and rinse/repeat avoiding taxes.

Once you get enough rentals and it starts to become a business, I have 8, then there are so much deductions. Take a trip to Florida, spend a few hrs a day driving looking at home, write off the trip. Buy a car, write that off as business expense. Once you get deeper into RE, there are more write offs

How many rentals one needs to have to be able to write off things?

I am assuming you have to manage these properties yourself.

 

[emergentmd]

How many rentals one needs to have to be able to write off things?

I am assuming you have to manage these properties yourself.

I don't know of a set number but I think once you get over 5, it starts to be come a business. I have managers for my STR/LTR. I manage the MTRs.

I think the more important point for the IRS is my income across all rentals last year was about 400K and if I take 50K deductions for trips/furniture/computers/meals etc it is very reasonable.

 

[Splenda88]

Do people here have securities-backed line of credit?