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Debt Management
What it the best debt repayment strategy for getting rid of debt fast on a low income?
Knightlight SGLeavitt357's mention about paying yourself first is a good tip. I would recommend reading the book "The Richest Man in Babylon" as it goes into this and more. It is not too long of a book, but if you don't have time to read it you can see the themes summarized in Wikipedia. One of the themes involves how to cure a lean purse. The first cure is titled: Start thy purse to fattening . Arkad advises on saving 10% of your annual income to start building up your wealth (or purse): "For every ten... [ more ]
SGLeavitt357 There's an old saying that is always painfully true: it's not often about the income but always about the outgo! Be very familiar with every cent you spend. If you are living as frugal as possible your success is assured. Above all, the simplest way to feel accomplished, along with what @Knightlight said, is to pay yourself something FIRST! No matter the amount, put something aside just to tell your brain that you have it. [ more ]
Nef A power move by @vodster above. Lowering your expenses and using all your excess funds will result in a real quick way to reduce debt super fast. If you want to double down lower your expenses and simultaneously raise your income. You will be so happy you sacrificed for the short term. [ more ]
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Real Estate Investing
Needing help making a big decision
RyanM If you refinance the home to be a rental, would the payment be low enough to provide a net monthly profit (after also accounting for taxes, maintenance and property management)? If so, my personal choice would probably be to keep and rent it, if not the decision would be tougher but I might still consider it depending on the situation, there is after all nothing better than having someone else build up your equity for you. If you do decide to keep it, work with a reputable property... [ more ]
Maria Angelica V. Colmenares Looks like you have options here.... :-) 1. sell and by buy at your new location. This will allow you to keep your taxes low and the new loan will give you deductions :-) 2. You can rent and pay off the mortgage on its own and buy another and still have deductions Good luck! There are other vehicles to consider. [ more ]
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Retirement Planning
Roth 401
Maria Angelica V. Colmenares I can understand, me too. I have a couple of 401ks that I will be rolling over probably to a Roth to generate $500 month then feed it into an IUL before the tax law changes. This way I can grandfather my money into a no tax status. I will share with you as I go along so you can see my journey. [ more ]
Neil Thank you Maria, I am starting pretty late. Like most people I was not taught about money growing up. So I'm still learning a lot right now, I have had my 401 for a few years now and it is doing well but I have recently started investing in other avenues and wasn't sure if I should keep everything together or leave them in different accounts. Im just not trying to work till I'm 70, I have things to do. Haha. [ more ]
Maria Angelica V. Colmenares I would NOT place my money into M1, I have personal reason for it but it is up to you on how you want to diversity your money. It all depends on your goals, your age and when you want to retire. It would be great to get advise on this. Strategize a bit on what are your short and long term goals money wise. Then you can start planning and deciding how you can place in non taxable vehicles for the long term. [ more ]
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Starting A Business/Side Hustles
Not sure what to do πŸ€¦πŸ½β€β™€
Jodiann Thank you so much ,really appreciate it , as it stands I have nothing , paycheck to paycheck trying to find my balance I'm working on it I'm have decided to do my needs not my wants I would buy stuff to make me happy but that happiness is short lived when I am broke again lol So I made a decision to save my 15% a week So one week at at a time I'm changing my bad habits [ more ]
Maria Angelica V. Colmenares Jodiann, I am so sorry for your loss! I can not even imagine the pain on top of the pandemic situation! It is not difficult to get on a plan of action. One step at at time. May I suggest a simple spread sheet that outlines what you currently have and then determine how it is impacting your life style. Then you can make some decisions based on ration and not emotion. Let me know if you need help with that. Sometimes, it helps to speak to someone about this that is not invested in your life. [ more ]
Jodiann I have pension and life insurance ,I just want extra money for everyday life you , vacations etc , be able to do what ever comfortable But thank u , I started my 15% saving a week [ more ]
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Welcome - Start Here & Introduce Yourself
Hello I'm new to MM group! Exciting to be part of it!
Maria Angelica V. Colmenares ❀️

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Welcome - Start Here & Introduce Yourself
Howdy
Maria Angelica V. Colmenares Jefe been there... has taken me years to get out of debt and now that I am finally debt free... looking to find ways to take my money out of taxable status to non tax status as I have been also in transition for a while. I can understand. Well, it would help to know what type of S*** you are in so that we can suggest here on MM. Tell us more so we can all learn what we are doing with our money to make it happen. [ more ]
jmaschak πŸ‘
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Welcome - Start Here & Introduce Yourself
New to the group. Been on the planet a while
Maria Angelica V. Colmenares Riva!!! OMG! Person! NO NO NO you are in time to gather money from your work I am sure. I have seen some vehicles and tools. I know Minority Mindset (MM) has several suggestions that can help. I also have some suggestions. Do you have 401K, ROTH.... depending on how much you have there are vehicles you can use to move them to a non table status and have them grow. Have you spoken to someone you can trust that is well versed in Financial Advising? You can actually seek someone you feel... [ more ]
Riva951ie Hello @Lonney I feel that as long as you have come to that realization, you can for sure start anytime. It is never too late. I mean, if you do not start now, you will regret it even more when you cannot physically work anymore. I know they recommend the old you get, to be more conservative in your risk tolerance. Ultimately, that is your choice on the risk. Like the saying goes, High risk, high reward. Low risk, low reward. I say you go for it. 401k, index funds, ROTH, and self education to... [ more ]
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Real Estate Investing
Is low interest rate really an advantage in todays hosing market ?
Riva951ie Hello @Viralkumar I think it all depends on your current rate and what you are trying to accomplish for now or in the future. In my case, I refinanced 2 of my rental homes. 1 was 4.125 and the other was at 4.25. I was able to get them down to a rate of 2.875, dropping my payment down ~200 per home. Pretty much giving myself a raise of 400 monthly. I mainly did this to reduce my Debt to Income Ratio for when I plan on buying another home, I will be able to and not limited. However, I am still... [ more ]
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Welcome - Start Here & Introduce Yourself
Hello
Maria Angelica V. Colmenares πŸ‘
jmaschak πŸ‘

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Real Estate Investing
Unrealized Capital Gains
RyanM It’s not that he’s being mean or anything but as an immigrant he doesn’t necessarily understand the consequences of certain decisions. To him it’s perfectly reasonable for him to think when he is gone his wife would be able to continue their household as is and not have the govt take away their home. That is the problem with these things. Exactly as you said, you know how to maneuver around such impacts but the average lower income person doesn’t know how to or if they even do doesn’t have... [ more ]
vodster First of all the current cap is $5 million of inheritance. So she could inherit a lot of house and money and not pay anything. The point here is does death wipe the slate? I don't think that's necessarily fair. If you sold it before you die you would have to pay capital gains tax, and so if your descendants sell it, they should pay the tax. And a $1 million dollar exclusion is pretty generous. Bear in mind after that you pay capital gains which is 0% on the first 10k, 15% on the next $500k. [ more ]
RyanM I realize there is a desire to β€œget those rich guys” but reality is the super wealthy will find another shelter. The scenario described is actually pretty scary for this reason: My mother in law lived with her husband in a San Francisco home they had for nearly 40 years before his passing and him being kind of the traditional guy from his era had the home in his name only. Their only income was social security but that was fine as the house was paid for decades ago. Without the current... [ more ]
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Welcome - Start Here & Introduce Yourself
Hello, glad to have found this

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Starting A Business/Side Hustles
Will this pandemic/reccession change job markets forever??
RyanM I think some will return to as they were but not all. It will vary by the demands of a given profession, individual work habits, and company culture. In my profession we found that not only could we work effectively remotely but our team was actually more efficient so my employer has already told us they plan on cutting back office space and keeping us remote. That leaves me wanting to do more to make my home office a better work environment. However there are no longer any tax breaks I am... [ more ]
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Real Estate Investing
RE Investing in FL

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Taxes
Need recommendations for tax strategy
vodster If you are going to pay the taxes, you might as well take the profit right away, and put the money to reducing the interest. No sense in waiting for the money to accrue more interest. [ more ]
Alex McKoy Thanks for the thorough evaluation with some numbers to support it. You offered a lot of info which I appreciate. I think the interest over the next 30 years compared to the tax liability for this one year makes it clear. I have decided to sell off shares each month to pay off the mortgage by year's end. I am also setting aside a portion of the proceeds for taxes due next year. This will be a huge milestone for me and increase my monthly cash flow in order to start new investments. Thanks... [ more ]
Alex McKoy Thanks for the reply. You make several great points. I definitely don't want a fall in the stock price to spoil my plans. I have already seen some correction. I have decided to sell off shares each month for the next several months and retire the mortgage by year's end. I am offsetting my tax liability by increasing contributions to my traditional 401k and 457b plans. I really appreciate the sound advice. I will post back here to let you know how it turns out. [ more ]
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Retirement Planning
Life Insurance VS. Roth IRA
vodster As to putting money into an IRA monthly, if you don't have the money to fund it up front, do that. If you can fund it right away, do it. If you are worried about the market going down, invest it in something else. If you are getting 0.1% in your bank account, or 0.1% in your IRA but not getting taxed, the IRA still wins. But if you look at a REIT, they pay interest and they are at least not corrolated well to the market in general. Make money as early as possible in your IRA if you can... [ more ]
vodster For certain high-net-worth individuals, life insurance is a way to pass on more millions to decendants without paying taxes. But financially insurance as an investment is reliably a good deal for your insurance agent, for you, not. Term life is a bet that you will die. If you "win" your family gets the money so they can survive without you. The other kind of life insurance which amasses value is a poor investment. It is better to buy term life while your family needs your income, and once... [ more ]
Alex McKoy The following context really helped me to frame how I view life insurance vs. retirement: Life insurance is way to ensure security for your family in the eventuality of your dying. Retirement savings is a way to ensure security for yourself in the eventuality that you stop working (i.e. your primary income stream stops). Thinking about it in this context, life insurance is obviously not a a great investment vehicle for yourself, but perhaps a great one for your family when you are gone. [ more ]
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Welcome - Start Here & Introduce Yourself
Hello
vodster Joede, Never give up. There is no question that the best way to get rich is to have a rich parent who can give you a leg up. But if you have the desire, and the will, you can improve your situation. I think Minority Mindset really captures a lot of it. A lot of people overspend, and Jaspreet spends a lot of his effort trying to convince them not to. But it's hard. I personally am an overeater, but eating and spending are similar in the sense that you can't go cold turkey -- you have to eat,... [ more ]
Joede Thank you so much for your help. I was looking at distressed properties in which I would be paying cash. I thought the money I had was enough but I see that there really is no way for poor people to get ahead. I have some stocks but I wanted to give my money an actual chance to grow for my children. A rental would give my children "passive" income and pass on to any potential grandchildren. My rent is 4 figures and is actually inexpensive for where I live. I tried to buy a home years ago... [ more ]
vodster Think before acting. Buying a property has a high frictional cost. You pay taxes to buy, and you pay commisions to realtors to sell unless you manage to sell yourself. Buying in another state is a huge hassle because when something goes wrong you have to pay someone else to deal with it. If you yourself are renting, you could buy a place to live in first. Unless the place you live is far cheaper to rent. If you are just getting started, the stock market is a more fluid way to build capital... [ more ]
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Taxes
What is your favorite hack to save money on taxes?
Knightlight Also, the FREE tax programs I mentioned in my previous post are always looking to find new volunteers and they provide FREE tax training where you will likely learn a few more hacks to save money on taxes, as per your opening question. Having gained experience completing taxes will look good on a resume too if you are looking to pursue a career in business or finance. Lastly, but equally important, it will also give you a great feeling at having helped others who may not be in as stable a... [ more ]
Knightlight You can get your taxes done for FREE instead of paying a firm if you are a qualified taxpayer. In Canada, there is the Community Volunteer Income Tax Program (CVITP). Community organizations host free tax clinics where volunteers file tax returns for eligible people. Guidelines in most provinces are for individuals earning up to $35K, a two person family up to $45K, and so on. (see details: https://www.canada.ca/en/reven...ome-tax-program.html ). In the U.S., the IRS's Volunteer Income Tax... [ more ]
Riva951ie @Nathan_Gregory For me it would be: Depreciation from rental properties Tithing/donating at my local church. 401K [ more ]
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Buying A Home
short team investment - downpayment
Knightlight Congrats on having put aside your 30% down payment. I understand where you are coming from since you are not having luck at the moment in finding a home and with time trickling by you're now finding yourself often thinking about this money burning a hole in your pocket. The thing is, rates are so low right now you would be lucky to get 0.2% in a high-interest bank account, so it is not really worth the effort to open one up. Resist any temptation whatsoever in putting this money in a stock... [ more ]
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Real Estate Investing
Not Sure Where to Begin
Nancy As a Realtor for 54 years I’ll tell you this β€œHow to make a small fortune in Real Estate? - - - Start with a large one! Before you buy EDUCATE yourself on all the laws and market and pitfalls. Learn learn learn BEFORE you invest [ more ]
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Welcome - Start Here & Introduce Yourself
Hello Future!

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