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Minority Mindset Community
Network with other Minority Mindset thinkers.
Welcome - Start Here & Introduce Yourself
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Welcome - Start Here & Introduce Yourself
Hello

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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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Debt Management
What it the best debt repayment strategy for getting rid of debt fast on a low income?
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 ]
vodster Get roommates. Move back in with your parents. Do anything short term to cut your costs so you can kill that debt faster. [ more ]
Knightlight Let's say you have 2 debts: A $2,000 car loan at 6% and an $11,000 credit card debt at 18%. While continuing to maintain minimum monthly payments on both, it makes mathematical sense to use any extra cash and apply this to the credit card debt since it has the higher interest rate. However, psychologically, it has been found to be easier if you apply any extra cash towards paying down the car loan since the balance is lower and you will see it paid off much sooner than the credit card debt. [ more ]
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Real Estate Investing
RE Investing in FL

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Real Estate Investing
Is low interest rate really an advantage in todays hosing market ?

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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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Stock Market Investing
Saving for my kids
Knightlight Avoid individual stocks. Consider a low cost growth ETF and ensure dividends are set to automatically be re-invested. The money will snowball bigger over time. Also be aware there are often government programs that can help with saving for a child's post secondary education. In Canada there are two such programs: 1) The Canada Education Savings Grant (CESG) where the federal government will grant funds based upon a percentage (to a lifetime limit of $7200) of what an eligible family puts... [ more ]
blaise_89 πŸ‘
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Stock Market Investing
Stock Market Investing
Nancy Thanks sounds like very good advice [ more ]
Knightlight Invest in low-cost ETFs like Vanguard or others to start. They allow you to invest in a basket of stocks and are generally lower cost than mutual funds. You could have some growth ETFs if you are younger or Balanced ETFs if you are mid-way through your working career. Stay away from investing in individual stocks until you have built up a large balance of investment funds, and even then, I would think twice about doing so. Companies like Xerox, Blockbuster video, Sears, and many more at one... [ more ]
Nancy Me too I’d be interested in your answers [ more ]
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Buying A Home
Paying off mortgage
tnd2 Thanks for the info, I’ll look up some options and do the comparison. I didn’t realize that they could have unadvertised options. [ more ]
SGLeavitt357 Take a look at investment firms like Edward Jones, they often have unpublished money market accounts that yield better returns. Deposit that 1100 there and earn interest on it for the next few years, then pull it and pay a lump sum against the mortgage. But do check the numbers - if the interest earned does not exceed the compounded reduced principal, you might already be doing the best thing [ more ]
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Retirement Planning
Investment advisor vs Robo-advisor vs On your own
blaise_89 πŸ‘

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Debt Management
Paying Debt High Interest or no Interest

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