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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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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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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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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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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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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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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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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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Book Club
What do you think are the best books to help someone master their money?
Travis I know it is not a book, but I think the first 4 videos of this series do a great job to explain what money is: https://www.youtube.com/playli...jJkeeLL2O09eJoC8r7Dc and https://www.youtube.com/channe...EznhW_CNFcfOlyDNTLLw Minority Mindset's Youtube channel will get you the rest of the way. [ more ]
Nancy Did I miss it in the reply but Jim Cramer’s Mad Money [ more ]
kommi πŸ‘
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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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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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Buying A Home
How was your experience buying your first home? Any advice for first time home-buyers?
Riva951ie Hello @Nathan_Gregory What I did was talk to 2 realtors at the same time (Without them knowing). I wanted to know who was more transparent with me with the whole process. After I found out who was more informative/transparent I chose them. Along with feeling comfortable with them. Also did a lot of googling so I would not get fooled. Or at least try to minimize those possibilities. Also, cant go in blindly into this process. Also, once you are qualified, the realtors will obviously try and... [ more ]
blaise_89 πŸ‘
Kathleen Nguyen It can be very intimidating, especially in a seller's market. However, find a good agent that is experienced and they will be able to guide you. Buying your first home should not be done by yourself (I am biased but for very good reasons). There are a lot of mistakes that you can make. Most important is having a good down payment so that your payment is manageable. If your mortgage payment is too high (above 45% of your total income- can vary slightly), then it may be too much of a stretch. [ more ]
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Real Estate Investing
RE Investing in FL

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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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Retirement Planning
Who is Considering Retiring Early?
Nef @Riva951ie : Wow, that is so cool how things worked out in your favor albeit challenging. Hope this year bring more fruitfulness. [ more ]
Riva951ie @Nef I first bought a single family home (all 3 are). Honestly I was more forced to buy this since I did not qualify for much and having a truck payment did not help out either. However, my agent did recommend this area and the house value has gone up almost 300%! So in short, I qualified for so little and that was in my price range. This was in 2011 when I got the house for 83K =) [ more ]
blaise_89 πŸ‘
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Stock Market Investing
What’s your favorite stock market investing app?
ALLEYBOY760 I have M1 over a month now and have had Etrade for 6+ years. I wish M1 was around when I started learning this field years ago, it so much funner being able to play with the big boys with only pennies to the dollar compared to the $$$ on each stock. Etrade is a nice straight direct forum that is nicer now that I have put time into studying it. [ more ]
Funance Theorist. Ameritrade/Thinkorswim is clearly the best most reliable and successful platform. The others either don't have enough tools or simply don't have the reputation worth joining on for. Look at Robinhood whose main investor base is extremely novice and is known for days of server overload and awfull customer service. Seriously the barriers to entry for low-end investing apps arent very much look at the 18-year-old kid who killed himself because of margin trading on robinhood. [ more ]
Landon Martin I have been using M1 Finance for awhile now and have been very happy with it. I really like building the pie chart portfolio that the money will automatically divide between and invest in. I also like that M1 allows you to own fractional shares of a company so that all of your money can be immediately invested and you dont have to save up until you can buy a full share of a company. A couple downsides to M1 is that you dont have exposure to the full market because they only allow certain... [ more ]
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Retirement Planning
What are some 401k or IRA hacks to get the most out of your retirement account?
Riva951ie @Landon Martin Thank you for responding. I was also thinking about putting the additional 6% into a ROTH IRA so I can pull that out tax free 35 - 40 years from now. That way when I withdraw, I will only get taxed on the 401K and not the ROTH IRA. [ more ]
Landon Martin @Riva951ie I would say it depends on your personal goals and involvement with your investments. Personally I only put enough into my 401k to get the match because I am not a huge fan of the investment options that are available to me in my 401k, and I have other goals with my investments that I wont be able to achieve if I have my money tied up until retirement age. When it comes down to saving for retirement though I currently prefer putting my money in the ROTH IRA because I am still in a... [ more ]
Riva951ie @landon Martin Would you recommend only matching what your company offers in the 401k? My company only matches 1%. I have this set to 7%. OR do you think I should only do 1% match and put the other 6% in a ROTH IRA? Or out the 6% into stocks? Or? Thanks in advance! [ more ]
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Saving Money
CIT BANK
James_21 CIT is going through a merger to become the 19th largest bank. It will become First Citizens Bank. Google the merger for more information. I have an account for about 3 years now and it was good for savings but as interest rates dropped it is just like any other online bank. [ more ]
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Real Estate Investing
getting into rental properties
Nef @American.Champion , It is great you are starting early in life. Time will be your best asset. Make a strong effort in educating yourself in real estate, never stop learning. Also become disciplined in the art of savings. Having 'skin' in the game with your hard cash goes a long way to build credibility which will allow more opportunities to be presented. Be great at analyzing deals quickly and as accurate as you can - whether it be a single/multi, a house hack or flipped home. Keep in mind... [ more ]
Riva951ie Hello @American.Champion I would personally not be buying at this moment since it is a sellers market. I been holding off on buying since the prices are so high. I rather wait it out a while longer to get a better deal. I know we cannot time the market, BUT me personally, will take that risk and wait. For now, I am saving up more capital to give a bigger down payment to drop monthly payment. If you buy at a higher prices, your ROI will be lower. I have 3 properties in California. 1 in Norcal... [ more ]
Gabe Private lenders, hard money, transactional funding lenders usually don’t care about your credit score as much as they do the deal. If they do ask for a credit report, it’s to look over your credit history to verify your credit worthiness. Also, the interest will be steep, but still a good way to get funding fast. [ more ]
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Book Club
Anyone Read "Never Split the Difference" by C Voos
Wiki Page Maker No I didn't read that but it is in my list, I saw it on "Christopher Voss" Wikipedia page, and now you about to read to not, it's mean I must have to read it, Christopher did a great job by creating a wiki page, Create your own Wikipedia Page is the way by which we can reach people who are too far to reach us [ more ]
RP I got the audio book about 3 years ago. Chris is not narrating, but the narrator has a similar style of speaking as CV and does a good job. There are a lot of great tools in this book that you can use not only in negotiation but in every day life. It's not dense, but there's a lot in there, I find that I'm constantly referring back to ideas and concepts depending on my needs at the time. It's a great book and worth every penny! I would imagine the hard copy would be as good as the audio... [ more ]
Nef Ok, love the concise summary. Thanks for sharing @Steve . [ more ]
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#SpendingDetox
The Minority Mindset's Spending Detox Challenge: Can You Save It?
Landon Martin ❀️

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Retirement Planning
Investment advisor vs Robo-advisor vs On your own
blaise_89 πŸ‘

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Starting A Business/Side Hustles
How has your Business/Side Hustle changed in 2020?
Steve Jason The proprietors of a company have restricted risk and the business has a different legitimate character from its proprietors. Source; Trademark Lookup California [ more ]
Lynn Lewis My online side hustle has grown 200% since about June. I sell on Print On Demand sites and none of the products are essentials, mostly home decor items. [ more ]
Kathryn D I have two side hustles, both of which are in-person (teaching Zumba classes and event photography). When the pandemic hit, I had to pivot to online Zumba classes (by donation) because my gym was not sponsoring me. For the photography business, I decided to temporarily close. I would like to move toward an online side hustle related to events, but haven't started that yet. [ more ]
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Real Estate Investing
Real Estate Investors: Are You Buying, Selling, or Waiting right now??
RP Hi Nathan, I am keeping an eye on the market and would make a move if the numbers/scenario fit, but I'm also being patient. There are still decent properties on the market now but you need to be informed, know your numbers and know what works for you. Be patient, because it is a seller's market and you don't want to be in over your head and spend too much. Best to wait it out and keep your eye out for the right one. [ more ]
Riva951ie Hello! I am currently waiting during these weird times. It seems to be more of a seller market, hence why I am holding off. During this time, I am focusing on paying off one rental property and also saving up to buy the 4th for me to live in when things cool down a bit. I know Jaspreet also has a video on his IG stating that he is also holding off. Just does not make sense to buy right now depending on your goals. For me, it does not make sense. [ more ]
Michael Treas Hello All, My family was flipping before flipping was considered flipping so its something I’ve always wanted to do. I’ve heard many mention another housing market crash so I’m using this time to learn and study all I can so hopefully when the market prices go down I can make some good deals. -Michael [ more ]
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Book Club
If you had a chance to ask the author of your favorite money management book, what would you ask and why?
Wiki Contributors Any book can give you the idea that changes your life, sometimes some celebrity did his or her Wikipedia Page Creation that attracts lots of people some of them decide to make their like them and then they start work on it [ more ]
Reven World-famous Authors are all on Wikipedia if we have anything to know about them we just need to click on google and type the best writer, we get the result but what about the writer who has written a beautiful book but nobody knows about them it is better to promote your work so you will get the best result, 1st look for custom Wikipedia page creation service , who can help you in the creation of your 1st Wikipedia page [ more ]
Landon Martin The question that I would most like to ask is just "What is one piece of information that you wish you could add to or remove from the book?". I know a lot of authors will often release new editions of their books to update the information to fit their current ideas, but it would be interesting to me to see how their ideas have changed over time. [ more ]
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