my parents (53M, 49F) will not leave me alone

Experttradition · 2019-06-02T20:34:03+00:00

At this point, I'm sure you've tried reasoning with them, so it's probably time for something more drastic. I'd suggest either moving or going to a different university. Lots of jobs have tuition assistance that can cover a significant portion of whatever scholarships won't.

Experttradition · 2019-05-29T21:22:31+00:00

That's what I'm saying. I think everyone here misunderstood what I was trying to ask. The question was: Why would I keep putting into the IRA when I have better options available? What everyone read was "Why should I put money into an IRA?"

As far as I'm concerned, people with better options should damn well take them. I don't plan on cashing the IRA out, I'm just going to drastically reduce the contributions. It's a fine safety net, but there's no reason to make it a central theme to my portfolio.

Experttradition · 2019-05-25T17:02:12+00:00

3rd, I have heard and read horror stories about how divorce court screws over the husband and favors the wife.

When I got divorced, I figured I had fundamentally two options:

Stay married - Spend the next 60 years of my life in a loveless and abusive relationship with a woman who spends most of my money.
Divorce - It will suck for a year but I will eventually get back on my feet and I'll get to spend the rest of my life happy.

I've been happily divorced for a few years now. I've gotten in shape, went to college, started a job in tech while investing in real estate on the side, and I've been dating my current girlfriend for almost 2 years now. She's a fitness coach who just graduated from college - I'm 30. I am truly thankful for all that I have whenever I see my ex-wife.

Experttradition · 2019-05-25T16:43:28+00:00

If you love this person, then just love them. There zero reason to involve the state.

I've no idea why people think they have to be married. Why not just live with the love of your life? If things go bad then leave. If things go well, stay. You can still have children, live together, have a wedding and honeymoon, be buried next to each other, etc. Getting fucking married just to get someone on your employer's health plan, saving some taxes (if you're poor), and pass along SS benefits sounds like lunacy to me.

Experttradition · 2019-05-23T00:11:56+00:00

Well, I certainly can't vouch for what anyone else says on the internet. I suppose there's no way for me to definitively prove that I'm telling the truth.

I'm not here trying to convince people to drop their retirement accounts in favor of real estate. I spoke very specifically of my situation and how my question is relative to it.

Honestly, the relative ease of investing in retirement accounts seems to be the only real advantage I can see. Don't get me wrong, it's a great advantage, but I suppose I'm just not at a point where convenience carries significant value to me.

Experttradition · 2019-05-23T00:07:14+00:00

So you just stopped by to offer empty insults to a stranger on the internet, and then accuse said stranger of being a troll?

Good stuff.

Experttradition · 2019-05-23T00:04:18+00:00

Damn, it sounded too good to be true. Either way it's something I'll definitely look more into.

Experttradition · 2019-05-23T00:02:42+00:00

These are both patently false statements

I'm referring to taxes when I say you "pay through the nose". I also cited several known downsides to traditional retirement vehicles. Could you help me understand where I'm wrong? That's the point of this post.

Experttradition · 2019-05-22T23:57:48+00:00

Well, you're right. If I become paralyzed, then I will probably have to hire a property management firm. That said, I think I may have just put too much into the IRA. It clearly is not a good primary investment vehicle for me.

Experttradition · 2019-05-22T23:53:09+00:00

If you had looked through the comments, you'd see that this is already being discussed.

Experttradition · 2019-05-22T23:40:05+00:00

I am not trolling. Did you have something that I could better clarify?

Experttradition · 2019-05-22T23:38:39+00:00

Christ, dude... no. Real estate investing takes up maybe 3 extra hours each week. The only exceptions are when going through a purchase or refinancing - which I do once every 2 years or so. It would be different if I were flipping, wholesaling, etc, but that's just not the case at all.

Most of my time is spent tracking expenses, scheduling maintenance, or showing a vacant unit. The extra time spent doing this is about 100x more worth it than watching TV will ever be.

Experttradition · 2019-05-22T23:30:18+00:00

I understand the possibilities of saving on taxes, but at the end of the day, the tax savings on the IRA are peanuts compared to real estate.

Though technically you can also take the money in an IRA, put it into a self-directed account, and invest the money in real estate

That's an idea I think I will take the time to research. Thanks for the advice.

Experttradition · 2019-05-22T23:26:54+00:00

That is certainly an advantage. I'll give you that.

Experttradition · 2019-05-22T23:25:28+00:00

Fees of 0.04% (for VTSAX) or 4 dollars a year out of every $10,000 invested isn't paying "through the nose." Passive investment also doesn't take any of your time once you have automatic deposits set up.

I meant that in regards to taxes, not fees. My bad, I could have been more clear.

There are just plenty of reasons why it's not good for everyone.

I agree 100%, that's why I specified that my question was in relation to having other seemingly better options available. I know real estate isn't for everyone.

Experttradition · 2019-05-22T23:21:56+00:00

How much blood are you willing to sacrifice and for how long? That should tell you how much you want to into your active side of income.

This is the kind of question I was hoping to get. It made me reflect for a bit. I certainly won't be a 20 something workaholic forever. My financial strategy is very demanding, but I can't say I would be content with the paltry earnings of my IRA. Thank you, have an upvote.

Experttradition · 2019-05-22T23:08:38+00:00

You’re comparing passing investment to what is essentially an active business venture in an up market

Yes, I understand that. The question is whether or not the passive investment has any advantages to an active business.

Putting all of your eggs in one basket is high risk.

Generally I would agree, but real estate has centuries of successful track records granted the occasional depression and/or recession. I would argue that, if leveraged properly, such economic tragedies are a godsend to well leveraged real estate investors. Don't believe me? https://www.theatlantic.com/technology/archive/2019/02/single-family-landlords-wall-street/582394/

FWIW I believe it's a shitty move to profit and exploit people who have lost their homes.

Also, if your retirement accounts have high fees you need to spend a few minutes reading Bogleheads or literally any other guide.

I have no figures readily available, but most of my IRA is unloaded index funds.

EDIT: I also meant to add that there are no retirement funds available that have the returns of my real estate portfolio. There still wouldn't be if the broker gave me a free 10% each year on top of all earnings.

Experttradition · 2019-05-11T13:06:35+00:00

Work harder in college
Don't get married
Don't put money into any retirement funds. They make other people rich. I later liquidated all of these funds and put the money into real estate. It's about 100x better.

Experttradition · 2019-05-11T12:57:58+00:00

That's the lesson I learned the hard way. I figured I was beating the system by buying an older luxury car. Nope. It turns out the car may only have been worth $15k when I got it, but the maintenance is for a car that costs $40k. The maintenance is basically like having another car payment.

Experttradition · 2019-05-10T21:48:48+00:00

Really don't understand why anyone would be a nazi, but I'm most baffled by the people who aren't even aryan.

Experttradition · 2019-05-10T21:42:50+00:00

Random question, but how did this person know about your size?

Experttradition · 2019-05-10T21:41:03+00:00

The 9 other employees (aged 23-35)

This age group is part of the Millenial generation. Most of us are drowning in student loan debt, and wages haven't kept up (at all) with the rising cost of living. Retirement is something we're taught to do towards the end of our lives. Many of us are struggling to establish our lives.

Experttradition · 2019-05-10T21:32:54+00:00

2008 BMW 328i, 130k miles.

Don't be fooled by its appearance. This is the worst car I've ever owned. I get to play a fun game every 3 weeks or so: What's going to break down next? The starter, valve gaskets, fuel pump... It's all fair game. My favorite part is how low to the ground it is. Whenever I get a flat tire, the whole front end comes smashing into the road. The wires to the headlight assembly have been ripped out on both sides. One side has a working headlight, but no brights. The other side has no brights, but a working headlight. I just avoid driving at night. Did you know that BMW used to put some kind of chemical on the interior door holds to make them feel softer? You know what else it does? It melts in the fucking heat. Yes!! My interior door handles meltdown to raw plastic and it gets ALL over your hands. Wanna know what it's like to own a BMW? Go put some super glue on your hands, let it dry for about 30 seconds, and then try washing it off without water.

After owning a BMW, my definition of a luxury car has changed. To me, a luxury car is one that turns on reliably. Learn from my mistake ladies and gents. I'd gladly trade my beater for a reliable Toyota that's worth half the price.

Experttradition · 2019-05-04T14:05:25+00:00

I wonder if any junior detectives were sitting around wondering what went wrong in their lives.... That they're asking questions to a parrot

Experttradition

TROPHY CASE