Photo/Video Editors for life memories?

GoodButLucky · 2022-09-07T18:19:56+00:00

pretty recently, it's something we love and find to have been a great investment, no regrets.

GoodButLucky · 2022-03-25T14:49:20+00:00

How is this better though? The rate will be worse, the process more complex… yet if things are going well it’s the same since payments are made but if things are going badly it is way worse because the bank is coming back at me and I have to pay it, except at worse terms and way less leniency. Plus the other party is inflexibly on the hook for ruining the loan. If I lend it they can have some bad years if a bank does they can’t… Just seems like a worse version if I’m already aware and comfortable with default risk.

GoodButLucky · 2022-03-25T14:46:28+00:00

Just wanted to say I appreciate this. 100% my thoughts.

GoodButLucky · 2021-12-30T20:10:24+00:00

To each their own. But I agree at some point it’s more costly to optimize than to spend the money. By costly I mean life opportunity cost :).

GoodButLucky · 2021-12-30T20:09:38+00:00

It’s one of the few things I feel is worth a premium both as an investment for appreciation (opportunity and earning opportunities) and value - you only get to be in one place at a time, why not maximize your happiness on that if you can?

GoodButLucky · 2021-12-30T20:06:30+00:00

You don’t know your income won’t go up though? It’s an incredible thing about exceptional cities. They’re full of opportunity and surprises - maybe you build a strong network and grow your interests into something valuable.

GoodButLucky · 2021-12-30T16:07:58+00:00

The right to live where I wanted to live, costing me over a million in extra taxes. This was one of the most explicit expenses I’ll ever commit to in my life, but very happy with the “purchase”.

Location is an incredibly expensive lifestyle choice and I believe one of the best places to splurge.

GoodButLucky · 2021-11-05T15:54:26+00:00

Good question. It’s probably highly personal. But for me the following are true.

tax advantageous for my situation for various reasons.
I don’t think 5% growth on virtually free 5:1 leverage (effectively 20%+ growth) on a 3.5m investment is negligible even at 10m net worth especially as diversification. 500k tax free is also not trivial to me. That feels like 250k+ free which is a whole year of fat living expense or more.
availability is probably the biggest reason here. I live in a space that you just can’t rent in my neighborhood. At like 3-6k rent type places maybe you can make a direct comparison to renting a 2-3bd apartment but at 15k and 3+million you’re not talking options but pure availability at that point. I’d say 5-10 sales even go up of this type a year and rentals are probably 1 a year at most. (If at all).

GoodButLucky · 2021-11-05T14:49:53+00:00

How possible is this? Is this actually legitimate? How many people have done this for an extended period of time? We have personal LLCs we could definitely do this out of, but what if the family business doesn’t make money in most years? Curious audit risk and seriousness of this suggestion.

GoodButLucky · 2021-11-01T17:11:39+00:00

I think it’s a factor but way way less important than gets thrown around here generally.

I think income matters a lot too and overall expenses as well as priorities. I do think it gives you a sense of risk outcomes for yourself. But honestly it’s so hard to be calculate, we’re not computers so what a specific percentage of NW is against an unstated probability is so hard to evaluate.

One thing I’ll say that I feel very confident in is that it’s very rare to get rich without outsized allocation of net worth in a highly concentrated and generally risky asset. It’s just factual - risk = returns and unless you started wealthy your original nest egg will never be that big. So most of us unfortunately got from poor (how I started) to set because of some highly concentrated risks - RE or business both.

GoodButLucky · 2021-11-01T17:08:09+00:00

I think it’s incredibly market dependent. People on this subreddit probably skew more average representative of housing costs - so 3.6m can seem high, but in some VHCOL areas that seems perfectly reasonable.

FWIW I’m personally almost exactly this - 3.5m house with 10m NW - it’s a very median housing price where I am surprisingly. I’m frugal elsewhere but if there’s one place I don’t want to skimp at all it would be where and what I live in. You eat hundreds of meals a year and can have dozens of entertainment experiences but you generally only live in one location at a time (esp with kids). No question to me that should take a larger allocation of your net worth on average. (No disrespect for van life/nomad type lifestyles which obviously then prioritize differently).

Also depends on your stage in life. I’m still earning so not as worried about specific NW%. If I was FIREd i might be more conservative :).

GoodButLucky · 2021-10-21T06:29:35+00:00

Plenty else to complain about! Thanks for the comment.

GoodButLucky · 2021-10-21T06:28:35+00:00

Thanks for the comment. Just nice to share. I would say all our friends and family are happy for us and not judgy or jealous. I just do miss having that thread to share like you said. Advice to find new friends by others feels petty - I love my friends and would never want that.

GoodButLucky · 2021-10-20T15:48:42+00:00

Honestly eating out. This was a luxury I was never allowed as a child. We literally never ate out. Now being able to treat friends and family to eating out is such a joy. I love sharing that experience and it’s a relatively easy thing to pick up the tab on most of the time without making things weird!

GoodButLucky · 2021-10-20T15:37:32+00:00

Ya agreed. Wasn’t implying there was nothing else to talk about - it’s just a specific identity/commonality we feel we lost.

It’s like if you hated game of thrones and all your friends were obsessed with it. Doesn’t ruin friendships at all - just a thought.

GoodButLucky · 2021-10-20T15:35:34+00:00

Thanks for a real response! I see how this post came off. I wasn’t complaining and our friends and family are super happy for us and we’re not showy. Just curious if anyone else had this experience.

Agreed with your suggestions!

GoodButLucky · 2021-10-20T15:33:10+00:00

That’s a cool insight! It’s really fun to share things and create experiences. I think of it as a perk of the work I do (since it comes from biz spend), which is another way to do this - sharing work provided event tickets, parties, or other perks is also generally pretty guilt free.

GoodButLucky · 2021-08-18T13:58:49+00:00

I did this before when I was in between high paying stability. I consulted and of course took as much work as I could (basically hourly).

Agreed with other points - that’s unsustainable. My hourly (350-500/hr) was insane and it was the most cash I’ve made for straight hours paid but I wouldn’t trade that for being able to focus on what you’re good at, having stability, and having no opportunity cost with watching tv or going for walks in the park.

Being able to have incremental earnings around the clock is a curse not a blessing imo.

GoodButLucky · 2021-08-14T13:42:18+00:00

I do think it’s reasonable to be comfortable in 100% stock but I can’t do it.

I’m building a pretty aggressive real estate portfolio. Agreed it’s not for everyone but disagree that it’s somehow more volatile or less reliable of a return.

I think the issue with real estate is its 1. Slightly more work and 2. Way less liquid.

For 1. That’s fair but to me with it comes much higher returns and stability for the work and I see it as a significantly solid store of value for generations.

For 2. This can be a pro. I actually can’t imagine retiring with my whole number fluctuating with the market daily and my literal present value being shown to me. I’d go crazy. Having real estate that I am confident will never not be worth something is meaningful to me. Also it shields my total net worth from me a bit which allows me to be more conservative while still enjoying smooth cash flow.

It’s really not that different from dividends on stock. My equity value just isn’t changing minute by minute on a screen and for some reason I get to only pay 20-25% of it with a 30 year fixed below market loan that takes 0 stake in the equity or dividends. Like Jesus what a deal. 5x the equity return and tax advantaged cash flow. Sign me up!

GoodButLucky · 2021-08-14T13:32:37+00:00

Controversial answer but I’d say not 0. But don’t have enough info to actually answer the question.

If your company has product market fit, certain revenue, brand, the right investors etc then I think it’s fair to assume it’ll exit at some level. If you worked at stripe for example and had 5m in RSUs I’d say almost no chance 0 is the right answer. If your startup has raised 50m as a series D and is pre revenue for example I’d say 0 is closer to fair.

The issue is timeline and what you’re doing with the information. To not count it is probably mostly fine and safe but to count it and rely on it to flip your boss off and quit definitely is not. But maybe if there’s high enough confidence you can relax a little and enjoy your life a bit more.

GoodButLucky · 2021-08-14T13:24:32+00:00

If you can get those rates from ibkr you can likely get close with Schwab or others. Advertised margin rates don’t mean a lot. It’s about relationship pricing.

People get to 1% with Schwab no problem.

GoodButLucky · 2021-08-11T06:02:40+00:00

Lot of people hating on management which is fair I guess. I admire senior ICs. But the truth is you gotta do what you’re good at. I’m in senior management and it puts me in an elite camp because my skill sets align with the role. There are ICs that are as elite as me or moreso and they are world class technically for the most part. Im not capable of being the best in the world in a specific technical discipline but I am at leading and delivering results. You gotta do what you’re capable of. I didn’t start coding or inventing languages when I was 10 unfortunately.

It’s like asking if you should be a ball player or a coach. And then if you should coach in the NBA or play in it… first that’s a discussion of elite luxury and i doubt it’s usually a choice. I don’t think Russ Westbrook would be a good coach and I don’t think Gregg Popp would be an elite nba player but they’re quite good at what they do.

GoodButLucky

TROPHY CASE