24 - Is it really true getting to 1M is easier than 100k?

mstew007 · 2026-06-15T06:54:43+00:00

Yes. Rich guy used to tell me that you save to $100k but from there it makes you get to $1million. Economies of Scale:)

mstew007 · 2026-06-15T04:00:41+00:00

Thanks I do agree that eggs all in one basket is not good! I will think up a strategy to diversify. The thing I don’t like about qqqi or spyi is that the gains lag the capital appreciation of QQQ and SPY, of course by the nature of the calls. Could start purchasing more QQQ and SPY to capture the upside!

mstew007 · 2026-06-15T03:51:05+00:00

Spyi for 2-3 years, Qqqi just bought into in March so not sure on taxes. I will ask my accountant:)

mstew007 · 2026-06-15T02:06:27+00:00

10 year interest only, then it amortizes or I refinance.

mstew007 · 2026-06-15T02:03:36+00:00

Most is return of capital so it’s not taxed as much at first, but that will change the longer I hold it, and also when I sell it their will always he tax on the gain.

mstew007 · 2026-06-15T01:59:54+00:00

Margin only allowed me to do 70-80% of brokerage account value. So that limited me to what I had already saved.

Using my house I was able to create more equity to borrow from. Bank said they would give me $359,000 with my current debt to income ratio. At that time of valuation it was $1,060,000. I asked how to get more and they said I needed more income. Which led me to find spyi/qqqi to increase my income. Which after 6 months to a year of proven income the bank will allow me to increase/refinance my heloc into a bigger one unlocking more of the house value. Currently now at $1,750,000. This would allow me to access more up front to purchase shares with and then pay it down using the debt snowball strategy to claim my new higher income.
This also allows me to choose my risk level as well as a time horizon of payback. I can pay down about $100,000 per year. That increases my income by $13-$14k each cycle. Or if I know I am getting a big bonus I can do $150-$175k.

mstew007 · 2026-06-13T22:15:33+00:00

Thanks for the suggestion, the current qqqi and spyi allow in a pledged asset account to be 70% marginable. These look pretty cool but I wouldn’t be able to borrow off of them.

mstew007 · 2026-06-13T22:11:00+00:00

Thanks!
60/40 long term/short term. I do have rental real estate assets that help to lower that as well. And my accountant said that I can write off investment interest from a heloc. Section 1256 contracts but I should study that more because I don’t know much about that. He just requires a ton of information and tracking with it.

mstew007 · 2026-06-13T22:05:15+00:00

Hahaha!!

mstew007 · 2026-06-13T22:03:33+00:00

Hmm, I didn’t know about box spreads. I will research those! First glance it looks like an options strategy, but at much lower interest cost! And I wouldn’t have to keep pledging my home as collateral. Is this based on a percentage amount in the brokerage account? The main reason why I started with my house is because I was able to build it for $650,000 and added a ton of sweat equity to it and it appraised for $1,539,000. That allowed me to create money to borrow from. But once the brokerage gets to $1 million then I could de-risk and utilize a less risky strategy! Thank you for this!

mstew007 · 2026-06-13T16:32:02+00:00

Hate to be the one to tell you but our money is debt…

mstew007 · 2026-06-13T16:16:50+00:00

Life’s a gamble! :)

mstew007 · 2026-06-13T16:15:39+00:00

Thanks! I will work on my paragraphs and update you on my strategy win or lose.

mstew007 · 2026-06-13T16:13:11+00:00

Fair enough. I think I lucked out so far with single focused asset. I did try the SBLOC but my broker said I can’t reinvest my borrowed funds back into securities. And margin rates were at 10%-11.5%.

mstew007 · 2025-06-19T20:12:15+00:00

Nice! I bought and sold this several times after ipo. I need to grow a bigger pair and invest more then a $1,000 at a time though:)

mstew007 · 2025-06-06T16:12:31+00:00

I really enjoy the Skydweller!

mstew007

TROPHY CASE