Congrats on the family and the professional success! Good work!!!
millionaires
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Last: 3 days ago by Texag5324
MavsAg said:
Wife (33) and I (37) finally broke the millionaire barrier this summer. We have a one year old and will get working on number two shortly. Been a long road to get here. I left my job two weeks before Covid to start my own thing with a couple of other guys. Took us two years to finally raise the money and get going. We'll complete our payments to our investor at the end of the year and then can finally start participating in distributions which will increase our personal income significantly.
Retirement: $750k
Brokerage: $170k
Cash: $215k
Property: $0 (renting)
Didn't include the equity in my company because we still haven't completed the payments to our investors and until that happens it won't feel real to me. Not to mention, it's an OFS company so it could all go to zero tomorrow.
I certainly don't "feel" like a millionaire. Saving up for a house in this market is just so crazy. I feel like we are in a great spot financially, but buying a house in a good neighborhood would be a huge increase in our monthly housing budget. We'll be able to make it work since we have saved for so long. I just feel for the typical W-2 employees who didn't buy before 2022.
No need to fret on the house thing. Renting is perfectly fine for now (especially if you are below your means on that).
(1) The residential housing market is still settling. It certainly isn't going crazy upwards right now. So you have some time. Im sure you will want the house for your family, makes sense, but you have time to not have to pull the trigger and do something stupid.
(2) Investing in other assets rather residential real property is entirely viable to building net worth (without the baggage).
Congratulations on your hard work!
Today's winner for the General Board Burrito Lottery is:
Tex117
early last year hit a lifelong goal of reaching the milestone before 40, never would've imagined reaching the 2nd in the following year today
got there on pedestrian engineer income, and still somewhat diversified portfolio ~60% indexes, roughly even split between taxable and retirement
got there on pedestrian engineer income, and still somewhat diversified portfolio ~60% indexes, roughly even split between taxable and retirement
I will have approximately 2.3 million in 2027 if there is no massive bear market recession that lasts for a year
who has a good retirement planner where I can do a one time fee to have them give me advice on taxes and withdrawal strategy? I have a few corporate 401K, back door Roth IRAs, bonds, government bonds, cash, private brokerage. age nearly 55.
who has a good retirement planner where I can do a one time fee to have them give me advice on taxes and withdrawal strategy? I have a few corporate 401K, back door Roth IRAs, bonds, government bonds, cash, private brokerage. age nearly 55.
Tex117 said:MavsAg said:
Wife (33) and I (37) finally broke the millionaire barrier this summer. We have a one year old and will get working on number two shortly. Been a long road to get here. I left my job two weeks before Covid to start my own thing with a couple of other guys. Took us two years to finally raise the money and get going. We'll complete our payments to our investor at the end of the year and then can finally start participating in distributions which will increase our personal income significantly.
Retirement: $750k
Brokerage: $170k
Cash: $215k
Property: $0 (renting)
Didn't include the equity in my company because we still haven't completed the payments to our investors and until that happens it won't feel real to me. Not to mention, it's an OFS company so it could all go to zero tomorrow.
I certainly don't "feel" like a millionaire. Saving up for a house in this market is just so crazy. I feel like we are in a great spot financially, but buying a house in a good neighborhood would be a huge increase in our monthly housing budget. We'll be able to make it work since we have saved for so long. I just feel for the typical W-2 employees who didn't buy before 2022.
No need to fret on the house thing. Renting is perfectly fine for now (especially if you are below your means on that).
(1) The residential housing market is still settling. It certainly isn't going crazy upwards right now. So you have some time. Im sure you will want the house for your family, makes sense, but you have time to not have to pull the trigger and do something stupid.
(2) Investing in other assets rather residential real property is entirely viable to building net worth (without the baggage).
Congratulations on your hard work!
Buy a house for your family and pay it off before you invest in anything else.
That is more of a personal choice and not entirely financial. That may actually be a bad financial choice depending on the totality of someone's circumstances.
I'm struggling to come up with circumstances where this would be the advice I'd give to someone. Who buys a home these days and plans to stay in it until they die? Some, sure, but I'd imagine the numbers are quite small. Further, I locked in a 30-year note at 2.75%. I pay what I pay for my mortgage and invest the rest of it in the market. My 401k this year has returned 19 percent. Should I have foregone 19% gains to pay down my 2.75% carry cost? Should I forego market returns to pay off a house I have no intention of living in throughout retirement? No.
I don't discount the advantage of having a home paid off. This can be a wonderful thing. We're in a situation where I could pull cash out of my money market and pay my home off, but my money market is returning almost 300 basis points better than my mortgage rate. Why would someone rational do such a thing?
Realize that everyone's circumstances and risk tolerances are different, but by no means should anyone take your advice - or mine - as gospel.
I don't discount the advantage of having a home paid off. This can be a wonderful thing. We're in a situation where I could pull cash out of my money market and pay my home off, but my money market is returning almost 300 basis points better than my mortgage rate. Why would someone rational do such a thing?
Realize that everyone's circumstances and risk tolerances are different, but by no means should anyone take your advice - or mine - as gospel.
Yes, this statement is frankly an extreme statement taken at face value. It will take most people many years to pay off a house even if you don't invest elsewhere. Maybe the poster did not mean this literally.
Never mind most people don't stay in one house forever like you said. Things change.
Never mind most people don't stay in one house forever like you said. Things change.
Quote:
Buy a house for your family and pay it off before you invest in anything else.
Pacifico said:Tex117 said:MavsAg said:
Wife (33) and I (37) finally broke the millionaire barrier this summer. We have a one year old and will get working on number two shortly. Been a long road to get here. I left my job two weeks before Covid to start my own thing with a couple of other guys. Took us two years to finally raise the money and get going. We'll complete our payments to our investor at the end of the year and then can finally start participating in distributions which will increase our personal income significantly.
Retirement: $750k
Brokerage: $170k
Cash: $215k
Property: $0 (renting)
Didn't include the equity in my company because we still haven't completed the payments to our investors and until that happens it won't feel real to me. Not to mention, it's an OFS company so it could all go to zero tomorrow.
I certainly don't "feel" like a millionaire. Saving up for a house in this market is just so crazy. I feel like we are in a great spot financially, but buying a house in a good neighborhood would be a huge increase in our monthly housing budget. We'll be able to make it work since we have saved for so long. I just feel for the typical W-2 employees who didn't buy before 2022.
No need to fret on the house thing. Renting is perfectly fine for now (especially if you are below your means on that).
(1) The residential housing market is still settling. It certainly isn't going crazy upwards right now. So you have some time. Im sure you will want the house for your family, makes sense, but you have time to not have to pull the trigger and do something stupid.
(2) Investing in other assets rather residential real property is entirely viable to building net worth (without the baggage).
Congratulations on your hard work!
Buy a house for your family and pay it off before you invest in anything else.
Other posters have pointed out why this statement taken on its face, may not be accurate and may be bad advice.
There are alot of personal variables that go into whether this makes sense or not.
Today's winner for the General Board Burrito Lottery is:
Tex117
Pacifico said:Tex117 said:MavsAg said:
Wife (33) and I (37) finally broke the millionaire barrier this summer. We have a one year old and will get working on number two shortly. Been a long road to get here. I left my job two weeks before Covid to start my own thing with a couple of other guys. Took us two years to finally raise the money and get going. We'll complete our payments to our investor at the end of the year and then can finally start participating in distributions which will increase our personal income significantly.
Retirement: $750k
Brokerage: $170k
Cash: $215k
Property: $0 (renting)
Didn't include the equity in my company because we still haven't completed the payments to our investors and until that happens it won't feel real to me. Not to mention, it's an OFS company so it could all go to zero tomorrow.
I certainly don't "feel" like a millionaire. Saving up for a house in this market is just so crazy. I feel like we are in a great spot financially, but buying a house in a good neighborhood would be a huge increase in our monthly housing budget. We'll be able to make it work since we have saved for so long. I just feel for the typical W-2 employees who didn't buy before 2022.
No need to fret on the house thing. Renting is perfectly fine for now (especially if you are below your means on that).
(1) The residential housing market is still settling. It certainly isn't going crazy upwards right now. So you have some time. Im sure you will want the house for your family, makes sense, but you have time to not have to pull the trigger and do something stupid.
(2) Investing in other assets rather residential real property is entirely viable to building net worth (without the baggage).
Congratulations on your hard work!
Buy a house for your family and pay it off before you invest in anything else.
Good advice for a high-rate credit card. But for a 2.9% mortgage?
I financed my new Tesla for 0% for 60 months. Pay that off too?
Yeah, I'll sell my S&P index fund, Nvidia, Google and TSM stock to do that. And I guess I'll sell the $6k i invested in Bitcoin in 2020 which is now worth $112k or whatever the price is today. All so I can avoid paying 2.9%.
Hell, even the money I have sitting in cash is making over 4%. (4% > 2.9%)
Pacifico said:Tex117 said:MavsAg said:
Wife (33) and I (37) finally broke the millionaire barrier this summer. We have a one year old and will get working on number two shortly. Been a long road to get here. I left my job two weeks before Covid to start my own thing with a couple of other guys. Took us two years to finally raise the money and get going. We'll complete our payments to our investor at the end of the year and then can finally start participating in distributions which will increase our personal income significantly.
Retirement: $750k
Brokerage: $170k
Cash: $215k
Property: $0 (renting)
Didn't include the equity in my company because we still haven't completed the payments to our investors and until that happens it won't feel real to me. Not to mention, it's an OFS company so it could all go to zero tomorrow.
I certainly don't "feel" like a millionaire. Saving up for a house in this market is just so crazy. I feel like we are in a great spot financially, but buying a house in a good neighborhood would be a huge increase in our monthly housing budget. We'll be able to make it work since we have saved for so long. I just feel for the typical W-2 employees who didn't buy before 2022.
No need to fret on the house thing. Renting is perfectly fine for now (especially if you are below your means on that).
(1) The residential housing market is still settling. It certainly isn't going crazy upwards right now. So you have some time. Im sure you will want the house for your family, makes sense, but you have time to not have to pull the trigger and do something stupid.
(2) Investing in other assets rather residential real property is entirely viable to building net worth (without the baggage).
Congratulations on your hard work!
Buy a house for your family and pay it off before you invest in anything else.
Just to pile on, but every situation is different. Frankly, I stopped paying off my house and invest more in the mkt. financially, I'd rather make 20% or more in the mkt than pay off my mortgage at 3%, which is effectively half that after tax benefit.
20% you say? These are things you see at market tops.
True, but even at 6% it still makes sense.
Paying off the home first is classic D. Ramsey. It makes Personal "security" sense for those who do not manage money well. Those who over spend/high debt then risking their home.
I have debt on all of my properties. I have a property worth about 2.5M, have $100K note, and a 4% rate. When rate drops to under 5%, I will be refinancing it and hope to pull out 1-1.5M.
I do not fear debt or have concerns for losing the property.
I have debt on all of my properties. I have a property worth about 2.5M, have $100K note, and a 4% rate. When rate drops to under 5%, I will be refinancing it and hope to pull out 1-1.5M.
I do not fear debt or have concerns for losing the property.
My biggest issue with paying the house off is that you really never get rid of a payment in a high property tax state. If I pay off the mortgage I still have a "payment" for taxes and insurance that's almost as much as the actual mortgage.
My grandfather grew up during the Great Depression with nothing in South Georgia, which had never really recovered after Sherman came through. He took a loan whenever the bank would give him one to buy more timberland. He paid for college and grad school for six grandchildren, made his two daughters not dependent on their husbands for financial support and I don't know about my sisters or cousins, but I had enough money after law school to buy a new car and put a down payment on my first home.
Smart debt is not to be feared.
Smart debt is not to be feared.
AggieFrog said:
My biggest issue with paying the house off is that you really never get rid of a payment in a high property tax state. If I pay off the mortgage I still have a "payment" for taxes and insurance that's almost as much as the actual mortgage.
I hear this argument a lot and I'm not sure I really understand it. To me, this is like saying, "I won't pay credit card A off because I'll continue to rack up living expenses on credit card B." If a mortgage is a good liability to eliminate, it's a good liability to eliminate. Not advocating for or against paying of a mortgage, just that this supporting argument doesn't resonate with me.
However, I'm totally in agreement with frustrations with the tax aspect of owning a home. Not only is it an enduring cost, but it is endlessly growing every year. I don't understand how I can owe the state more to live in my home than I can owe the bank. It's so dumb and unsustainable.
It's because I see no reason to pay off a loan that's at a lower rate than the return on my investments in order to eliminate just part of an ongoing housing cost. I could at least partially understand if you could pay the house off and not have any ongoing housing costs other than insurance and utilities/maintenance. But in states like Texas I'll always have a large ongoing cost regardless of whether I have a mortgage or not.
It's also important to make sure that the rate of return you are getting from your investments is a true ROR and not just the "average ROR". Not paying off a 6% house note because "the market averages 7-10%" isn't a sure thing.
It's different if that money is in a guaranteed investment.
That's not to say it's not worth the gamble to just keep the money invested in the market instead of paying off a mortgage (especially a low rate one), but it's often a projected/assumed return comparison, not a guaranteed one.
It's different if that money is in a guaranteed investment.
That's not to say it's not worth the gamble to just keep the money invested in the market instead of paying off a mortgage (especially a low rate one), but it's often a projected/assumed return comparison, not a guaranteed one.
I don't care if you take my advise or notRightWingConspirator said:
I'm struggling to come up with circumstances where this would be the advice I'd give to someone. Who buys a home these days and plans to stay in it until they die? Some, sure, but I'd imagine the numbers are quite small. Further, I locked in a 30-year note at 2.75%. I pay what I pay for my mortgage and invest the rest of it in the market. My 401k this year has returned 19 percent. Should I have foregone 19% gains to pay down my 2.75% carry cost? Should I forego market returns to pay off a house I have no intention of living in throughout retirement? No.
I don't discount the advantage of having a home paid off. This can be a wonderful thing. We're in a situation where I could pull cash out of my money market and pay my home off, but my money market is returning almost 300 basis points better than my mortgage rate. Why would someone rational do such a thing?
Realize that everyone's circumstances and risk tolerances are different, but by no means should anyone take your advice - or mine - as gospel.
Under no circumstance would I be paying off my 3% mortgage early. If I would have been putting the $500 a month i was paying off my first house off early into the market I would be WAYYY better off.
Pacifico said:RightWingConspirator said:
I'm struggling to come up with circumstances where this would be the advice I'd give to someone. Who buys a home these days and plans to stay in it until they die? Some, sure, but I'd imagine the numbers are quite small. Further, I locked in a 30-year note at 2.75%. I pay what I pay for my mortgage and invest the rest of it in the market. My 401k this year has returned 19 percent. Should I have foregone 19% gains to pay down my 2.75% carry cost? Should I forego market returns to pay off a house I have no intention of living in throughout retirement? No.
I don't discount the advantage of having a home paid off. This can be a wonderful thing. We're in a situation where I could pull cash out of my money market and pay my home off, but my money market is returning almost 300 basis points better than my mortgage rate. Why would someone rational do such a thing?
Realize that everyone's circumstances and risk tolerances are different, but by no means should anyone take your advice - or mine - as gospel.
I don't care if you take my advise or not
he obviously is not taking it
he's also pointing out the fact that it's bad financial advice
Quote:
I don't care if you take my advise or not
I would hope that no one takes your "advise". Especially with zero regard to rates for either the mortgage or investment returns.
Pacifico said:I don't care if you take my advise or notRightWingConspirator said:
I'm struggling to come up with circumstances where this would be the advice I'd give to someone. Who buys a home these days and plans to stay in it until they die? Some, sure, but I'd imagine the numbers are quite small. Further, I locked in a 30-year note at 2.75%. I pay what I pay for my mortgage and invest the rest of it in the market. My 401k this year has returned 19 percent. Should I have foregone 19% gains to pay down my 2.75% carry cost? Should I forego market returns to pay off a house I have no intention of living in throughout retirement? No.
I don't discount the advantage of having a home paid off. This can be a wonderful thing. We're in a situation where I could pull cash out of my money market and pay my home off, but my money market is returning almost 300 basis points better than my mortgage rate. Why would someone rational do such a thing?
Realize that everyone's circumstances and risk tolerances are different, but by no means should anyone take your advice - or mine - as gospel.
Bro…
I actually took a cash out refi a few years ago, locked in a 2.5% rate. Opened a separate brokerage account and put the refi proceeds in it and invested in mutual funds. It's made about $40K over a few years (would've been more but I held too much uninvested cash for too long), and by my calculation should generate about $800-900 a month in net benefit if the market returns ~8%.
I'm tempted to pay off the mortgage when the balance in that account exceeds the remaining balance on the loan. But that would definitely be following my gut and not my brain.
I'm tempted to pay off the mortgage when the balance in that account exceeds the remaining balance on the loan. But that would definitely be following my gut and not my brain.
Paid off our 4.375% interest rate mortgage the day before our first child was born. Haven't had a mortgage in almost 10 years. No regrets. Can't math your way into some decisions, just my experience
Dill-Ag13 said:
Paid off our 4.375% interest rate mortgage the day before our first child was born. Haven't had a mortgage in almost 10 years. No regrets. Can't math your way into some decisions, just my experience
But did you do it instead of saving/investing? Because that's the suggestion we are all calling dumb.
And I can beat you. I paid off my grad school loans about a decade early that were set at a measly 1.25% rate. I simply did not want the balance on my books anymore. However, I was also still hitting all of my savings goals, concurrently.
I invested 15% in retirement and dumped the rest on the house if that's what you mean.
Dill-Ag13 said:
I invested 15% in retirement and dumped the rest on the house if that's what you mean.
Right. This is different from what others are incredulous about.
Dill-Ag13 said:
I invested 15% in retirement and dumped the rest on the house if that's what you mean.
The hypothetical question is what ror would you have gotten on those extra payments towards the house. Because it would probably have been more than the 4.375% you saved in mortgage interest.
My mortgage rate is 2.625%. I put my extra 'house' payments into the market to blow that rate away. I don't mind the $1400 P&I payment, and honestly I'm not sure I'd even notice it was gone if I did pay it off lol!
I'm tryin to go take out mortgages/REFI's on homes I don't even own
Just saw a podcast stating the number of households with two million dollars of investable assets (not including home) is:
1.8%
that seems unbelievable!
1.8%
that seems unbelievable!
You thought was higher or lower?
yea.. seems pretty damn believable to me
EliteZags said:
yea.. seems pretty damn believable to me
Agreed.
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