lol, yeah, my wife asked about an emergency fund early in our marriage. i asked her what unforeseen spending cant be immediately handled by my credit cards or selling some investments unless a ransom note and the fbi were involved? she didn't think i was funny.
Wow!!! This is the second video I’ve watched of yours and I shall watch every one! You are whip smart. I thank the good Lord for showing this video to me. You have a new devotee.
Well. I resemble these statements, lol. Thank you for opening our eyes to a different world - true wealth building. I've watched about half your videos so far and my mind is blown. It shouldn't be - I mean, it all makes sense. Regarding home equity - I could do so much more with that, not to mention reach accreditation sooner! Do you have any clever ideas for avoiding taxes on dividends that are generated by a large stock portfolio (used for SBLOC collateral)? Already up to my gills in taxes on salary+trading. Thanks again for all your content! I can tell that you know what you're talking about.
Enjoying your straightforward wisdom. Could you possibly address how you take care of medical insurance? The main concerns in in peoples lives is working to have insurance or not retiring because of insurance. Thank you.
Health insurance was one of the main things that delayed me from quitting my W-2 job and starting my own business. I pay for it through the company and it is my 2nd largest expense. The issue is even more complicated for business owners in New York if you want a decent policy. There isn't a great solution here other than to just have your business pay for it to get the tax deduction. I've been exploring setting up a captive insurance company for all my insurance needs, including health, but haven't implemented this yet for myself personally.
Why not invest in roth ira? If I'm not an accredited investor I don't have the capital to get an investment >10%. Also I can get a loan from my 401k orSBLOC from my IRA.
Thanks Sharon for the awesome video! 1-3 really messed up about 10 years of my career. Trying to save cash for a down payment but houses went up faster than I could save. Putting money in my 401k but learning I don't want that money trapped for 25+ more years. #3 was a huge one, I got a job at a massive defense contractor while I was working on my engineering degree hoping to work my way up. It was 3% raise after 3% raise and the managers were kingdom builders. After leaving there I have job hopped a few times and drastically increased my income.
Great info, especially for the “young” crowd! But I have a quick question about a twist to an item on your list (#2)…. What would be better for building wealth, maxing out contributions to a Roth 457b (not a 401k or traditional IRA, investing in a S&P 500 index fund in the account) or taking that money and putting it into a taxable brokerage account (investing in S&P 500 ETFs and stocks, etc.)? The biggest advantage I can see going to the taxable account is for access to cash via a SBLOC as the account grows in value. Otherwise, the funds in the 457b can be rolled over into a Roth IRA when I leave the that job (via the back door method) and grow tax free in the interim….. Or do you consider all retirement account types, specifically the Roth versions (i.e. Roth 401k, Roth 403b, Roth 457b, etc.), to not be good investment vehicles?
This is a really smart question. I think the answer is somewhere in the middle. I like to have some money in a Roth-IRA account but I don't necessarily think using a Roth to invest 100% in the stock market always makes a lot of sense. I like to use my Roth mostly for assets that I personally think will appreciate a lot in my lifetime. Examples include things like Pre-IPO companies (especially because you are going to want to sell these shares at some point) or crypto. Having some stocks in a taxable account is also good because of the ability to use SBLOCs, as you mentioned. You can manage your taxable stock account in a way that you are never really paying any tax. I have some stocks in a Roth but the vast majority of my stocks are in a taxable account but I never pay tax on those stocks because of interest deductions from my SBLOC, the fact that I never sell shares, and other tax planning strategies that create tax losses. I will say I think it is a really bad idea to have most of your savings in a Roth.
I love your analysis of investments. I too hate bonds. But you have given me new ideas. Thank you. A retiree. Do you have specific advise for retirees in their late sixties?
Kids in high school should watch this because I am one of those people who worked 60 hours a week and looked at the world and realize it’s a big scam, tell us wage workers to work our buns off until retirement. The question is…how do we figure out what kind of business to invest in where we find companies to invest in?