I'm making some bold financial moves...

Leguna
Site Admin
Leguna
Site Admin
Joined: April 29th, 2009, 4:39 pm

January 3rd, 2018, 8:23 pm #1

Yep, I've doing A LOT of thinking and have decided on a couple things and made some discoveries that I think everyone here could benefit from...

1. STOP PAYING INTO YOUR 401k!!!  Yes, that's right; I'm well aware that most people would tell you its the biggest no-brainer to contribute to your 401k at the max matching.  Yes it sounds great because you are getting free money, but long story short, your money will go a lot further if you invest it into rental property.  401k is using the savings mentality where as I am 100% promoting WIPING OUT your savings to invest in rental property.

2. If you are going to ever take a loan, take it from your 401k; its a 100% FREE loan!!!

3. I sold all my Netflix stock (it made about 6%).  With Disney's streaming being announced at any point this year, I feel Netflix can not compete with the amount of talent and content Disney has acquired over the years, even if Apple buys Netflix.

4. Rental Property is the fastest way to passive income and the least risky.  Use the stock market as your savings account and then sell when you are ready to buy a rental in cash.  Rinse and repeat.
Quote
Like
Share

bork
おっぱいは命、尻は故郷
bork
おっぱいは命、尻は故郷
Joined: May 26th, 2009, 6:48 am

January 4th, 2018, 2:13 am #2

Quote
Like
Share

manngc
He Da Mann
manngc
He Da Mann
Joined: April 29th, 2009, 10:05 pm

January 4th, 2018, 1:54 pm #3

Leguna wrote: Yep, I've doing A LOT of thinking and have decided on a couple things and made some discoveries that I think everyone here could benefit from...

1. STOP PAYING INTO YOUR 401k!!!  Yes, that's right; I'm well aware that most people would tell you its the biggest no-brainer to contribute to your 401k at the max matching.  Yes it sounds great because you are getting free money, but long story short, your money will go a lot further if you invest it into rental property.  401k is using the savings mentality where as I am 100% promoting WIPING OUT your savings to invest in rental property.

2. If you are going to ever take a loan, take it from your 401k; its a 100% FREE loan!!!

3. I sold all my Netflix stock (it made about 6%).  With Disney's streaming being announced at any point this year, I feel Netflix can not compete with the amount of talent and content Disney has acquired over the years, even if Apple buys Netflix.

4. Rental Property is the fastest way to passive income and the least risky.  Use the stock market as your savings account and then sell when you are ready to buy a rental in cash.  Rinse and repeat.
1. No financial adviser or sensible person would recommend to avoid the free matching of a 401K.  That is a 100% return on investment in 1 year.  Nothing beats that.  Granted, the subsequent years will be dictated by the market, so on average 6-7%.  But it takes many years for the overall average of the investment to fall from 100% down to 6-7% because of the matching.

2.  It's not a free loan (I like your complete lack of explanation).  There is an opportunity cost with withdrawing money from the market.

3.  Investors know this too...but the stock might not tank until Disney is ready to roll that out and Disney is till under contract to provide the movies to Netflix for the time being.

4.  Rental Property is has significant risk due the wild card of the Renters that are chosen.
Quote
Like
Share

krae_man
Gripshift Back
krae_man
Gripshift Back
Joined: August 31st, 2011, 12:29 am

January 4th, 2018, 3:28 pm #4

Not everybody can move into their parents house so they can rent their completely paid off house Leguna.

Renting property is basically a second job, it's not easy and has tons of risk factors.

Just wait until the roof needs replacing, or the furnace goes out.
Quote
Like
Share

manngc
He Da Mann
manngc
He Da Mann
Joined: April 29th, 2009, 10:05 pm

January 4th, 2018, 5:32 pm #5

krae_man wrote: Not everybody can move into their parents house so they can rent their completely paid off house Leguna.

Renting property is basically a second job, it's not easy and has tons of risk factors.

Just wait until the roof needs replacing, or the furnace goes out.
That's true.  Leguna needs to be setting aside probably about 1% a year of the purchase price of the home for eventual repairs to the home...repairs that will significantly reduce the rate of return.
Quote
Like
Share

Leguna
Site Admin
Leguna
Site Admin
Joined: April 29th, 2009, 4:39 pm

January 4th, 2018, 5:41 pm #6

manngc wrote:
Leguna wrote: Yep, I've doing A LOT of thinking and have decided on a couple things and made some discoveries that I think everyone here could benefit from...

1. STOP PAYING INTO YOUR 401k!!!  Yes, that's right; I'm well aware that most people would tell you its the biggest no-brainer to contribute to your 401k at the max matching.  Yes it sounds great because you are getting free money, but long story short, your money will go a lot further if you invest it into rental property.  401k is using the savings mentality where as I am 100% promoting WIPING OUT your savings to invest in rental property.

2. If you are going to ever take a loan, take it from your 401k; its a 100% FREE loan!!!

3. I sold all my Netflix stock (it made about 6%).  With Disney's streaming being announced at any point this year, I feel Netflix can not compete with the amount of talent and content Disney has acquired over the years, even if Apple buys Netflix.

4. Rental Property is the fastest way to passive income and the least risky.  Use the stock market as your savings account and then sell when you are ready to buy a rental in cash.  Rinse and repeat.
1. No financial adviser or sensible person would recommend to avoid the free matching of a 401K.  That is a 100% return on investment in 1 year.  Nothing beats that.  Granted, the subsequent years will be dictated by the market, so on average 6-7%.  But it takes many years for the overall average of the investment to fall from 100% down to 6-7% because of the matching.

2.  It's not a free loan (I like your complete lack of explanation).  There is an opportunity cost with withdrawing money from the market.

3.  Investors know this too...but the stock might not tank until Disney is ready to roll that out and Disney is till under contract to provide the movies to Netflix for the time being.

4.  Rental Property is has significant risk due the wild card of the Renters that are chosen.
1. First watch this, then talk to me...




2. No, its a free loan.  I have already confirmed this.  Where do you get your info from that its not?

3. Once everyone knows Disney's plan, it will be too late.  I'm selling it while it was ahead.  I don't want to sell any of my stocks at a loss.

4. That's why proper due diligence is important when doing your research on the tenant.  Its not 'risky' if you do your research well.  Also, I'm buying B class property which is mostly made of much higher income people that tend to have less money issues.
Quote
Like
Share

bork
おっぱいは命、尻は故郷
bork
おっぱいは命、尻は故郷
Joined: May 26th, 2009, 6:48 am

January 4th, 2018, 7:05 pm #7

Youtube videos are definitely always the best place to get your facts and life advice from. 
Quote
Like
Share

krae_man
Gripshift Back
krae_man
Gripshift Back
Joined: August 31st, 2011, 12:29 am

January 4th, 2018, 7:26 pm #8

Quote
Like
Share

manngc
He Da Mann
manngc
He Da Mann
Joined: April 29th, 2009, 10:05 pm

January 4th, 2018, 8:33 pm #9

Dos Locos Tacos wrote: Youtube videos are definitely always the best place to get your facts and life advice from. 
Not to mention they are a waste of time.  Leguna posted, what, 20 minutes of video.  I'm not going to watch that.  I would dedicate to a quick 5 minute synopsis that I can read.  And I want to gauge Leguna's understanding of the topics at hand.  Not your sources.

What the heck is a "free" 401K loan?  I don't know how to interpret that as there are too many variables involved.  Does it mean no penalty?  What part of the 401k can be loaned out?  What are the restrictions to ensure there are no penalty's?  What about taxes that need to be paid?
Quote
Like
Share

Leguna
Site Admin
Leguna
Site Admin
Joined: April 29th, 2009, 4:39 pm

January 4th, 2018, 8:47 pm #10

Dos Locos Tacos wrote: Youtube videos are definitely always the best place to get your facts and life advice from. 
Doesn't matter where the advice is coming from, so long as it makes sense.
Quote
Like
Share