Don't forget the attorneys, property managers, creating & maintaining corporate entities, diligence to make sure all yearly sales tax and meeting notes are filed, banking, accounting, taking tenant phone calls, fixing problems, carrying insurance, ... Not for the lazy.
All that and also what do you do if it's a down market? Borrow till you die doesn't always work. There is significant risk. Also if you live in a tenant friendly state like CA or NY, you are really screwed if the tenants decide to just live there for free for a couple of years. Then you loose rent for a 1-2 years, destroyed property, legal fees. Make sure if you get into real estate renting you don't get stressed lol.
@@ViceCoinif you are capable of executing this video's suggestions, then you are NOT choosing between working at Walmart and investing in real estate. It's a non-sensical comparison, and for those capable of generating extra income, choosing where you spend time makes a difference in your quality of life.
This is exactly what "experts" were saying just before the GFC. The problem is when the asset goes down and the so-called "return" disappears and the call comes from the bank. The properties are sold and you still owe the difference and you end up on the street, literally. I watched this happen to multiple people. Go for it. Pay this guy a fee!!!
@@TheOne-3right. Like gambling. Line doesn’t always go up. The market can stay irrational longer than you can stay solvent. The only way this works is to be rich to begin with. It’s a risky proposition.
FYI as a Financial Planner I thought I would correct this - Capital Gains are not capped at 15-10%. There is the Net Investment Tax. The net investment income tax (NIIT) is a 3.8% tax that kicks in if you have investment income and your income exceeds $200,000 for single filers, $250,000 for those married filing jointly or $125,000 for those married filing separately.
Debt is LEVERAGE, and getting caught on the wrong side of a market downturn can easily wipe you out. The quirk of leveraged traditional home mortgages is that borrowers don't get wiped out by 'margin calls' the moment they're under water.
The time it takes to turn $500,000 into $1 million depends on your investment strategy and the rate of return. . If you put it in a high-yield savings account with an interest rate of 4%, you'd earn $100,000 per month with a good financier planner. However, if you invest it in the stock market, which has historically returned about 7% annually on average, you could potentially make around $250,000 per month still depending on your market and risk taking strategy. So you need a good investment planner to earn well for a short period of time.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
Taking break may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. A licensed CFA whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help...
I am impressed with your update with these strategies, I am looking for tax efficient way to rebalance my $800k portfolio without triggering capital gain tax. what asset location strategies should i use?
The best strategy depends on your financial situation, account types, tax bracket, and investment goals. Consult a financial advisor or tax professional to tailor these strategies for maximum tax efficiency.
My advisor helped me rebalance my huge portfolio without triggering capital gains taxes by using tax-advantaged accounts and reallocating dividends and new contributions. They also recommended tax-loss harvesting and strategies to stay within my tax bracket. Q2 taxable divs this year was $17,388 thanks to her guidance. I maintained my desired asset allocation while minimising taxes.
Real estate prices exploded, interest rates exploded, but my wage the same, i'm screwed !! who is the advisor guiding you please? I could really use some help right now
“Melissa Terri Swayne” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
I just looked up this person out of curiosity, and surprisingly she seems really proficient. I thought this was just some overrated BS, I appreciate this.
Honestly, this situation makes me feel uneasy, particularly with the Fed's decision to cut interest rates by 50 bps. It indicates deeper economic concerns, and I'm uncertain about my $130K investment strategy, especially with the possibility of not just a recession but potentially a depression.
Just get a financial planner straight up! personally, I would invest in etf and also love investing in individual stocks. yes it’s riskier but I'm comfortable in my financial environment.
I agree. Exactly why I now work with one. A lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
‘’Aileen Gertrude Tippy’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolioportfolio
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
For 10 years they ran that full page ad in the New York Times if anyone could show the tax law they would give them 100k dollars and even IRS agents can't find the law. It's all in the documentary "America: Freedom to Facism" - I think Aaron Russo passed away but why didn't you collect the 100k dollars when it was being offered to you?
Bullish or bearish, AI stocks will still dominate 2024, even beyond. Why I prefer NVIDIA is that they are better placed to maintain long-term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or seek advice from certified market strategists.
@@JuneTalley No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit a 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
@@LucaMurgia-j7b Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
@@ChristophersHoyts MARGARET MOLLI ALVEY is who I work with and she is a hot topic even among financial elitists. Just browse, you’ll find her, thank me later.
@@LucaMurgia-j7b I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get.
This ignores three things, 1) the risk involved in real estate (yes, prices can go down just like stock prices), 2) the incredible amount of time it requires, 3) the skill that it requires. I prefer a mix of stocks, long term managed real estate, and gold. Minimize your time spent and minimize your risk.
Absolutely, those options can work as well, but the returns are typically lower. It really depends on factors like age, risk tolerance, and financial goals. I understand that long-term real estate typically grows between 5-10% per year, and stocks are in a similar range. I don’t have extensive experience with precious metals, so I can’t speak to that. However, the properties I specialize in target returns of 100-1000%. While there is time and money required upfront, the workload significantly decreases once the investment is stabilized and running.
@@KaiAndrew Thanks for the reply. What I mean is that anyone can invest in stocks and buy physical gold (always a small but important part of my portfolio), and most people could do long term RE without too much effort as long as there are good managers in the location, but what you do is profitable, risky, and not easy. If it were easy, more people would do it.
Physical gold is not the wisest option. We sell it because people don't understand markets and have an nostalgia and feeling of safety, when each time you buy an gold coin you pay premium 3-6% each time you buy it from mill or anyone else. But won't get back this few precents, because when you sell, you sell on gold market price.
@@Exorcistt94 It has nothing to do with nostalgia. Physical gold has more stable value than any fiat currency. It doesn't earn money, so it should be a small part of any portfolio, but it is a safe part. Buy bars, not coins. The buy/sell spread is more like 2%, and the price has gone up about 65% from my avg purchase price, so...
@@KaiAndrew You are in fact lying about your numbers. Stating stock returns are in the 5-10% range. Then claiming your real estate is making a 1000% by only counting the amount invested not the value if the entire value of the asset used. You're whole lie about not paying and borrowing until you die is laughable. I know way more UHNW individuals than you and none of them "borrow till they die" I'm a contractor, investor, spec builder and landlord. I javelin access to billions, yes billions, in capital. Don't you think people like me would be doing what he claims will make you rich? More importantly is if it was real the people that offer to lend me billions would be using their billions to do what he claims will make you rich if it were real. Now he'll claim its a special small market that's to small for billionaires to spend time on. My response: Billionaires train there children in how to manage and invest money at a young age. If what this guy was selling was real rich people would use it to train their kids. This is all B.S. when you hear anything that promises you more than 10% a year over long term timee horizons ask yourself why pwople with billions aren't funding the salesperson. If these numbers were real you wouldn't be selling it to people on youtube. You'd walk into a room with a trillion dollars of investable funds and people would fight to invest with you.
I will be forever grateful to you Mrs.Susie Richardson. You have changed my entire life and I will continue to let the world know your name. You saved me from a huge financial debt with the little I had. Thank you Mrs.Susie Richardson.
I want to tell you today that Mrs. Susie Richardson was mentioned here. A family friend recommended her to me when I was living in Italy during the Corona crisis. She is amazing.
I am impressed with your update with these strategies, I am looking for tax efficient way to rebalance my $800k portfolio without triggering capital gain tax. what asset location strategies should i use?
The best strategy depends on your financial situation, account types, tax bracket, and investment goals. Consult a financial advisor or tax professional to tailor these strategies for maximum tax efficiency.
Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I currently have 75% SCHD and 25% ROTH IRA. Brokerage account is 40% VOO, 35% SCHD, 25% XLK. Combine balance ~$3.3m Less than 3 years until retirement.... I have about 400k in cash. My portfolio has yielded far more than I expected for my retirement. Kudos to my advisor.
Real estate prices exploded, interest rates exploded, but my wage the same, i'm screwed !! who is the advisor guiding you please? I could really use some help right now
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance, Long story short, its been 2years now and I’ve gained over a million dollars following guidance from my investment adviser.
This is huge! think you can point me towards the direction of your advisor? been looking at advisory management myself.. seeking ways to invest and make more money with the uncertainty in the economy.
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
A young person with zero credit, no assets and parents who are either unwilling or unable to cosign are going to struggle to find a bank willing to loan them any amount of money without collateral. Must be nice to have a trust fund to play with.
The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations,I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??
Find stocks with yields that exceed the market and stocks that, at the very least, follow the long-term market trend. However, you should get guidance from a financial advisor if you want to create a successful long-term plan
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio
It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sonya looks the part but i'd do my due diligence. I set up a call, thanks.
This is something I have been fighting. I hate how when we invest in things we don't get much out of it very quickly. Thankfully there is a new way to do it for those that know how!
We have a similar boon with property purchases in Australia. This all demonstrates how money is just a game. Play within the rules, and filter all the money out of the masses. This truely is a rich get richer n vice versa scenario
Nobody seems to mention that they need to pay interest on the loan which effectively negates all Tax savings and instead of paying the Tax man, you pay the same or more to the bank.
If interest doesn’t exceed the tax savings combined with the asset appreciation, then this works out better off. In most cases, asset appreciation + tax savings + the reality most interest payments are absorbed by another entity (like a company), this works quite well.
Yep. Pay more in interest than just paying the tax. Current investment loans are 7 or 8 % so you pay more borrowing than just paying the tax in less than 2 years.
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Jessica Lee Horst for the last five years or so, and her returns have been pretty much amazing.
I recently subbed to your channel and I hardly comment on YT, but these recent videos you posted are straight bangers with awesome value, clean edits w/ supplemental graphics, and actually provide use cases/numbers/tax codes for others to dig more into. Keep it up! I’m looking forward to catching up on your previous content & for the next video!
@@pauls064 everyone should do their own due diligence and consult with certified tax advisors before making huge financial decisions. But i generally think folks being more transparent about their finances, strategies and use cases is a net good. Do not take direct advice from the internet.
No, that’s not correct. Low interest rates and quantitative easing are designed to stimulate the economy and encourage spending and investment; they don’t cause inflation. Printing $7 trillion and distributing it freely is what drives inflation.
Yeah, the bubble popped in 2008, but the government stepped in, bailed everybody out, and said, "Don't worry, guys, we'll just stick it on the debt." At that point, the US wasn't $35 trillion in debt. The next time the bubble pops, there's a good chance you won't be able to stick it on the debt. There's a good chance the government will try to kick the can down the road one more time and the can won't budge. Do yourself a favour and plot a graph of median price houses versus median household income. If you want to get into the real estate business right now, go ahead, but you'll be picking pennies in front of a steamroller.
Works great until the market crashes, as in 2006-2008. I started in 1997 buying houses and I used other peoples money to make money(debt) then everything went south in real estate....38 houses I had at the time. took 8 years to dig out of that hole. Debt makes you weak. Now I follow Dave Ramsey plan. The freedom of being debt free outweighs any taxes I have to pay....Just my 2 cents.
Saying that you use debt to buy businesses, while in the same breath saying buying stocks is akin to gambling and should not be considered an asset, is kind of a wild position to take. Buying purchasing shares of a company is tantamount to buying a business in a lot of respects. To be clear, ALL investments are gambles to a certain extent. But look at it this way, though there is a chance that someone using your methods could certainly yield high returns if everything is executed flawlessly and you throw a pinch of luck in there, but it's unwise to say that by doing so you're taking less risk than investing in a PG, JNJ, MSFT, or some other flawlessly ran company. I'd argue that they're better at running a business than majority of your audience, and have been doing so for far longer.
“For whatever reasons, markets now exhibit far more casino-like behavior than they did when I was young” - Warren Buffett, annual letter You must have forgotten 2000, 2008 and 2020. With your confidence in these ‘flawless’ companies you should be pulling out some personal loans and buying more stocks. Without understanding how to read financial statements, quarterly or annual reports, I’m sorry, you’re straight gambling. Comparing that to me (and others) learning and becoming a real estate builder, developer, investor and business operator over the course of two decades are not the same thing. If you’re investing in individual stocks and you’re not actually studying the companies and diversifying outside of stocks, you’ve been lucky for a relatively short amount of time - Godspeed.
Sorry I believe the deduction is different. If you bought a home for 100,000 your yearly deduction should be calculated as 100,000/29.5 years = $3,389.83/yr ... So every year you are suppose to deduct $3,389.83 from your income.
Investing is not gambling, by definition. Yes you said "as close to", but this is where those whom have been given less financial education completely remove it as an option. This is doing more harm than good, I grew up around drinkers and gamblers all my life, and they all say the same (albeit twisted) thing, that investing is gambling. There is still risk involved, but you OWN and asset. Big difference.
I would say you pay a corporate tax (less then 45) on your income as a sole proprietor. But ya I get your point. There has to be a healthy profit margin there to battle all these obstacles. 300 percent return investments too, where do you find these? lol made it sound so simple.
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, our country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look her up and send her a message. You've truly motivated me. Thanks.
Doing this during a rising real estate cycle could work, but we are currently moving into a real estate crash in many markets, TX, FL etc. and you could get caught in a squeeze and lose your investment and have to eat the interest expense. There are no sure things in life, especially when our currency is losing purchasing power at over 30% per year, like right now.
It works across cycles if you play the long game. The key is having a long-term plan: as long as the property is a true asset (not a liability) and you can manage the loan servicing, you’ll ride through corrections. Think about the 2008 crash-if you bought at the peak in 2007 and held the property until today, would leveraging money then have been worth it? Absolutely.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family..
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@TylerMohn-g9l Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
Your "preference" is real-estate. Dividend stocks are absolutely assets that can be considered a safe stream of cash. I borrow to buy dividend aristocrat stocks and it's allowed me to create an income stream that will soon be larger than my employment income. Where I live, you can also deduct investment loan interest. And no no no, investing in stocks is NOT "gambling".. unless you are speculating on garbage companies.
I've yet to find one legitimate Can't video on building wealth that doesn't involve already being born on third base as step #1. Direct me to the video that starts out with you being born to working parents in the middle class America, working 50-60k a year job while paying for a mortgage under the thumb of the irs. The first step from there. Me and the other 99% of people who clicked on this vid would like to watch.
With a good investment plan that ensures steady income without any doubts I am prepared for a well organized retirement. I started investing in stocks 3 years ago and so far, I am making a good yield on my dividend.
Herman Jonas, a licensed FA has undoubtedly helped me make so much progress. He has guided me to identify key stocks, pinpointed strategic entry points, and provided risk assessments, ensuring that my decisions align with market dynamics for optimal returns.
I was unaware of the potential tax implications of investing. Jonas not only guided me through the process of selecting investments that would grow but also advised me on tax-efficient accounts, ensuring I was maximizing tax benefits. His help in tax loss harvesting during certain periods significantly reduced my tax burden and enhanced my net returns.
Wow this is such valuable information. I had always wondered why the Brrr method is such a benefit and utilized so much. Now I understand Robert K. This makes sense. Love it. I never understood why debt is good. Thank you so much for this video.
These strategies seem to spring up when housing is doing well. And even if housing is appreciating, states like California make it so you can lose your shirt to renters even in a good market. I own 3 houses in Southern California, I am not leveraged, I get my rental income from good people, raised 4 great kids l, and I sleep well at night. If you are the type of person that can live a somewhat chaotic life, then these strategies can be helpful, but do it when you're young and expect turmoil along the way. Side note: If you're interested in short term rentals like AIRBNB, get a unique, small, romantic (remember, wives make the decision on where to stay) place, not a party house with a pool a wild renters. I recently stayed in a very small but very nice place in Santa Barbara on the owners property. It was perfect for both owner and renter. Good luck! (remember 2008)
If an investor of leveraged short term rental property does not have enough money in case tenants trash the rental. Then the investor might not have enough cash flow to repair walls, doors, repaint, replace plumbing fixtures after a big party. The down time during repairs, can put the investor in a serious cash flow bind. To avoid foreclosure, the investor might sell damaged short term rental property for less than original purchase price. I don’t know…. Would the investor still owe the difference? Or can he declare bankruptcy? Again I don’t know. Anyone who is successful as a property investor is highly skilled and blessed with good luck. To avoid these possible problems, an investor should have considerable cash or liquid savings to smooth out possible future snags. Cash flow can be tricky Good luck
We are at a point when most of these taxes, tariffs, and fees aren't required to fund the government. With the advent of digital currency, having a 3~5% tax from each transaction will more than fund the US government. It would effectively tax the use of USD including offshore. This would eliminate the need for nearly all other federal taxes.
Glaring hole in this philosophy… the debt repayment is not a tax deduction. So, in order to pay off $100,000 in debt, you have to have made $100,000 that you paid taxes on.
Lowering your taxable income WILL affect what you personally are qualified to borrow in round two. This goes unmentioned in the video and depending how effective you are, may come as a massive shock when you look to finance future property regardless of your credit score.
Nah, not true. Lenders and banks are sorta smart - they understand when there's someone who owns multiple businesses, has several properties and a lot of cash, there's probably a good reason why he/she has a lower taxable income. That's why they'll add back in depreciation (it's a paper loss, not real) and they'll look at your business books. Never caused me issues before except when I only had a single W2 income and only 'hard' deductions.
@@KaiAndrew can happen and has. And could happen to others who get their otherwise “high” w-2 tax bracket whittled down to single digits for the first time. Kinda like finding out some of your investment property repairs and upgrades will end up on 25+ year depreciation schedule. It’s still the right move, just surprises the hell out of you the first time…
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
@@IbrahimIsabella-00 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY*
I borowed with a consumer credit @ fixed 2,8% here in EU and invested it in businesses (stocks) that compound. I didn't use some bank margin trading or whatever. A simple consumer credit, where th bank pays you effectively during periods of high Inflation. Properties are scam
'Investing in the stock market is risky and stocks shouldn't be considered assets' When your currency is not pegged to anything of value - yes it should Take a look at the risk adjusted yoy returns for the last 20-30 years for just the S&P. The game has changed; especially since 2008. Your Government has a license to print money, that means all assets inflate
Congratulations on your video "The Simple "Borrow Till You Die" Tax Strategy" inspirational thanks for sharing. Autobiography download you die to get credit, you die to pay it back. You are living on borrowed time with borrowed money. Pushing up Daisys. 💷💷💷
I guess you are in fact borrowing to buy the assets, but the clear differentiator here is the cost segregation. You almost breeze over the interest expense which is the benefit of borrowing. At some point as rates creep up it gets at least challenging, at most damning.
Sorta. I just locked in a 30 year fixed at 6.9%. My cash is in the bank is giving me 5.1%. Interest is tax deductible so it's almost a net zero to borrow (if you have the cash). Regardless of the cash situation, if you're actually investing I hope you're looking at investments that provide you a higher return than 6-7%, otherwise you're doing something wrong.
With all these deductions and having the home as a business, when you go to sell the property you'll have to deduct your sell price from your all the depreciation cost and if there is any left that's what you can pocket. This looks like a good opportunity for multifamily properties to run as a business but wouldn't it be better to gain the equity of the home and you can establish a trust for a alternative tax saving income?
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
'Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
@@youngandsuccessful22 Yes, I do have a better strategy. Work, live bellow your means, don't borrow money, buy stock, buy crypto, buy land, keep doing this every day, every month, every year until your body can no longer work. You'll have a good retirement.
Great video, but who really wants to pour so much time and effort into something as two-dimensional as money? There are easier and more effective ways to earn without the headaches and endless commitment. Many people suffer from greed, always chasing more when, in reality, you don’t need much to live comfortably. The world is what you make of it-everyone lives in their own reality and creates their own suffering. That’s why greed is one of the seven deadly sins. Warren Buffett one of the most successful investors does not mind paying taxes because making money is so easy for him. Good for thought. Give to Cesar what is Caesar’s.
Naked short selling? Remember when Greenspan said “I don’t find it concerning that there is more action on speculation upon a stock than there is revenue”?
@@notsure1135 speculation is gambling, long term investing in stocks is one of the safest things you could invest in especially because you can diversify
Look at stocks history. The elderly lost that gamble in 2008. That's why some can't afford to retire. It 100% a gamble. Nobody saw the recession was coming along with other historical rise and falls in stock market
The video is very interesting! Something I don't understand: I have USDT in my OKX wallet and I have the recovery phrase. 《pride》-《pole》-《obtain》-《together》-《second》-《when》-《future》-《mask》-《review》-《nature》-《potato》-《bulb》: How should I convert them into Bitcoin?
Let's see if I understand this: you apply depreciation on an appreciating asset? But that would increase your capital gains when you sell, compared to if you hadn't depreciated, right? But the idea is that it's up to your heirs so deal with that?
You forgot to mention tha real-estate properties needs a lot of maintenance work. If your roof is leaking then you can spend one year of incomes to fix it. In the meanwhile the bank knock at your door for the mortgage...
Nah. Your understanding of history is not accurate. The 2007-2008 financial crisis was primarily caused by ‘sub-prime’ mortgages, where predatory, commission-based lending targeted unqualified buyers. Many of these buyers had little to no income or poor credit, but they were still approved for loans, often with 0% down payments and interest-only adjustable-rate mortgages (ARMs). What I demonstrated in the video is a strategy that savvy investors and entrepreneurs have used for generations, including during and after 2008. The key difference is that we are qualified, understand how to underwrite assets properly, and have cash reserves and excellent credit. Misunderstanding the causes the biggest financial crash in the last 100 years is precisely why such mistakes risk being repeated.
Can someone explain how does borrow at high interest rates can make a living? The last example, if he cannot make enough during the year to cover interests and other living expenses, how the 550k deductible can be used? In order to pay the interest and other expenses, I am guessing he has to make 200k at least. What if he can not make that much during the year? What will happen?
What if you buy a long term rental property and you personally mow the lawn or you work on landscaping, wouldn’t you then qualify as putting in 100+ hours?
Don't forget the attorneys, property managers, creating & maintaining corporate entities, diligence to make sure all yearly sales tax and meeting notes are filed, banking, accounting, taking tenant phone calls, fixing problems, carrying insurance, ... Not for the lazy.
.sure let your family pay for your disaster nightmare fools acting rich is over
All that and also what do you do if it's a down market? Borrow till you die doesn't always work. There is significant risk. Also if you live in a tenant friendly state like CA or NY, you are really screwed if the tenants decide to just live there for free for a couple of years. Then you loose rent for a 1-2 years, destroyed property, legal fees. Make sure if you get into real estate renting you don't get stressed lol.
Beats working at Walmart, living paycheck-to-paycheck, with health problems, and no insurance.
@@ViceCoinif you are capable of executing this video's suggestions, then you are NOT choosing between working at Walmart and investing in real estate. It's a non-sensical comparison, and for those capable of generating extra income, choosing where you spend time makes a difference in your quality of life.
All of that ok. But deducting 100% of Air Stream? That's fishy.
This is exactly what "experts" were saying just before the GFC.
The problem is when the asset goes down and the so-called "return" disappears and the call comes from the bank.
The properties are sold and you still owe the difference and you end up on the street, literally. I watched this happen to multiple people.
Go for it. Pay this guy a fee!!!
Yup! It's just another marketing video🤑👹
exactly
'If' the asset goes down.
Yes, the concept of smart borrowing, tho if I have money to pay back the note when the bank calls, then you can borrow otherwise don't.
@@TheOne-3right. Like gambling. Line doesn’t always go up. The market can stay irrational longer than you can stay solvent. The only way this works is to be rich to begin with. It’s a risky proposition.
FYI as a Financial Planner I thought I would correct this - Capital Gains are not capped at 15-10%. There is the Net Investment Tax. The net investment income tax (NIIT) is a 3.8% tax that kicks in if you have investment income and your income exceeds $200,000 for single filers, $250,000 for those married filing jointly or $125,000 for those married filing separately.
Debt is LEVERAGE, and getting caught on the wrong side of a market downturn can easily wipe you out. The quirk of leveraged traditional home mortgages is that borrowers don't get wiped out by 'margin calls' the moment they're under water.
A lot of people had this very thing happen during the 2008 housing crash using this very strategy he's pushing.
I was one of those people
Did you learn and grow back after that?@@smithjohn3080
How long will it take to turn $500 K into $1 million ?,thinking of going into stock !
The time it takes to turn $500,000 into $1 million depends on your investment strategy and the rate of return. . If you put it in a high-yield savings account with an interest rate of 4%, you'd earn $100,000 per month with a good financier planner. However, if you invest it in the stock market, which has historically returned about 7% annually on average, you could potentially make around $250,000 per month still depending on your market and risk taking strategy. So you need a good investment planner to earn well for a short period of time.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
Taking break may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. A licensed CFA whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help...
Oh please I’d love that. Thanks!
*MONICA AYAKO VOS*
I am impressed with your update with these strategies, I am looking for tax efficient way to rebalance my $800k portfolio without triggering capital gain tax. what asset location strategies should i use?
The best strategy depends on your financial situation, account types, tax bracket, and investment goals. Consult a financial advisor or tax professional to tailor these strategies for maximum tax efficiency.
My advisor helped me rebalance my huge portfolio without triggering capital gains taxes by using tax-advantaged accounts and reallocating dividends and new contributions. They also recommended tax-loss harvesting and strategies to stay within my tax bracket. Q2 taxable divs this year was $17,388 thanks to her guidance. I maintained my desired asset allocation while minimising taxes.
Real estate prices exploded, interest rates exploded, but my wage the same, i'm screwed !! who is the advisor guiding you please? I could really use some help right now
“Melissa Terri Swayne” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
I just looked up this person out of curiosity, and surprisingly she seems really proficient. I thought this was just some overrated BS, I appreciate this.
Honestly, this situation makes me feel uneasy, particularly with the Fed's decision to cut interest rates by 50 bps. It indicates deeper economic concerns, and I'm uncertain about my $130K investment strategy, especially with the possibility of not just a recession but potentially a depression.
Just get a financial planner straight up! personally, I would invest in etf and also love investing in individual stocks. yes it’s riskier but I'm comfortable in my financial environment.
I agree. Exactly why I now work with one. A lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
‘’Aileen Gertrude Tippy’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for the lead. I searched Aileen up and her webpage popped up, and I have sent her an email. I hope she gets back to me soon. Cheers!
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolioportfolio
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
What caught my eye was the video title ""Borrow til you Die". For some reason, I thought about what's happening with America and our national debt.
Obviously not what you had in mind
You are over thinking it.
Problem is that the US government is borrowing not so much to invest but instead to spend beyond its means. Recipe for disaster.
Hey man i thought the same thing. Screw those other guys. Lol
Haha, I thought same thing.
As an ex IRS tax compliance officer, I would advise, proceeding with extreme caution
Any advice on what steps to take?
Hire a good tax advisor?
I know a few people who pay the IRS zero taxes as the IRS laws themselves say it can only collect taxes from citizens who are living abroad.
For 10 years they ran that full page ad in the New York Times if anyone could show the tax law they would give them 100k dollars and even IRS agents can't find the law. It's all in the documentary "America: Freedom to Facism" - I think Aaron Russo passed away but why didn't you collect the 100k dollars when it was being offered to you?
Answer the man you, show us where the tax law is.!
What he's explaining is legal, and the wealthy use this strategy ten fold to avoid taxes and maximize their earnings.
Bullish or bearish, AI stocks will still dominate 2024, even beyond. Why I prefer NVIDIA is that they are better placed to maintain long-term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or seek advice from certified market strategists.
@@JuneTalley No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit a 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
@@LucaMurgia-j7b Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
@@ChristophersHoyts MARGARET MOLLI ALVEY is who I work with and she is a hot topic even among financial elitists. Just browse, you’ll find her, thank me later.
@@LucaMurgia-j7b I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get.
This ignores three things, 1) the risk involved in real estate (yes, prices can go down just like stock prices), 2) the incredible amount of time it requires, 3) the skill that it requires. I prefer a mix of stocks, long term managed real estate, and gold. Minimize your time spent and minimize your risk.
Absolutely, those options can work as well, but the returns are typically lower. It really depends on factors like age, risk tolerance, and financial goals. I understand that long-term real estate typically grows between 5-10% per year, and stocks are in a similar range. I don’t have extensive experience with precious metals, so I can’t speak to that. However, the properties I specialize in target returns of 100-1000%. While there is time and money required upfront, the workload significantly decreases once the investment is stabilized and running.
@@KaiAndrew Thanks for the reply. What I mean is that anyone can invest in stocks and buy physical gold (always a small but important part of my portfolio), and most people could do long term RE without too much effort as long as there are good managers in the location, but what you do is profitable, risky, and not easy. If it were easy, more people would do it.
Physical gold is not the wisest option. We sell it because people don't understand markets and have an nostalgia and feeling of safety, when each time you buy an gold coin you pay premium 3-6% each time you buy it from mill or anyone else. But won't get back this few precents, because when you sell, you sell on gold market price.
@@Exorcistt94 It has nothing to do with nostalgia. Physical gold has more stable value than any fiat currency. It doesn't earn money, so it should be a small part of any portfolio, but it is a safe part. Buy bars, not coins. The buy/sell spread is more like 2%, and the price has gone up about 65% from my avg purchase price, so...
@@KaiAndrew You are in fact lying about your numbers.
Stating stock returns are in the 5-10% range.
Then claiming your real estate is making a 1000% by only counting the amount invested not the value if the entire value of the asset used.
You're whole lie about not paying and borrowing until you die is laughable. I know way more UHNW individuals than you and none of them "borrow till they die"
I'm a contractor, investor, spec builder and landlord. I javelin access to billions, yes billions, in capital. Don't you think people like me would be doing what he claims will make you rich?
More importantly is if it was real the people that offer to lend me billions would be using their billions to do what he claims will make you rich if it were real.
Now he'll claim its a special small market that's to small for billionaires to spend time on.
My response:
Billionaires train there children in how to manage and invest money at a young age. If what this guy was selling was real rich people would use it to train their kids.
This is all B.S. when you hear anything that promises you more than 10% a year over long term timee horizons ask yourself why pwople with billions aren't funding the salesperson.
If these numbers were real you wouldn't be selling it to people on youtube.
You'd walk into a room with a trillion dollars of investable funds and people would fight to invest with you.
Love how you used the high range of the tax code and the low range of capital gains. RESPECT
I will be forever grateful to you Mrs.Susie Richardson. You have changed my entire life and I will continue to let the world know your name. You saved me from a huge financial debt with the little I had. Thank you Mrs.Susie Richardson.
I am surprised that you mention Susie Richardson here. I recognized this woman at a conference in 2018 and we met afterwards.
I want to tell you today that Mrs. Susie Richardson was mentioned here. A family friend recommended her to me when I was living in Italy during the Corona crisis. She is amazing.
How did you do that please? I am a beginner in investing. Can you guide me?
SHE'S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME
@ExpertSusie💯
theory is theory, if you face a 'professional' tenant or bad tenant or your job (main income) is gone, everything is done.
I am impressed with your update with these strategies, I am looking for tax efficient way to rebalance my $800k portfolio without triggering capital gain tax. what asset location strategies should i use?
The best strategy depends on your financial situation, account types, tax bracket, and investment goals. Consult a financial advisor or tax professional to tailor these strategies for maximum tax efficiency.
Great video. Using the money, you get to make more money. Like I am doing with my multifamily apartments.
I'm impressed a SSSSSSSSSSCCCCCCCCCCCAMBUG SSSCCCCCCCCCCAAAAAAAAAAAAMMMMMMMMMMMMMEEEEEEEEEEEEEEEEEEERRRRRRRRRRRRRRRRRRRRRRRRR LIKE YOU IS IMPRESSED.
Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I currently have 75% SCHD and 25% ROTH IRA. Brokerage account is 40% VOO, 35% SCHD, 25% XLK. Combine balance ~$3.3m Less than 3 years until retirement.... I have about 400k in cash. My portfolio has yielded far more than I expected for my retirement. Kudos to my advisor.
Real estate prices exploded, interest rates exploded, but my wage the same, i'm screwed !! who is the advisor guiding you please? I could really use some help right now
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance, Long story short, its been 2years now and I’ve gained over a million dollars following guidance from my investment adviser.
This is huge! think you can point me towards the direction of your advisor? been looking at advisory management myself.. seeking ways to invest and make more money with the uncertainty in the economy.
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
A young person with zero credit, no assets and parents who are either unwilling or unable to cosign are going to struggle to find a bank willing to loan them any amount of money without collateral. Must be nice to have a trust fund to play with.
Sales pitch at 5:00
The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations,I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??
Find stocks with yields that exceed the market and stocks that, at the very least, follow the long-term market trend. However, you should get guidance from a financial advisor if you want to create a successful long-term plan
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio
Hello, how did you handle it? I believe I require a pro after reading these comments
"DIANA CASTEEL LYNCH" is the manager I use. Just research the name. You'd find necessary details to set up an appointment.
It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sonya looks the part but i'd do my due diligence. I set up a call, thanks.
Wow.....simplicity at its highest! Thanks for breaking it down into simple terms. I will be calling you soon.
This is something I have been fighting. I hate how when we invest in things we don't get much out of it very quickly. Thankfully there is a new way to do it for those that know how!
We have a similar boon with property purchases in Australia.
This all demonstrates how money is just a game. Play within the rules, and filter all the money out of the masses.
This truely is a rich get richer n vice versa scenario
I don't understand how you were able to deduct the entire price of the airstream. I love this idea, just hoping for clarity. Thanks!
Nobody seems to mention that they need to pay interest on the loan which effectively negates all Tax savings and instead of paying the Tax man, you pay the same or more to the bank.
Id like to see this objection addressed
If interest doesn’t exceed the tax savings combined with the asset appreciation, then this works out better off. In most cases, asset appreciation + tax savings + the reality most interest payments are absorbed by another entity (like a company), this works quite well.
@@johnanon658he literally talked about it at 2:47 interest… you didn’t watch the video?
He literally talks about this in the first few minutes of the video
Yep. Pay more in interest than just paying the tax. Current investment loans are 7 or 8 % so you pay more borrowing than just paying the tax in less than 2 years.
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Jessica Lee Horst for the last five years or so, and her returns have been pretty much amazing.
I located her, sent her an email, and scheduled a call; hopefully, she will reply because I want to start the new year off financially strong.
I recently subbed to your channel and I hardly comment on YT, but these recent videos you posted are straight bangers with awesome value, clean edits w/ supplemental graphics, and actually provide use cases/numbers/tax codes for others to dig more into. Keep it up! I’m looking forward to catching up on your previous content & for the next video!
Thank you, sir. That means a lot. :)
Except if you listen to him, you’ll be bankrupt and have bad credit.
@@pauls064 everyone should do their own due diligence and consult with certified tax advisors before making huge financial decisions. But i generally think folks being more transparent about their finances, strategies and use cases is a net good. Do not take direct advice from the internet.
When market goes down, you'll find yourself on a street, literally. Now go and pay this guy for his insights...
you just perfectly explained how low interest rate and quantitative easing sends inflation and wealth inequality sky high
No, that’s not correct. Low interest rates and quantitative easing are designed to stimulate the economy and encourage spending and investment; they don’t cause inflation. Printing $7 trillion and distributing it freely is what drives inflation.
@@KaiAndrew Please explain the difference between Quantitative Easing and "printing $7 trillion".
Flip side is RE market values and rent tanks and down you go.
Do everyone a favor and plot those markets values over the last 70 years.
Yeah, the bubble popped in 2008, but the government stepped in, bailed everybody out, and said, "Don't worry, guys, we'll just stick it on the debt." At that point, the US wasn't $35 trillion in debt. The next time the bubble pops, there's a good chance you won't be able to stick it on the debt. There's a good chance the government will try to kick the can down the road one more time and the can won't budge. Do yourself a favour and plot a graph of median price houses versus median household income. If you want to get into the real estate business right now, go ahead, but you'll be picking pennies in front of a steamroller.
Rent never goes down. Ever
@@american5564 yes it does. And you could end up with no one choosing to rent from you .
@@firebirdlover4460 😂🤣👍🏻
Works great until the market crashes, as in 2006-2008. I started in 1997 buying houses and I used other peoples money to make money(debt) then everything went south in real estate....38 houses I had at the time. took 8 years to dig out of that hole. Debt makes you weak. Now I follow Dave Ramsey plan. The freedom of being debt free outweighs any taxes I have to pay....Just my 2 cents.
You need income to pay the loan. So is there not tax on the income? Or you saying get another loan to pay off the first using assets as collateral?
Saying that you use debt to buy businesses, while in the same breath saying buying stocks is akin to gambling and should not be considered an asset, is kind of a wild position to take. Buying purchasing shares of a company is tantamount to buying a business in a lot of respects. To be clear, ALL investments are gambles to a certain extent. But look at it this way, though there is a chance that someone using your methods could certainly yield high returns if everything is executed flawlessly and you throw a pinch of luck in there, but it's unwise to say that by doing so you're taking less risk than investing in a PG, JNJ, MSFT, or some other flawlessly ran company. I'd argue that they're better at running a business than majority of your audience, and have been doing so for far longer.
“For whatever reasons, markets now exhibit far more casino-like behavior than they did when I was young” - Warren Buffett, annual letter
You must have forgotten 2000, 2008 and 2020. With your confidence in these ‘flawless’ companies you should be pulling out some personal loans and buying more stocks.
Without understanding how to read financial statements, quarterly or annual reports, I’m sorry, you’re straight gambling. Comparing that to me (and others) learning and becoming a real estate builder, developer, investor and business operator over the course of two decades are not the same thing.
If you’re investing in individual stocks and you’re not actually studying the companies and diversifying outside of stocks, you’ve been lucky for a relatively short amount of time - Godspeed.
flawlessly _run_
Sorry I believe the deduction is different. If you bought a home for 100,000 your yearly deduction should be calculated as 100,000/29.5 years = $3,389.83/yr ... So every year you are suppose to deduct $3,389.83 from your income.
What if you are using accelerated depreciation and spreading a portion of that over 5-7 years instead of 29.5?
@BiOmniPolar sorry my mistake it's suppose to be 27.5 years.. I don't think IRS will allow you to divide it by 5-7 years.
Key is “die”. If you don’t die, you still owe recapture taxes albeit at much lower cap gains. Didn’t know about the 100 rule though. Helpful
Investing is not gambling, by definition. Yes you said "as close to", but this is where those whom have been given less financial education completely remove it as an option. This is doing more harm than good, I grew up around drinkers and gamblers all my life, and they all say the same (albeit twisted) thing, that investing is gambling. There is still risk involved, but you OWN and asset. Big difference.
We pay 20% interest on debt. Then you pay it off with income that's taxed at up to 45%.
I am novice here. Are you talking about income tax returns?
I would say you pay a corporate tax (less then 45) on your income as a sole proprietor. But ya I get your point. There has to be a healthy profit margin there to battle all these obstacles. 300 percent return investments too, where do you find these? lol made it sound so simple.
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, our country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Annette Marie Holt is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look her up and send her a message. You've truly motivated me. Thanks.
Doing this during a rising real estate cycle could work, but we are currently moving into a real estate crash in many markets, TX, FL etc. and you could get caught in a squeeze and lose your investment and have to eat the interest expense. There are no sure things in life, especially when our currency is losing purchasing power at over 30% per year, like right now.
It works across cycles if you play the long game. The key is having a long-term plan: as long as the property is a true asset (not a liability) and you can manage the loan servicing, you’ll ride through corrections. Think about the 2008 crash-if you bought at the peak in 2007 and held the property until today, would leveraging money then have been worth it? Absolutely.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family..
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@TylerMohn-g9l Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@@SamsonKempston Oh please I’d love that. Thanks!
@@TylerMohn-g9l *MARGARET MOLLI ALVEY*
Lookup with her name on the webpage.
Great video,thanks!
Wow you're doing it! Congrats!
Your "preference" is real-estate. Dividend stocks are absolutely assets that can be considered a safe stream of cash. I borrow to buy dividend aristocrat stocks and it's allowed me to create an income stream that will soon be larger than my employment income. Where I live, you can also deduct investment loan interest. And no no no, investing in stocks is NOT "gambling".. unless you are speculating on garbage companies.
I've yet to find one legitimate Can't video on building wealth that doesn't involve already being born on third base as step #1.
Direct me to the video that starts out with you being born to working parents in the middle class America, working 50-60k a year job while paying for a mortgage under the thumb of the irs. The first step from there. Me and the other 99% of people who clicked on this vid would like to watch.
Good for you buddy. Keep it up.
Dollars are a liability, debt is an asset. We live in a debt based economy.
get educated before opening your mouth
Debt is only an Asset for the Lender.
With a good investment plan that ensures steady income without any doubts I am prepared for a well organized retirement. I started investing in stocks 3 years ago and so far, I am making a good yield on my dividend.
Herman Jonas, a licensed FA has undoubtedly helped me make so much progress. He has guided me to identify key stocks, pinpointed strategic entry points, and provided risk assessments, ensuring that my decisions align with market dynamics for optimal returns.
To me, investing is not worth it and I know that's the same mindset holding me back from taking a step forward in my finances. It’s all gambling.
Hermanw jonas that’s his gmail okay
I was unaware of the potential tax implications of investing. Jonas not only guided me through the process of selecting investments that would grow but also advised me on tax-efficient accounts, ensuring I was maximizing tax benefits. His help in tax loss harvesting during certain periods significantly reduced my tax burden and enhanced my net returns.
That's so brilliant. Can you share what the 3x asset is? 33% simple annual return is outperforming market. What are those assets?
Wow this is such valuable information. I had always wondered why the Brrr method is such a benefit and utilized so much. Now I understand Robert K. This makes sense. Love it. I never understood why debt is good. Thank you so much for this video.
These strategies seem to spring up when housing is doing well. And even if housing is appreciating, states like California make it so you can lose your shirt to renters even in a good market. I own 3 houses in Southern California, I am not leveraged, I get my rental income from good people, raised 4 great kids l, and I sleep well at night. If you are the type of person that can live a somewhat chaotic life, then these strategies can be helpful, but do it when you're young and expect turmoil along the way.
Side note: If you're interested in short term rentals like AIRBNB, get a unique, small, romantic (remember, wives make the decision on where to stay) place, not a party house with a pool a wild renters. I recently stayed in a very small but very nice place in Santa Barbara on the owners property. It was perfect for both owner and renter.
Good luck!
(remember 2008)
YOU GOTTA PAY IT BACK!
Someone needs to remind this guy short term rental opportunity is long gone
Quit hating
Not gone but not as easy as people think either. Worth doing but lots of work to make it a unique enough property to be a good performer
@@CarlosJimenez-jh5xzhe’s not hating, he’s right, and many of Kai’s videos are just to sell his course and have very misleading info
Up here in canada i think the rules are similar and different at the same time, they just skyrocket capital gain taxation
If an investor of leveraged short term rental property does not have enough money in case tenants trash the rental. Then the investor might not have enough cash flow to repair walls, doors, repaint, replace plumbing fixtures after a big party.
The down time during repairs, can put the investor in a serious cash flow bind.
To avoid foreclosure, the investor might sell damaged short term rental property for less than original purchase price.
I don’t know….
Would the investor still owe the difference? Or can he declare bankruptcy?
Again I don’t know.
Anyone who is successful as a property investor is highly skilled and blessed with good luck.
To avoid these possible problems, an investor should have considerable cash or liquid savings to smooth out possible future snags.
Cash flow can be tricky
Good luck
Thank you for the video and great advice. 🤙🏽
I thought you were going to talk about how borrowing money can help you avoid taxes... But you actually just talked about depreciation
We are at a point when most of these taxes, tariffs, and fees aren't required to fund the government. With the advent of digital currency, having a 3~5% tax from each transaction will more than fund the US government. It would effectively tax the use of USD including offshore. This would eliminate the need for nearly all other federal taxes.
Glaring hole in this philosophy… the debt repayment is not a tax deduction. So, in order to pay off $100,000 in debt, you have to have made $100,000 that you paid taxes on.
Lowering your taxable income WILL affect what you personally are qualified to borrow in round two. This goes unmentioned in the video and depending how effective you are, may come as a massive shock when you look to finance future property regardless of your credit score.
Nah, not true. Lenders and banks are sorta smart - they understand when there's someone who owns multiple businesses, has several properties and a lot of cash, there's probably a good reason why he/she has a lower taxable income. That's why they'll add back in depreciation (it's a paper loss, not real) and they'll look at your business books. Never caused me issues before except when I only had a single W2 income and only 'hard' deductions.
@@KaiAndrew can happen and has. And could happen to others who get their otherwise “high” w-2 tax bracket whittled down to single digits for the first time.
Kinda like finding out some of your investment property repairs and upgrades will end up on 25+ year depreciation schedule. It’s still the right move, just surprises the hell out of you the first time…
Not if one uses DSCR financing . . .
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
@@IbrahimIsabella-00 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY*
@@ЕленаФирсова-ц6м Oh please I’d love that. Thanks!
*MARGARET MOLLI ALVEY*
Lookup with her name on the webpage.
Bros just giving out gems for free... I had to pay for some of this info
This guy makes used car salesmen look respectable.
Bingo!
In what way? Sharing a legit tax strategy used by millions or was it me plugging a legit accounting service on my channel...😘
@@KaiAndrew This strategy is new to people. The majority only get tax money from the government by overpaying their estimated tax on their paycheck.
😆
I agree. Trouble is my brother in law has lots in saving but can't see to invest.
In my experience, borrowing money against your home is the best strategy. You can use it and having tax write off as well. 🙂
Question! What was the reason for 5% down only for the home purchase? Do you have PMI and high monthly mortgage payments?
I borowed with a consumer credit @ fixed 2,8% here in EU and invested it in businesses (stocks) that compound. I didn't use some bank margin trading or whatever. A simple consumer credit, where th bank pays you effectively during periods of high Inflation. Properties are scam
'Investing in the stock market is risky and stocks shouldn't be considered assets'
When your currency is not pegged to anything of value - yes it should
Take a look at the risk adjusted yoy returns for the last 20-30 years for just the S&P. The game has changed; especially since 2008. Your Government has a license to print money, that means all assets inflate
Congratulations on your video "The Simple "Borrow Till You Die" Tax Strategy" inspirational thanks for sharing. Autobiography download you die to get credit, you die to pay it back. You are living on borrowed time with borrowed money. Pushing up Daisys. 💷💷💷
I guess you are in fact borrowing to buy the assets, but the clear differentiator here is the cost segregation. You almost breeze over the interest expense which is the benefit of borrowing. At some point as rates creep up it gets at least challenging, at most damning.
Sorta. I just locked in a 30 year fixed at 6.9%. My cash is in the bank is giving me 5.1%. Interest is tax deductible so it's almost a net zero to borrow (if you have the cash). Regardless of the cash situation, if you're actually investing I hope you're looking at investments that provide you a higher return than 6-7%, otherwise you're doing something wrong.
5.1 for now it will eventually get lower again though.
@@KaiAndrew
That was the cost of a hard money loan, just a couple years ago
With all these deductions and having the home as a business, when you go to sell the property you'll have to deduct your sell price from your all the depreciation cost and if there is any left that's what you can pocket. This looks like a good opportunity for multifamily properties to run as a business but wouldn't it be better to gain the equity of the home and you can establish a trust for a alternative tax saving income?
This is a very well-known investment and tax savings strategy. The question is wherher it's right for you.
So if I buy these overinflated rental properties do you pinky swear promise this tax benefit will make up for my lost equity?
Real estate is EXTREMELY illiquid compared to stocks and easily more speculative in many cases.
It's fundamentally the same strategy used by most corporations.
This works great as long as your assets continue to increase and rates remain low. Good luck
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
'Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Yo, leveraged income! Yeah baby, I've got lots of credit card "leveraged income". Good shiz man. I'd be doing what you doing except I got no money.
I’m watch this 10 more times
Why? this is just stupid advice and stupid marketing scam.
@@jonathansaucedo1924 I guessing u have a better strategy? If so I honestly want to hear it
@@youngandsuccessful22 Yes, I do have a better strategy. Work, live bellow your means, don't borrow money, buy stock, buy crypto, buy land, keep doing this every day, every month, every year until your body can no longer work. You'll have a good retirement.
Thats when you have good credit to borrow money from bank to begin with
Very clever!
Love that house!
Great video, but who really wants to pour so much time and effort into something as two-dimensional as money? There are easier and more effective ways to earn without the headaches and endless commitment. Many people suffer from greed, always chasing more when, in reality, you don’t need much to live comfortably. The world is what you make of it-everyone lives in their own reality and creates their own suffering. That’s why greed is one of the seven deadly sins. Warren Buffett one of the most successful investors does not mind paying taxes because making money is so easy for him. Good for thought. Give to Cesar what is Caesar’s.
Sort terms rentals are driving rents to unaffordable highs contributing to the housing crisis we’re experiencing.
Saying stocks are as close to gambling as possible is crazy
Naked short selling? Remember when Greenspan said “I don’t find it concerning that there is more action on speculation upon a stock than there is revenue”?
@@notsure1135 speculation is gambling, long term investing in stocks is one of the safest things you could invest in especially because you can diversify
Not really. It’s all gambling to a degree
Look at stocks history. The elderly lost that gamble in 2008. That's why some can't afford to retire. It 100% a gamble. Nobody saw the recession was coming along with other historical rise and falls in stock market
Yes, it is a gambling if you day trade stocks.
Ooooh 3x investments, yes so simple
The video is very interesting! Something I don't understand: I have USDT in my OKX wallet and I have the recovery phrase. 《pride》-《pole》-《obtain》-《together》-《second》-《when》-《future》-《mask》-《review》-《nature》-《potato》-《bulb》: How should I convert them into Bitcoin?
Let's see if I understand this: you apply depreciation on an appreciating asset? But that would increase your capital gains when you sell, compared to if you hadn't depreciated, right? But the idea is that it's up to your heirs so deal with that?
You forgot to mention tha real-estate properties needs a lot of maintenance work.
If your roof is leaking then you can spend one year of incomes to fix it. In the meanwhile the bank knock at your door for the mortgage...
That’s like saying, ‘Don’t start a business because you’ll have to manage customers and handle payroll…
Real estate is YOLOing on margin for most people. I have no problem with YOLOing.
Explain the difference between paying taxes and paying interest.
Especially when it is amortized with most of the payment going to interest at the first half of the loan period.
The second thing people have to learn right after how to get rich, is how to stay rich. Dodging taxes (legally that is) is the biggest part of it.
My question is how did you come up with the initial down payment on the rental house
Dropping bombs like always! Looking forward to working with you and the team next year!
When someone asks you "How did the 08 housing crash happen? How did people get so under water?", send them this video.
Nah. Your understanding of history is not accurate. The 2007-2008 financial crisis was primarily caused by ‘sub-prime’ mortgages, where predatory, commission-based lending targeted unqualified buyers. Many of these buyers had little to no income or poor credit, but they were still approved for loans, often with 0% down payments and interest-only adjustable-rate mortgages (ARMs).
What I demonstrated in the video is a strategy that savvy investors and entrepreneurs have used for generations, including during and after 2008. The key difference is that we are qualified, understand how to underwrite assets properly, and have cash reserves and excellent credit.
Misunderstanding the causes the biggest financial crash in the last 100 years is precisely why such mistakes risk being repeated.
Does this work for student loans?
Can someone explain how does borrow at high interest rates can make a living? The last example, if he cannot make enough during the year to cover interests and other living expenses, how the 550k deductible can be used? In order to pay the interest and other expenses, I am guessing he has to make 200k at least. What if he can not make that much during the year? What will happen?
Off topic, but have you stayed in that earth sheltered home? I’m curious to know if it is as energy efficient as people claim.
Okay question one: is it that easy to borrow gigantic sums of money??
What if you buy a long term rental property and you personally mow the lawn or you work on landscaping, wouldn’t you then qualify as putting in 100+ hours?
Great strategy
super
Interesting how risk assessment is completely ommitted from the debt strategy.....