How to best attain wealth?

[ickyrica]

Just got a Saturday gig with a contractor to learn the skills. I'm hoping to buy my first flip early next year.

That's a perfect way to gain more knowledge. I'm planning on doing some labor for a friend that has a legit metal shop. Any and everything metal. Maybe a Saturday here and there just to gain some more real world knowledge. I'm hoping it comes in handy when I'm slowing down in life. Plan on spending a bunch of time doing frame off resto shit.

 

[Safety First]

Who?

Go here. The guys name is bluerun
Steroid-forums

 

[Brandaddy]

I flip houses. A guy on this forum actually works for me. Lol. It's actually pretty easy to get into, pretty low risk if you do it right, and can be very profitable. I actually cash out refinance the properties when I'm done and hold them as rentals. I can typically pull out an additional $10,000 above what I stuck in, and still net cash flow $400/door. The reason I like real estate and flipping houses to hold as rentals is because you can make a business out of the house flipping giving you a source of earned income while simultaneously building your passive income allowing you to get things like fancy trucks and not feel bad about it because your passive income pays the bills.

 

[Bluepenguin1019]

Live frugally ; save all excess money and buy used on most items . Eat more meals at home (learn to cook) and drive a economical (used) car/truck . Dont go to bars and dont gamble . Do not develop an expensive habit like drugs or drinking (or HGH) . Stay away from greedy & needy women that are looking for the best of everything (that you pay for) Learn to save money , not spend it . Theres more....

This right here. I make fairly decent money (50k a year) and I have no problem buying used stuff (Facebook marketplace for electronics, going to goodwill for work clothes, junk yard for car parts, etc). I’ll get clothes from AE And Aero when there’s a massive sale or ill hit the clearance section. My fiancé is the same way with spending money. We’ll go out to eat or get take out once or twice a month depending on our schedules and even then, we utilize coupons or will take advantage of whatever deal is going on.

 

[Uglyrichie]

Ickyrica ornate fences got a buddy who does it on the side and pulls good cash from it

 

[Big_paul]

Inherit it ... by far the best way to become amass serious wealth
It last the longest ( from generation to generation) and managed well continues to grow. Occasional examples of miss management but the majority of super rich have got rich this way

Saving that ... get lucky ... there are millions of people who have great ideas , work super hard but make only moderate progress. The self made super rich tend to also have had a huge slice of luck ( golden triangle of right place / right time / right idea) that propelled them forward.

My penultimate suggestion is nepotism. A large slice of really high achievers have got there because they came from a certain family , went to a certain school or their dad is a member of a certain golf club. The chances of the average joe - irrespective of how intelligent he / she is of getting to the board of a 500 company by the time they are 35 without nepotism helping them along the way is slim . It does happen but it’s by far the exception not the rule.

And finally marry into wealth ... job done !

Marry money. Shit i don't sweat money anymore.

 

[Uglyrichie]

Sugar momma my wife makes way more than me but then again she takes all my money and won't share

 

[NovaFlex]

Real estate. Working on buying my third house right now (I’m 31). Rentals is the most time-proven method of gathering wealth.

 

[balco]

Looks like the Robin hood app is a good way to invest in stocks. A couple I'm interested in are the aurora cannabis stock and Amazon.

Stick to blue Chip stocks, you are almost guaranteed to make money given you have patience.

 

[Brandaddy]

Real estate. Working on buying my third house right now (I’m 31). Rentals is the most time-proven method of gathering wealth.

Oh fuck yeah. I buy 2% deals where I'm all in at 70% or less of the arv in emerging markets. You're almost guaranteed easy net worth gains from steady appreciation, you can refi all your money out and reap loan paydown benefits from your tenants. Plus, since it's a 2% property it cash flows all fucking day.

 

[rugerjitsu]

Oh fuck yeah. I buy 2% deals where I'm all in at 70% or less of the arv in emerging markets. You're almost guaranteed easy net worth gains from steady appreciation, you can refi all your money out and reap loan paydown benefits from your tenants. Plus, since it's a 2% property it cash flows all fucking day.

what's a 2% deal?

 

[gr8whitetrukker]

The term wealthy can mean so many things to different groups of ppl. In general i think "wealthy" starts at the 24% tax bracket. But income can mean nothing if your living smothered in debt. In rural TN 75k/yr is outstanding and you would be considered quite wealthy considering the avg income in the state. 75k/yr in the DFW or LA is pretty avg or should i say attainable? The facts are the avg person in America makes 32k per yr according to the IRS. I wouldnt call that wealthy would you? Nor would i consider twice that wealthy. Not here. Not in America. In most countries youd be far wealthier than any living creature at that wage. Here in America living without debt and some where in that 24% bracket is the entry way to wealth.

 

[Eman]

Get a Roth IRA for personal savings. Get a job with a 401k and at least contribute up to the max the company matches. The more you SAVE now, the more you earn by retirement. And for god sakes leave your savings alone. Don't withdraw early

This.

I manage a 401k program at my company. We had a different retirement option until we rolled into the 401k. It is beyond my comprehension how some of these guys sleep at night - quite a few have borrowed significant amounts out of their account. They all sat through the enrollment meeting and I'm pretty sure they only took one thing away from it - that you can borrow out of it but you have to pay it back. One guy has spent all of it, plus declared bankruptcy - this is a guy that makes 6 figures. I've no clue what he's spent it on. Every few weeks, someone else wants to borrow.

The nice thing is that when you pay yourself back, you pay yourself the interest. It would be a perfect way to borrow money if it weren't for the fact that we'll all want to retire someday.

How to get wealthy? Retain as much money as you can, the obtaining part depends on you.

 

[ickyrica]

It is beyond my comprehension how some of these guys sleep at night

in an extreme case, you gotta do what you gotta do but it's clearly not advisable. I mean, better than a loan shark

 

[Logan44551]

This.

I manage a 401k program at my company. We had a different retirement option until we rolled into the 401k. It is beyond my comprehension how some of these guys sleep at night - quite a few have borrowed significant amounts out of their account. They all sat through the enrollment meeting and I'm pretty sure they only took one thing away from it - that you can borrow out of it but you have to pay it back. One guy has spent all of it, plus declared bankruptcy - this is a guy that makes 6 figures. I've no clue what he's spent it on. Every few weeks, someone else wants to borrow.

The nice thing is that when you pay yourself back, you pay yourself the interest. It would be a perfect way to borrow money if it weren't for the fact that we'll all want to retire someday.

How to get wealthy? Retain as much money as you can, the obtaining part depends on you.

I was talking to one guy at the union hall who has borrowed to buy a new car twice. Once for himself and once for the wife. Paid it back with interest both times. Seems like a cool alternative to a traditional loan, given you aren't close to retirement age. I don't have any plans of borrowing against mine. I am shocked how fast it adds up. Now I need to start socking away in a savings account as well

 

[ickyrica]

Now I need to start socking away in a savings account as well

this tactic is falling off the "traditional" portion of life. Retirement is not synonymous with rainy day. Good move.

 

[Eman]

in an extreme case, you gotta do what you gotta do but it's clearly not advisable. I mean, better than a loan shark

That's almost exactly what the financial officer said during the enrollment meeting... And it's true, shit happens and you have to deal with it. Far as I can tell, a lot of the guys I see borrowing out of it are just using it as a piggy bank. Interest rates aren't really too bad either... But I'm not really sure what a personal loan goes for in interest.

Ultimately, it's just sad for me to see it. I have the option to utilize it for buying a home but there's just not really a scenario where that makes financial sense.

 

[gr8whitetrukker]

This.

I manage a 401k program at my company. We had a different retirement option until we rolled into the 401k. It is beyond my comprehension how some of these guys sleep at night - quite a few have borrowed significant amounts out of their account. They all sat through the enrollment meeting and I'm pretty sure they only took one thing away from it - that you can borrow out of it but you have to pay it back. One guy has spent all of it, plus declared bankruptcy - this is a guy that makes 6 figures. I've no clue what he's spent it on. Every few weeks, someone else wants to borrow.

The nice thing is that when you pay yourself back, you pay yourself the interest. It would be a perfect way to borrow money if it weren't for the fact that we'll all want to retire someday.

How to get wealthy? Retain as much money as you can, the obtaining part depends on you.

Retirement is a tricky thing too. Contributing 3% of pay with a match or $.50/dollar is all most ppl vaguely understand about 401 participation so their happy and dont look much further in to it than that.

I think the IRS max allowable deferement is 19,500/yr per individual and 56,000 with the companies contribution. So that would be considered maxed out 401 every yr and thats far far more than the standard deduction most contribute. Its not hot in my head atm but iirc you really need about min 1,000,000(and thats not really alot) to 6,000,000 to retire "comfortably". At 1,000,000 only thats 50k a yr to live off from IF you live 20 yrs post retirement. Is that an ideal retirement? I think not.

Moral of the story? A 401 is not a good primary retirement period. Not unless your contributing the max every yr and living well below your means to set aside more. While its a great way to lower your tax shield AND save for the future there MUST be other things your investing in to make actual retirement happen. Because S.S they say wont be a thing for our and future generations. Even tho we all contribute to it.
Sad really. Retirement is tricky and the older i get the scope of that problem becomes more clear

 

[Brandaddy]

what's a 2% deal?

When I say 2% deal, I'm referring to the total monthly rent compared to the purchase price of the property. I.E. a house I pay $45,000 for better have the opportunity to make $900/month in rent. It's just a simple rule of thumb to make sure your property will cash flow.

 

[ickyrica]

Retirement is a tricky thing too. Contributing 3% of pay with a match or $.50/dollar is all most ppl vaguely understand about 401 participation so their happy and dont look much further in to it than that.

I think the IRS max allowable deferement is 19,500/yr per individual and 56,000 with the companies contribution. So that would be considered maxed out 401 every yr and thats far far more than the standard deduction most contribute. Its not hot in my head atm but iirc you really need about min 1,000,000(and thats not really alot) to 6,000,000 to retire "comfortably". At 1,000,000 only thats 50k a yr to live off from IF you live 20 yrs post retirement. Is that an ideal retirement? I think not.

Moral of the story? A 401 is not a good primary retirement period. Not unless your contributing the max every yr and living well below your means to set aside more. While its a great way to lower your tax shield AND save for the future there MUST be other things your investing in to make actual retirement happen. Because S.S they say wont be a thing for our and future generations. Even tho we all contribute to it.
Sad really. Retirement is tricky and the older i get the scope of that problem becomes more clear

Starting young helps out a shit ton in that department. But ultimately I agree. More than one way to plan ahead : )