Building Wealth At a Faster Rate

[Free_Agent]

Sometimes I envy you guys. You guys are one step ahead in the US in terms of salaries.
Here in Italy, most people can never be financially independent.
It just look so easy looking from here.

My father was born in Italy and I spend a lot of time there. Actually I'm planning to spend longer periods of my early retirement there. Looks like business, like here, is the best method to achieve wealth there. Professional careers don't pay like here in the US. Not uncommon here in Miami to have doctors making $1mil+. Heck some I know are from Italy.

I look at the business listing in Italy and I see quite a bit of high netting businesses for sale there in respect to the avg salary.

 

[MatureDJ]

Question: Given my circumstance and situation in life am I going in the right direction? How far off am I from financial independence?

Hi guys! Since this is my first post, I thought I'd make it with a question in mind. Some advice my wealth situation.

A quick introduction, I'm 38, no wife or kids, on a mortgage (condo), make about $250~ a year. My occupation is software development. My current investments is valued at $55k~. I have most of my value in a stable index fund and some of it in a REIT that I plan on switch over once I hit a certain goal. Each month, I try to contribute about 5k a month, sometimes a little less. Last year, I would contribute around $8000 but adjusted down because of life stuff.

The goal that I had in mind, as cliche as it sounds, is working much less but still making the same amount. I know it sounds laughable but the dream scenario is making the same amount of money but working less than 10 hours a week. It'd be preferable if I hit this goal sooner since life is not going to be as fun at 60. Especially, with my current situation with dating and women but I digress since this is about wealth and success.

The question I have: Given my circumstance and situation in life am I going in the right direction? How far off am I from financial independence? From simpler perspective, am I not doing certain things that successful men on here are?

* Things I'm not willing to do to earn more wealth:
* Freelance: I mean, I'll do it, but my time is so taken up by my day job that it's really hard to fit in. That, and I'm burnt out from coding.
* MLM: I don't find that way of doing business all that effective and requires a lot of effort and a large social circle. My social circle is too small.
* Real estate: The knowledge needed to leverage real estate I don't have. Even though most people think the risk is moderate, I think it's too high.

I appreciate you all taking the time to read my first post and I'm looking forward to your responses.

You are missing the boat by being in stable-income funds. And how does a bachelor raking in $250K/yr only have $55K saved up? Have you been EscortMaxxing?

 

[MatureDJ]

Buy real estate. Multifamily units. Run the numbers and see if it works out. Buy as owner occupied, after a year, move out of one unit, rent out that unit, and buy another building. You can also refi that loan with the added appreciation and income (your unit is now an income generating unit), and it should be enough to help buy another multifamily. Stay away from tough areas.

This is not a good idea for someone who will be PassportBroMaxxing.

 

[DonJefe19]

...how does a bachelor raking in $250K/yr only have $55K saved up?

I tend to travel a lot and I compete in ballroom.

Have you been EscortMaxxing?

Don't need it, and nothing comes of it. It's like porn - it's an illusion. I imagine prostitution is just a bigger magic show.

 

[Divorced w 3]

You’re saving 5k a month and essentially putting it in savings and a small slice in publicly traded real estate. Back of the hand math you’re making 5% per year on your money non deductible. You’re not outpacing the interest on your mortgage by more than, maybe 1%. Aside from that you are already invested in real estate by virtue of your home. So it seems like you enjoy real estate. Is your plan to eventually buy an investment property? I didn’t really read your post too closely. What I would say is that in tech you probably have substantial compensation in publicly traded shares of your company. When those vest are you selling or keeping? I am guessing you’re keeping them?

things to think about

what are you trying to invest in

If your portfolio went from 55k to 30k how would you feel

what if it went to 45k

what’s your home worth : what’s the mortgage balancr

5k is a lot to put away monthly so nice work - just think about what you want to invest in. The markets don’t feel like a spot you’re excited about

when do you want to retire

qualifier; I run a wealth practice at a top global bank

 

[RickTheToad]

This is not a good idea for someone who will be PassportBroMaxxing.

Fastest way to become self-sufficient has always been real estate.

 

[Divorced w 3]

Fastest way to become self-sufficient has always been real estate.

The fastest way to become self sufficient is recurring income from which to build capital and time to identify and take sufficient risk. That’s real estate for some but for others it’s business ownership

 

[MatureDJ]

Fastest way to become self-sufficient has always been real estate.

But that requires a lot of maintenance - can't be a long-distance landlord.

 

[MatureDJ]

The fastest way to become self sufficient is recurring income from which to build capital and time to identify and take sufficient risk. That’s real estate for some but for others it’s business ownership

It could be any capital investment. Folks who had invested in office space have gotten absolutely hammered since COVID.

 

[DonJefe19]

I think I've found a way to accelerate wealth through the stock market: leveraging high-yield dividend and growth stocks. Basically I buy as much as I can with my income and then use the dividends to re-invest. Any bills or expenses I have I use margin to cover and any dividends I don't re-invest is used to pay the margin down.

It's not the fastest way but I'll reach retirement much sooner on a 5-8 year time span.

 

[Divorced w 3]

I think I've found a way to accelerate wealth through the stock market: leveraging high-yield dividend and growth stocks. Basically I buy as much as I can with my income and then use the dividends to re-invest. Any bills or expenses I have I use margin to cover and any dividends I don't re-invest is used to pay the margin down.

It's not the fastest way but I'll reach retirement much sooner on a 5-8 year time span.

You have to learn the concept of duration. What you’re planning on doing is the reason the financial crisis happened in 2007 and you’re taking on more risk than they did. They tried to say they could borrow on a monthly basis at 1% annually in the overnight funding market and then they paired that off with 7% coupons that they got paid on semi annually. You’re planning on doing the exact same thing except your broker is going to lend to you at 15% accruing daily and you’re going to get an income stream at 7% that has significant volatility. Also growth stocks don’t pay a dividend. When it works it’s not bad if you’re making enough money, but your hurdle rate is too high for this to work. Trump raises tariffs and Nvidia goes from 150-> 80 like it did two months ago, and you cash your entire portfolio out at 30c on the dollar because you have no equity left having paid those bills on margin

 

[jhonny9546]

@DonJefe19 You make 250k per year?
That's unbelievable..
That would make my dream of buying an indipendent house (about 300k) true.

 

[Gamisch]

@DonJefe19 You make 250k per year?
That's unbelievable..
That would make my dream of buying an indipendent house (about 300k) true.

25% unemployment, people living in tents, mass layoffs. But somehow mostly I read about people making 6 figures and women wanting 6 6 6 dudes.

Seems like a dystopia

 

[DonJefe19]

@DonJefe19 You make 250k per year?
That's unbelievable..
That would make my dream of buying an indipendent house (about 300k) true.

I make $250k+ but consider the fact I pay taxes which is roughly 40%. In reality, I pocket a lot less than that.

Also remember there are members on here which make 3x's that, so my salary is fairly mediocre at best.

 

[jhonny9546]

I make $250k+ but consider the fact I pay taxes which is roughly 40%. In reality, I pocket a lot less than that.

Also remember there are members on here which make 3x's that, so my salary is fairly mediocre at best.

Congrats! What's your job really about? Are you self-employed?

 

[RickTheToad]

But that requires a lot of maintenance - can't be a long-distance landlord.

Hire a property management firm.

 

[RickTheToad]

The fastest way to become self sufficient is recurring income from which to build capital and time to identify and take sufficient risk. That’s real estate for some but for others it’s business ownership

I can give you a list of hundreds of "CEOs" which own their "business" and they aren't making a dime. But, they have a title of CEO, so there you go.

 

[Divorced w 3]

I can give you a list of hundreds of "CEOs" which own their "business" and they aren't making a dime. But, they have a title of CEO, so there you go.

A plumber with a good accountant is making more than this guy is with his fancy tech sales job, I assure you.

 

[RickTheToad]

A plumber with a good accountant is making more than this guy is with his fancy tech sales job, I assure you.

Yes, plumbers can make a good income. However, do you want to shovel sh!t all day?

 

[Divorced w 3]

Yes, plumbers can make a good income. However, do you want to shovel sh!t all day?

Any working man shovels shyt for someone in one way or another.