Building Wealth At a Faster Rate

[sangheilios]

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

You don't know much about plumbing if you think that entails the entire career field.

 

[sangheilios]

All I'm going to say with regards to the topic of this thread is that there are a ton of clueless people who are way behind the curve.

 

[Free_Agent]

You don't know much about plumbing if you think that entails the entire career field.

The angle should be eventually owning a company that employees plumbers because when you’re doing the actual “Plumbing “you’re just exchanging your time / labor for money and there’s no way to leverage that.

Plus, working in the trades is a young man’s game. I was an Ironworker at one point . Before I decided to get serious about real estate and business I did that. One day one of the journeyman told me “You don’t want to be doing this when you’re in your 50s”

 

[sangheilios]

The angle should be eventually owning a company that employees plumbers because when you’re doing the actual “Plumbing “you’re just exchanging your time / labor for money and there’s no way to leverage that.

Plus, working in the trades is a young man’s game. I was an Ironworker at one point . Before I decided to get serious about real estate and business I did that. One day one of the journeyman told me “You don’t want to be doing this when you’re in your 50s”

What I meant in response to that poster was that there is more to plumbing than just involving working in poop lol. You could install water heaters for instance.

However, I totally agree with your comments about the trades being a young man's game, there are some exceptions for sure, but you are correct. It's quite normal to have your spine and hips be contorted into very awkward positions, knees bent, etc. When you are just getting into it that isn't a big deal, but overtime this naturally adds up.

 

[jhonny9546]

Even if you have your finances in order and give her great experiences, it doesn’t mean you won’t be cheated on, but, given this, in a capitalist world, resource accumulation is still something you should pursue as a man.

Social media shows it clearly, many women settle down with financially stable men who offer them "that" lifestyle, and decide to have kids with them. Yet, the same women often highlight how much they love traveling and going out with their best female friends.
These are usually the ones living double lives, and between 35, 45, many end up as single moms. They’re just following their "biological" timeline: they want kids with stable men who can provide, but they don’t respect or desire them at the same time... that attraction goes to the guys who give them chills, the ones they cheat with or, if they're really smart, they never cheat. but still secretly desire.

So, men, build your resources, for you. For your goals.
Be ready to move on if needed. Life has chapters.
Having resources and building wealth is essential.

 

[RickTheToad]

You don't know much about plumbing if you think that entails the entire career field.

No, not at all. I have 9 rental properties and run management on the side, but I know nothing about plumbing. Thanks for clearing this up.

Do you know the # 1 issue we have we have to deal with? waste pipe issues and clogs. We also have been installing backflow prevention devices as that has become a new requirement in some local jurisdictions. But yea, I know nothing about this. Not a thing.

 

[sangheilios]

No, not at all. I have 9 rental properties and run management on the side, but I know nothing about plumbing. Thanks for clearing this up.

Do you know the # 1 issue we have we have to deal with? waste pipe issues and clogs. We also have been installing backflow prevention devices as that has become a new requirement in some local jurisdictions. But yea, I know nothing about this. Not a thing.

Ok, and that has nothing to do with the field of plumbing as a whole.

 

[DonJefe19]

Do you know the # 1 issue we have we have to deal with? waste pipe issues and clogs. We also have been installing backflow prevention devices as that has become a new requirement in some local jurisdictions. But yea, I know nothing about this. Not a thing.

This is why I'm adverse to real estate. Not a headache I want to deal with.

 

[MatureDJ]

Hire a property management firm.

And then higher [sic] a good copy editor ...

 

[RickTheToad]

This is why I'm adverse to real estate. Not a headache I want to deal with.

I hear you. However, in the long term, it's one of the best ways to take legal deductions, get tax free money and (usually) grow over time.

I purchased a property in 2017 for 200k. Put in around 75k, and it's now selling for $600k
I purchased a property in 2020 for 615k, dumped in 50k, it's now worth 950k
I purchased another property in 2020 for 700k, it's now work 1.3m. Dumped in maybe 45k.

Time is your friend with real estate. Just don't over leverage.

 

[RickTheToad]

Ok, and that has nothing to do with the field of plumbing as a whole.

 

[FlirtLife]

I just started investing last year. It's a bit more than $55k now but I don't want to share the exact amount.

Spending $22k annually with $55k to $60k saved puts you far from retirement. It sounds like you've focused on paying off debts, which is a good approach for student loans. Can you tolerate mortgage debt while investing more?

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.

Schwab, Fidelity and Vanguard all charge over 12% for margin loans. Historical stock returns are lower than that, so you're likely better off selling equities to pay off the margin loan. You could also shift assets to Interactive Brokers, which charges 6% or 7% depending on account type. Overall, this approach was more popular when margin rates were lower.

Stocks with high dividends do not outperform other stocks. And it volunteers for earlier taxation, since those dividends are taxed - even if reinvested. Look at your 1099-DIV form to see it for yourself: your dividend stocks/funds will show taxable amounts while the growth stocks won't.

 

[DonJefe19]

Spending $22k annually with $55k to $60k saved puts you far from retirement. It sounds like you've focused on paying off debts, which is a good approach for student loans. Can you tolerate mortgage debt while investing more?

I don't necessary have debts other than my mortgage. I've since paid off my car in 2017 and my student loans have been paid off since 2019. However, the big expense each month is my dancing. Competitive ballroom dancing is an expensive hobby.

Schwab, Fidelity and Vanguard all charge over 12% for margin loans. Historical stock returns are lower than that, so you're likely better off selling equities to pay off the margin loan. You could also shift assets to Interactive Brokers, which charges 6% or 7% depending on account type. Overall, this approach was more popular when margin rates were lower.

This is partial true. The margin interest rates can be quite high with Morgan Stanley but that typically gets lower as the value of the portfolio increases. Right now, I'm at 12% and I'm quite certain I can negotiate it down to a lower rate since I'm practically living out of my brokerage account. I've heard folks getting as low as 8%

One thing to consider is that margin requirements differ between brokerages and moving to something like Interactive Brokers may not work with my long term strategy because the securities may have different requirements.

Stocks with high dividends do not outperform other stocks. And it volunteers for earlier taxation, since those dividends are taxed - even if reinvested. Look at your 1099-DIV form to see it for yourself: your dividend stocks/funds will show taxable amounts while the growth stocks won't.

The way I see it, I'm going to have to pay taxes regardless. I used to shy away from dividend investing because of the reason you mentioned. But I've come to accept that I'm going to have pay taxes anyways. Even if I did have to pay it as ordinary income, it's not going to bankrupt me.

I have to disagree on high dividend stocks not performing well. If we include the dividends yield from the stock, it typically offsets the gradual value decline of the price of the stock over time.

 

[FlirtLife]

I don't necessary have debts other than my mortgage. I've since paid off my car in 2017 and my student loans have been paid off since 2019. However, the big expense each month is my dancing. Competitive ballroom dancing is an expensive hobby.

When you have extra money, you can benefit financially from investing it instead of paying down your mortgage. But some people feel a great sense of security from their mortgage being paid off, so they go that route instead.

The way I see it, I'm going to have to pay taxes regardless. I used to shy away from dividend investing because of the reason you mentioned. But I've come to accept that I'm going to have pay taxes anyways. Even if I did have to pay it as ordinary income, it's not going to bankrupt me.

If you invest $1000 and $0 for ten years, which earns more money?

I have to disagree on high dividend stocks not performing well. If we include the dividends yield from the stock, it typically offsets the gradual value decline of the price of the stock over time.

Vanguard Dividend Appreciation ETF (VIG) has underperformed Vanguard Total Stock Market (VTI) for every listed time period - from 3 months to 10 years. Dividend stocks may perform well, but other stocks perform even better.

VIG-Vanguard Dividend Appreciation ETF | Vanguard

Vanguard Dividend Appreciation ETF (VIG) - Find objective, share price, performance, expense ratio, holding, and risk details.

investor.vanguard.com

VTI-Vanguard Morningstar Total Stock Market ETF | Vanguard

investor.vanguard.com

One thing to consider is that margin requirements differ between brokerages and moving to something like Interactive Brokers may not work with my long term strategy because the securities may have different requirements.

This isn't worth the effort to find out? When I mention cutting your margin rate almost in half, your reply is IBKR "may have different requirements", and you don't even take a look.

 

[BaronOfHair]

You guys are one step ahead in the US in terms of salaries.
Here in Italy, most people can never be financially independent

No one is ever truly financially "independent". Even if the self-employed are reliant on their clients to continue funding them