beingdetermined
Personal Finance • Lifelong Learner • Financial Abundance
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#saveandinvest #saveandinvest
Very Interesting! 🤔 #debtfreecommunity Very Interesting! 🤔 #debtfreecommunity
I track our allocation in two (2) ways, as an #inv I track our allocation in two (2) ways, as an #investment and #assets portfolio. Earlier I made a post about our #investmentportfolio. Now, you can see how do I track our assets portfolio. I stopped tracking cars a lot time ago.
U.S. Large Capitalization: VTSAX and VFIAX or the U.S. Large Capitalization: VTSAX and VFIAX or the equivalent #indexfund in our #taxadvantage accounts. U.S. Extended Market: This is the Small and Medium Market Capitalization. VEXAX or the equivalent index fund in our tax-advantage accounts. International Developed: VTIAX in our tax-advantage and #brokerage account. Emerging Markets: VEMAX in our brokerage account. Physical RE: This is our #singlefamily and #multifamily #realestateportfolio. REITs: VGSLX in our Roth IRAs Alternative Investments: Precious Metals Fixed Income: One Municipal Bond and the Cash Value of a employer sponsored #wholelifeinsurance. Cash: Just good old cash....
Investing becomes less scary once you learned that Investing becomes less scary once you learned that the world breaks every 10 years or so... Investing becomes less scary once you learn that bear markets last around 20.6 months. Investing becomes less scary once you prepare your portfolio to lose ~43% in a downturn.
You start looking for ways on how to protect your You start looking for ways on how to protect your #wealth once you have built some of it. You need to convert your #fiatcurrency to something that’s scarce, desirable and that have some use in society. That’s how value is driven...
I’m sure you have heard about #mortgages. Especi I’m sure you have heard about #mortgages. Especially, if you are a #realestateinvestor and/or a #homeowner. #refinancing is a great tool, but it has to be use with caution. Why? Because the costs of refinancing are very high. Sometimes people get sold by the idea of a low interest rate and/or low payment before putting everything in context. Is it a good idea to refinance if you are going to move from the house even before your break even on the refinancing costs? Of course, there are a lot of variables to this question. Is it a good idea as a Real Estate Investor to refinance your #rentalproperty? The main point that I want to drive here is that you need to put everything in context before refinancing your home or rental property. There are other tools out there like, a mortgage recast. In simple terms, a mortgage recast is when you put money towards the principal and then the lender recalculates the remaining payments on a new amortization schedule. • In my case here, it made more sense for me to refinance one of our #rentalproperties. We went from a 5.49% #interestrate, to a 3.625% interest rate. We are holding this property for a long time.
As an Air Traffic Controller I will never forget t As an Air Traffic Controller I will never forget this... The world stopped. The whole airspace was shutdown. • This visual will show you how busy we were when the airspace was shutdown for national security purposes.
When it comes to this misconception, the opposite When it comes to this misconception, the opposite is true. As with any progressive income tax system, U.S. taxpayers with higher incomes pay higher income tax rates. The result: half of U.S. taxpayers pay 97 percent of all income taxes. The top 1 percent of earners alone pay over one-third of income taxes. Of course, income taxes are only part of the story. Payroll taxes, sales taxes, and excise taxes are all regressive, meaning lower-income individuals contribute a greater share of their total income towards these taxes than do higher-income individuals. So, what happens when you take into account all taxes paid? It turns out the U.S. federal tax system remains very progressive. Meaning, Americans with the highest incomes pay the largest share of all federal taxes. • I decided to copy this article here because it’s very educational. Enjoy! Source: A Tax Foundation Article 10 Common Tax Myths, Debunked
Good #dailyhabits will compound over time! #debtfr Good #dailyhabits will compound over time! #debtfreecommunity #compoundinterest
#studentloans including public and private sources #studentloans including public and private sources now exceeds $1.3T! There are over 44 million Americans with student loans, and the average per-student is over $35k. Well over 10% of student loans are in default, and a large number of student loans are either behind on payments or deferred due to financial hardship. • According to Moody’s, the combined sum of state pension unfunded liabilities is $4T. These liabilities won’t go down over the next few years. • On the Federal Debt: A country can increase is #debt forever and never go bankrupt, as long as its economy keeps growing. Unfortunately, the United States is growing its debt faster than its GDP. • What all three of these have in common is that they will impact the middle class consumer spending.
Where do I start with this one... I don’t even k Where do I start with this one... I don’t even know where to start since this is a direct and personal attack to the people that are doing the right thing. Those people that are #saving and #investing. When you save and invest is because you are increasing your income and reducing expenses. You are being #discipline and #consistent, and then suddenly they want to penalize you for doing the right thing? So, they want to penalize wealth creation and the #personalgrowthmindset? • The compliance costs would be the biggest our nation’s financial system has ever seen. Just to mention on aspect of it: How do smaller investors pay the tax on an investment that has not yet returned the cash to them? This senator is selling the tax as a blow to “millionaires and billionaires,” though he hasn’t yet released the detailed white paper on how exactly it will work. But I am sure the party of the “little guy” is aware that many working Americans saving and investing for their retirement do not sandbag additional surpluses of cash on top of their stock portfolios for additional taxes. When a stock or real-estate gain is realized, the cash is there to pay the tax because the investment was sold. Where does the senator propose an electrician get the cash to pay the annual tax in his modest stock and real-estate appreciation year by year? And since the obvious answer is “from his other income,” does the “party of the little guy” want to let millions of Americans know that they will have less monthly cash flow to pay their bills and dine out with their kids? This shows a lack of understanding about what is most needed in our economy — business investment. The war on capital is a war on jobs, on productivity, on growth, and on wages. Taking bold actions to disincentivize productivity, investment, risk-taking, and capital formation is akin to discouraging diet and exercise for someone trying to lose weight. That this particular disincentive is a code red in its extremism just adds to the problem. In conclusion, this is going to disincentivize your #personalgrowth, drive and #mindset. Which will end up destroying our quality of life.
A Strategic Asset Allocation is a diversified #buy A Strategic Asset Allocation is a diversified #buyandhold passive investing approach. This is the best wealth building tool for almost everybody. You can build, what the #bogleheads call, a 3-Fund portfolio and then just rebalance from time to time. Or even better, just buy a Target Date Index Fund and it will rebalance by itself based on your targeted date. • Tactical asset allocation is a more hands-on approach where you adjust your allocations to various asset classes based on where you think good risk/reward ratios exist in the market. As an example, some investors (including Vanguard founder Jack Bogle) actively reduced their exposure to U.S. stocks during the height of the Dotcom Bubble because they saw how dramatically overvalued U.S. stocks were at that time compared to bonds. A Tactical Asset Allocation is more prone to human error, and if done poorly will reduce your returns. Therefore, it’s better for the average Joe to stick with a Strategic Asset Allocation and just #saveandinvest in it as much as possible.
The Day my Wife and I did the helicopter ride at t The Day my Wife and I did the helicopter ride at the #grandcanyon! Memories and Experiences > Stuff
If you didn’t know, I use real estate as the bon If you didn’t know, I use real estate as the bond portion in my portfolio and here is why: • Relying on bond funds for steady returns has worked out well until recently. The bond investors have enjoyed a long bull market that started in the early 1980s, when interest rates were as high as 17 percent. Interest rates and bond prices move in opposite directions. As rates fell from their 1980s peak, bond prices rose, and investors enjoyed capital gains on top of high interest rates. Today we find ourselves at the other end of the spectrum: interest rates are near multi-decade lows, due partly to unprecedented intervention by the Federal Reserve (Quantitative Easing and other measures). Money market funds earn close to zero percent. Even 10-year Treasury bonds reached a low point of 1.4% last year, and had a yield of 1.6% just a few months ago. • So, as you can see, today the bonds are not even beating inflation. I can get a better rate of return investing in real estate with the same amount or even less risk as a bond. This is why is so important for you to understand financial markets.
I’m sure that 2020 will be in the History books I’m sure that 2020 will be in the History books because the last pandemic that the world experienced was in 1918. In our household 2020 is not over yet. We have the #savings and #investing gas pedal all the way down. This number is not in the lower six figures. • @mywealthdiary can I use this graphic?
#savingmoney is a #superpower! Another month in th #savingmoney is a #superpower! Another month in the Books! • • • Follow @beingdetermined Follow @beingdetermined • • #disciplineequalsfreedom #discipline #disciplina #atomichabits #debtfreecommunity #debtfree #wealthbuilding #millionairemindset #themillionairefastlane #themillionairenextdoor #richdadpoordad #daveramsey #realestateinvestor #grantcardone #passiveincome #financialliteracy #financialindependence #financialindependenceretireearly #ficommunity #reicommunity
Didn’t the #federalreservebank said the same thi Didn’t the #federalreservebank said the same thing with Powell’s speech? The ECB is already on negative #interestrates.
#macroeconomics is kind of, sort of guessing. Why? #macroeconomics is kind of, sort of guessing. Why? Because is really hard to predict human behavior. Especially, in a society. However, there are tools that smart people use to maximize productivity and outcomes in a society. • Jerome Powell is the Chairman of the #federalreservebank. One of the most, if not the most important position on planet earth. The market reacts every time he speaks. • Yesterday, he said a lot. In plain English he said: “We, The Federal Reserve Bank, think that some Stagflation is coming”. Which for you this means: slow economic growth, relatively high unemployment, rising prices and a decline in the Global Domestic Product (GDP) and possibly higher taxes. Today, I see this in my #realestateinvesting business, lumber prices are going through the roof. • It’s a really interesting dynamic, because low interest rates are going play a big role in all this. Please understand, that the government budget doesn’t behave like your own #budget. The government can carry #debt as long as the GDP is growing. And please remember that the #stockmarket is not the economy. At the contrary, the stock market can reach new highs because asset prices tend to go up with #inflation. • There is a possibility that Inflation is going to be shipped somewhere. Where? I don’t know. But somewhere. • You need to pay attention on what is going on. Keep living below your means!
The Good Old Diversification in the S&P500! Do you The Good Old Diversification in the S&P500! Do you think you are really diversify? Michael Batnick created this great chart!
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