beingdetermined
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This is what #realestateinvesting looks like! My t This is what #realestateinvesting looks like! My tenant already paid March’s rent. After mortgage, taxes, insurance and other expenses, this property will produce, $643.75 a month of #freecashflow. Multiply that by 12 months and it will be: $7,725 a year of free cash flow! Even if you take 10% out from $7,725 for future #capex, it will still produce $6,952.50 of free cash flow a year.
I think is about time that I talk a bit about Bitc I think is about time that I talk a bit about Bitcoin. You will see in my caption that I have a #macroeconomic view on it. Do I consider myself part of the Bitcoin religion, No. Do I consider myself a Bitcoiner, No. However, I do acknowledge the flaws of our current #monetary system. Not only in the USA, but around the world. Do I see and agree with some of the Bitcoin arguments, Yes! I just want you to remember one thing: we are imperfect humans, with imperfect money at hand. • Let’s get into it: What does Bitcoin intend to solve? Bitcoin was created to put a global, peg on fiat currency. Since 1971 money around the world has not had a peg. Not having a peg allows governments around the world to debase their fiat money in order to create growth through financial engineering. This is some of the growth that you have experienced in your #401k. Yes, markets have cycles, but we also have financial engineering. Especially, when it’s fueled by low interest rates. Today, this has occurred via the Bond Markets -which now have no yields on a real basis. I’m sure you have seen how polarizing social classes are today. That’s the result of overusing monetary policies, not what they try to sell you on the media. The Cantillion Effect states: Inflation is not simply an average rise in prices. Prices do not rise proportionally or simultaneously. This results in arbitrary benefit to some who have not created any economic value and detriment to others who have not destroyed anything of economic value by destroying savings for example. This is the Cantillion effect. Since Bitcoin has a fixed supply of coins and it runs in a decentralized protocol, it has been forcing fiat currencies to conform to its rules. Yes, #indexfunds is the best solution for many people, including myself. However, you need to understand the game that you are playing in this economic system. I will not say that Bitcoin is the solution. Why? Because almost 20 years of #investing experience has taught me humility. Therefore, I don’t get marry to any #investment vehicle. However, Bitcoin could provide solutions. That’s why I put #lasereyes only in one eye and not in both.
when you learn about #personalfinances and develop when you learn about #personalfinances and develop a #financialplan, and when you don’t! 🤣😂 —My son’s first #rollacoaster ride, LOL!
#indexfunds for the win! #indexfunds for the win!
As easy as: Step #1, Step #2, Step #3 and Step #4! As easy as: Step #1, Step #2, Step #3 and Step #4!
I’ve been reallocating our portfolio for a while I’ve been reallocating our portfolio for a while now. I’m increasing our international exposure to 20% and maybe more. • A structural change could happen gradually, as it already is happening. If an increasing share of global trade, particularly within Eurasia and particularly regarding energy and commodities, keeps shifting towards euros, yuan, and rubles and away from the dollar, then the system can become more decentralized over time.
Welcome 2021! #buildingwealth is boring. You have Welcome 2021! #buildingwealth is boring. You have to be #disciplined for decades and decades. That’s why you need to write down your goals and Why. The purpose of writing them down is to go back and look at them. That’s the only you can keep your focus.
We met fourteen (14) years ago on a flight from Or We met fourteen (14) years ago on a flight from Orlando, FL to San Juan, PR. I was sitting on the right aisle of the airplane when the flight attendant asked me to move to the left aisle. Little did I know that I was going to sit beside my future wife. Fast forward to today: our relationship is stronger than ever. Through ups and downs we have focused on being the right and perfect partner to each other. Financially we have the same goals, but that didn’t happen by magic either. It took a lot of conversations, disagreements, patience and grace. We started in a small rented apartment with some #taxadvantage accounts. Today, we are #multimillionaires. How we went from a small rented apartment to today? I have to say that it actually started way before we met each other. These are some of the things that come to mind: 1) We chose good careers. 2) We didn’t have #studentloan #debt, because we were granted scholarships and worked part-time while in college. 3) I have been disciplined with #money my whole life. Therefore, I brought that to the marriage. 4) And the secret of the everyday #millionaire out there: we have lived and continue to live below our means. This has given us the opportunity to #saveandinvest. ——- Relationships are hard work. Meaningful relationships are even harder, but so worth it. I’m sure that our story is not the norm. That’s why it’s so important to know yourself first before choosing your life partner. If you decide that you want to find a life partner. Then, you have to make sure you choose wisely. That decision can either make your or break you!
A few days ago a follower asked me how can he appl A few days ago a follower asked me how can he apply for a #mortgage on a #rentalproperty when he has a mortgage on his primary residence. One of the main things that a lender looks at is the #debttoincomeratio. The debt-to-income ration tells you what’s the balance between debt and income. A low debt-to-income ratio means that there is a good balance between #debt and #income. As a general guideline, 43% is the highest DTI ratio a borrower can have and still get qualified for a mortgage. Ideally, lenders prefer a debt-to-income ratio lower than 36%, with no more than 28% of that debt going towards servicing a mortgage or rent payment. 35% or less is generally viewed as favorable, and your debt is manageable. You likely have money remaining after paying monthly bills. 36% to 49% means your DTI ratio is adequate, but you have room for improvement. Lenders might ask for other eligibility requirements. 50% or higher DTI ratio means you have limited money to save or spend. As a result, you won't likely have money to handle an unforeseen event and will have limited borrowing options. Source: Investopedia It’s important to show income before acquiring assets using debt. This is why is so important for you to #increaseyourincome!
@j.barnes89 asked me to share the funds that I hav @j.barnes89 asked me to share the funds that I have in our #taxadvantage accounts. You will see that under Jay’s #401k I have the #sp500 #indexfund and the extended market index fund. The allocation there is: 60% on the S&P500 and 40% on the extended market. The extended market is the small and medium cap companies. The allocation that I need to actually replicate the total stock market index fund on Jay’s 401k is: 80% S&P500 and 20% Extended Market. However, I decided to tilt it a bit to the small and medium companies. Why? Because we are still young and can accept more risk for growth. Eventually I will pull back the 60% S&P500 / 40% Extended Market allocation to a 80% S&P500 / 20% Extended Market, but not yet.
Some perspective on the markets today! History tea Some perspective on the markets today! History teaches us that everything always come back to the mean. #stockmarket #stockmarketinvesting
This is 2021 so far! This is 2021 so far!
It seems that we tend to put labels to everything. It seems that we tend to put labels to everything. We tend to label our accounts as #retirementaccounts, #sinkingfunds, #emergencyfunds, #collegesavings, etc... I’m not saying this is wrong. It’s fine if it works for you. The reality is that these accounts are #savingsaccounts with some #taxadvantage characteristic. I just stopped labeling my accounts because it seems that the #psychology behind the label is more powerful than having an open mind if a great #investment comes knocking your door. This could be more true for taxable accounts than for #401k’s. If you label your taxable account as a #retirement account, that label could be more powerful than anything else.
A great example of #opportunitycost! #perspectivei A great example of #opportunitycost! #perspectiveiseverything #mindsetiseverything
#disciplineequalsfreedom #runyourownrace #disciplineequalsfreedom #runyourownrace
Many people recommend carrying low-interest-rate m Many people recommend carrying low-interest-rate mortgage/debt on purpose so you can invest instead and hopefully earn a higher rate. Aside from the obvious error of not comparing apples to apples risk-wise (they should be comparing the after-tax mortgage interest rate to the after-tax return on a very safe investment such as treasury bonds, CDs, or a municipal bond fund). These people are ignoring the marginal utility of wealth. • When a person is starting his/her #financialindependence journey, a little more wealth makes a huge difference in your life economically and psychologically. As you build wealth, that difference gets smaller and smaller. So for a wealthy high-income earner, arbitraging a low-interest rate against a higher return is simply less useful. Many times these higher earners choose to lower their risk rather than increase their returns.
Last year our total #passiveincome was, $66,035.53 Last year our total #passiveincome was, $66,035.53. This is between all of our #stocks and #realestateinvestments. We reinvested all the money back since we don’t need this passive income right now.
I don’t like to give you bad news, but you will I don’t like to give you bad news, but you will have to revise your whole #financialindependenceretireearly plan if this goes through. 🤷‍♂️ • If you don’t have a clue on what this means, then you should really think how can you actually learn it. Yes, #personalfinance is personal, but #money is directly correlated with government policies.
Let’s talk #macroeconomics! This is the biggest Let’s talk #macroeconomics! This is the biggest infrastructure #investment in history. China is leading it. From highways to everything in between. So, why I’m sharing this? Because this could be a possible digital Yuan network. Which means, these countries will be using more and more the Yuan (chinese #fiatcurrency) for business transactions. This means that the demand for the #usdollar could diminish, bringing the value of our currency down and losing the reserve currency status. What this means to you? That your quality of life could go down. This is not certain, but it could happen. I’m personally increasing the international asset allocation in my portfolio to hedge against a possible US dollar decline. Could this happen tomorrow?, I don’t think so. But long-term I’m bearish on the US dollar. There are not certainties in life, only probabilities and trade-offs.
Here we are back in 2015 when our first boy was bo Here we are back in 2015 when our first boy was born. We were already #selfmademillionaires before we decided to have kids. Not saying this to brag, but to motivate you. My parents didn’t have money. My Dad was earning $500/month when he started his family. With hard and smart work, choosing the right career, grit and determination we were able to do it. You can do the same! Remember, the body can only achieve what the mind can visualize and conceptualize!
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