beingdetermined
Personal Finance • Lifelong Learner • Financial Abundance
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I always tell you to expect the unexpected. I alwa I always tell you to expect the unexpected. I always tell you to account for #risk. I always tell you to have in mind that the government can change the rules in the middle of the game. •••••••• As of today, #roth accounts have great #taxfree characteristics. If you swear by them, I will tell you to think again. Here is a way where Roth accounts can lose the preferred status among #investors: I don’t think Congress will tax Roth accounts (effectively killing them) because doing so would stop the tax revenues that come from people paying to convert their #traditionalira’s to #rothira’s every year. Politicians are unlikely to forego the income today from all these IRA conversions to solve a problem for their successors down the road. Congress could add Roth distributions to adjusted gross income (as they did with municipal bond income). This could trigger higher taxes on Social Security payments and raise Medicare premiums and the threshold for the 3.8% Obamacare surtax, all making Roth IRAs less valuable. Roth assets could be subject to confiscation with a general “wealth” tax. Congress could require them to be annuitized, so the Roth benefits disappear sooner. •••••••• I’m not saying this is going to happen. I’m just saying that you need to account for the unexpected. Plan and manage your risk accordingly! •••••••• Maybe this post is not going to go viral, but this may be one of the most important post ever. I just used the tax code to demonstrate to you that your plan can be changed by somebody else. Plan accordingly!
This visual from Visual Capital will give you a go This visual from Visual Capital will give you a good idea why I’m increasing our International allocation. International/Global valuations are much better than in the USA. You may ask, what does that means? It means that the your portfolio returns could be much better with an international exposure. You need to remember that #investing is not about certainties, it’s about probabilities. Therefore, you need to analyze the risk/reward relationship and put it in context within your life and portfolio. ••••••• This is not #financial advice. It’s for educational purposes only. Consult with a financial professional.
#debtfreecommunity #financialindependence #financi #debtfreecommunity #financialindependence #financialindependenceretireearly #ficommunity #firecommunity #firemovement #wealth #wealthy #wealthbuilding #millennialmoney #millionairemindset #millionaire #millionairelifestyle #assetsoverliabilities #realestateinvesting #realeatateinvestor #investing #investinyourself #investments #stockmarket #investmentproperty #passiveincome #dividends #bitcoin
Who do you want me to talk to? Who do you want to Who do you want me to talk to? Who do you want to hear from? What do you want us to talk about? In the comments, tag an account that you want me to do an IG Live with?
As an Air Traffic Controller I deal with complex p As an Air Traffic Controller I deal with complex problems everyday. Some of these are: Weather, Volume of Air Traffic, Rockets and System Constraints. There are rules and regulations that I have to follow in order to keep airplanes separated. From the data alone, travelers can conclude that air transportation is one of the safest modes of travel. We, Air Traffic Controllers, are really good at managing risk. We always expect the unexpected. Every decision has to be accurate and precise. Therefore, I always have more than one plan in mind when it comes to separating airplanes. The job teaches you to have zero point of failure and multiple success paths. Why? Because you are dealing with human life. What does this has to do with #money? #personalfinance and #investing is about managing risk. You can’t control the rate of return of any #investment. You can’t control if the government and/or congress decides to change the #rothira/#401k/#roth401k and/or #1031exchange rules. You can’t control if you get disabled. You can’t control if your body decides to develop a serious health condition. You can’t control aging. You can’t stop time. You can’t control #interestrates. So, what you should do? You should put all this personal finance information in context in your own life. You will find a lot of financial influencers telling you do this or that! However, I have learned that there are no black and white answers when it come to #personalfinances. There are only rule of thumbs that we all follow. For example, having an #emergencyfund is a good financial trait for all of us. However, when you cross a point in your financial journey is more about reducing/managing risk, controlling #taxes, improving quality and standard of life, and legacy among others. I was born and raised in Puerto Rico. My Dad started his family making $500/month as a History Teacher. Now, that my wife and I are #multimillionares I can tell you that the best financial mental model that you can have is about making your personal finances as unbreakable as possible. Then very little things in life will make a dent in your #networth, investments and psychology.
#debtfreecommunity #debtfreejourney #debtfree #fin #debtfreecommunity #debtfreejourney #debtfree #financialindependence #financialfreedom #financialindependenceretireearly #financialliteracy #financialadvisor #wealth #wealthbuilding #100k #saveandinvest #personalfinance #goaldigger #goaldigging
#habits are the #compoundinterest of #selfimprovem #habits are the #compoundinterest of #selfimprovement @jamesclear #savingmoney is a #discipline that needs to endure through peaks and valleys in life. I have sustained this discipline for more than a decade. This is how you win!
If you are losing sleep and still worried about it If you are losing sleep and still worried about it, then you are not #wealthy or you haven’t reached #financialindependence yet. ••••••••• How much #networth do you need to be considered wealthy? As you can see in this article the number is subjective. This person doesn’t feel secure with $2.3M. I have seen data that says that to be considered wealthy in America you need a net worth anywhere between $5M-$10M, but then again it’s subjective. Every tax situation and lifestyle is different for every person/family.
The best argument to get started #investing is to The best argument to get started #investing is to remember that this tree was once nothing but a seed.
You don’t see much when you first start this #fi You don’t see much when you first start this #financial journey. The magic is going to happen a few years down the road! #compoundinterest #disciplineequalsfreedom #patienceisavirtue
#debtfreecommunity #debt #debtfreejourney #mortgag #debtfreecommunity #debt #debtfreejourney #mortgage #mortgagefreejourney #mortgagefreecommunity #mortgagefreewannabe #financialindependence #financialindependenceretireearly #ficommunity #firemovement #wealthbuilding #millionairemindset #millionaire #assetsoverliabilities #livebelowyourmeans #savingsrate #personalfinances
#debtfreecommunity #personalfinances #financialind #debtfreecommunity #personalfinances #financialindependence #financialindependenceretireearly #firecommunity #firemovement #ficommunity #reicommunity #biggerpocketsmoney #daveramsey #babystep2 #wealthbuilding #wealth #money #frugalliving #frugal #minimalism #journeytofi #carloan #carpayments #debt #debtfreejourney #debtfreegoals
#debtfreecommunity #debtfreejourney #debtfree #deb #debtfreecommunity #debtfreejourney #debtfree #debtfreegoals #debtfreeliving #savingmoney #savings #savingschallenge #savingsgoals #savingstips #savingsplan #financialindependence #financialindependenceretireearly #ficommunity #firemovement #minimalism #frugalliving #assetsoverliabilities #frugal #saveandinvest #hacks #lifehacks #savingshack
Sonja Lyubomirsky is a professor of psychology at Sonja Lyubomirsky is a professor of psychology at UC-Riverside. Her book, The How of Happiness, offers clues as to what we hedonically adapt to and what we don't. When evaluating happiness, she believes it all boils down to three factors: -Genes: It's in your DNA. -Life Circumstances: This includes where you live, what your job is, how much you get paid, the car you drive, etc. -Intentional Activities: This includes daily routines and practices like doing yoga, going for a walk, keeping a #gratitude journal and/or #exercising. ••••••••••• We only have any say over the last two factors. American culture has already cast its ballot: Life circumstances get the lion's share of attention. That's a big mistake, says Lyubomirsky. By a factor of four-to-one, intentional activities are what moves the happiness needle the most. ••••••••••• We are spending the bulk of our time on life circumstances, which only have a small effect. We're spending far too little time on intentional activities, which is where the real leverage is in building happiness.
Remember that I talked about the biggest transfer Remember that I talked about the biggest transfer of #wealth from #babyboomers to #genx and #millenials. This graph will clearly tell you which age group has the #money. This is not a surprise. Baby Boomers have worked and saved longer. #compoundinterest is on their side. #genxers and millennials can’t compare to them.
#debtfreecommunity #debtfreejourney #investing #in #debtfreecommunity #debtfreejourney #investing #investinyourself #investment #ficommunity #firecommunity #firemovement #wealth #wealthbuilding #millionaire #millionairemindset #invest #assets #assetsoverliabilities #personalfinance #growyourwealth
PSA: You Should Increase Your #emergencyfund! •••••••• I’m sure you have seen that some goods have increased in price. I’m sure you have seen the word #inflation in social media, but What the heck is Inflation? Inflation is when too much #money chase too few goods. There has been bold moves made by the #federalreservebank and government regarding #monetarypolicy and unemployment benefits. #stimuluschecks have been sent to people. Therefore, people have more #money at hand. While at the same time we have been experiencing supply chain, #commodities and housing constraints. This has created the effect of too much money chasing too few goods. Experts say that any type of inflation that we experience today will be temporary. Temporary or not, the reality is that you need to adjust your Emergency Fund for Inflation. The replacement cost for some goods and services today are more ($$) than two (2) years ago. Therefore, that six (6) months emergency fund, today is only maybe a five (5) months emergency fund. You need to make your own calculations, but the most important takeaway from this post is that you need to adjust your Emergency Fund for Inflation. ••••• The last slide will show you how much the Consumer Price Index (CPI) —which is the tool that the government uses to measure inflation-- has gone up in the last three (3) months. •••••• Have in mind that you need to adjust your Emergency Fund for Inflation all the time. Why? Because inflation is the business plan for governments and #centralbanks.
#babyboomers are going to pass a lot of #wealth to #babyboomers are going to pass a lot of #wealth to #genxers and #millennials! •••••• There is a lot of wealth that is going to be passed down. It will be interesting to see what is going to happen to the #sp500, the #dowjones, the #nasdaq, #realestate and other #assets in the coming decades. Plan Accordingly!
This is our most up-to-date #assetallocation. We This is our most up-to-date #assetallocation. We are still working on growing our international allocation to twenty (20%) percent. You soon will see some changes on this allocation because we are trimming and pruning our #realeatate portfolio. I’m consistently simplifying and making more efficient our #investment portfolio, while at the same time maximizing returns. One thing that you really need to understand is that portfolio construction is more important than any individual #stock, piece of real estate or #crytpocurrency that you buy. Yes, you can get lucky with an #investmentproperty, stock or #crypto, but that’s not the norm. •••••••• How NOT to construct a Portfolio: -Based on your Age -Based solely on your Risk Tolerance How to construct a Portfolio: -Based on your Needs and Goals
The USA economy added only 266,000 jobs in April o The USA economy added only 266,000 jobs in April on the anniversary of the worst job loss for any month on record. That was far less than forecasts of economists, who had predicted America would add 1 million jobs last month. I have mentioned before that #macroeconomics is kinda/sort of taking an educated guess on the future. There are some experts that are saying that there is a possibility that we are going to experience #stagflation. What is Stagflation? Stagflation is a combination of stagnant economic growth, high unemployment, and high #inflation. • I don’t know if we will end up with stagflation. One thing I’m sure of, is that you have more control of your life when you live below your means.
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