Quote: (08-20-2013 04:35 PM)WestCoast Wrote:
I agree with most of what Jim wrote.
I don't agree on the 401K stuff because you can avoid taxes. How? You simply stack into 401k, when you hit your "exit number - fuck you money - walk away number" whatever you want to call it. You can now play the 5 year roll over layaway game.
You sit and don't work (0 taxable income) then roll over the 401K in portions up to the lower brackets say 15% at 35K.
Do this over and over and now all that money is liquid in 5 years due to rollover rules. Already talked about this trick on another thread.
But rest of advice is solid, buying a home in an expensive city like NYC/SF/LA usually has bad rent to buy calculations. If you're young it's even more foolish as you lose your mobility.
Also disagree a bit on the gym, becaus you can't set up a gym in a studio apartment, ha. Just sign up for the closest one near you, luckily mine is across the street.
Great points.
As far is RE is concerned, yes NYC/SF/LA has bad rent to buy calculations, but that's a generic, market rate calculation. If you do your research and buy below market price you are in much more favorable circumstances.
I haven't brought my primary residence yet (investment deals are more compelling at the moment), however when I do -- I'll throw up a datasheet that breaks down how I made (a below market deal) happen.
Also, wanted to add: Going to a gym motivates me, when I see a fine girl sweating it out on the weights or her tight ass bouncing on the treadmill. I don't even game at the gym, aside from messing around with the front desk girl with D cups and a pierced tongue.