The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / FIRE Wannabees


Subject:  Re: Playing With FIRE Date:  7/21/2019  9:53 AM
Author:  CMF-mazske Number:  5250 of 5255

What do you consider “true wealth?”

Bear, that's a good question. I've been the small time investor most of my life. I never had a great income and such.

I think I see true wealth for me this way.

Real estate.

Let's say I get my stock portfolio up to $1,000,000. The SWR will allow me to withdraw roughly $40K a year. That's not bad, but that's not true wealth.

But,what if I can get more real estate, 15, 20, 25, or maybe 50 or more units.

If I keep plugging along, my tenants slowly pay down the mortgages and the properties may also appreciate a bit. If I sell one at a gain, I can 1031 exchange it to get more, and defer any capital gains tax.

And,let's say I literally buy until I die, meaning I keep adding more units even when I'm old. I then get the tax benefits, depreciation and such.

At my death, my heirs can then get my properties at a step up cost basis and reset the clock on taxes.

If I did have 25 or more properties, and the stocks, the cash flow should be more than enough to live on.

And, my net worth would continue to grow every month I'm alive.

It wouldn't be true wealth my many standards, but, to me, it would be.

Does that make sense?

Fool on,

Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us