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What do you consider “true wealth?”

It sounds cliche, but true wealth is being healthy. Everything after that is a bonus.
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Mazske,

What do you consider “true wealth?”

Bear
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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,

mazske
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Obviously to each their own, but I prefer stocks to real estate. Forget about property value...just seems like more of a hassle. How many hours a week does it take you to manage 9 properties? Did it cost a lot to start them up? Have you had major repairs yet?

To me, wealth is the freedom to do what you want to do with your time. Maybe if you had $40k/year to withdraw you couldn't do quite as much as you want. To me, that would be worth it just so I wouldn't have to do a bunch of things I didn't want to do.

But for me investing is a lot of fun, so that's a large part of it.

Whatever the case, good luck on your quest!

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


Yabbut ----where does retiring early come in?

Sounds like you want the WUYD* Board.



Seattle Pioneer















*Work Until You Die
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What do you consider “true wealth?”

It sounds cliche, but true wealth is being healthy. Everything after that is a bonus.
Print the post Back To Top