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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.
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Knowing that my wife was going to have surgery and wouldn't be able to drive, I saved up a bunch of vacation days. Also, this was an off year for the group I'm in where we fix up houses and build wheelchair ramps for the elderly and handicapped.

So, taking my wife to rehab or doctors' appointments, I have time to kill. I go to grab breakfast at little diners where the waitresses know the old peoples' names (and McD's once...bleah). When we get home, I have a couple hours to get something done, or check Email, or read, or even watch Netflix...whether I took the whole day off or a half day.

I really like living at my own pace, not dealing with work, and "trying on for size" what retirement would look like. My plan for "if you're too bored to really be retired" is to substitute teach, but I haven't gotten my feet wet with that yet. I have volunteered at a couple school things so I'm not unrealistic in expecting every high school student to be bright eyed and eager to absorb knowledge. I also think I'll want to expand my role in a couple volunteer organizations, and will have the time to do so.

I have a couple friends who were offered "a package" to sweeten early retirement, and we make a point of getting together every so often. I have yet to find a downside to ER, other than switching from portfolio accumulation to disbursement. But there's a point when you're 99% sure you "have enough," and next year I may be able to "pull the trigger."
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<<I have a couple friends who were offered "a package" to sweeten early retirement, and we make a point of getting together every so often. I have yet to find a downside to ER, other than switching from portfolio accumulation to disbursement. But there's a point when you're 99% sure you "have enough," and next year I may be able to "pull the trigger.">>



After ten years of early retirement with zero earned income, from 2007 to 2017 (which included the recession) I calculated the affect of having no earned income on my net worth.


Over that ten year period of time, my net worth INCREASED by 50%.



Seattle Pioneer
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