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Bull Run

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Thanks, sounds like you did your due diligence in your research. I plugged in some numbers into various fixed annuity calculators and their returns now are around 4%.
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Bull Run

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Awesome, sounds like you have multiple plans in place to manage your risk.

We had up to three rental properties but ended up selling them because we found out that we didn't like to be landlords. Sure, we made some profit on the sales but I'm sticking with REITs for the real estate portion (I don't consider my primary residence as an investment, but rather a hedge against rent increases).

My wife quit her job after my daughter was born so I stayed in the Army Reserve/National Guard as my "side hustle". For example, National Guard was looking for volunteers to come in on orders for COVID or civil disturbance missions, so I could've volunteered if I was laid off during the COVID crash.

I set aside about 10-15% of my non-retirement for speculation and it's been a wild ride. For example, I thought BGS as dirt cheap with extra high dividend yield pre-COVID (I think it was getting close to 20% at one time) so I bought a bunch and made a killing with it (up 65%, not counting the generous dividends). I thought XOM was a safer speculation bet but it got crushed (down 39%, not counting dividends) , but at least they didn't cut their dividend (yet). Fortunately, I bought BGS first and put far more funds into it.

Do you have any interesting speculation stories to tell?
 

Bull Run

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if you like REIT (like to live dangerously, eh?) try pipeline trusts.
May be looking into them as they offer decent dividends, but need to pump up my non-speculation side first to keep the speculation side under 15% (that's my risk limit). I don't think all REITs are of speculation grade; for example, I consider O as non-speculation, whereas consider AGNC as speculation due to its high leverage (aside from being a mREIT).
 

fatbillybob

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I love the story. I too ended up not trusting anyone and choose to go it alone. I have been successful but still work part-time because I feel guilty using savings and investments for frivilous things like buying my 2019GT making a racecar out of it then burning up $1600 sets of hoosiers in 1 race weekend.

I think "wealth taxes" are coming. I do not know what form a wealth tax would take. It could be $ on deposit, % of stock portfoilio value or some other metric. From what you know about annuities or insurance in general like maybe ILIT can an insurance product insulate from a potential wealth tax?
 

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Bull Run

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Thanks for your story, it was a great read and explains your level of financial knowledge and your crafting skills on your build thread. I always thought you'd be a great person to pick your brain over a drink and this affirms it.

We also used a property management company that charged us 7% of the rent (normal rate in the Denver, CO area was around 10% but they gave us a multi-property discount). The main issue was that when we moved out of state, we had to depend on them for even simple repairs and cleaning, which started to add up. Also, my wife is more risk adverse than me, so we ended up selling the rest when I got called up for a second deployment. Property values shot up in the Denver metro area, so we booked a decent profit on the sale but we weren't able to avoid the depreciation recapture since moving into one of the rentals to make it a primary residence a few years before the sale wasn't an option, either. But the net profit was still decent, so I'm not complaining.

And thank you for your continued support! I'm a first generation emigrant; my mother's family was already in the US when my father passed away so we moved here to be with her family. Not all may agree, but I still feel that America is still the land of opportunity and treated me well, so this is my way of paying back (other than high taxes). Other than a few very bad experiences, it's been a overall good experience and got to meet and visit many interesting folks and places.

I read up on options, margin, etc but decided that they are beyond the risk tolerance for a hobbyist investor like me. Seems like even those gave a pro like you an issues so I'll continue to stay away and stick with high-yield stocks for the speculation portion. Heck, I'd recommend index funds/ETFs for others, but I'm only going with individual stocks for my non-retirement accounts because I find it fun to research companies and crunch numbers, and I can afford to take below-the-market rate of turn.

I even minored in accounting knowing that I was headed to IT field, just because I wanted to know how large company kept track of their massive funds via financial accounting. I actually ended up liking income tax accounting I & II courses more. I wish more people educate themselves on taxes before coming up with lame ideas on "making the rich pay". The ultra wealthy can afford the best tax lawyers and accountants money can buy and they can easily find loopholes on tax laws drafted by underpaid government lawyers. Even a wanna investor like me can utilize the backdoor Roth IRA because it's so simple to execute once I read an article about it.

Seems like I'm on a similar path as you. Only regret is that I was bad with money in the beginning and didn't save or invest much initially other than just enough to get the 401K match. Fortunately, I married someone with a good financial discipline and made up the lost years by supercharging my income via career advancements. In a way, my wife becoming a stay at home mom (her choice, I was ok either way) didn't end up being a net loss as it, while it was rough in the beginning, allowed me to focus more in my career and eventually ended up making much more than our previous salaries combined.

Additionally, many also state that having a kid makes achieving financial independence more difficult but it had an opposite effect on me as being a father motived me even more to succeed so my daughter doesn't have to endure growing up poor like me, and I will make sure that there's plenty in her 529 account to fully paid for her college or trade school.
 

Bull Run

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I love the story. I too ended up not trusting anyone and choose to go it alone. I have been successful but still work part-time because I feel guilty using savings and investments for frivilous things like buying my 2019GT making a racecar out of it then burning up $1600 sets of hoosiers in 1 race weekend.

I think "wealth taxes" are coming. I do not know what form a wealth tax would take. It could be $ on deposit, % of stock portfoilio value or some other metric. From what you know about annuities or insurance in general like maybe ILIT can an insurance product insulate from a potential wealth tax?
Seems like most of the finally successful people have some sort of a "side hustle" in place, both articles I read online and people I know in person. One example article on side hustle.

I heard that Biden will try to tax capital gains as ordinary income but only to those earning over $1 million a year. That shouldn't impact most of us and those earning over $1 million a year can hire tax lawyers and accounts that can find plenty of loopholes in tax laws written by underpaid government lawyers.
 

shogun32

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can find plenty of loopholes in tax laws written by underpaid government lawyers.
you're so cute. Wall Street wrote the damn laws. Congress critters can barely read and generally they don't bother to read any bill before voting on it anyway. They just read the title and the executive 1 page summary if that.
 

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I heard that Biden will try to tax capital gains as ordinary income but only to those earning over $1 million a year. That shouldn't impact most of us and those earning over $1 million a year can hire tax lawyers and accounts that can find plenty of loopholes in tax laws written by underpaid government lawyers.
He also had something about taxing over 400k/year some big number. When people analyzed his plan that 400k number sudenly trapped people only making $180k. Taxes always have a way of effecting the little guy in a negative way. IMO you have to vote against all taxes yet aspire to make enough so you have to pay lots of taxes.
 

machsmith

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made some poor choices over last 6 months. I still made close to 500K but if I didn't pull out of a couple others a wee early, I'd be up several million.
Live and learn. Also owned 77btc early this year that I traded out of for a 10K gain when if I just held, would have been 1M easy. oh well. I move onto the next and hope for the best.
There are always new investments to get into before inflection points.
 

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machsmith

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Since this post im up 200K more and climbing. Next year is going to be a very good year, I believe. Out of the gate, for '21, may see some tax selling in my stocks.
I'm expecting a very big infection point in one of my holdings within a couple months. I'll either be Tap dancing with Danny Kays son or I'll be a little poorer as stock may decline on no JDAs.
 

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made some poor choices over last 6 months. I still made close to 500K but if I didn't pull out of a couple others a wee early, I'd be up several million.
Live and learn. Also owned 77btc early this year that I traded out of for a 10K gain when if I just held, would have been 1M easy. oh well. I move onto the next and hope for the best.
There are always new investments to get into before inflection points.
Good post... nice to not see the political comments in an investment thread.

2020 was definitely a banner year for me as well. I'm more of a monthly invest/buy and hold person, but I put a large chunk into the market in March. I figured I'd ride the bottom on down and then back up. Did not know I was investing at the bottom.

Wish I'd got into bitcoin when it first started but I did not understand it. At this point, I'm good so I don't necessarily see a need to own any. Although, I probably should put a thousand in and see what happens in 20 years...

Not sure what the future holds, but I'm good for now.
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