Reddit reviews Set for Life: Dominate Life, Money, and the American Dream (Financial Freedom (1))
We found 7 Reddit comments about Set for Life: Dominate Life, Money, and the American Dream (Financial Freedom (1)). Here are the top ones, ranked by their Reddit score.
Your personal finances are a marathon, not a race. But, a strong start sure does help.
Here are some all-around, rock-solid resources:
Do not day trade. Never buy equities on margin. Yes, boring Vanguard funds really are what you should be using.
When people say "avoid debt" they mean "bad debt is a loaded gun pointed at your head". I'd like to amend that with "but good debt is just a loaded gun". Used carefully good debt is a powerful tool, and no less dangerous than bad debt when used without great care.
Buying a car is bad debt. Carrying a balance on your credit cards is bad debt.
Taking on some student debt to break into a high paying career is good debt. (Make sure you take a sober, realistic look at what you can really expect from your career and what it takes to get that out of it.) Hell, it might actually have the single highest return of any investment you ever make.
Getting a mortgage on a cash-flowing rental property in a decent neighborhood is good debt.
How passive do you expect this to be? As you are researching this and start considering your criteria look at ways that reduce the work on your part. If you want this to be passive income you don't want to be fixing toilets and painting units on evenings and weekends.
You will still need to manage the team that you put in place to do those tasks.
Check out Set for Life by Scott Trench
Please don't buy that car or at least not until after you've read this book.
https://www.amazon.com/dp/0997584718/ref=cm_sw_r_cp_awdb_sTrwzb1A5564F
I would recommend Set For Life by Scott Trench for some ideas. I wish that book was around when I was 19.
I also recommend Rich Dad, Poor Dad by Robert Kiyosaki, but the majority of people here hate it. I find Robert to be pretty shady in real life too, but the overall theme of that book changed my life!
It's amazing that your wife is also capable of pulling in a 6-figure salary - your extraordinary combined income of nearly $300k/yr could go a long way to powering through any inefficiencies in your plan.
You sound like you will do wonderfully accomplishing the American dream: big house in the best school district, little non-mortgage debt, well-educated kids, and eventually a really comfortable retirement with all that equity and tax-sheltered retirement accounts. This a goal few are able to achieve, and by having such a large income - you're well-situated for it.
The typical American Dream works against financial independence though. You're fortunate that your extraordinary combined income will help power through it. However, you're probably going to be on the work treadmill longer than most here who strive for early retirement, just because your expenses will still be quite significant.
That all being said, I recommend this book: Set for Life, by Scott Trench. https://www.amazon.com/Set-Life-Dominate-American-Dream/dp/0997584718. It helps explain why retirement accounts, while wonderful to reduce your taxable income and allow money to grow for you tax-free: actively works against retiring early. The goal of FIRE is to live off capital income well before you're potentially too old to enjoy it. This means all of your labor income generated while young should be going to accounts that generate capital returns that you can realize before your 59.5 years old.
Assume marginal market returns, I anticipate living off a 2% dividend per year, while the capital appreciation grows by 3% (after inflation). My projections show that I'll likely have grown the account to a few million by the time I hit 60. Having another 500k come in from a 401k will be nice for sure, but not worth the extra 2-4 years of work years needed because I was not investing the (albeit smaller) after-tax amount directly into my portfolio.
As for the 5-9 year swing: I'm naturally cautious. I anticipate if I wait 9 years, it's because the market took a shit, or I wanted to build a buffer or slush fund of several hundred thousand.
You should read (or listen to) Set for Life by Scott Trench.
Hijacking the top comment to say you really should check out Set for Life: Dominate Life, Money, and the American Dream. https://www.amazon.com/dp/0997584718/ref=cm_sw_r_cp_api_FNjKBb42T04HZ
The strategy u/Gold_Flake is described at length in this book and is described as “House-Hacking.”
You can search “house hacking Bigger Pockets” into Google and get a bunch of great search results that also describe this method.
Good luck!