@Todd Powell health insurance is a bugaboo and is a big concern and one of the obstacles to early retirement on my part. It’s a looming problem. What do Brendan and his like do for insurance, any idea?
W-2 income is charged at the highest income rate. Yes, you may pay income tax on the investment income, but there are so many tax benefits, which dramatically reduce your taxable income. I have owned a SFR for 9 years. Due to depreciation, etc., I have never paid income tax on my rental income. In fact, I have a loss every year which reduces my income tax on my W-2 job. This is why so many wealthy people are real estate investors.
Originally posted by @Clifford Paul :Originally posted by @Todd Powell:
@Clifford Paul. Question, at 42 how much cash flow did you have before you pulled the trigger? Been my Q
In 2007 I was medically retired from the military. I had 32 rentals at the time and only 2 with a mortgage. I had no clue about leverage back then. My cash flow was just under $20k a month.
Because I had cancer and didn't know if I was going to survive and my properties were spread out in 6 states. We decided to sell all of them and our 2 vacation homes.
I invested all that money in low cost index funds and dividen stocks. I haven't touched that money since except for the dividen checks I recieve.
One thing that got me where I am today is we have never lived on our cashflow. We currently have over 10 streams of income to live on.
Now we have 20 properties in our second portfolio that cash flows just under $40k a month. My wife still works and will retire at 49 in 4 years from the military. Since her income will be cut in half we will probably start using a little bit of the cashflow. But until then we will continue to reinvest all of the cashflow.
I encourage everyone to get more streams of income if they want to retire early. There's thousands of ways to make money.
Clifford needs to be on the BP podcast. Amazing story! Someone dm Brandon Turner or David Greene or whoever books guests for the show. I was floored by his story!
@Todd Powell , awesome! Thank you for sharing! Extremely motivational!
Hi Todd - I just turned 50 this year need to ramp up my retirement too. This post is so encouraging.
@Cory Binsfield . Me too
@Robert Carlson . Thanks man
@Cathy M. When are you looking to retire? What are your goals?
Well done! Thanks for sharing your story!
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