Palm City, FL · Member since 2018 · 24 posts · 8 votes
I'm currently weening myself off that '401K scheme' I'd bought into. I'm also working in a corporate culture that is a case study in Dysfunction. I'd like to here from those attempting to escape the corporate world and enjoy financial freedom.
This group (Biggerpockets) is like therapy for us corporate drones fighting to get our lives back.
Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
8y
I spent 35 years contributing to a matched 401K plan and have no regrets. I got into buy/repair/hold SFHs in 2007 and left my W2 job 9 years later and life is wonderful. You will love the day RE allows you to walk away for that corporate job. Sometimes I think about cubicles, performance reviews, efficiency studies, reorganizations, downsizing, rightsizing, outsourcing, customer surveys, politics, employee surveys, budget reductions, 2% pay increases, mission statements, vision statements, presentations, progress reports, staff meeting, commuting, etc. I shudder, smile and go back to sleep.
Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
8y
I spent 35 years contributing to a matched 401K plan and have no regrets. I got into buy/repair/hold SFHs in 2007 and left my W2 job 9 years later and life is wonderful. You will love the day RE allows you to walk away for that corporate job. Sometimes I think about cubicles, performance reviews, efficiency studies, reorganizations, downsizing, rightsizing, outsourcing, customer surveys, politics, employee surveys, budget reductions, 2% pay increases, mission statements, vision statements, presentations, progress reports, staff meeting, commuting, etc. I shudder, smile and go back to sleep.
Palm City, FL · Member since 2018 · 24 posts · 8 votes
8y
I feel your pain in every description. I found the more we grow in both age & knowledge, the clearer & more apparent the toxicity is visible. I'm getting forced to the curb due to the number 55 in the age column.
When I ran math on swapping 401K funds for a down payment on a easy to rent home it clicked. Now I have a clear understanding why the guy in my favorite coffee place is in his mid 50s, retired, and doesn't have a massive 401K or pention. His math is:
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
8y
Sorry to hear about getting pushed to the curb...awful.
Many of the rest of us like our jobs...or we would just get a new one. The job market is excellent right now.
Many investors just want the freedom to not need the job but would still continue to work. Or, they just want to supplement their income with real estate.
Many investors can get 30+% IRRs in their real estate portfolios but that does not hold a candle to the 100% return from their 401k matches. There are many BP members who must have awful 401k plans with no match for all the hatred we hear towards them.
If you are not going to be working and your taxable income will be low for a period, you may want to consider a Roth conversion ladder to allow for tax free distributions of 401k account balance.
Palm City, FL · Member since 2018 · 24 posts · 8 votes
8y
The power of RE is clearly seen long term. I was never in to 'investing' until I saw Biggerpockets and ran numbers;
Of the 2 condos I'd bought in 2009 BEFORE I saw this as a business had combined 200K equity. I sell them, put 30% down on 5 properties that immidiately cash flow a combined $2,100. By paying an additional $2,100 per month on 1 of them, within 5 years, 3 properties are without mortgage, putting $3,000 in my pocket every month AND I've got cash flow on two others that bring the total to $3,900 ($47,500 anual) with BIG tax writeoffs.
This represents a $71,000 salary on a net/net basis. So, to your point, RE truly IS overrated for those not willing to invest the 5-8 years it takes to replace $71,000 jobs.
Rental Property Investor · Las Vegas, NV · Member since 2018 · 133 posts · 171 votes
8y
@Will Hanner I know what you mean I am there also.
I have a plan though, which I call my 5 year plan. I have a high paying job and no debt (I don't own a home but I do have small mortgages on my rental properties). so I live way below my means, save as much as I can to further invest in real estate, and save to build a good chunk of cash in the bank as a cushion.
In 5 years although I won't be what I call "financially free" I will be what I call "financially flexible" and that's good enough for me. My goal isn't to "retire" since I like to work (and honestly I don't have much in a 401k so I couldn't anyway). But what I really want is the freedom to be able to take risk like start my own business, get into a startup, etc. but have a basic safety net or backstop in place in case things don't work out.
Although my job is depressing for me some days because the environment is so opposite my personality (risk taker stuck in a very rigid political corporate environment), I just have to remember it's a means to an end. And although I could quit and go somewhere else, it really comes down to "better the devil you know than the devil you don't".
Formulate a plan, start to take action and work towards it. Just doing that little bit can be very liberating.
The power of RE is clearly seen long term. I was never in to 'investing' until I saw Biggerpockets and ran numbers;
Of the 2 condos I'd bought in 2009 BEFORE I saw this as a business had combined 200K equity. I sell them, put 30% down on 5 properties that immidiately cash flow a combined $2,100. By paying an additional $2,100 per month on 1 of them, within 5 years, 3 properties are without mortgage, putting $3,000 in my pocket every month AND I've got cash flow on two others that bring the total to $3,900 ($47,500 anual) with BIG tax writeoffs.
This represents a $71,000 salary on a net/net basis. So, to your point, RE truly IS overrated for those not willing to invest the 5-8 years it takes to replace $71,000 jobs.
If you're making $71,000 in real estate why are you in a corporate job? Are you still supplementing your rental income with your corporate job?
Palm City, FL · Member since 2018 · 24 posts · 8 votes
8y
Having worked for Bear Stearns I can attest to the toxic nature of corporate America. I know I'll sound like a Millennial Socialist but after 25+ years of seeing it, the singular focus on profits & butt kissing at the expense of employee well being is a case study in toxicity.
My direct deposit I won't give up intil I'm 'seperated from the mother ship and fortunately Biggerpockets inspires us fleeing dysfunctional work environments.