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Updated about 9 hours ago on . Most recent reply

User Stats

36
Posts
25
Votes
Dylan Villano
  • New to Real Estate
  • Denver, CO
25
Votes |
36
Posts

Financial advice on saving money to invest in RE

Dylan Villano
  • New to Real Estate
  • Denver, CO
Posted

Looking for a financial advisor to talk to. I need advice on making an investment plan. I have 95k in retirement funds. I have 65k in stocks, 25k in cash. Currently put 18K annually into employer retirement, 10.5k annually into savings. I want to invest into RE. Does it make sense to back off on employer retirement contributions and save more cash? I can't use a self-directed IRA, as I am still employed with company that holds that bucket of money. There would be tax implications as my retirement lowers my taxable income. Any advice or recommendations on whom I could talk to.

Thanks

  • Dylan Villano
  • Most Popular Reply

    User Stats

    167
    Posts
    125
    Votes
    Daniel Murphy
    • Financial Advisor
    • Saint Paul, MN
    125
    Votes |
    167
    Posts
    Daniel Murphy
    • Financial Advisor
    • Saint Paul, MN
    Replied
    Quote from @Dylan Villano:

    @Jason Malabute That is where I'm stuck. I can look at stocks and my retirment accounts and understand the returns i am getting. Depreciation and passive losses, cash flow, leverage and potential appreciation is where i get lost in comparing the investments.

    I feel in the long run RE would provide a better tax shelter. At the end of the day I dont know what I dont know...


     I think we're all on this site because we intuitively are 1) motivated to build wealth and 2) know that RE is a great way to generate that wealth.  But I've also learned that there is a large disparity between between the majority of people on here, and the few who are really knocking it out of the park.  
    There are a number of studies that show that a simple stock market investment, net of fees can outperform real estate over time.  But these studies never really capture the nuance of real life.
    For example, I have one short term rental property. I previously aspired to have more, but I'm not sure now. I have 8 kids from a blended family. Two who have eating disorders and tons of responsibilities.  If I could go back, I would rather have the cash & time back from this investment property.  I'm constantly stuck between wanting to sell it, or hold it for the long term. 
    Whereas, if I dump money into the market, it's pretty simple. I don't have to think much about it. But I'm also not trying to leave generational wealth. I'm just trying to live a happy and balanced life.  
    Lots and lots of stuff to think through when it comes to where to invest.  I think it's always best to start with trying to narrow down what you really want in life.  What brings you peace & happiness, then go from there... 

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