People Who've Successfully Escaped the Rat Race, Please Post Here

27 Replies

Originally posted by @Matt Jennissen :
Originally posted by @Melissa Gregg:

For us, the biggest hurdle to get past is health insurance.

 That's honestly one of my biggest worries as well. It's just so unaffordable outside of employer-sponsored plans. But I suppose that's nothing a few more cashflowing properties can't solve!

Thank you for mentioning this. Regarding this very real concern about rising health care costs, especially for those with families who depend on them, an HSA account is a very useful tool to help fund medical expenses. It is a tax deductible and tax free account (sort of like a traditional and roth ira) that can be used to pay for medical expenses. If you are a real estate investor you should have or at some point will set up a self directed Ira, well a self directed HSA is also very beneficial. There are rules to follow like with any special tax savings account, but its pretty simple. You can do real estate deals in your self directed HSA account that can pay for your medical expenses with tax deductible and tax free income. Just get a high deductible low premium plan and fund the out of pocket costs with your hsa. Last year my best quote for a qualified health plan was 1100 plus,. However, a high deductible, low cost plan was 470 per month. That is pretty substantial savings. And of course much of this hinges on being a prudent saver and thinking long term.

http://money.usnews.com/money/personal-finance/mutual-funds/articles/2015/05/18/the-triple-tax-benefit-of-health-savings-accounts

@Matt Jennissen Keep working hard it is totally possible. The day I left my JOB & decided to continue working for myself and building my company full time was one of the most liberating days in my life. Fast forward to today & I run a $30 Million portfolio. There were (still are) many bumps in the road to get here but you have to just keep on pushing forward.

Wishing you success.

@Josh Bigio I never really thought of utilizing an HSA in that way. That is a really good idea! 470 a month, that's really all that bad, but like you mention, it all hinges on being a prudent saver and thinking long term. Thanks for the tips! 

@James Wise Man, that is seriously inspiring! I hope I can have half your success and I'd probably be happy :) Thanks so much!