[BrokeAssMillionaire]

If you're young and have 30-40 years for retirement, all in high risk to be millionaire. NEVER withdraw at any condition
1. Midcap Grown : 60%
2. Large Cap: 20%
3. Small Cap: 20%

Forget all the bond, target plan, and international, these mutual funds are suck. I have been tracking them for 20 years
Don't move/touch when crash but keep continuing monthly contribute like nothing happens.

When you're ready to withdraw at 60, move 50% in 3 years ahead to low risk such as target plan or bond

If reach 1 mil at 60 and assume 6-10% gain annually, you probably only spend on the gain without touching 1 mil.

That's all my recommend.

This number was based on 10-31-21 when stock was high so it has dropped little bit under 25k and compute from 57-80 year old even though can't take out until 60. Change from 60-80 will up a little bit.

6.6k is constant except 25k is real time daily whatever market changes. I predict the DOW will reach 40k points in the future then 25k will up to 30k.

[TeaOla]

Welcome BAM to VB.

Please educate us more about 401K retirememt plan. Your knowledge and expertise is greatly appreciated.

[BrokeAssMillionaire]

There is not much to share since 401k is pretty much basic and limited compare to individual stock account. Each company has different plans but most have Large, Mid, and Small caps.

Do you panic and withdraw if market crashes where it drops your account from 100k to 50k? Nope, not a good idea, keep as it and continue contribution. Unless  you move out ahead before crashes and move back in at the bottom then you gain more. My account has been in crash 3 times where it dropped to 50% but it goes all the way up.

Look at your plan and pick out the highest gain of Large, Mid, and Small. The percent gain on these funds are similar where Mid is the highest gain.

If you can contribute max, then do it. The benefit is tax deduction even though you will have to pay tax later when withdraw. Assume 100k with 30% tax, instead of paying 30k tax, and keep it for contribution, you may gain 100% in 10-30 years. I have been doing this to keep my tax under 15%, this is where you will be brokeass   living paycheck by paycheck. Anyway, adjust to what your spending need for contribution.

We have a group of 401k contribution with the same plan but somehow one of my coworker got rumor from internet/news and thought Trump become president then stock crashed so he moved all the funds out but that mistake caused him 120k gain before he could back in the same plan with us. Most of people in my group gain more than double depend on how much they put in. The lowest total is 500k then up to 1.5 mil.

[TeaOla]

The most efficent way to reach financial freedom is to diversify your investments. In my opinion, the younger you are you should go higher risk, the older you are you should choose lower risk.

[BrokeAssMillionaire]

Diversify is not a good option for high gain. You only want to that 3 years before you plan to withdraw. Let say you have 100k and plan to withdraw 10k/year, then you want to diversify 50% to low risk so you know it's safe for the next 5 years that won't lose much if market crashes.

By the way, forgot about Roth: 401k Roth has been introduced for a few years but not all companies have this option. 
-Recommend is to use regular 401k for tax deduction first then put a few in 401k Roth
-If salary is high and no option for tax deduction, then all the way for 401k Roth for better return with no tax
-If your company has two plans:
--401k tradition and 401k Roth: max out combine
--Either 401k tradition max or 401k Roth max

I usually look at the tax bracket and see how much I want to pay tax each year if I want to max out contribution. At 15% tax, living is pretty tight. At 22%, it's more relax. 30% tax is like middle class, more extra cash available per month. If you do your tax return every year, then it's very easy to figure out.

Beside 401k tradition/Roth, you can open IRA Roth where you can contribute $6000/year. I start this late and is able to gain 90% after 12 years. The best part of Roth is no tax on capitol gain.

Right now, I am taking advantage of max out 401k Roth since I am no longer get much tax deduction and all in 100% for midcap. I have leave the international as it for 10 years where it doesn't gain much in 20 years. Small, Mid, and Large are well return where Mid has been always the highest return.  






Don't know if I miss anything in here, maybe someone else can explain more with their knowledge.

Property investment is not a good idea such as renting. Most people are looking what they get in per/month but they don't see other problem and issues. If you buy a rental property for 500k, and turn around to sell for 700k in 5-10 years, then I would call that the best investment. Otherwise, renting income is not the best benefit to earn extra income. Selling rental property would subject to tax too.

[TeaOla]

Earning income will be more taxable than passive income. Rental properties will be using for the kids' school tuition later. I'd pick 15years mtg loan instead of 30years, and I'd pay extra 1 more check toward mtg's payment at the end of the year.

[BrokeAssMillionaire]

Have you looked ahead of what to do beside kids school spending from rental?

What if you're going to sell the rental? 
Do you know how to get away from capitol gain if it's double the value?
Do you use depreciation to get back tax return? May be 7k-5k/year
Have you thought of convert rental as primary home for 2-3 years to get away from capitol gain?
Do you know the rule if selling rental before 5 years owning?
If you don't care about the tax then those questions above won't affect.

Doesn't matter 15/30 yrs mtg, you still end up paying some interest.

Repair/maintain is a headache.

Rental home insurance is another zhitty if nothing happens. Otherwise, pray it burns all the way to the ground instead of 10%,20$, or 30% damage because dealing with insurance in these case is not easy. They're happy to get your money but don't want to pay for damage. Burn all the way to the ground is best option that you get a grand new house and increase in value.

Good tax deduction with low income. I don't remember exactly how much but for single over 140k/yr income won't get tax deduction in rental.

There are many things if you want to discover that relates to tax. 

I think 529 College Savings Plan is better, save you a lot headache with any problem with rental. Less stress.

After getting away with rental, I feel better now, no need to think and worry much.

Someone asked ìf I can take money out at 57? The answer is No, have to wait until 59 1/2, it was a mistake as retirement age. I was surprised after changing to 60. That's still a long way to go to actually see money in hands. And I really don't know how to spend on it and subject less tax. If Tesla's stock is going up $3000 in the future, then I want to quit job at 55. 




[url=https://www.google.com/aclk?sa=l&ai=DChcSEwjctp6_36f0AhWaH60GHXBtAuoYABABGgJwdg&ae=2&sig=AOD64_275XDW1XwTcGSDe7XjIASL_pztFA&q&nis=1&adurl&ved=2ahUKEwikhpa_36f0AhWxLn0KHajMBpcQ0Qx6BAgFEAE][/url]

[TeaOla]

I thought you're going to be 70s this year :p, are you trying to say that there's one way and only my way to become a Millionaire? You have one mindset, dont you? . You're not efficient at rental property investing so you dont know the tax breaks you can get. What you said are partly the truth but there are always more than multiple ways to invest. There are a multitude levels of being successful financially.

[BrokeAssMillionaire]

 Still long way to go

I mean try to do less stress but make money, not the only way to be millionaire.

I used to get tax refund around 5k - 7k for over 6 years but this year only 1k so it's time to stop renting because I don't see if can run away from tax anymore. In order to sell without paying capitol gain tax, i have to convert it back to primary for 2-3 years before can sell since I bought for 105k and now 430k. If it's around 120k in value, then I won't bother to convert.

The law is kinda ridiculous. Even you don't rent out, you still have to fill it as a rental property with city/county if you own more than 2 houses. I was living in 2 hours for 8 years, then finally sold one house in order to convert the rental to primary. 

If you can maintain yourself, then it's good since I won't let property manager to get a penny from me 

[TeaOla]

Good luck to you to be a Millionaire soonnn

Rental properties should be closed to where you live, you are living in taxable state There is no easy way to make money, but there are many ways to make money chasing after you 

Can you show me how to make credit scores higher?

[BrokeAssMillionaire]

I was millionaire when Tesla was $1200/share but Elon stupid talk took away my goal   If you buy stock, pay attention to FAS. When market crashes, it can drop to $15



Don't misunderstand that you live a non tax state would save you money, you actually pay for something else such ask property tax where I pay 1.12% while you would pay more, and toll, etc. No body can get away easily. If there is too many benefit in yours state, then everyone would move there   Remember that, you can own 2 houses within 50 miles, the 3rd MUST be rental home unless it's over 50 miles, then it can be a vacation home.

Speaking of credit score, I have no idea where they look at to calculate the score. In the last 20 years, it has been tween 850-870, so getting a loan at low rate is pretty easy for me and the income. Some people say you need to make monthly payment instead pay off then your score will be higher but that doesn't apply to me since I always pay off at the end of the month to get away from ridiculous interest. My average annual spending is between 44k-65k with 1 mortgage, without mortgage is around 21k. Let me break down below since we are in different situation.

870:
-2 houses paid off
-1 house mortgage
-4 credit cards
-maintain backup cash in checking: 50k-100k
-Cancel credit card will lose 5 pts for each where i cancel 2 and apply 2 new every year. Losing 10 pts which take 6 months to recover

850:
-2 houses paid off
-No mortgage
-1 credit card
-maintain backup cash in checking: 50k-100k

I believe the credit is based on visa spending, assets, banks, and any late payment, I thought that it's what I saw when they ran scan one my credit before. So I think 850 is because I currently have only 1 credit card and no mortgage.

[TeaOla]

Eventually you will achieve your goal

[BrokeAssMillionaire]

Eventually you will achieve your goal

When you have your goal, then inflation kicks in that causes the goal's value way under. Now I am dreaming of 1 billion   Even though, I don't need money, I can live on pension for life with free healthcare until die.

[TeaOla]

1M phải để dành cả chục năm, 1B chắc 10 kiếp  

Are you dreaming?

I can't believe it. In real life, some people have a dream that they would hit lottery prize some days .
I dont have the dream to win lottery, but I can make my dreams to become possible.

[BrokeAssMillionaire]

Trong vòng mấy ngày, mọng ảo đã tan thành mây khói, mất 300k, sụ thật phũ phàng, an càng nhieu thì chết càng nhiêu. This is what high risk about. The first time losing 100k in a day that caused my heart beat fast but after a few times like that, I guess used to ịt that I am able to control my mentality.

I think I need a basic math again, should be 10 mil dreaming instead of 1 bil, íts more realistic 

Actually, it took 20 years to have 1 mil so 1 bil I need someone to bury it in 40 years later for mẹ   

I always dream of winning the lottery but I have never bought one.   Only wish that my brother winning so I can get some share.