Trying to dig myself out of a little hole; advice requested

[Aaron S.]

33, salary 95k, MCOL area. $4,000 in credit card debt and I pay $400/mo child support. Other income is ~$300 in disability income and ~$250 from teaching Brazilian Jiu-Jitsu on the side.

live with girlfriend who makes ~80k but we keep finances separate.

Goal: Build as much wealth as possible before retirement in ~25 more years

In Jan 2022, total net worth was 350k. Since market downturn, and heavy investment in leveraged ETFs (TQQQ and SOXL) I have lost 30-40% of my net worth.

Also sold at a loss due to buying a house and needing closing costs and down payment funds. Sold ~$15,000 worth of securities at ~50% loss. It physically hurts to think about.

Put $15,000 down on a $440,000 house. We will be house hacking, so between my girlfriend and 2 roommates my total monthly housing cost will be $300-400/mo.

I have been putting in Roth contributions to TSP around the tune of $1,000/mo. After Roth contributions and other deductions, my net pay is ~$2,200 every 2 weeks.

I am tempted reduce TSP contributions in favor of putting that money into leveraged ETFs at steep discounts. Although the TSP is down, it isn't down nearly as much as TQQQ and SOXL. Returning to previous ATHs would result in ~100% returns over however long that takes. I could begin DCAing into TQQQ/SOXL instead of the TSP so if it continues to go down, World War III happens or whatever I can just keep DCAing in. This should result in higher returns (MUCH higher returns) when the market returns to previous ATHs.

Of course there is always the risk of leveraged ETFs folding up but TQQQ is pretty massive. I don’t know how big SOXL is.

Although my living expenses will be super low and I should be able to throw a lot of money back into the market, the house also needs some upgrades (a backyard fence/gate, window treatments) to the tune of ~$5,000.

Any advice would be greatly appreciated.

***In retrospect I probably should have taken out a TSP loan instead of selling my leveraged ETFs at such a huge loss. Live and learn.

[Greg Scott]

You asked for opinions so I'll give you one, although you may not like it.

Leveraged ETFs?   You like gambling, don't you?  You might be better off going to Vegas so you can at least have some fun.  What you are doing is NOT investing.  It is high-risk speculation as evidenced by your recent losses.

When I buy income-producing property, I can estimate within a small fraction the amount of cash flow it will produce.  I also have a very good idea what kind of equity I can capture from the moment I own the property.   Meanwhile, I'm paying down my mortgage which is effectively cash in my pocket at a later date.  If my rents go up, which they usually do, I make more money. If the property appreciates, which generally they do, I make even more money.  Doing this correctly, I'm paying almost no income taxes because the tax laws favor people that provide housing and better local communities through their efforts. 

That is how you invest, build financial freedom, and become wealthy.  It may not be as sexy or dramatic as making or losing 100% in a matter of days, but I never have to worry that Russia may invade the Ukraine and my portfolio goes to zero before I can log on to my brokerage.