All Forum Posts by: Daniel McNulty

@Chris Seveney Surprisingly, they had their offering circular listed right on their website. It included the last set of audited financials. I wish it was always that easy...

While they are attempting to help society, a quick review of their last fund offering circular raises some concerns. 

As of their last available offering they had less than 1 M in assets and generated almost no revenue. Their loan portfolio (if for sale) may be decent, but I would be concerned about the size of this group and their ability to pay the bills / keep the lights on at this size.

Operating costs in a fund this size can be harmful to total returns too. Granted an updated offering could reveal a much healthier company, I would need to see it to believe it. 

@Aaron Law

If the name of the game is cash flow, then eliminating the student debt would be advisable.

The remainder really depends on your risk tolerance and willingness to dive in.

The real question is do you know your cash flow target?

@Nelson Kaeb

It’s a solid plan to start. You may be better off just putting them into 30 year mortgages to optimize cash flow.

All that equity locked in your sfr will be a drag on returns as your plan matures.

@Martin Neal

The ACA marketplace (healthcare.gov) is a decent spot to look. As a single male in your 30s it might cost between 500-700/month. It will obviously cost more for a family and for older adults.

If you have a small business of some kind you may have a few more options.

Either way it’s likely going to cost more than you pay as a W2 employee.

Of course you can utilize Medicare once you are of age, which will be cheaper.

@Linda Dorothy

The biggest problem with a long term care policy is that it will likely not help you in your younger years. Unless the other 2/3 of your assets can support you, it may not be an optimal choice.

Also you can likely find a better method to grow your $ than a variable annuity. High fees and limited options.

I do approve of your Roth conversion strategy. It’s timely and will likely pay off.

@Kris Osborn

Generally speaking the IRS will get their cut.

Lowest tax option would be to place assets in trust and wait for him to pass, then sell assets.

Otherwise you are just doing damage control. Depending on what part or CA you are in, it may not even be any cheaper in chunk as RE prices may throw them into the top tax bracket on a single property sale.

@Derrall Chandler

Generally the best advice is not to use all cash. Leveraging your real estate purchases through a mortgage is arguably the biggest advantage available. You would be missing out on that.

@Mindi B.

It depends if you are looking for stability or total return. Private lending would be more stable but the total return on a rising stock market could be greater.

@Gilles Dierickx

There are a lot of questions in here to unpack.

Let’s start with the big one regarding the villa. If that thing is not generating positive cash flow in the next month, sell it. Either it’s not in an area that has rentals or the asking rent is above what the market will bear. Either way, you should have it rented or sold ASAP.

You said he’s looking for 5-10k of income... do you mean per year or per month? It’s a. It’s a big difference.

We are not taxes on money in the bank in the US. We are taxed on property and also on income.

Overall, it seems like you need a game plan.