All Forum Posts by: Edward Kanive

Hello,

I’m a full time physician and my employer offers 5000 dependent care contributions that I can do. I end at the 35 percent tax bracket so this is very advantageous.

we have two rental properties but she stays at home and doesn’t draw w2. She does help with these properties, so can I claim this benefit?
the law states both parents need to be working or looking for work.

Hello,

Our property manager frustrates me and I’ve been sort of lazy to remove her.

1. she traditionally is harder for me to get a prompt answer from. Granted if something is going wrong at property she is more available.

2. I get paid at variable times every month and really only kicked into gear if I harass her. Her deduction is like clockwork, the 10th of every month. When do you guys all get paid? 

3. how much do y’all pay. I pay 250 a month and half a first months rent for finders fee. One property rents 1300, another 2300. 

4. I had a month vacancy/turn over? Seems a bit high for august 1-31.

5. she has me Put all electric and utilities in my name between tenants. Can’t you save me the com Ed and gas call!?

really if I was just paid on time monthly I’d be a lot happier. I make a lot of money and feel stupid begging for money given my financial situation but I strongly prefer to have money in and out my accounts quickly and into the buckets I have allocated… 3600 cash is a decent chunk of change and it sucks to wait on even with tennant paying on time.

6. When repairs are done, I don’t really get invoices because she hires the people directly? Shady?

pluses: she seems to rent at or above market value. She has dealt with peoblematic tennants.

I’m a nice guy and feel bad letting anyone go and I realize grass always seems greener on other side.

Quote from @Carlos Ptriawan:

Quote from @Edward Kanive:

Quote from @Michael Wooldridge:

Quote from @Edward Kanive:

Quote from @Michael Wooldridge:

Quote from @Carlos Ptriawan:

 I don’t think I’ll pull out that much. I live on 400-500k currently and am paying student loans, mortgages, cars and would not have any of those bills in retirement hopefully 

There were a few months I paid 8,000$ monthly for childcare… I’m expecting to make less go a lot further.

 Put some of those into a Private Interval Fund / Closed End Interval Fund (Accredited Investor only), the good thing about these funds are you get good yield like 6-7% p.a. conservatively in a diversified Finance market without losing a single penny from valuation so you are safe from market volatility. 

Thank you. I never heard of that and will look more into it. I love real estate and is why I’m on this website. For non RE I use whitecoatinvestor.com which is applicable for anyone earning 200-250 k a year or more.

I’ll def research this

Quote from @Michael Wooldridge:

Quote from @Edward Kanive:

Quote from @Michael Wooldridge:

Quote from @Carlos Ptriawan:

I guess this is what differentiates regular passive investor and more active investors. For me, things like dollar cost averaging, maxing out 401k during bear market is "not that smart". 

Better just take out all the money (buy low sell high), convert it to cash /CD/IBond with guaranteed 9% rate, and put it back to equity when Fed pivots. But when Fed tightens, all 1000% investment manager is taking out their equity investments into cash or buy protection.

If they don't do that, they will be fired and fried LOL

 401k is tax free going in. Really hard to beat that, especially if you fall into higher end brackets. 

For me I’m doing public service loan furtiveness which 401k hides money from what I have to pay, I save on the high tax brackets, and I’m able to shave off enough income to get me close to 400 agi where I can keep my child tax credits. 

i doubt I’ll be in the upper 30s for taxes when I’m retired so it’s a good trade.

Generally speaking 401k is always beneficial just from the tax free part going in. It takes really big gains outside of those two elements to overcome - which is why I was confused by Carlos comments.. Especially if you are that worried and people just park it in a safe fund.

Now as to the last point didn’t you say like 8-12 million? If you actually pull out 4.5% annually you will be in that bracket. 
 

Edit: well assuming 12 million thta is. 

 I don’t think I’ll pull out that much. I live on 400-500k currently and am paying student loans, mortgages, cars and would not have any of those bills in retirement hopefully 

There were a few months I paid 8,000$ monthly for childcare… I’m expecting to make less go a lot further.

Quote from @Michael Wooldridge:

Quote from @Carlos Ptriawan:

I guess this is what differentiates regular passive investor and more active investors. For me, things like dollar cost averaging, maxing out 401k during bear market is "not that smart". 

Better just take out all the money (buy low sell high), convert it to cash /CD/IBond with guaranteed 9% rate, and put it back to equity when Fed pivots. But when Fed tightens, all 1000% investment manager is taking out their equity investments into cash or buy protection.

If they don't do that, they will be fired and fried LOL

 401k is tax free going in. Really hard to beat that, especially if you fall into higher end brackets. 

For me I’m doing public service loan furtiveness which 401k hides money from what I have to pay, I save on the high tax brackets, and I’m able to shave off enough income to get me close to 400 agi where I can keep my child tax credits. 

i doubt I’ll be in the upper 30s for taxes when I’m retired so it’s a good trade.

Quote from @John Carbone:

Quote from @Edward Kanive:

Quote from @John Carbone:

Quote from @Carlos Ptriawan:

I guess this is what differentiates regular passive investor and more active investors. For me, things like dollar cost averaging, maxing out 401k during bear market is "not that smart". 

Better just take out all the money (buy low sell high), convert it to cash /CD/IBond with guaranteed 9% rate, and put it back to equity when Fed pivots. But when Fed tightens, all 1000% investment manager is taking out their equity investments into cash or buy protection.

If they don't do that, they will be fired and fried LOL

I also double max 401k, but I’ve been hiding out in the stable fund since late January. Ready to deploy that when Powell gives me the green light. 

 Too hard to guess when is right. Anyone that pulled out with CoVid, lost on record gains those first months of CoVid 

Who would have pulled out during Covid? The government was handing out money and the fed was buying everything. It was the easiest market to be in. 

On the flip side, if you stayed in the whole time until now, your gains are almost gone.  

 Fair, but when do you go back in? I’m 32 and have a long time horizon. It doesn’t really benefit me to be active.

Quote from @John Carbone:

Quote from @Edward Kanive:

Quote from @John Carbone:

Quote from @Carlos Ptriawan:

I guess this is what differentiates regular passive investor and more active investors. For me, things like dollar cost averaging, maxing out 401k during bear market is "not that smart". 

Better just take out all the money (buy low sell high), convert it to cash /CD/IBond with guaranteed 9% rate, and put it back to equity when Fed pivots. But when Fed tightens, all 1000% investment manager is taking out their equity investments into cash or buy protection.

If they don't do that, they will be fired and fried LOL

I also double max 401k, but I’ve been hiding out in the stable fund since late January. Ready to deploy that when Powell gives me the green light. 

 Too hard to guess when is right. Anyone that pulled out with CoVid, lost on record gains those first months of CoVid 

Who would have pulled out during Covid? The government was handing out money and the fed was buying everything. It was the easiest market to be in. 

You mean when the market tanked initially? A lot of people.

Silly me back out in building a 800 thousand dollar house and settled on something much less than that thinking the appraisal wouldn’t match on the build .

Quote from @John Carbone:

Quote from @Carlos Ptriawan:

I guess this is what differentiates regular passive investor and more active investors. For me, things like dollar cost averaging, maxing out 401k during bear market is "not that smart". 

Better just take out all the money (buy low sell high), convert it to cash /CD/IBond with guaranteed 9% rate, and put it back to equity when Fed pivots. But when Fed tightens, all 1000% investment manager is taking out their equity investments into cash or buy protection.

If they don't do that, they will be fired and fried LOL

I also double max 401k, but I’ve been hiding out in the stable fund since late January. Ready to deploy that when Powell gives me the green light. 

 Too hard to guess when is right. Anyone that pulled out with CoVid, lost on record gains those first months of CoVid 

Quote from @Carlos Ptriawan:

I guess this is what differentiates regular passive investor and more active investors. For me, things like dollar cost averaging, maxing out 401k during bear market is "not that smart". 

Better just take out all the money (buy low sell high), convert it to cash /CD/IBond with guaranteed 9% rate, and put it back to equity when Fed pivots. But when Fed tightens, all 1000% investment manager is taking out their equity investments into cash or buy protection.

If they don't do that, they will be fired and fried LOL

 People can’t pick the right times to buy and sell. Generally dollar cost averaging beats most active players.

any money I don’t put into these accounts gets taxed at a very high rate and I lose my child tax credits/parts of them, given I have 5 kids if I don’t do this.

Quote from @John Carbone:

I think we all agree that 5-10 years from now real estate prices will be higher than they are today. People like James are betting that prices will go straight up, whereas I’m placing my wager (which I believe to be  with odds in my favor - since no fed put) that housing will drop in the short term 12-18 months. Prices are already declining off the peak, so I feel like I’m playing with house money since I didn’t buy anything at peak prices. 

 Just curious, are you buy and hold? What’s it matter if it’s a few thousand different?