All Forum Posts by: Paul Vail

Quote from @Michael Haynes:

Hello Paul Vail in NC, I said with all due respect, I glanced at your comments, but, none of them showed me or anyone else, "How to protect the guys $100,000 or how to make more MONEY at this time." 

No one here should be offering ANY direct financial advice to anyone else unless the advisor is a CFP or similar professional and contracted with the OP.  Taking actionable advice would be ill-advised.  Do you understand why?

The rest of us on this thread have been very careful to suggest the OP and his dad find a qualified professional for real advice and provide a lot more data with them.  We've also offered ideas to present to the professional.  Your 'glance' at my posts may have revealed the idea of having Dad read these posts for consideration, from crowdfunding to relocating to a different state to starting a business.  Most of the adults here posted that there is precious little data on the father's situation to narrow things down, and a whole lot more would be needed to weed out less useful ideas.

As you seem a bit fixated on me (I'd be flattered -- but no, not really), I suggested evaluating the father's debt status and terms of the loan to determine what might be paid off or put off if better gains could be had with that opportunity cost. Or does he have divorce/legal obligations, or some wants/needs to use the money on. It was suggested (yes - by me, you eagle-eyed sleuth) to explore parking some cash in I-bonds for personal/business/trust accounts, or a Roth if qualified, or an HSA account, or private lending/hard money within his REIA -- basically diversify. Perhaps that was difficult to glance over.

Troll much?  BP is a quality site.  Let's keep it that way.

Quote from @Michael Haynes:

Hello Paul Vail in NC, with all due respect, since you are responding to my suggestion for a Newbie with no Knowledge of Finances to get a Big Picture of our dire situation with a free youtube video, I have a question for you...How many years have you been in the Real Estate Market? Did you own any Properties during the 2008 Economic Crash? Do you Invest in Stocks or Bonds or Futures or Gold etc? Do you own any properties outright? How many Rentals do you have that are producing Positive Cash Flow? Are you Debt Free? Do you have any Cash? If not, then, why would you get Political about a simple youtube video? You could have given Chris Breezy your Sage Advice on what his father can do with his hard earned $100,000...which you did not. Money talks and B.S. walks. And I was told 40 years ago when I started building my Rental Portfolio, for my Retirement, that, "You should never take Financial advice from anyone who does already have a Million Dollars."

You may well want to read the whole thread before attacking me personally.  You'll get a few of your answers from my prior post.  As for political -- conspiracy theory peddling IS the purpose of your post.  It doesn't belong in an adult conversation.  Have a good day.

Quote from @Michael Haynes:

Hello Chris Breezy from New York, this is the best explanation for our current situation that I have found and Peter Schiff explains what you need to do with Cash to survive on his youtube video, "The Fed Will Seize All Your Money In This Crisis"

Fear-mongering capitalism.   Have any idea how long these kinds of 'educational' bits have been playing out, or how much money he gets from the clickbait?   This stuff, Stansbury 'research', it gets old.  Been seeing this for forty+ years, and it's basically conspiracy theory nonsense.

Quote from @Chris Breezy:

I’m 26 and I’m all about personal finance and investing. I have a good amount of money that invest in stocks and I also max out my Roth ira every year. My job provides a pension and annuity for retirement so this would just be extra. Any benefit for me other then saving more for retirement ?

 Do you also have a health insurance plan with the job?  If it's a HDHP that is HSA-qualified, you might look into seeing if that insurance could fit your needs.  For most healthy folks, they buy way more health insurance than they need.  An HSA plan lets you invest in the market with contributions that are fully tax-deductible.  The premiums are usually lower cost.  All earnings are tax-free for life (like a Roth).  You can access the funds for any qualified medical bill (meds, doctor, dentist, optical, mental health).  There are no RMDs.  You can access the money for non-qualified spending after you retire and only pay ordinary income tax on it.  And you can use the funds toward your medicare premiums -- assuming any of these programs exist in four decades.

Quote from @Chris Seveney:

@Brian Cassanego

Real estate fund focused on distressed debt paying monthly dividends.

That's an interesting idea with how markets are presently drifting (both financial and RE).  What would be your top three if you were to want to research more?

Quote from @Jeremy H.:

How do you all organize your rental property bank accounts?

Bank Account per property? Pros: Would be very easy to see expenses/costs etc. Cons: Would end up with lots of Bank Accounts but still organize them all under "Business"

Single Bank Account? All deposits and costs would go into a singular account. Could still see totals for the whole business but would need something separate (maybe excel sheet) to see how each property was doing. 

Quickbooks?

Trying to come up with an efficient way to organize my properties. It's been turning into quite the cluster the past couple years. Trying to make this easier for my CPA down the road. 

A bank account per LLC (or per whatever legal entities you create), with a separate business savings account for managing "not my cash" general deposits.  E.g., rental deposits initially go into this holding account, and if the tenant appears to be staying after 30 days, buy a 60mo CD with the highest (meager) interest rate.  CDs can be cashed out early for only a minor interest hit early.  It's not my money and I'm not paying interest on the deposit amount, so I'm not worried about inflation erosion.  I get the piddly interest of course, but the money is out-of-touch.  Nothing more complex than that if one remembers to memo or tag each transaction on a per-property basis for record keeping.

None of these accounts commingle with my personal banking.

Consider joining forums in that play space:  https://www.mrmoneymustache.co...      is but one example.   Those resources can be amazing.

Without knowing where you are going over, it's impossible to tell you what is appropriate or not.  Everyone's wealth journey is different.   That charity payment -- what does it go toward or better yet, could you not donate your time/sweat instead of the money.  Surely your family's time is worth $10/hr/person -- so if the four of you spent 12.5hr/month contributing to your community or some other form of good works, you could justify not spending that cash and balancing/offsetting the dollar outlay.   Why do I include the kids -- not like they will absorb what mom&dad are doing while they tag along at such young ages?  Well, because the example habits you set now will take you into the future when they are kids that can contribute.  And doing things as a family is a lost art in much of our culture.  Walking the walk, even before they can walk, isn't detrimental.   (OK, so it's silly on a few levels, but then again...)

Sure, there's plenty of fat on those bones any one of us *could* carve off.  Where and what is individual, and what cost of quality of life comes with such choices?  I would say there is a glaring omission to your budget.  Where is your savings?  Where is your investing for the future and your emergency fund funding?  Where is your kids college fund line-item?  

And we don't see the inputs -- what is the takehome pay contributions from each of you?

Something only ancillary to the conversation: I worked at Lowes during my first semi-retirement gig.  Learned alot.  Deliveries of appliances included hooking up the devices, but only if we sold the water hoses.  Why?  Well, of course, you say, it's to sell $35 hose kits -- typical RETAIL.  Well, not so fast.  I cannot tell you how many folks come in and when looking over the hose selection -- then share WHY.  Their hoses didn't survive the move, or failed unexpectedly.  Water mess.  So if we are on the hook for hooking up a washer correctly, there has to be new, fresh hoses sold with the buy.   In this way, the old crappy hoses aren't the real reason our installation goes watery.   If you are going to provide machines for your tenant, replace the hoses when you replace the system.  When I've rented out, I did provide the machines because they were still fully functional and I didn't need them elsewhere.   Tenants rarely come with their own appliances -- so it's situational.

https://www.lowes.com/pd/EASTM...

Quote from @Carini Rochester:

If I came into an easy 100K I would fully fund my IRA for the year, and the rest I would use as a down payment on real estate. I mean, after all, this is a real estate investing forum. Is that what your father should do? I don't know.

Your father should talk to a tax professional and a financial advisor.

We'd need to know what the source of the 100k is -- is it qualified to be put in an IRA tool or not? @Chris Breezy will have to fill in that detail.   Another thought is depending on the type of IRA, his dad may not have access to that money for other needs/wants until 59-1/2, and some IRAs may result in taxes for the distribution back out.  Again -- the details get sticky.   I agree that some set aside is a great idea, but without knowing a whole lot more (and it's none of our business), sharing opinions here because difficult.  Your last line is the solution: talk with a pro, not us.  :)