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One thing I wished I had done earlier is study money enough to have figured out my favored investment vehicle and how to best utilize it, preferably before my f

One thing I wished I had done earlier is study money enough to have figured out my favored investment vehicle and how to best utilize it, preferably before my first dollar earned at any job/trade. That and the tax code (incentives) of my country/state (US). Of the main three (building businesses, real estate, and paper assets/commodities/derivatives) I figured out that I personally favor real estate. So that is where I choose to focus and feel most comfortable. I also learned that an over-funded whole life insurance policy can be used as a savings account with benefits (thanks Grandpa!). Depending on the company (and there are specific criteria), I found one that is paying 4% on amounts I over-fund, as well as on distributions (it has to be a mutual company), which I can borrow against for down payments on the next property, while still having Life Insurance addressed for my spouse/other survivors. They (I have more than one) are also the foundation for a family trust my partner and I are setting up for our families. Finding mentors who have already walked the road that fits is key for me. She or he can point out things I am missing, help with obstacles, suggest areas to study, etc. For example, there are many Life Insurance policy types, and the one that I favor is not well known or recommended by most insurance brokers (they stand to make quite a bit less commission). It is also at times railed against by the Ramsey/Orman crowd, not always for the right reasons based on my values/strengths (everyone is different). With real estate, there are so many markets and sub-markets, figuring out what best suits can take a bit of effort. Same with paper assets/commodities/derivatives, and obviously (as this community is fairly well familiar with) businesses that are grown into IPO/sale/other-exit-plan candidates. And a good CPA is constantly studying the tax code (it is always in flux) so they can be a great source of planning information for the various financial endeavors I get into. Oh, additionally a knowledgeable attorney can assist with the right entity and liability limitation planning, among other facets. For what it is worth, of course.

mkaziz 10y ago
You need a lot of capital to get involved in the above, no?
- raintrees 10y ago
  We purchased a single family home in Florida for $11K down, so not necessarily. It currently cash flows for around $200 a month (all expenses paid, including property management - we live in California). There are also ways to partner with others to combine a down payment, as well as putting together a deal with no money down (funded by others). It is incredibly important to study/investigate ahead of time before creating a deal with more than one partner, as there are financing rules that may apply (for example, the SEC can be involved with syndication, if it gets to that). There is quite a bit of money in the world looking for good investments, so if you can become someone who puts together good investment deals, attracting capital will not be an issue. Some have started by creating a deal where they had no money down but instead received 10% or 20% for putting the deal together and making it happen. The next deal can be a higher percentage (success builds trust), until eventually you have built up enough capital to be doing your own deals, if that is your preference. The team you build is more important - Attorneys, CPAs, Property Managers, Insurance Brokers, etc.

mkaziz 10y ago

You need a lot of capital to get involved in the above, no?

raintrees 10y ago
We purchased a single family home in Florida for $11K down, so not necessarily. It currently cash flows for around $200 a month (all expenses paid, including property management - we live in California). There are also ways to partner with others to combine a down payment, as well as putting together a deal with no money down (funded by others). It is incredibly important to study/investigate ahead of time before creating a deal with more than one partner, as there are financing rules that may apply (for example, the SEC can be involved with syndication, if it gets to that). There is quite a bit of money in the world looking for good investments, so if you can become someone who puts together good investment deals, attracting capital will not be an issue. Some have started by creating a deal where they had no money down but instead received 10% or 20% for putting the deal together and making it happen. The next deal can be a higher percentage (success builds trust), until eventually you have built up enough capital to be doing your own deals, if that is your preference. The team you build is more important - Attorneys, CPAs, Property Managers, Insurance Brokers, etc.