1/12th of the way there!

[fenders53]

(04-02-2021, 07:09 AM)ken-do-nim Wrote:

(04-02-2021, 06:39 AM)NilesMike Wrote: Congrats on hitting the milestone, you certainly are full on with stock investing/trading.

Personally, I prefer a more diversified attack.

XX% in the market
X%  in the trading account
XX% in rental real estate
XX% in my house equity
XX% in cash

On the 1st of the month, the rents come in, soon to include Social Security.
2nd week of the month is payday.
Dividends come in monthly for the most part.
Back to 1st, another round of rents, payday and soon Social Security.

I have no rhythm but like that rhythm. LOL

What's the difference between 'market' and 'trading account' ?

I'll get into the rental game in a few years.  I need to stay in my house while the kids are in the school system, after that I will rent it out and live elsewhere (ideally with a girlfriend).  Mortgage payments are $2200 now but even in today's prices I shouldn't get less than $3000 for a whole house; probably $3500 by the time I move out.

House equity I have to warn you against.  The value of your house goes up and down regardless of how much of your house you actually own.  Of course having a mortgage paid off lowers your monthly expenses, so I generally recommend people to either have the house nearly fully mortgaged or paid off.

Ideally by the time I'm in my 60s I'll also have some self-published material available on lulu.com (print on demand site) which provides additional revenue.

Interesting that you have the 2nd week of the month as payday.  I get paid every other Friday instead.

Mike is a real estate tycoon by my standards.    He has a number of tenants.  I only had one house.  It was mostly a good experience for me.  Tenants paid off every dime, mortgage, taxes, insurance, repairs.  I found somebody with a good down payment and sold it on contract wat an interest rate he doesn't care for.  That's good because I don't want to be a bank forever.  He is spending substantial money on improvements so I feel comfortable with the arrangement.  Childhood friends of my wife's and we know he works steady at his business.  I "suspect" is business is a little heavy on cash and light on taxes or he would have just secured a mortgage.

To your other point I have never liked my residence to be mortgaged any longer than possible.  I always paid them off fast.  I am not hearing "but you can get a better return elsewhere.  Save that argument for somebody who hasn't endured severe stock market downturn.  There is no guarantee.  If I pay my home off I am guaranteed I don't owe the bank anymore interest.  Multiple rental property financing. is different.  A friend of mine bought too much home around 2006 with little down.  It cost him six  figures to move five years later.