EVERYTHING CHANGES when you break $200k in income
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- čas přidán 7. 07. 2024
- Once you’re making $200k or more you unlock a whole world of possibilities.
This is a step-by-step guide to turn your high income into generational wealth.
Money just hits different for high earners.
You max out normal tools like a 401k and you make too much to use tools like the Roth RIA.
You might consider a backdoor Roth, but now you’re capable of maxing out a MEGA backdoor Roth.
You’re suddenly an “accredited investor”. This means you can buy VC shares, invest in hedge funds, and join private equity funds.
You have higher tax implications.
If you make $100 from your high-yield savings account the IRS is taking $32 right off the top and then letting the state have their piece.
Retirement becomes about comfort rather than possibility. It’s not WHEN can you retire, but how you want your retirement to look.
Want to make financial freedom inevitable?
Get in touch at www.hoskincapital.com - Zábava
It was all good until: Raise your return from 6% real return to 8% real return.
HaHa Good one. Actively investing to beat the market by 2% every year is no small feat. Even the 6% real return over the next 30 years is going to be difficult when prices are so high. Nobody is able to predict equity returns over a lifetime with such precision (eg 8%/year for an investing lifetime).
Well I came to 2.5 million myself before watching this (Im a CPA). Im in Canada, money is worth less but i dont need nearly as much as the 315k. Math checks out, good video
I was late figuring out a 529 account could be used to basically just wash money thru to claim the state tax benefits while paying for school. And now there is a path to roll from a 529 to a Roth... the question becomes how much to put in the 529?
My wife and I broke $200k of income our first year together and our daily lives didn't change at all. Now three years later we're closing in on $400k per year. We still feel like money is tight. We still don't feel like we can afford better cars, or eating out, or more clothes. This is because we dump 85% of our money into different investments. Someday we'll slow down and spend our money on us, but we just enjoy seeing that net worth rise.
That's awesome, I'm super proud of you guys for thinking of the future! Don't forget that tomorrow is not guaranteed though, and you should find a balance that makes you feel like you're living a fulfilling life now while making sure you can do the same in the future.