Guy on reddit: "I'm 27M, $14mm net worth, looking for a city to live in. City must have:
-Good weather
-Safe
-Low capital gains tax"
Imagine being on track for $100mm+ by breathing oxygen and, of all your options in life, you decide on TAXES as a top criteria for where to live
There are 2 groups who make decisions based on taxes that I find incomprehensible
1. Low earners. I remember a guy making $14/hour in TX telling me I was dumb for voting democrat because "they'll raise taxes"
Buddy...they want my tax $, not yours. And they should raise my taxes
2. The rich! OK, you're a multi-millionaire...you can live anywhere. You make 8% returns with capital-gains advantages. You literally cannot spend it all
Of all the things you can do in your life, what guides you?
HOW LITTLE YOU CAN PAY IN TAXES?
FUCKING GET AN IMAGINATION
If Reddit guy wants to live in San Jose or Dallas, great!
But why would taxes be in your top 3, 5, or 10 criteria?
This dude will have HUNDREDS OF MILLIONS OF DOLLARS IN HIS LIFETIME
This is the predictable endpoint of people who have been taught that "taxes are evil"
I'm getting some good comments about taxes!
Screenshots attached
- "Life is about more than taxes"
- "People choose to make less money to avoid paying taxes"
- "What's the point of earning money if you're not using it to live in a place you love?"
More comment about taxes from my Instagram story
- Lots of people have been raised to believe "taxes=evil" and "frugality" is the only way
- "I'd be more comfortable paying if there wasn't so much WaStAgE"
- Living choices if you're LGBTQIA
- What about low taxes in Texas?
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A friend asked me if the Amazon 5% credit card was worth it ("I spend a lot at Amazon")
How would you decide?
I'll share my thoughts in the comments below 👇
He first thought about getting the Amazon CC because Amazon showed him a big number: "If you had an Amazon credit card, you would have saved $XXX last year"
Very compelling. Companies love to show you big top-line numbers like this.
However, what's missing from this?
In reality, he already has a 2% cashback card. So an Amazon card would get him an incremental 3% of his Amazon purchases (5% - 2%), not 5%.
He should also factor in:
- Annual fees
- Maintenance (setting up accounts, payments, monitoring) <---this is a huge invisible cost
On January 21th, a QAnon cult member messaged me promising that by March 4th, we would have 45,000 "pending indictments" released and our country's corruption would come to an "abrupt end"
Today I followed up with him
👇
As a reminder, here are some of the things he messaged me, totally unsolicited.
What do you notice about his comments?
His messages continued to become increasingly unhinged until his crescendo, a supposed "smoking gun" video...which was unavailable
You can see others' responses to his comments here
Here are some things to consider about buying vs. renting.
I've rented by choice for 15+ years in SF, NYC, and LA. Renting was an awesome lifestyle and financial decision
Why? Because even though house prices appear to go up, most people forget about PHANTOM COSTS
Here are examples of PHANTOM COSTS:
- Down payment
- Maintenance
- Interest
- Taxes
- Time
- Opportunity cost
Once you factor these in, your returns shrink, often dramatically. This is why granny buying a 1979 house for $100K and selling for $800K didn't actually make $700K
In general, I'm not a fan of ordinary people using financial advisors
* Wall St fights against commonsense regulation
* People don't realize that 1% fees can equal 28% of returns
* They'd would rather pay $50K in hidden fees than $2.5K out of pocket
But...
There are good reasons to hire a fee-only advisor. I've done it myself and had a great result.
(This is an excerpt from an email that I sent out today.)
I asked my readers to share their BEST and WORST stories of using a financial advisor
1. Let go of the “should dos” that you actually don't care about. 2. Let go of waiting for inspiration to strike. 3. Let go of feeling guilty.
👇
What’s been on your to-do list for a year…but you really don’t want to do it?
If you truly don’t want to do it, acknowledge it!
Then move forward:
* If it’s not important, delete it
* If it is, cause it to get done (e.g., hire someone to handle it).
Make the decision
I love how pro athletes think about inspiration. They train so they can perform anytime — they sidestep inspiration. Instead of hoping to be struck by inspiration, build systems so you’ll succeed by default
Here's an example of the I Will Teach You To Be Rich financial system