Ramit Sethi Profile picture
23 Mar, 6 tweets, 3 min read
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?

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Ramit Sethi

Ramit Sethi Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @ramit

23 Mar
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
Read 5 tweets
8 Mar
I spoke to a couple making $335,000/year. Impressively, they knew their savings rates, investment rate, etc (most don't)

I asked "How do you feel about those numbers?" they laughed

"We don't know! Is it good? Bad? We have no idea!"

Here are a few things we talked about👇
Because they didn't know basic benchmarks -- savings rate, investing rate, etc -- they had no idea if they were doing POORLY, FINE, or VERY WELL

Knowing these benchmarks is key

They were doing well but felt guilty

I reassured them, then we celebrated

Telling people to "learn benchmarks" is a losing battle. Nobody cares. So I dug in

They had some peculiar $ habits. When I probed, it became clear why

They had no vision of a Rich Life. They were just saving to save...because "that's what you're supposed to do"

My approach...
Read 6 tweets
5 Mar
How do cult members respond to being wrong?

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

Read 10 tweets
5 Mar
Do you agree or disagree with Noah?

What are the things to take into consideration to decide what's right for you?

I'll leave my thoughts in comments below.
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
Read 16 tweets
3 Mar
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... ImageImage
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.) Image
I asked my readers to share their BEST and WORST stories of using a financial advisor Image
Read 5 tweets
3 Mar
Ramit's Rules for Letting Go

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
Read 4 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!