How do you plan on creating wealth?

[jmjj215]

Re: How do you plan on creating wealth?

Ahh, I thought maybe you saw 25% and thought I was a payday loan loser charging some huge interest rate

[Moi?]

Re: How do you plan on creating wealth?

The key to success is to give as little possible back to the government. Frugality, coupled with using a Roth IRA and flipping houses that you live in (every two years) will accomplish you goal over time as long as you understand value in an investment.

What do you mean by flipping houses?

[JBinKC]

Re: How do you plan on creating wealth?

Flipping houses is buying and selling houses in a relatively short period of time. The catch:There is a rule in the tax code that allows a 250K exclusion of a gain 500K exclusion if married filing jointly in income tax as long as you lived in it for 2 years as a residence. The income exclusion becomes prorated if the sale is done by involuntary conversion like a job change or divorce. The gain is also deferred if your trade up to a more expensive home.

[34saving]

Re: How do you plan on creating wealth?

I think flipping in this circumstance means . . .Sell your primary home and buy a new one (preferably distressed that you fix up) every two years. In that scenerio all capital gains are tax free. (You can also rent or sell your "old" house on a lease option as long as you sell within 3 years of moving out. In some cases that helps to maximize your tax free gains.)

Oops looks like JBinKC and I were writing at the same time. Sorry about that.

[Ima saver]

Re: How do you plan on creating wealth?

I take whatever profit my husband makes on a house and save it to build the next house. I keep it in the highest interest rate savings vehicle that I can find. I pay cash for the land and the house as he builds, so that I do not have to pay any interest to a bank for a loan.

[Moi?]

Re: How do you plan on creating wealth?

Ahh, thanks for that!

[Snoopy2645]

Re: How do you plan on creating wealth?

I would love myself to get into real estate in the next few years its about the only investments I can trust I think I would probably like to get into owning like an apartment building & maybe eventually moving into myself

[Ima saver]

Re: How do you plan on creating wealth?

I tried the rentals and they did not work for me. Hope you all have better luck and better tenants.