re: No 401K Investments

I’m halfway through the first loan, so around 7.5 years since first purchase. I’ve had all reappraised within the last year and they’re up around 30% in value and the loans have been paid down. Around 40% of the original loan has been paid down with a cash on cash return of around 30% annually.

I now max out 401k and backdoor Roth for me and my wife. I’m not saying the market is bad, but real estate can be exceptionally more fruitful.

I totally agree that big money can be made in real estate.....but can you guarantee a 100% return on your investment every year? Not saying going all in on the 401k, but at least get the free money being offered.

I wouldn't disagree with his decision, because it's his decision.

Plus, income tax reduction/ elimination is higher return than the 7% match calculation. Unearned income is not FICA taxed. Opportunity cost is tremendous and someone else pays the investment deposit.

I don't knock anyone's positive moves. It's what their gift is.

I would fire him for being too stupid to work there.

I used to work in leadership at a fairly well known for-profit healthcare organization. Their benefits package was pretty comprehensive, including allowing employees to purchase company stock at a deep discount as well as a matching 401(k).

Of the 200+ direct and indirect reports at the hospital I managed fewer than 25% were enrolled in either. Of those who were; I’d say most were in the higher earning roles which makes sense.

At least it sounds like they’re doing something; which, in my experience is better than most.

I’ll go ahead and predict a looming crisis of sorts in that Gen X is coming up on retirement over the next 15-20 years. Many if not most haven’t come anywhere close to achieving retirement goals. They won’t be able to retire and this will have a disruptive impact on the work force. That natural structural reopening of jobs due to attrition/retirement isn’t going to be there.

The only thing they have going for them is that they may be the benefactors of a generational wealth transfer from the Boomers. I still don’t think it will be enough.

quote:

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Boomers have done the same thing to us (GenX) they simply won't bow out of the workforce. We've had to pay several Boomers at my company to go away at age 70. Its ridiculous.

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Seeing that here too. I’m convinced that many Boomers and to a larger degree Gen X will continue to work until they are physically unable or dead.

Should be matching the 7% then use the rest to invest in rentals.