patrick.net

just_passing_through says

Perfect time to buy some bitcorn Pat!

He already owns Bitcoin....0.01 Bitcoin.

Now I'm worried about taxes and how to minimize them.

I found a great site about this:

https://www.gocurrycracker.com/never-pay-taxes-again/

The downside to his strategy is that it hurts your ability to get Obamacare subsidized insurance. But he talks about that as well:

https://www.gocurrycracker.com/obamacare-optimization-early-retirement/

Patrick says

I finally arrived, in a way. I gave notice at work today, will be done with work in two weeks.

I'm able to retire early because I put it all in the stock market and not in the housing market.

Congrats! But do you have enough to live in Caligulan splendor until you get to 90?

Lol, no, not Caligulan splendor. But enough to continue our current lifestyle without working and enough on top of that so we should actually continue to get a bit richer each year in retirement. I think of the extra as a buffer against adverse events.

And if needed, I could go back to work. Wife is also getting her teaching credential after many years of considering it, so it's likely she will be working as a teacher. But we don't need to count on it.

We do plan to do months of traveling each year, probably in the summers if she's teaching the rest of the year.

Patrick says

I mean this on a monthly cash flow basis, but also with regard to appreciation. The appreciation in the stock market was almost always better than the appreciation in the housing market, even in California.

And I know some of you are thinking "But housing is a leveraged bet." And of course I always reply "Leverage works both ways."

We have no debt at all, and I like it that way.

My biggest tax liability in 2017 was Obamacare.
It was $8000.
The year I cancelled it when it was legal to do (thanks to Trump) I was going to owe $924/month x12=$11,088
My Obamacare strategy is:
1. Try to keep income below $55,000 (more or less, the law says “400% of poverty level”)
For married, it’s probably double, $110,000 or about.
I couldn’t do #1 because of dividends and interest.
2. Buy Health Savings Account to decrease the Obamacare premium effect.
3. HSA invest in mutual funds: Fidelity is easy for HSA setup.

The problem in California is that they don’t agree with the federal rules of Obamacare, they still require you have it.

I’m aware of the numbers to stay below for single and keeping overall taxes low; in California it’s about $75,000 I believe. For married it’s likely double that.

If I don’t spend my money, I won’t pay much tax at all, but my net worth will grow and I have never had enough fun.

Patrick says

Wife is also getting her teaching credential after many years of considering it, so it's likely she will be working as a teacher. But we don't need to count on it.

Wait. You are retiring in your 50's and your wife is getting her teaching credentials now? Is she significantly younger? What a nice wife.....honey, you go ahead and retire, I am going to get my teaching credentials.....lucky guy Patrick!

Patrick says

Patrick says

I mean this on a monthly cash flow basis, but also with regard to appreciation. The appreciation in the stock market was almost always better than the appreciation in the housing market, even in California.

And I know some of you are thinking "But housing is a leveraged bet." And of course I always reply "Leverage works both ways."

We have no debt at all, and I like it that way.

The only good house is an affordable house, that doeant make you house poor, and unable to invest. People are buying houses at 50%+ of their income on two person income which is insane. Going to be a lot of bag holders when this shit crashes.

Bitcoin says

Patrick says

Wife is also getting her teaching credential after many years of considering it, so it's likely she will be working as a teacher. But we don't need to count on it.

Wait. You are retiring in your 50's and your wife is getting her teaching credentials now? Is she significantly younger? What a nice wife.....honey, you go ahead and retire, I am going to get my teaching credentials.....lucky guy Patrick!

Or Patrick is a man and didn't pick some slut. There's a difference in chasing women and having them want you. Not luck, it's skill.

clambo says

3. HSA invest in mutual funds

Be aware that CA is taxing on gains from the year 2020. I'd assume invest in growth funds and never sell like I do, might work.

Patrick says

I finally arrived, in a way.

Congratulations Pat on reaching your liberation.

clambo says

1. Try to keep income below $55,000 (more or less, the law says “400% of poverty level”)
For married, it’s probably double

$51,040 for a single person and $68,960 for a couple, for 2021

Patrick says

Lol, no, not Caligulan splendor.

Then what's the point???

Anyway, at least if the wife gets a teaching job you can get on her luxurious, taxpayer funded health insurance plan! (assuming public school).

zzyzzx says

Anyway, at least if the wife gets a teaching job you can get on her luxurious, taxpayer funded health insurance plan! (assuming public school).

lol. So true.

Patrick says

I expect the stock market to implode and an asteroid to hit after that for good measure. Just so I don't expect too much and thereby ruin my good luck.

And now you know the real reason I quit my job. Something really fucked up is about to happen, and I rather not have to be dealing with a fuck job while going through it.

The stock market won’t implode for a long time; people are rapacious consumers and will never stop upgrading their iPhones, their cars, their TVs, putting Pelotons in their garage, going on cruises, etc.

I recently met up with a couple friends whom I had not seen since the 1980s.
Disclosure: they have evidently made good dough.

Guy #1: Has a house in Rhode Island for summer, built another in Vero Beach, FL and lives in Boston.
Guy #2: Has a house in Maine, a condo in the Bahamas and a new house in Quintana Ro Mexico.

The point is they were not big consumers back then, but over time they were sucked into the game and instead of cars they buy fucking houses.

I’m convinced everyone will consume at his own limit and stocks will rise forever.

clambo says

The stock market won’t implode for a long time; people are rapacious consumers and will never stop upgrading their iPhones, their cars, their TVs, putting Pelotons in their garage, going on cruises, etc.

Every dip in stocks (which will be labeled a crash) is a buying opportunity. Same is true for Bitcoin as well btw.

clambo says

I’m convinced everyone will consume at his own limit and stocks will rise forever.

Obligatory: CONSUME MASS QUANTITITES


Seriously, whenever I am at WalMart and see all the crap people are buying, I think of this.

Bitcoin says

hehe, our moderator cant handle my un-personal comments because I hit the nail. So he targets my comments again @Patrick

What is personal about this?

WookieMan says

Or Patrick is a man and didn't pick some slut.

How could that comment possibly be about you dude? I was giving Patrick props for selecting a good wife. WTF are you actually talking about? Dumb men constantly pick wrong/slutty women.

You proceeded to basically say my wife is a slut. I was easy going with you. Any hint of a personal comment towards anyone or spam is getting flagged and is gone.

This is fact. You've shown little to no respect to other users here. It's okay to get into heated exchanges. You insinuated my wife was a slut. I'd say other things, but want this comment to stay up. How about contribute? It's not that difficult.

personal

Bitcoin says

It looks like it really hurts his feelings lol, I am just giving him a compliment!

It was in reference to another personal comment. It goes away again. I'll do this all day. You talk shit about someone's wife it's toast, even if it's not me. Stop talking about users.

@Bitcoin

You know that:

1. that's not what you said when it was marked personal
2. it's still personal

hihi, I was giving him a compliment, but it clearly shows how sensitive he is around the topic :)

WookieMan says

You proceeded to basically say my wife is a slut. I was easy going with you. Any hint of a personal comment towards anyone or spam is getting flagged and is gone.

@WookieMan is right about this.

Glad I grabbed some cheap TESLA stock on this recent tech dip....same with NIO which I am still buying heavily.
Tesla shot back up to 740 from a recent local low of 590ish.

okay, so....a neighbor in our high end community bought a house in March this year and put it on the market for 200k more.....if that goes through than fuck....I might change my mind and start saying this is starting to get nuts.

Bitcoin says

okay, so....a neighbor in our high end community bought a house in March this year and put it on the market for 200k more.....if that goes through than fuck....I might change my mind and start saying this is starting to get nuts.

Houses in the North Bay have appreciated easily 5% within the past few weeks as inventory continues to shrink. Everything from Marin to Wine Country, anything rural or semi-rural is being snapped up at massive premiums.

"Google reported last week that the search question "When is the housing market going to crash?" had spiked 2,450% in the past month. "Why is the market so hot?" searches had doubled in just a week."


@patrick
Your site doesn't come up in google like it use to when searching housing bubble even if I put your name in it

RC2006 says

Your site doesn't come up in google like it use to when searching housing bubble even if I put your name in it

I think he blocked the google crawler and told it to fuck off.

Hircus says

RC2006 says

Your site doesn't come up in google like it use to when searching housing bubble even if I put your name in it

I think he blocked the google crawler and told it to fuck off.

That makes sense it still comes up on duckduckgo

richwicks says

Patrick says

I expect the stock market to implode and an asteroid to hit after that for good measure. Just so I don't expect too much and thereby ruin my good luck.

And now you know the real reason I quit my job. Something really fucked up is about to happen, and I rather not have to be dealing with a fuck job while going through it.

You mean like a pandemic followed by another pandemic? I have a feeling this bio-warfare will never end.

Hircus says

Your site doesn't come up in google like it use to when searching housing bubble even if I put your name in it

Yes I did.

I do not want Google profiting from the content on this site.

I also do not want to attract the kind of people who normally use Google.

But I have to say all the tits pictures probably lower patrick.net's ranking on DDG and other non-spyware search engines. People get upset when they open a site and see tits.

Then again, maybe I want to attract the kind of readers who are not offended by tits.

Patrick says

I want to attract the kind of readers who are not offended by tits.

LOL, but so true!

Patrick says

I am afraid the the stock market is in a bubble and could end very badly. But that said, I'm still 75% in because I don't really know.

25% cash?

clambo says

Fidelity has good mutual funds.

I really hate their web site. Just getting a fucking statement totally blows chunks and takes like 10 minutes of navigation just to find. TRP has a much nicer site.

zzyzzx,
yeah, I dislike the Fidelity website too.
T.Rowe Price is nicer.
I really like the Vanguard website.
The Vanguard page on an iPad using the Vanguard app is awesome.
I will put the Fidelity app on my iPad and see if it's better than their website.

Patrick says

Then again, maybe I want to attract the kind of readers who are not offended by tits.

Men don't care. Honestly I don't think anyone should care. Each sex has their parts. Is it that fucking strange to see them on someone else nude? Oh the horror.

I don't know, I'm confident in myself. I'd have no problem going to a nude beach. Kind of want to. We're the only species that clothes ourselves. We're theoretically the odd balls (pun intended).

And yes, there are extremely unattractive bodies out there I don't want to see. But who cares? Be yourself and don't worry about it. Covid is coming for the land whales anyway. Sometimes you have to see the worst to be able to see the best. Sanitary and weather conditions aside, I'd have no problem walking about naked in a city. Who gives a fuck?

After seeing how hot the RE market has become I am staying in the stock market (and wait on purchasing another rental).
Guy in our community bought high/closed in March of this year and is now putting it on the market for 200k more. Curious to see if someone bites. I understand the low inventory/low interest/inflation scare environment.....but that example is a bit too crazy.

zzyzzx says

25% cash?

Less lately because I did some big buys, like FRO. May have been a mistake.

By "cash" I mostly mean cash in 401k accounts.

Real estate is great.
My friend was just assessed 13 grand by her HOA.
She paid 6 grand property tax
She paid income tax on the rent she received.
She wishes she had some money.
Her boyfriend and she returned early from a visit to her sister and niece in another town because the boyfriend's rental needs a new AC system (5 grand)
Tom Vu said it best:
"If you're too lazy to take my real estate seminar, you deserve to be broke!"