Thanks for the replies, all. I'm new to the forum and can't figure out if I can reply to each of your individual posts.
The advice to think of my real estate as a business is a paradigm shift that I believe will be very helpful. Thanks for that!
I don't plan on needing the $2M for ~14 years, which is when my youngest enters college. At that point, my wife and I will be able to travel and may decide to sell our 2 homes and buy something in a more expensive location. I should be able to max out my 529s with my future savings, which covers my other major need for funds.
There are a few reasons it may be prudent to keep ~$500k in savings. One would be to cover any unforeseen risks (COVID taught me that I can't think of all potential risks). Another is if another investment opportunity comes up (could be real estate or something else) when the stock market is down. I do have ~$1M in LOCs on my properties and would have a pledge asset line of credit on my brokerage account (up to 50% of stocks and 70% of bonds), so it may make sense to keep less in savings. ~$200K would likely be sufficient to cover CapEx/Maintenance.
Lastly, I would love to hear anyone's advice on how I can be more tax-efficient. I'll be searching the forums as well.
The advice to think of my real estate as a business is a paradigm shift that I believe will be very helpful. Thanks for that!
I don't plan on needing the $2M for ~14 years, which is when my youngest enters college. At that point, my wife and I will be able to travel and may decide to sell our 2 homes and buy something in a more expensive location. I should be able to max out my 529s with my future savings, which covers my other major need for funds.
There are a few reasons it may be prudent to keep ~$500k in savings. One would be to cover any unforeseen risks (COVID taught me that I can't think of all potential risks). Another is if another investment opportunity comes up (could be real estate or something else) when the stock market is down. I do have ~$1M in LOCs on my properties and would have a pledge asset line of credit on my brokerage account (up to 50% of stocks and 70% of bonds), so it may make sense to keep less in savings. ~$200K would likely be sufficient to cover CapEx/Maintenance.
Lastly, I would love to hear anyone's advice on how I can be more tax-efficient. I'll be searching the forums as well.
Statistics: Posted by BjJkH60 — Tue Jan 21, 2025 4:00 pm