Advice for anons with kids - if your goal is to build generational wealth, your "exit number" should take into account what you need to live off of AND how you want your children set up.
This changes the math, changes how you approach wealth preservation (slightly), and requires you to do some process work that a lot of people might not be thinking of (ex: life insurance, trust).
Happy to share what I'm doing if there's interest in the Jungle. I've dealt with or am currently dealing a bunch of this stuff (mid-30s, high NW with kids).
man i could really use that primer; i've got 2 kids and twin girls on the way, which will be four kids under four..........
....done really well (enterprise salesbro at a few blue-chip unicorns that exited) and got wifi money up and running BUT just have no clue about how to set things up.
real good at making money, not so good at managing it (beyond dumping it into computer coins and tech investments). would love any best practice about setting up for kids/family!!
The other replies cover some important points. One to highlight with urgency from BowTiedF'er: get life insurance ASAP. Protects your family from ruin scenarios and will never be cheaper than right now (you're only getting older!). If you're in relatively good health, you should get it immediately. If you are significantly out of shape, get in shape and then get it immediately.
I'll draft up a basic guide later this month when I free up from some things. I'll send it to you, and if you think it is helpful, I'll publish it to the BowTied community for free. It's nothing ground breaking, and you still need to consult accountants/lawyers to action. But it will summarize my research and perspective to help simplify things for whoever else has the same objective but doesn't know where to start.
Drop a twitter handle in a reply so I can send it to you. For any others interested, reply to this comment with a twitter handle and I'll send it to you as well.
Very interested in your approach. I am turning 27 this year with OK net worth for my age ~600k. First child will be on the way in October. Will plan on setting up a trust going fwd.
Making b/w $300-400k this year on 2 WFH jobs and then side biz upside this year is TBD. Not taking any money out of it tho
I do have life insurance already (Whole Life) and about 80k cash on hand (we're looking for a first house). This will drop to around $30k which is where I like to keep things for 6 month living expenses.
Majority of net worth is skewed towards computer coins at the moment.
also, my 9-5 offers additional Life Insurance to purchase beyond the policy they automatically enroll me in; is this worth buying? or should i buy something outside of that employer??
In short, if you want cheaper coverage you can get term insurance for cheap. ($1mm for a mid 30 yr old in best health ~$500 a year).
Make sure you have a conversion option on your term policy, and then you can convert it to a permanent product later for any wealth accumulation goals.
Employer is likely offering you a group contract rate. So the price is the same for all people of the same age across the company and there is no underwriting most likely.
If you are healthy for your age (and if you are following here, I have to assume you are) you can get much better rates (lower premium) on your own and being underwritten.
Also, the employer plan is likely only 1 yr at a time so if you get fired you lose it. Only reason to take employer plan is if you are very unhealthy or very lazy 99 times out of 100
+1 on these. Also - the employer plan is probably just a multiple of your base salary. You mentioned you're in sales, so base might be only a small portion of your overall compensation.
For this and all the reasons F'er called out, it's not worth doing.
Look at Life Insurance for the family. LIRPs & Whole life as personal bank - gives some tax advantaged savings + the call option of your family being taken care of if you die early.
Overfunding a UL product and/or WL can lead to some very nice after-tax returns.
Read this FIRE blog, Early Retirement Extreme. Physicist who couldn't get a real job, so he spent his time sewing up the holes in his socks to save money. From the I-shit-you-not department. Let's just say I read BTB now and I never learned to sew.
If you’re in a mid level ‘career’ (tech/sales/wallst) making $500k/yr and your wifi income is 750k, you are advocating that that person shouldn’t quit and go all in? just because wifi income isnt 2x? Doesnt sound right.
As usual it depends. $500K in NY or $100K in mid west. go to NYC. come back with a specific real situation and we'll provide an opinion (every month end of month)
How much longer to live at home? Turning 30 in a few weeks and I’m making about $175k. Maybe I’m being cheap but just seems dumb to get a $3k+ place in nyc (have to go into the office once a week or two), also been there and done that. Moved back home with parents and have been stacking. Gonna try to get a second gig.
Yeah I can realistically make it office once every month I think. Which means I could fly in… Also think I can work remote from outside the country under the radar. Possibly Europe or Colombia with easy 5-8 hour flight back if I need to get back last min. You think that’s better than US (Miami, Austin, random tier 2/3 cities)? Sounds more fun to me and even better bang for buck.
Dis really good. I too used to be a FIRE fanatic, but you’re absolutely right that they don’t account for kids/things costing more in the future. Also, much easier to get the $$$ now w momentum vs having to re-enter the workforce down the road if your calcs don’t work out.
Want to start my own business but have no idea where to start. Work in b2b sass marketing agency w clients (google/linkedin ads). With the rise of SaaS is it worth switching over to sales or starting a side consulting business?
Been subscribed for a few months. Stack been amazing nothing but good info learning more from it than college. Im still dumb as shit though can anyone point me in the direction of the best stacks for starters that talk about starting a business/ real basic computer coin shit? Not looking to be spoon fed the info want to read it for myself.
Speaking of 'meat being rare', I'm wondering if you're the one who dumped a bunch of crickets into my domicile, like it was a 2035 All-You-Can-Eat Buffet?
Advice for anons with kids - if your goal is to build generational wealth, your "exit number" should take into account what you need to live off of AND how you want your children set up.
This changes the math, changes how you approach wealth preservation (slightly), and requires you to do some process work that a lot of people might not be thinking of (ex: life insurance, trust).
Happy to share what I'm doing if there's interest in the Jungle. I've dealt with or am currently dealing a bunch of this stuff (mid-30s, high NW with kids).
man i could really use that primer; i've got 2 kids and twin girls on the way, which will be four kids under four..........
....done really well (enterprise salesbro at a few blue-chip unicorns that exited) and got wifi money up and running BUT just have no clue about how to set things up.
real good at making money, not so good at managing it (beyond dumping it into computer coins and tech investments). would love any best practice about setting up for kids/family!!
The other replies cover some important points. One to highlight with urgency from BowTiedF'er: get life insurance ASAP. Protects your family from ruin scenarios and will never be cheaper than right now (you're only getting older!). If you're in relatively good health, you should get it immediately. If you are significantly out of shape, get in shape and then get it immediately.
I'll draft up a basic guide later this month when I free up from some things. I'll send it to you, and if you think it is helpful, I'll publish it to the BowTied community for free. It's nothing ground breaking, and you still need to consult accountants/lawyers to action. But it will summarize my research and perspective to help simplify things for whoever else has the same objective but doesn't know where to start.
Drop a twitter handle in a reply so I can send it to you. For any others interested, reply to this comment with a twitter handle and I'll send it to you as well.
Very interested in your approach. I am turning 27 this year with OK net worth for my age ~600k. First child will be on the way in October. Will plan on setting up a trust going fwd.
Making b/w $300-400k this year on 2 WFH jobs and then side biz upside this year is TBD. Not taking any money out of it tho
I do have life insurance already (Whole Life) and about 80k cash on hand (we're looking for a first house). This will drop to around $30k which is where I like to keep things for 6 month living expenses.
Majority of net worth is skewed towards computer coins at the moment.
Twit handle @ghosttoglory
This is how its done!
@wusty22, thank you for sharing
@matthewachang
@reporttogreco
@loudsharp
also, my 9-5 offers additional Life Insurance to purchase beyond the policy they automatically enroll me in; is this worth buying? or should i buy something outside of that employer??
https://effsigive.substack.com/p/life-insurance-basics-part-1?s=w
There is a few basics here and parts 2 & 3.
In short, if you want cheaper coverage you can get term insurance for cheap. ($1mm for a mid 30 yr old in best health ~$500 a year).
Make sure you have a conversion option on your term policy, and then you can convert it to a permanent product later for any wealth accumulation goals.
Depends on your health.
Employer is likely offering you a group contract rate. So the price is the same for all people of the same age across the company and there is no underwriting most likely.
If you are healthy for your age (and if you are following here, I have to assume you are) you can get much better rates (lower premium) on your own and being underwritten.
Also, the employer plan is likely only 1 yr at a time so if you get fired you lose it. Only reason to take employer plan is if you are very unhealthy or very lazy 99 times out of 100
+1 on these. Also - the employer plan is probably just a multiple of your base salary. You mentioned you're in sales, so base might be only a small portion of your overall compensation.
For this and all the reasons F'er called out, it's not worth doing.
@justinisaballa tw - would like a copy if possible- thx
Consult with a lawyer and accountant about setting up a trust fund. Need to start there or gov will take all your $ away
Talk to accountant/lawyer.
Look at Life Insurance for the family. LIRPs & Whole life as personal bank - gives some tax advantaged savings + the call option of your family being taken care of if you die early.
Overfunding a UL product and/or WL can lead to some very nice after-tax returns.
I'm on the other end of the this, age wise. When you're writing your substack i'd be happy to share what I've done.
Will love to read this as well.
Read this FIRE blog, Early Retirement Extreme. Physicist who couldn't get a real job, so he spent his time sewing up the holes in his socks to save money. From the I-shit-you-not department. Let's just say I read BTB now and I never learned to sew.
Speaking of scams, got an email recently from "Metamask" claiming they were subject to new KYC regulation and needed to "verify my identity" (ha).
Obvious scam is obvious, but. Wild out there, particularly for the uninitiated.
Man I got the same and was super nervous that somehow I got hacked. Any mitigation measures to take? Or they just found our emails
looks like email blast phishing - but yeah have been careful with this email address and still ending up on someone's spam list - wild
Thank you.
You aren't joking about God slapping you in the face right before you cross the finish line
Couldn't find your email, so I will just write here.
Mr. Bull, ser, may I have a month trial of the Defi substack so I can generate some serious alpha?
If you’re in a mid level ‘career’ (tech/sales/wallst) making $500k/yr and your wifi income is 750k, you are advocating that that person shouldn’t quit and go all in? just because wifi income isnt 2x? Doesnt sound right.
Obv they're saying for reasonable ranges. Like most peeps make 70-150k at a 9-5. Once you get double that you're good for your lifestyle etc.
You've mentioned rising crime and CoL in cities a number of times. To be clear - do you recommend against living in a city even when you're young?
As usual it depends. $500K in NY or $100K in mid west. go to NYC. come back with a specific real situation and we'll provide an opinion (every month end of month)
How much longer to live at home? Turning 30 in a few weeks and I’m making about $175k. Maybe I’m being cheap but just seems dumb to get a $3k+ place in nyc (have to go into the office once a week or two), also been there and done that. Moved back home with parents and have been stacking. Gonna try to get a second gig.
would leave
Would not live in NYC though should have enough political capital to move to other places
Yeah I can realistically make it office once every month I think. Which means I could fly in… Also think I can work remote from outside the country under the radar. Possibly Europe or Colombia with easy 5-8 hour flight back if I need to get back last min. You think that’s better than US (Miami, Austin, random tier 2/3 cities)? Sounds more fun to me and even better bang for buck.
Dis really good. I too used to be a FIRE fanatic, but you’re absolutely right that they don’t account for kids/things costing more in the future. Also, much easier to get the $$$ now w momentum vs having to re-enter the workforce down the road if your calcs don’t work out.
Yep FIRE is for those weird dudes who spend like $20K a year
That was me a few years ago đŸ˜…
Shoot, there was 1 year I only spent $10k since the military covered my housing
Want to start my own business but have no idea where to start. Work in b2b sass marketing agency w clients (google/linkedin ads). With the rise of SaaS is it worth switching over to sales or starting a side consulting business?
Been subscribed for a few months. Stack been amazing nothing but good info learning more from it than college. Im still dumb as shit though can anyone point me in the direction of the best stacks for starters that talk about starting a business/ real basic computer coin shit? Not looking to be spoon fed the info want to read it for myself.
For the coins, try this
https://bowtiedscholar.substack.com/
Appreciate it!
Speaking of 'meat being rare', I'm wondering if you're the one who dumped a bunch of crickets into my domicile, like it was a 2035 All-You-Can-Eat Buffet?