When buying a newer car:
- Don't buy a brand new one
- Look for a year old car (can save $10-$15,000)
- a leased vehicle
- leased by a company not an individual
- low mileage
- Once this car is pay off, save the payment money
- Use saved payment money to buy new leased vehicle
Upgrade your present home every 3-5 years:
- Purchase a $50,000 home (2020 - age 25)
- Only renovate bathroom/kitchen
- Sell for $75,000 (2025 - age 30)
- Shelter capital gains money from taxes
- Buy 2nd home for $100,000
- Only renovate bathroom/kitchen
- Sell for $150,000 (2030 - age 35)
- Shelter capital gains money from taxes
- Buy 3rd home for $200,000
- Only renovate bathroom/kitchen
- Sell for $250,000 (2035 - age 40)
- Shelter capital gains money from taxes
- Buy 4th home for $300,000
- Only renovate bathroom/kitchen
- Sell for $350,000 (2040 - age 45)
- Shelter capital gains money from taxes
- Buy 5th home for $400,000
- Only renovate bathroom/kitchen
- Sell for $450,000 (2045 - age 50)
- Shelter capital gains money from taxes
- Buy 6th home for $500,000
- Only renovate bathroom/kitchen
- Sell for $550,000 (2050 - age 55)
- Shelter capital gains money from taxes
- Buy 7th home for $600,000
- Only renovate bathroom/kitchen
- Sell for $650,000 (2055 - age 60)
- Shelter capital gains money from taxes
- Buy 8th home for $700,000
- Only renovate bathroom/kitchen
- Sell for $750,000 (2060 - age 65)
- Shelter capital gains money from taxes
- Buy 9th home for $800,000
- Only renovate bathroom/kitchen
- Sell for $850,000 (2065 - age 70)
- Claim ONE TIME exemption from IRS on Capital Gains and purchase a less expensive home
- Pay off mortgage debt
- Save about $250,000 to $500,000
NOTES:
- This concept assumes that the economy is continuing to grow
- This concept assumes that each year you will receive wage increases
- This concept assumes that you purchase a house that is in good physical condition
- This concept assumes that you use common sense when renovating
- This concept assumes that you take good care of your home
- This concept assumes that you don't mind moving every 5 years
- This concept assumes that you select homes in viable communities
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