S/O Can you clue me in on this $5m investments/trust funds??

amother

Tue, May 03 2022, 6:59 pm

In the 'How much is in your bank account' thread, multiple posters, including at least one kollel wife, mentioned having million dollar investment funds.

Can you clue me in on how this works??? How much money did you start off with?? Me wants to attain it too!

amother

Tuberose

Tue, May 03 2022, 7:11 pm

I’m not a kollel wife but my husband is self employed and takes home only exactly the amount of money to live off of. He then reinvests the money into his business and into real estate. The money continues to grow etc

amother

Winterberry

Tue, May 03 2022, 7:15 pm

amother [ Tuberose ] wrote:

Same. Invests in various ways, stocks, real estate, different investments

amother

Poinsettia

Tue, May 03 2022, 7:37 pm

amother [ OP ] wrote:

following!

amother

Quince

Tue, May 03 2022, 9:06 pm

I don't have any money to invest so it's all a dream, but I keep thinking that if I would invest in real estate, not flip just rent it out, using the rent money to pay the mortgage, I would end up with the value of the house in ten years. Probably greatly appreciated in value as well.

I understand that fixing houses and then flipping them is even more lucrative. I don't have the money to invest right now so it's just a dream ..... but I would imagine that's how its done.

(You also invest in stocks, perhaps buy shares in private businesses, not taking out the profit and watch the magic of compound interest.....).

amother

Seafoam

Tue, May 03 2022, 9:25 pm

amother [ Tuberose ] wrote:

Also this.

BH DH's primary business does well but we take out the bare minimum we need and reinvest the rest.

amother

Snapdragon

Tue, May 03 2022, 9:35 pm

amother [ OP ] wrote:

You have it backwards. It’s usually not a Kollel wife who happens across millions of dollars. It’s a trust fund baby who marries a guy who plans to learn in Kollel and therefore is looking to marry a trust fund baby.

amother

Seafoam

Tue, May 03 2022, 9:37 pm

muss wrote:

Invested in what?
How do you know what to invest in?

a) real estate. 5 years later refinance, use the refi money to buy more real estate

b) insurance policies. We put in about $40k a year and after retirement we can take out $150k annually tax free.

c) at this point BH my DH has an excellent reputation in his industry and people want him involved in their business. He "buys" shares in exchange for his involvement.

Rubies

Tue, May 03 2022, 9:42 pm

amother [ Seafoam ] wrote:

Also this.

BH DH's primary business does well but we take out the bare minimum we need and reinvest the rest.

I feel like people are glossing over this point.
It's not investing minimal amounts that you need to live on, that gets you to 1m. It's a business that does well (or any parnasah) where after taking out the necessary amount to live on, instead of spending the rest, it gets invested.

I think op should be asking 'how much principal do you invest annually' and not the value of the investment after investing.
Are you investing 5k annually that is valued at 1m or is it a cumulative 50k+ annually over a 10yr span.

amother

Purple

Tue, May 03 2022, 11:19 pm

amother [ Seafoam ] wrote:

b) insurance policies. We put in about $40k a year and after retirement we can take out $150k annually tax free.

At what age did you begin putting in the 40k? Retirement at age 65?

amother

Camellia

Tue, May 03 2022, 11:33 pm

I’ve posted this a few times.

We started our real estate investing with a 30k loan on our house when we were very young. (Bought tiny starter home we still live in with my savings from working pre marriage). Outside of that amount we’ve only reinvested what we’ve earned specifically from investments.
That money has turned into 6 small real estate investments. And Investing with 3 large investment projects with steady returns.
Real estate investments let you constantly refinance and reinvest that money.
It’s maybe close to 1 million now. And generates a nice amount of income (40-50k per year approx) with little to no effort. Theoretically we could’ve had more but some things come up over the years that prevented us from doing so. If someone is more dedicated they can grow larger. Dh has friends that started with much less then us that have tremendous investment firms today.

Both dh and I work.
We also save money every month in each of our kids ‘wedding’ accounts and in our savings account in mutual funds and 401k. It is amazing how fast the money can grow. And if your employer matches your 401k it’s free money.
We live very simple. Small house. Old cars. Hand me downs. No vacations. It’s not like we are living big.

amother

Seafoam

Wed, May 04 2022, 9:40 am

amother [ Purple ] wrote:

At what age did you begin putting in the 40k? Retirement at age 65?

It's a life insurance policy.

I believe we will make the contributions for 20 years (DH 35 years old until 55 years old). Then it's not touched for 10 years (until 65). At that point we can start taking out 150k annually until DH is 90. There's also a death benefit.

I'm not so sure on the details it could be I got some numbers wrong, it's DH's department.
I'm also not from the US so things may be different.

amother

Aubergine

Wed, May 04 2022, 10:04 am

People like to talk about the real estate investments that go well or the stocks that go up but fail to mention the deals that go sour or the stocks that go down. Tenants that don't pay, unexpected vacancies, deals that go bad and you can lose everything you invested. Real estate and stocks don't only go up in value and plenty of people lose out. You have to do your research before investing.

amother

Seafoam

Wed, May 04 2022, 10:10 am

amother [ Aubergine ] wrote:

100%.

We've lost significant money as well.