BiggerPockets?!

[GrayGhost]

I was checking out the BiggerPockets blog when I came across this gem:
http://www.biggerpockets.com/renewsblog/2014/10/25/why-youre-building-wealth-the-slow-way-and-three-ways-to-fix-that/

It really does read like a leaf right out of MMM's book. Live closer to work and save money, those are two huge tenets of Mustachianism, aren't they?

[sol]

I'm not totally on board with all of the details of his math, but the general idea seems sound to me.  Why spend a ton of time learning about investing so you can get an few extra % return out of stash when reducing your spending a few % is probably a lot easier?

People on bigger pockets are sticklers for small improvements.  If you could demonstrate a way to get your SWR from 4% to 3.5%, they'd be thrilled.  They'd be less thrilled by hearing that moving ten miles closer to work will grow their stash enough over 10 years to only need a 3.25% SWR.

Why is that?  I think people like to feel engaged, they like to learn new things.  Reading ten books about investing and spending a thousand hours on an internet forum to learn the finer points of asset allocation is much more fun than buying a more fuel efficient car, even if they have equivalent financial paybacks.

[slugline]

I think the author is calling "tax deferred" basically equivalent to "tax free" which is a bit too far for my taste.

The one thing that did catch my interest is the idea that some 401Ks apparently offer real estate as an investment option. I hadn't seen that before.

[ash7962]

I think the author is calling "tax deferred" basically equivalent to "tax free" which is a bit too far for my taste.

The one thing that did catch my interest is the idea that some 401Ks apparently offer real estate as an investment option. I hadn't seen that before.

I kinda thought he meant that you can take out a "loan" from the 401k to use as a down payment for a house.

[GrayGhost]

Why is that?  I think people like to feel engaged, they like to learn new things.  Reading ten books about investing and spending a thousand hours on an internet forum to learn the finer points of asset allocation is much more fun than buying a more fuel efficient car, even if they have equivalent financial paybacks.

That's a point. It's exciting to see the numbers in your bank account get bigger, and it's fun to always be looking out for that next 1031 Exchange, or the newest way to hide taxes in depreciation, et cetera, et cetera. For most people, it's not so much fun to avoid driving your clown car or to hypermile when you do.

It is fun for me, though, and it's not really getting old. In a way, I get the same thrill of the hunt when I see my average MPGs go up that I do when I see the month's rent checks come in. They mean the same thing to me, efficiency, productivity, and taking control of my life.

[RetiredAt63]

Yes, and every month I enjoy not paying my cable/land-line bill (cancelled both a while ago, don't miss either).

Why is that?  I think people like to feel engaged, they like to learn new things.  Reading ten books about investing and spending a thousand hours on an internet forum to learn the finer points of asset allocation is much more fun than buying a more fuel efficient car, even if they have equivalent financial paybacks.

That's a point. It's exciting to see the numbers in your bank account get bigger, and it's fun to always be looking out for that next 1031 Exchange, or the newest way to hide taxes in depreciation, et cetera, et cetera. For most people, it's not so much fun to avoid driving your clown car or to hypermile when you do.

It is fun for me, though, and it's not really getting old. In a way, I get the same thrill of the hunt when I see my average MPGs go up that I do when I see the month's rent checks come in. They mean the same thing to me, efficiency, productivity, and taking control of my life.