Here are the steps to become liquidate in layman terms.
For Starters
Save Money in to saving account -> After it grow 5K -> Move to a money market account -> After MM account Grow 10K -> Move 5K to Mutual funds(step by step) -> After Mutual fund grows 25K -> Move to Stock market (Remember diversify) -> After stocks grows at least 100K -> Invest in real estate
For Pros
Sell second home for gain -> Move 50% to again Mutual funds -> Buy an other home at upcoming places(like Idaho, Montana) full or partial down payment(or internationally) -> When Mutual fund grows some move into stocks -> Sell stocks at 50% gain -> Buy 3rd home some where at North Carolina or Texas -
For Retirees
Sell all home -> buy a home at Big Island -> move all 401K to money market account -> NO MORE LIQUIDATION.
It was easy for me to draw the above map but it is really very hard to progress. The main issue is, we are all prone to unexpected expense. But I believe a solid plan and use of latest technology we can avoid all. I’m a super user of Quicken since 2000, on a single click I can render number of reports and n number of “What if” scenarios. The meticulous planning and not emotionally attached to anything are the key for anything.
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2 comments:
good tips Subba. As you say, practicing these will be hard.
Thanks for your comment and kind words Sukumar. Yes, it is really very very hard to practice.
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