Solving Chaos, LLC

Time for a brand and logo refresh?

Not sure.

Dec 2, 2024 Post.

Week 49 - Dec 2 Investment moves (@solving-chaos) Week 49 - Dec 2 Investment moves This might be my most important post in the last 2 or 3 years. Not...

"Again"

Yes, you heard that correctly. Some people have experienced 2 or 3 floods within the last 3 or 4 years. This is not the first time I heard homeowners talking about MULTIPLE floodings in less than 5 years.

If I worked at an insurance company, know that you will be facing a large premium insurance hike. Using a Data-driven approach should be applied and reduce the premium from those that never add a claim in 15+ years.

[Total of Insurance payout in 5 years] / 5 = "New Premium".
Ida: Sept 2021.
Helene: Sept 2024.
Milton: Oct 2024

Hurricane Helene Flooded My House Hurricane Helene flooded my house in the Tampa area. 🚨 Subscribe to this channel here: https://bit.ly/3eDNenpIf living in Tampa Florida is an option that yo...

Nice to see a chart of what is happening with CAR prices:

From:
https://www.cnbc.com/2024/10/26/i-just-bought-a-used-car-for-my-teen-driver-heres-what-i-learned.html

I'm a big believer in Roth IRA and 401K plans. All my friends and my coaching clients know this!

Over the last decade or more, I have not needed to contribute more than 10K a year to a 401K, and I have contributed ZERO to my ROTH IRA accounts during that time!!

For 2024, I did contribute to my Roth IRA.

With markets at near all-time highs (ATH), I'm convinced I can make 5x or more on my investments. So it is time to lead by example and put money where my mouth is.

For 2024, you can add $7000 up to April 15, 2024.
For 2025, you can add $7000 up to April 15, 2025.

It is time for me to hedge against the 401K plan.

It is time to show how moves today can be used for emergency funds in the FUTURE. Why? The rules are you can take out the original money at any time. You can't take out any investment GAINS without triggering a tax.

If you are over 50, it is a good idea to see your "expected" benefits from ssa.gov!

For fun, I entered a $0 future annual salary and $20K a year.
In both cases, it was over $3K a month at age 67.

When I was in my 20s, I planned on getting "$0" from the US Govt and worked my plan so I didn't need to rely Social Security. Since I'm over a decade away from making any decision, I don't know what to do with this money.

Use it for a car payment in retirement?
Use it for taking a bunch of cruises?

As a financial coach, we can help with:
- Budgets / learning to live with one.
- debt consolidation.
- getting rid of high interest rate loans.
- Investing (401K / 403b) for retirement
- Roth IRA and why you should consider it.
- Hedging or Advance Topics (Options Trading).
- Digital Asset (Bitcoin / Ether).

Getting a personal loan can be done for those who have high-interest rate loans (like a car loan, credit card debt, etc).

SoFi Personal Loan | You’ve been invited! You’re invited! Get $300 when you pay off high-rate debt or finance major expenses with a SoFi Personal Loan.

Spending 10%-20% on a car?

https://www.youtube.com/watch?v=kLQ2BifdzcE

I purchased a car a few years ago (2022):
- No rolling of negative equity from the previous loan.
- 7K down payment.
- 3.25% interest (or about $55 a month).
- I still owe $19K on it.
- Currently 5K upside down on the car (if I were to trade it in).
- I paid MSRP on the car during the Global Supply Issue in 2022.

Now, I can imagine how hard it must be to trade in a car because so many people have negative equity on their car loans. If I were to trade the car in and roll the 5K into my next car LOAN, it means I would be spending.

Most people are having a HARD time with CAR payment.
Most people are having a HARD time with CAR repairs.
Most people are having a HARD time with DOWNSIDING into a smaller car.

I will keep the car since it makes no sense to lose 7K + 5K (or $12K ) in the 3 years I owned it.

Accountant Reveals How Much You Should Spend On A Car (Backed By Data) In this video I talk about how much you should spend on a car and the data and stats behind transportation and vehicle purchasing. SOURCES https://rosap.ntl....

Coaching / Tutoring.

Parents pay for SAT prep and other services to help kids with high school. This reminds me of the story about the millionaire SAT tutor a few years back.

Coaching has value, especially if you can show that it will make you $millions in the future. This is why I don't discount or have Black Friday sales.

Ever wonder how MAX Taxable income for Social compared to MAX benefit under normal retirement age.

Let me help you out:
Year / Max Income Taxable / Max Benefits per month.
2023: 160K (13333/month) / Max benefit at age 70 - 4555.
2024: 168K (14000/month) / Max benefit at age 70 - 4873.

Let's say you are a high-income earner. For the last 40 years, you earned over the maximum income that is taxable under social security. This means in 2023, you earned 160K and in 2024 you earned 168K.

In 2024: that 168K is about 14K per month. Let say you live on 7K or 8K a month. If you retired in 2024 at the age 70, the max you can get is 4873 (which is a far cry from the 14K you earned during your working years).

Social security might only replace 15%-40% of the income you need. The reason is, it uses 35 years of the highest earning income years and many people only have 25-30 years of good years. The rest was low-earning years (like after college, or when you got laid off, etc).

In my example, even if were LUCKY to have a HIGH income over 40 years of your life, the max benefit at 67 or 70 does not replace 50% of what you are used to making.

Please do not think Social Security Benefit will replace 50% of your needed income in retirement.

You need to do your part as SS is only one LEG off a 3-legged chair.