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by fbonetti 3133 days ago
Thank you for sharing this. While it's good to be appreciative of our relative privilege in this market compared to other labor markets, it's nice to hear people admit that being a software engineer does nothing for your social or emotional growth. Sitting in front of screen day after day with little social interaction or meaningful collaboration takes a toll on you, no matter how much you're getting paid.

My exit plan is to become a landlord. I love fixing houses and there's something very satisfying about being able to physically experience the product of your work (unlike software, which is mostly abstract). I will probably need to work for another 5 years in order to build up enough rental income in order to justify quitting this industry, but it will be worth it. I would be absolutely miserable if I had to write software for the rest of my life.
1 comments
alistproducer2 3133 days ago
See my comment (in my history). I'm literally doing the same thing. Piece of advice: Max out your 401k every year and use a ROBS (rollover for business startup) to fund it tax free. It's complicated but totally worth it.
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fbonetti 3133 days ago
I've heard that taking that approach comes with a lot of a rules on how you can use your money. For example, if you make a profit from rent, you can't take it out in cash (it has to be reinvested into the business). Also, if you want to make an improvement to your property, you are required to hire someone to do the work instead of doing it yourself.

I could be totally wrong about this because I haven't done a lot of research. My plan is to use regular cash for down payments on traditional mortgages. I haven't decided what to do with my 401k yet, but I definitely want to use it even if that means paying the fee to pull it out in cash.

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alistproducer2 3133 days ago
Before you commit to paying the early withdrawl taxes and penalties, do what i did; hire a lawyer that deals with erisa law. The legal advice I've been given doesn't match up with what you're saying, but I will certainly ask about it in my next conference.

edit: here is some info, but still make sure you get a lawyer. Also regarding taking the money out, it's true that you can't just spend it. This is due to the necessary structure of the business - a c corp. You can, however, take a salary once your business becomes profitable.

https://www.biggerpockets.com/blogs/3441/52232-starting-a-re...

https://www.mysolo401k.net/401k-business-financing/

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