Assets

[ActionBob]

We should do this with land in Arkansas and/or Oklahoma.

Do you have the Ag Exemption (or Wildlife Exemption) like Texas does? With the crazy high RE taxes in Texas, qualifying for the exemption is vital.

 

[Newboomer]

I've had a little experience with rental property and agree with you 100%

As a former property manager I can tell you it ain't worth the hassle in most cases.

 

[deewayne2003]

We should do this with land in Arkansas and/or Oklahoma.

While living in Austin I was faced with the choice of buying a house or buying land in Oklahoma; I weighed the pros and cons and ended up buying the land because of lower ownership cost and it turned out to be one of the better financial decisions I've made.

Collectables including guns - Anything that is made to be collectable will surely not be exceptionally valuable in the future; there are people who covet those rifles that mark random organizations and anniversaries thinking they have made an investment when really they've just fallen for a marketing ploy.

No one is going to give a tinkers damn about your new in box Wild Turkey Federation rifle 25 years!

https://www.gunbroker.com/item/1110631700

 

[cash_tx]

Do you have the Ag Exemption (or Wildlife Exemption) like Texas does? With the crazy high RE taxes in Texas, qualifying for the exemption is vital.

I actually live in North Texas currently, and we have about 15 acres near Denison that is currently under Ag valuation via Wildlife Management; and it makes a huge difference. However, I want to eventually sell it and get a bit bigger place that's further out from the DFW metroplex.

 

[Doug3006]

I learned a very valuable lesson by listening to Warren Buffet and investing in Index Funds tied to the S&P. He has often said that the average investor won’t have the knowledge to outperform the market with individual stocks. Likewise, he won’t be able to afford the “advice” of professionals who stand a chance of beating the S&P.

Prior to 2010, I had “stock pickers” masquerading as wealth managers who lost me a lot of money. Since firing them and investing in Index Funds, I’ve seen my investments grow substantially.

 

[mdwest]

Do you have the Ag Exemption (or Wildlife Exemption) like Texas does? With the crazy high RE taxes in Texas, qualifying for the exemption is vital.

Arkansas has something similar.. but it gets to the final number very differently..

in AR, commercial and residential properties are taxed based on their value.. where ranch and farmland is taxed based on use.. so first you have to establish that the land is an actual ranch or farm.. then they have a calculation where they take 20% of the market value, consider values for "mileage" which essentially means they look at how "rural" the land really is.. they consider its distance from incorporated towns/cities, its distance from school districts, etc.. and then they do the tax calculation by multiplying the assessed value and the mileage rate..

In OK things are a lot more simple from what I can tell.. but the "Ag exemption" isn't nearly as good as the TX exemption (of course they already start with MUCH lower rates, so the end result is honestly pretty close to what TX offers).. their only formal exemption is an exemption on sales tax related to anything used on the property.. for property tax, similar to TX you have to qualify the property as a ranch or farm.. once that happens, they base the tax on a Ag use rate as opposed to a land value rate..

 

[ActionBob]

My father in law has done exceptional with land. I hope some day to reap the benefits of his farsightedness

 

[deewayne2003]

In OK things are a lot more simple from what I can tell.. but the "Ag exemption" isn't nearly as good as the TX exemption (of course they already start with MUCH lower rates, so the end result is honestly pretty close to what TX offers).. their only formal exemption is an exemption on sales tax related to anything used on the property.. for property tax, similar to TX you have to qualify the property as a ranch or farm.. once that happens, they base the tax on a Ag use rate as opposed to a land value rate..

This is correct, you apply to Oklahoma Department of Agriculture for a tax exemption card which saves you the 9.375% sales tax on anything you purchase.

Agriculture land without a livable structure on it has extremely low property tax, this last year I paid around $1.40 per acre.

 

[Hunt anything]

View attachment 693312

@ActionBob , that’s cold man!! Funny but cold.

 

[Flbt]

Land in the long term

Ammo, cigarettes, antibiotics, sugar, salt and insulin when the poop hits the fan

Grow tobacco and learn to cure it.
Learn to run a still.
If the end of the world happens you will have value

 

[Flbt]

Yep, seeing all of the farmland going into subdivisions and all of the gulf and bay front property going into high rise condos is depressing. People did get rich but at the expense of the people that enjoyed a laid back lifestyle.

That’s why I am looking in to fl lands and farm
Program.
It pays you for the development value but you keep the land it can be farmed just never developed.
I like the idea my kids or some of them anyway probably want like it.

 

[Muskox]

View attachment 693312

He calls it best friend taxes. I actually don't want him to die. He's a hell of a great guy. If you know the book rich dad poor dad, he is exactly that. My father is great, but typical civil servant. My father in law has taught me an unbelievable amount on index funds, real estate, stock market, he's done well. I got really lucky. My sister's father in law was a super nice guy but I only saw him sober once.

 

[HookMeUpII]

I am in the wealth management business. The answer: It's all good, when diversified.

Equities, real estate, land, precious metals, tangibles, etc.

It just comes down to what do you have the time and expertise to manage?

I like real estate but I have zero desire to be a landlord. Land can pose similar problems. Precious metals are awesome if you keep them secure. Tangibles like luxury watches, firearms, and the new one...trading cards, is becoming a conversation as well.

If I had to give one insight it would be that all of them appreciate over time if you a) pick the right ones and b) hold them long enough.

I, personally, keep very, very little free cash not earning something.

 

[ActionBob]

He calls it best friend taxes. I actually don't want him to die. He's a hell of a great guy. If you know the book rich dad poor dad, he is exactly that. My father is great, but typical civil servant. My father in law has taught me an unbelievable amount on index funds, real estate, stock market, he's done well. I got really lucky. My sister's father in law was a super nice guy but I only saw him sober once.

I do know the book. A fellow i employed as a translator years ago gave it to me and accused me of being that

I'm glad you are taking the lessons and making your own way. Pisses me off to no end when I see the poor little rich kids whining about whatever they perceive as their problems as they live off someone else's hard work and sacrifice.

 

[mrpoindexter]

My brother and I had a very in-depth discussion last week about tangible assets versus money in the bank.


I'm into firearms. He's into musical instruments.

We started comparing the value of our collections, versus the value of American dollars over time.

Both of us started "collecting" about 30 years ago.

In almost every case, a Certificate of Deposit (CD) that made 5% APR would have been worth more now than almost any item in our collection of firearms or instruments. (Of course, dollars could be worthless almost overnight, given the circumstances.)

I didn't do in-depth financial research, but I didn't have a gun that made this mark (& he didn't have an instrument):
$1,000 x 5% interest x 30 years = $4,321.04

Gold (and some luckily picked real estate, with stupid expensive insurance and property taxes) were about the only thing we could come up with that would have made us more without being actively involved, than just money in the bank collecting interest...

Gold - 1995 vs 2025 - $390/oz then - $3,400/oz now - 7.5% APY




'

I kept some of my Magic the Gathering cards from back then. Sold most of them, sadly.

My 120 copies of various revised dual lands I sold back then for an average of $6 each and they were all in mint condition. They are between $300 and $500 per today. Granted, many of the cards didn't go up much and some went down, but those that went up did so more than enough to make up for the losses or stagnation of some of them. I think they ran a 15% APY on those staple cards.

 

[ActionBob]

Interesting string of differing ideas here already. Could prove to become more interesting as it grows legs

 

[Flbt]

With guns I think a lot of time it runs into what deal did you get.
I mean if you run into a colt new service 45 for 200$ and it turns out to be a early one.

 

[HookMeUpII]

With guns I think a lot of time it runs into what deal did you get.
I mean if you run into a colt new service 45 for 200$ and it turns out to be a early one.

Hindsight is 20/20. Knowing what I know now? I'd have bought so much of the crap surplus stuff I pulled out of boxes, covered in cosmoline, at gun shows.

I've only sold a few guns from my collection over the years. One of them was a Yugo SKS I picked up at a show for $125 in the early 2000's. I despised the thing. It wouldn't cycle, I eventually fixed the gas valve and it did, shot it a few times and it just lived in the safe. One day I looked at it and said "I hate this thing."

I listed it, local, for $600. Some guy committed to buying within the hour. Met him at the local FFL the next day and did the transfer.

Had I known? I'd have bought the entire crate.

 

[franzfmdavis]

$1,000 x 5% interest x 30 years = $4,321.04

One component to add to the analysis is the impact of inflation. Using your same 30-year analysis, $1,000 in 1995 would equal $2,109 in 2025 Dollars. So the $4,321.04 asset had a basis of $2,109.

Another variable that is hard to quantify is the value of being able to use the hard asset over the years. That of course, is gonna be different for each person, but it does have value that should be considered.

For those that are looking into unique investment opportunities, it’s worth considering investing oil and gas exploration. In a nutshell, the investment is made in the equipment and exploration, which can be a significant tax deduction even if the well does not produce. But if the well is successful, it will pay dividends quarterly on top of the deduction. There are many companies that do this, and of course you want to look into the details more closely than this basic summary.

 

[Altitude sickness]

Buy Tesla stock. It’s barely gotten started in its future value.

Dump Apple