Notes On Work - by Caleb Porzio Get rich with real-estate?
Nov 21, 2025
The discussion dives into the nuances of wealth, starting with the FIRE approach and the 4% rule for financial independence. Tax-advantaged accounts like HSAs are touted as powerful wealth-building tools. A key topic is the often-overlooked role of real estate in wealth accumulation, highlighted by comparing stocks to rental properties. Caleb explains how leverage and depreciation significantly enhance investment returns. The potential tax benefits of owning real estate, including 1031 exchanges and step-up basis for heirs, are also explored, painting a comprehensive picture of strategic investing.
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The Basic FIRE Formula
- The FIRE formula is to maximize income, save aggressively, and invest in low-cost index funds until you can withdraw ~4% annually.
- Caleb Porzio realized this is the common, simple path many financial gurus teach.
Prioritize Tax-Advantaged Accounts
- Use tax-advantaged accounts like 401(k)s, Roth IRAs, and HSAs to shelter investments from taxes.
- Caleb Porzio recommends favoring Roth-style accounts and treating the HSA as a powerful long-term vehicle.
Following The Index-Fund Gurus
- Caleb followed mainstream guides like Mr. Money Mustache and JL Collins who emphasize index funds over real estate.
- He credits The Simple Path to Wealth for shaping his early thinking against real estate investing.
