This Addendum Is Made On To Lease ( Lease ) Dated Between: Fill & Download for Free

Here's what has worked for me allowing me to unintentionally semi-retire after 20 years of being a salaried professional. In our mid 40s, my wife and I have steadily accumulated a net worth of $5M+ (from a lower middle class immigrant upbringing). We still work but but making money is no longer our primary motivation.Without question, we have always lived beneath our means and have practiced most of the other conventional wisdom for financial success (e.g., work hard, get practical degrees, save, stay healthy, etc.) so I'm going to discuss ideas that make a difference at the margins. These incremental benefits add up over time and create a way of earning, saving and living that compound (like interest) as you get older. The opposite may be true if you ignore these concepts. Many people espouse thinking big and going for a home run. I made it by hitting singles and doubles.Some of the examples I provide below may seem petty and insignificant (in light of our net worth), but remember we didn't start off wealthy. Also, focusing on the small stuff (especially in the beginning) cultivates behaviors that will you prepare you for the big opportunities when they arise. The same principles guide my decision making for buying a digital camera or an apartment complex.Look for a deal1. Never pass up free money. If your employer offers free financial planning, legal services, charitable contribution matching, use them. Examples: Max out your 401K because likely your company matches your contribution and you save on taxes immediately. I once donated 20 PCs to my high school because my employer (a large PC manufacturer) had a great school donation program. I invest in real estate in part because of the tax benefits (i.e., free money from the government).2. Instant gratification is over-rated. I'll wait weeks or even months to buy that new camera, car, underwear, etc., because eventually a deal comes along. I look for a coupon or promo before making a purchase unless I know it's something where the price doesn't change. I'm also flexible so if something similar comes along at a great deal, I nab it. The more inflexible you are in life, the more you will pay. I like shiny objects as much as the next person but I don't pay a premium for them. Example: The latest iPad may have all the bells and whistles, but I usually wait to buy the older generation or two at a significantly lower price. Recently I found a deal on the latest iPad Air 2 and bought it; I hardly noticed any difference between it and my other iPad three generations older so I'm not sure whether it was such a deal after all.3. Corollary to #2: Don't wait to pounce on a good deal. Example: This doesn't just apply to buying toilet paper in bulk at Costco when it's on sale. I bought a SUV in 2009 when the car dealerships were ghost towns. I didn't need a SUV immediately but I knew I would need one in a few years (and that I would keep it forever like all my cars).4. Think long-term; finding/creating value takes time, effort and planning. I plan ahead whether it's saving for my kids' college education, planning vacations or researching investments. Doing things last minute usually costs more. Planning ahead and doing lots of research has the added advantage of recognizing a good deal should it come along earlier than expected. Example: I take my family of four on several vacations each year usually using airline miles and hotel points. I earn most of my points through credit card promotions and I carefully use them where they yield the highest value (e.g., during holidays).It's not what you earn; it's what you save5. The small stuff adds up. Whether it's a $5 cup of coffee, cigarettes, gas, ATM fees, any costs that are recurring, add up over a lifetime. If you can't be bothered to manage the small stuff, you probably won't notice when escrow makes a few (hundred dollars) mistakes on the closing statement of a real estate transaction. Example: I use GasBuddy to find the cheapest gas station and will drive up to 2 miles to find it. At restaurants I almost never order a beverage with my meal. Even a modest $2 soda is actually $2.50 after tax and tip. A can of soda would cost $.25 from a supermarket and actually costs the restaurant even less. I just can't wrap my head around paying 10x's more for something that tastes exactly the same at home.6. It doesn't matter whether you are an employee or entrepreneur. Salaries are good and commissions, bonuses, stock options are even better. I know plenty of people who got rich as an employee and plenty of entrepreneurs who never hit it big. What's more important is that you save more than you spend and every dollar you spend obtains the greatest value. Example: My wife and I were salaried workers for the first 20 years before I unintentionally retired. By then I had enough to retire if I wanted to. Now I'm an entrepreneur but it's more about having flexibility than making more money.7. Maximize value. Whether it's investments, everyday items or relationships give and get the most return out of them. If you take care of something or someone, it will take care of you. Examples: When I turned 22 and got a very good job, I immediately went out and spent more than one year's salary ($40K in mid-90s) on a new sports car. Yes, perhaps a stupid 22 year old thing to do, but I have no regrets. I still drive the thing so I've gotten my money's worth. I have bought other more family friendly cars since then and each one cost less than the previous car. I only buy new cars and keep them forever. Leasing or trade-in's every 3 years are for far wealthier people than me. I don't buy used to save money because I know I will take care of the car; I can't be certain of the previous owner's habits.Use leverage wisely8. Cash is king. This does not mean pay cash for everything. It means that as long as you have liquid assets/cash, sellers, buyers, banks, etc., are more likely to do business with you and you will get a better deal. Example: So called "cash buyers" often beat out non-cash buyers on home purchases because the seller believes the likelihood of closing is greater. That doesn't mean the buyer comes with a suitcase of cash. It just means the buyer doesn't require a loan contingency because he/she is confident the funds are available either through actual cash on hand, a line of credit, stocks, or a bank loan.9. Use financing and credit cards wisely; don't avoid it. Example: I pay everything I can on credit cards (to earn points and manage cash flow) but I never pay any credit card interest. Also, I intend never to pay off my home mortgage because a 30 year 3.75% tax-deductible interest rate is a bargain. I have better investment opportunities for the money but make sure you actually invest the extra money instead of blowing it on a new car or big screen TV.Give Back10. Give back to your friends, family, colleagues, charities, etc. Personal finance is as much about developing good financial habits as it is about cultivating good relationships. Relationships will help you develop the financial success you might desire and once you achieve the financial success, you will realize that the relationships far outweigh the financial success in importance. Example: I married my high school sweetheart. I couldn't have achieved my success without her, nor would I enjoy it as much without her.AddendumI've been asked by a commenter to quantify some aspects of my financial situation. I think absolute numbers are meaningless because it depends on where you live, but some relative numbers might be helpful. Please keep in mind that the addendum is specific to my situation (unlike the first 10 items) and not necessarily intended as advice. I'm only half way through my journey so I'll let you know in about 50 years whether this works out (the first 10 items definitely worked).How much did we save? When my wife and I worked full-time, we always made sure we could survive on one person's salary. Before we were married, we lived with parents. This meant buying a smaller homes than we could afford or buying cheaper cars. It also meant being vigilant about refinancing to a lower rate whenever possible which is no problem when you make twice what the bank requires.What was my goal? My definition of being financially independent is having 25 times our living expenses. If you need $100K per year to live, then you should have a net worth of $2.5M. If you withdraw 4% each year, assume 2% inflation and get a 6% return on this net worth, your money will theoretically last forever. I don't necessarily need it to last forever, and I hope to get better than a 6% return.What was your asset allocation? I reached my goal by investing mostly in mutual funds and ETFs. I've lost a lot of money buying individual stocks so I mostly avoid it. My primary residence has been my single best investment doubling in value over 13 years. I only invested 25% of the purchase price (20% down pay + 5% in upgrades) so that's a 400% return on my initial investment.What is your current asset allocation? For a long-time, I wanted to allocate more capital to real estate because I wanted diversification. I didn't have the time to do so until after I was laid off. In the last two years, I have shifted 50% of my net worth to real estate. For people who don't like the idea of dealing with tenants, I use management companies. I don't deal with tenants but I definitely manage the management company and having business/finance experience is a huge advantage. The real estate return has definitely outpaced the S&P 500 in the last two years so my diversification strategy has worked out well.What % in tax favored vehicles? I maximize contributions to 401Ks, IRAs, 529s, etc., before investing in taxable accounts. I've shifted capital to real estate in large part for tax planning reasons and for a hedge against inflation.Do I vary asset allocation with age? Most traditional financial advice increases allocation in bonds and decreases allocation in equities over time. I don't follow this advice because I'm not investing with a target retirement date (and implied life expectancy). I manage my net worth like an endowment fund because I hope to make it last forever. When I was young, I owned very few bonds (as advised) and focused on equities to maximize return. As I grow older, I continue to avoid bonds because to me real estate acts as a bond that provides steady income and has the added benefit of appreciation and leverage (unlike bonds).

The security deposit (and all rent payments) was paid by check by someone else (not on the lease). Who is the security deposit returned to?Disclaimer: I’m not a lawyer, so this isn’t legal advice.The answer depends on:The leaseState lawAny agreements between the landlord and the person who paid the deposit.Let’s take those one at a time.The LeaseRead the lease. That’s the contract between the tenants and the landlord. What did they agree to? Very likely, the lease states that the deposit will be returned to the tenants. The person who paid the deposit—as stated in the question—is not on the lease. Thus, the only way the lease could require the return of the money to the non-tenant is to include a statement in the lease that the deposit, when refunded, will be sent to the third party. It’s possible but I’ve never seen that.State LawWhat does the law say? The law will vary from state to state. It might require that a deposit be returned to the person who paid the deposit. But it’s far more likely to read the way Virginia’s law (I’m in Virginia) requires the refund:The security deposit and any deductions, damages and charges shall be itemized by the landlord in a written notice given to the tenant, together with any amount due the tenant within 45 days after the termination date of the tenancy. ….Where there is more than one tenant subject to a rental agreement, unless otherwise agreed to in writing by each of the tenants, disposition of the security deposit shall be made with one check being payable to all such tenants and sent to a forwarding address provided by one of the tenants.[Emphasis added.]My reading, as a non-lawyer, is that the drafters of the law clearly anticipated that any deposit would be required to be returned to the tenant(s). However, the law does not appear to absolutely require a refund to the tenants if someone else did provide the deposit. (The second paragraph above is applicable to multiple tenants. But that’s just Virginia; your state law may be different.)Agreement between the landlord and the person providing the depositAs noted above, the person providing the agreement (as a non-tenant) won’t be listed as a tenant and likely is not a party to the lease. However, it would be possible for the landlord and the deposit provider to agree that the deposit would be refunded to the deposit provider. The lease itself should be carefully examined and edited to make sure that nothing in the lease contradicted that agreement. (Although, actually—and, again, I’m not a lawyer—if the “refund to deposit provider” were included as an addendum to the original lease, the addendum would override any conflicting parts of the lease itself. That’s not the case if it were simply a “side agreement.” Still, it’d be much, much cleaner if the lease and the addendum were consistent as to the disposition of the deposit.)Bottom line: It depends on the lease, the law, and any other agreements. If the goal is to return the security deposit to the non-tenant who provided the deposit, that action must not conflict with state law. Further, that provision should be included either in the lease (preferably) or in a separate document signed by the landlord and the person providing the deposit.

I think there is a 50% chance that A380 production will end by 2021, if not sooner, unless the Middle Eastern Airlines continue to reorder new ones that will replace A380’s that are scheduled to be intentionally retired from their airline service between 2022 and 2030. And that crystal ball is very unpredictable given the political tensions and difficulties that continue to plague the region.216 have been built as of December 2017 with approximately 100 more on ‘order’. At the current production run of approximately 1 a month, 24 to 30 more are very likely to be completed. Of the 13 airlines that operate the A380, none have publicly published their profitability has been with the aircraft. If production remains 1 per month, by 2021, Emirates Airlines will have fulfilled all its firm commitments that exist today with Airbus. But this is seriously in doubt with the airline delaying the delivery of 12 aircraft to beyond 2019. See more below. (addition; see article link at bottom for possible changes in production rates)The International Hub to Hub model only works on very popular high density routes that demand high passenger loads. Depending on the operator, those routes are not as in demand or popular as many predicted and thus limits their long term viability during poor economic times or where costs have increased.The other problem is revenue. On long haul flights, this class of aircraft does not financially compete compared to wide body twin engine aircraft relative to the capital and opex costs per flight when only 1.75 flights per day can be completed in a 24 hour period, despite improved turn around times that can prepare an arriving aircraft the size of an A380 to depart within 90 minutes.The operational costs to operate an A380 are beginning to unfold. This airplane is not an inexpensive one to fix or inspect. The airframe still goes through numerous inspections and are required to go through an extensive checklist that verifies no parts or components are fatigued or have signs of corrosion. There are thousands of parts that are not made of alloys but instead composites that still require extensive time to inspect and re-certify or replace. Most of the A380’s in service have had their wings modified during a maintenance cycle as per an Airbus update to replace components that were cracking. These overhaul cycles are also time consuming, taking just under three weeks to complete a major MRO inspection. That’s millions of dollars in lost revenues when an aircraft is out of service. Imagine having 148 of these in your fleet by 2021. As it is today, the A380 represents 102 of 248 aircraft currently in service at Emirate’s Airlines. Scheduling major overhauls that take an aircraft out of service for 3 weeks is a logistical nightmare.Emirates claims to have an 84.5% load factor average across its network, which is below the industries benchmark of 87 - 90%. That 15 to 16% loss of revenue potential on a 3 class cabin configured A380 is telling and likely a key reason all 2016 / 2017 models are being reconfigured with a higher economy / business class mix and older ones are being refit during overhaul.It is also telling that the airline has just over 100 B-777’s in operation today with 13 more coming and another 140 B-787 series on order, scheduled for delivery to begin in 2020/22. This is the business plan of many international airlines going forward. Two wide body aircraft for medium and long haul routes that can accommodate 250 to 375 passengers in a two / three class layout and either have an subsidiary or partner that operates a single model narrow body for its shorthaul feeder or secondary route network of less than 4,500 nautical miles.Engine maintenance, repair and overhauls (MRO’s) are frighteningly expensive in this class of aircraft. Initial maintenance services cost the airlines a combined 170M USD in 2015 and is estimated to skyrocket to more than 600M USD in by the end of this year and expected to rise to 2.1 billion by 2019 as the engines are then required to be completely torn down and overhauled. The reason the costs are so high is because there are a limited number of these engines in use (low production volume) and there are 4 engines per aircraft, doubling MRO costs. Some MRO facilities estimate this is 30% of the total aircraft overhaul cost. The numbers are steadily rising as more aircraft reach the same duty / flight cycles as they enter service and age.MRO’s checks are so complex that British Airways, which operates 12 A380’s doesn’t even carry out the major overhauls on its A380’s like it does for its B-747–400’s. They simply do not have the required hanger size and contracted Singapore Airlines instead. These costs are beginning to escalate to the point that operating them is becoming difficult given the limited amount of resources an airline has in today’s current economic environment.Converting these aircraft to freighters is going to be difficult and damned expensive. The main bulkheads and decks are not the same ones as the original Airbus A380F freighter that wound up being cancelled. In fact, it’s doubtful given the costs for an independent engineering firm would have to invest in developing a conversion and installation kit that any A380’s will be converted to freighters because the outsourcing of maintenance that would be required upon entering service would be astronomical compared to traditional B-747–400 / 8i models. There is talk of a combi (passenger / freighter) retrofit kit being designed by Airbus and would require fewer components to be replaced and reinforced. Combi models make sense on some high value routes between Africa and Europe which B-747–400 Combi’s now fly. I seriously doubt a Combi conversion kit will be announced or have buyers.Malaysia Airlines attempted to re-lease or sell outright its 6 A380’s with not a single airline interested. As a result, Malaysia plans to convert them into high density passenger configurations for charter / low cost use as they leave mainline service. Even so, there’s doubt the airline will be able to afford the conversion, fill the seats and make a profit.In the end, I think you will see new A380’s being built until at least 2021. They will build more if the Middle Eastern Airlines still think it makes sense compared to their A350 / B777 profit margins. If it doesn’t, say good bye to the A380 ahead of it’s scheduled production run (as of December 2017) of 317. Emirates, the single largest operator of A380’s has delayed taking a dozen new A380’s for two years for reasons many believe are financial and not landing slot restricted due to lack of space as they have announced. Emirates is the only airline with outstanding new deliveries that are firm commitments of more than 40 aircraft. The rest are highly suspect of becoming firm orders that enter into production. As it is, Airbus lost it shirt on one private sale VIP A380 that was built and never delivered. It’s scheduled to be placed in a museum without engines (that were never mounted).The A380’s currently on lease for Emirates and Singapore Airlines are on 12 year contracts which will be fully paid off and will not affect the leasing company’s bottom line. The aircraft, including engines will be resalable or available for a new lessor. The question is, will any airline want one. The market value of these airplanes are depreciating at higher than straight line evaluations and as a result, they will possibly be sold or leased at lower rates than originally estimated. Even so, the cost to operate and maintain one of these aircraft is absolutely enormous compared to looking at leasing a brand new B-777 / B-787 / A350. Evidence that this is the case is the number of used B-747–400’s now available for lease or outright sale exceeds 75 aircraft and not one has been leased or sold at bargain prices.Those that are still in service will be flown as long as the MRO cycle is deemed economical to do so and the manufacturer’s airframe cycle lifespan limits can be maximized. Some airlines that financed the purchase of the A380 will probably fly them until they are no longer serviceable - if oil prices do not skyrocket past 75 USD / bbl (Texas Sweet / Brent Oil). Oil as of December 2017, is hovering around 63 - 65 USD / bbl. If oil went back to sustained pricing between 85 - 95 USD / bbl or more, then I think the A380 would be parked in the desert in a hurry.Singapore Airlines has retired one A380 and Korean Airlines has plans to park all of theirs in the New Mexico desert by the beginning in the second half of 2018. The Singapore A380 is only 10 years old and left front line service before its lease was actually due to expire.The airliner has been the worst commercial investment made by an aircraft manufacturer in history. It that cost the company over 30 billion euros that will never be recovered by A380 sales. It’s still questionable if they are recovering costs to manufacture each one. Brexit alone could sink future production of the A380 if tariff are applied to the wings built in the UK by Airbus at the former BAE plant at Broughton.Ultimately the aircraft will be retired or sold for parts for those that remain flying. That date will probably not occur until the 2027 - 2030 time frame - if oil prices remain stable.Have a nice flight!Addendum December 27, 2017: Airbus ready to axe A380 if fails to win Emirates deal - sources?