Issue #17: November 2025

Congratulations to this month's sponsored giveaway winners:
Vynn H., Tian B., Bo K., and Jae Y.

Life

Back At Work

Thanks for your patience with this month’s newsletter! Getting back into the swing of things at the USPTO has been a big adjustment. Between the commute and nine-hour workdays, it’s been a tiring transition—but also a refreshing one. I’m enjoying being around a diverse group of colleagues again: people of all ages, backgrounds, and corners of the country (and world).

I’m currently going through the Patent Training Academy—yes, round two for me. I also managed to organize a carpool through the end of the Academy, which means we can use the Express Lanes on 495 and 66. The PTO campus is down in Old Town Alexandria.

On the real estate side, things have slowed a bit as we head into the holiday season, which honestly pairs well with this transition. My goal is to bank enough leave and use my flexible schedule so I can continue serving my clients while ramping back up in the examiner role.

Personal Finance

The following excerpt is a guest post from my friend Adam, someone I deeply respect both as a person and as an investor. He was an early investor in NVDA and held on through the ups and downs with conviction. His approach to personal finance differs a bit from the conventional wisdom, but it has worked exceptionally well for him. As he shares in his post, staying open-minded about investing and understanding your own risk tolerance are key. And of course, none of it matters if you’re not living below your means in the first place.

A Pot of Gold

The first step to investing is your lifestyle; to have the opportunity to invest, you need to live below your means. The more you can save, the more you can have “your money work for you.” Wealth requires time to build and it won’t come overnight.

Here are some of the factors to consider when investing:

1. Total amount – How much are you willing to risk losing?
2. Risk appetite – Higher the risk, higher the rewards, or vice versa.
3. Time – The more time you have, the more you can weather the storm.
4. History – Past performance is a good indicator for the future.
5. Goals – Exit plan.

Before I started investing, I was told not to “put all your eggs in one basket.” It’s a common strategy but what if the basket was filled with a rainbow and pot of gold at the end? We all know the benefits of diversification (stabilizes return, more opportunities for wins, peace of mind, etc.). When you diversify, your top performers could be offset by underperforming assets. And for those assets that have done well, you wish you had more. In the past decade, the S&P has had an average ROI of 12% per year. There are stocks and other assets (crypto) that have a much higher ROI than the average.

When I first started investing as someone who didn’t know much, I did diversify. But after seeing one company do well, I focused my attention and saw the growth potential. The stock was volatile (and still is today), but the risk was worth the reward. I personally have a higher risk appetite but I offset the risk with long term investing. I can focus my attention on fewer companies and when the company does well, I do well. When it does not do well, I reevaluate the company I invested in. If I am still optimistic in the long run, I view the drops as a buying opportunity (aka conviction!!). I’m sure my strategy will change over time but for now I’m all-in on one.

The first step is the most important as you can’t build wealth without making sacrifices. After you have succeeded, look into the factors that apply to your investment strategy. The purpose of this is not to tell you to invest in a specific asset or industry, but instead it’s to open your perspective on investment strategies.

If you have any personal finance questions or a suggestion for a future topic, please submit them to mrfrugalee@gmail.com.

Real Estate

Mortgage Interest Deduction & the New SALT Updates

The 2025 tax changes brought a couple of important updates for homeowners and anyone thinking about buying. Here’s a straightforward breakdown of what actually changed and what it means for you.

Mortgage Interest Deduction (No Major Changes)

The mortgage interest deduction remains the same. Homeowners who itemize can still deduct interest on mortgage debt up to $750,000. For most people in Northern Virginia, this means the traditional tax benefit of paying mortgage interest is still intact, especially in the early years of a loan when interest makes up most of the payment.

SALT Deduction Cap Increased

The State and Local Tax (SALT) deduction cap has increased significantly. The old $10,000 cap has been raised to $40,000 for most filers. This higher cap applies for tax years 2025 through 2029 and then is scheduled to drop back to $10,000 unless new legislation extends it.

There is a phase-out for higher-income households: the SALT benefit starts phasing out at $500,000 of modified adjusted gross income and disappears at $600,000.

What This Means for Homeowners in Northern Virginia

For many households in our area—where property taxes and state income taxes tend to be high—the higher SALT cap makes itemizing deductions more worthwhile again. Homeowners whose mortgage interest, property taxes, and state income taxes add up to more than the standard deduction may see meaningful federal tax savings by itemizing.

This shift also favors new buyers, since early mortgage payments are interest-heavy and can combine with higher SALT limits to create significant deductions.

If your income falls into the phase-out range, or if your mortgage interest and state taxes are relatively low, the benefit may be limited—but it’s still worth running the numbers.

What to Do Next

Compare itemizing vs. taking the standard deduction for 2025 instead of assuming the standard deduction will win.

Keep good records of your mortgage interest, property taxes, and state taxes.

If you’re planning a 2026 move, consider how these updated deductions could fit into your long-term strategy.

And if you ever want help thinking through the housing side of the equation, I’m always here.

If you have any real estate questions, reach out to me at RealtorDannyLee@gmail.com.​
Follow me on Instagram @RealtorDannyLee​