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SolidusX 3 years, 2 months ago.
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Hey Guys,
Thought I’d report in on something I’ve been doing since Sept 2015. I was made unemployed back in the summer of 2015 after 9 years and managed to get a daily rate contracting role with a major bank here in Ireland.
This job was paying a lot more than last one and Not knowing how long I’d be at this job I decided to cut right down on my spending. Then save like my life depended on it.
I should hit 40,000 euro in the next couple of weeks and it feels amazing to have the security that brings.The whole process has opened my eyes to the amount of money we waste on crap…I’ve not bought any new clothes, I’ve turned into someone who goes out drinking perhaps once a month…I’ve always been one to look for deals at the local supermarket but I started to go when the food was in the reduction aisle and make a meal from the stuff I got that night.
Not that I date anymore but this new job and the cash would have been spent on meals out, weekends away and stuff for the woman….I couldn’t have saved anywhere the amount I have. I don’t think a woman could have had the discipline to do what I’ve done.
I’m not sure if I should continue to bank the cash and perhaps buy an apartment to rent out or look at investing in mutual funds now ?
I’d be interest to hear you stories if you are also saving.
Cheers from Dublin ☘️
Good on you, brother. There’s no need to waste money on frivolous crap when your personal security is on the line.
Well done, I would look for a place to let out make money on the banks money.
There is no reason why you can’t save another 40k next year , in a few years a few rentals.
You are right we do waste money on rubbish.
Congrats man. Its an awesome feeling when you look around and realize how much money people waste on crap, or even worse, how much guys throw away chasing pussy, and decide not to walk that path yourself. Keep banking that money. Stocks are nice if you want purely passive income, rentals are nice if you don’t mind putting work into your investments…but either way you decide to go you’ll be miles ahead of all the people living in perpetual debt who will literally spend hundreds of thousands of dollars in interest payments over a life time.
Anonymous42I’ve turned into someone who goes out drinking perhaps once a month
In Ireland that’s considered a miracle! A pub for every man!
Congrats welshhibby! I too once had a shoebox full of money, before all the plunder and stealing went ballistic here in the USA.
I’m doing the same thing by living a standard of living that wild boars wouldn’t tolerate!
Adapt and overcome! I’m sure my goat Lucifer is gonna taste real f~~~ing GOOD! Pride is one of my favorite dishes!
Muthaf~~~ers can’t shame me! Not ever! I am a proud BOTTOM DWELLER! I OWN MY OWN HOME AND DON’T LIVE IN MAMMA’S CELLAR! (the bottom of bottom dwellers; “the cellar dweller”) THAT PLACE IS FOR THE RUINED AND DIVORCE RAPED MAN AS HE RETURNS TO MOMMY PENNILESS WITH AN ARREST WARRANT FOR FAILING TO PAY THE GOVERNMENTAL MATRIMONY TERMINATION RAPE FEES!
Any man considering getting married, listen up; remodel your mother’s cellar BEFORE you GET MARRIED! That’s my only advice on MARRIAGE!!!
Diversify the s~~~ out of your money.
Have enough cash on hand (emergency money) so if something happens you can pay your bills for 3 to 6 months. Food, rent, car and whatnot. Cash is still king. If your bank goes on “holiday” or goes “t~~~ up”, the bank could close or restrict you on how much you can withdraw.
Invest in mutual funds but again, diversify. Pick both domestic and foreign mutual funds. I would also buy a small amount of silver and gold. Physical. No metals stock. If you don’t have it in your hand its not yours.
It is by caffeine alone I set my mind in motion, it is by the beans of Java that thoughts acquire speed, the hands acquire shaking, the shaking becomes a warning; it is by caffeine alone I set my mind in motion.
Funny you should mention silver as I might start buying a 100 euros worth every month starting in 2017.
That’s about five coins every month.Write down your long term financial goals. Look at it regularly. Keep saving. The answers will come and if you do the above you will recognize them when they arrive.
"Women are directly adapted to act as the nurses and educators of our early childhood, for the simple reason that they themselves are childish, foolish, and short-sighted—in a word, are big children all their lives, something intermediate between the child and the man, who is a man in the strict sense of the word. Consider how a young girl will toy day after day with a child, dance with it and sing to it; and then consider what a man, with the very best intentions in the world, could do in her place.” Quote from Arthur Shopenhauer, 17th century philosopher
Anonymous0Diversify the s~~~ out of your money.
Have enough cash on hand (emergency money) so if something happens you can pay your bills for 3 to 6 months. Food, rent, car and whatnot. Cash is still king. If your bank goes on “holiday” or goes “t~~~ up”, the bank could close or restrict you on how much you can withdraw.
Invest in mutual funds but again, diversify. Pick both domestic and foreign mutual funds. I would also buy a small amount of silver and gold. Physical. No metals stock. If you don’t have it in your hand its not yours.
I can agree on 3 to 6 months cash reserves
Real estate is good but it has been said that real estate is as good as gold. (Male logic coming up) Therefore, gold is as good as real estate. I wholeheartedly agree “if you don’t have it in your hand, it’s not yours”
I would put most of it into silver and gold.Congratulations. Saving here and there really adds up. At some point, buy something for yourself. Just spend a little of the interest you earned .. you deserve it!
I also believe in physical metals. I realize that they are very long term holdings and the thought of trying to unload them doesn’t bother me because I don’t plan on selling them. Gold and silver have done “very well” this year! Platinum is also great long term.
Banks currently pay almost nothing on insured certificates, credit unions are noticeably better at about 2% insured for 36 to 48 month ranges. If the bottom falls out I don’t know how good the insurance claim is .. but I do put money away in my credit union for 48 month terms “laddering” them to mature at six month intervals. I fully realize that many people wouldn’t touch certificates of deposit in a record low interest rate environment .. understood; but, as long as I am treading somewhere near inflation (tax deferred) and have a slightly shorter term horizon due to my age .. I want at least fifty percent or more away from commodities.
I realize that over the long term mutual funds might be ok and blow fixed rate investments out of the water, the track record over the decades is good and probably will continue very long term; (definitely, beyond five or more likely .. ten years and more) .. but, and this is a big, but! .. I personally have a funny feeling about stocks for the short term .. this is only my gut feeling and I have no data to support this other than the fact that they have been considered “the only game in town” for so long through manipulation that I just can’t warm up to them right now other than dollar cost averaging relatively small amounts. If you do decide to dollar cost average into stocks … as others have said, diversify and try and keep your expenses as low as possible. Those expenses also add up .. and here we have the 401k’s that defer taxes. I’d probably dollar cost average a small portion of my funds into a mutual fund at a steady rate knowing that, no matter what happens during the next few years, I’m sticking with it and not selling anything. Just set the amount you will devote to stocks each month .. and then forget it .. irregardless of the economy. Slow and steady does win over the very long haul.
Real estate is tricky. I have a cousin who lost over $40,000 needing to sell a property during the great downturn a few years ago. He ended up selling and paying off the difference himself .. so both he and I are still very cautious about real estate involving any kinds of loans .. unless it’s your primary residence and you are staying there long term .. or your residence that you will be temporarily renting out with a fallback plan of moving back in yourself in the event a renter isn’t available due to another down-turn. Holding on to real estate long term is good .. but we learned the hard way the trying to sell at a specific moment in time doesn’t always give good results and can cost one dearly. If you want to play it slightly safer, short term, say five years .. credit unions also have tax deferred instruments available through certificates of deposit with zero fees and a guaranteed rate. You won’t get get what you’d get in stocks if everything goes right, but diversification isn’t only a stock term .. I’m quite conservative so for me, diversifying also means keeping a decent portion out of stocks during these periods of artificially high commodity prices due to Fed manipulation.Hey Guys,
Thought I’d report in on something I’ve been doing since Sept 2015. I was made unemployed back in the summer of 2015 after 9 years and managed to get a daily rate contracting role with a major bank here in Ireland.
This job was paying a lot more than last one and Not knowing how long I’d be at this job I decided to cut right down on my spending. Then save like my life depended on it.
I should hit 40,000 euro in the next couple of weeks and it feels amazing to have the security that brings.The whole process has opened my eyes to the amount of money we waste on crap…I’ve not bought any new clothes, I’ve turned into someone who goes out drinking perhaps once a month…I’ve always been one to look for deals at the local supermarket but I started to go when the food was in the reduction aisle and make a meal from the stuff I got that night.
Not that I date anymore but this new job and the cash would have been spent on meals out, weekends away and stuff for the woman….I couldn’t have saved anywhere the amount I have. I don’t think a woman could have had the discipline to do what I’ve done.
I’m not sure if I should continue to bank the cash and perhaps buy an apartment to rent out or look at investing in mutual funds now ?
I’d be interest to hear you stories if you are also saving.
Cheers from Dublin
@welshhibby That’s awesome bud! I know the feeling of not spending money on crap and having a nice stash saved. It takes a lot of diligence to do but the hard work pays off. I do day trading on the stock market for a living and hence have some insight on how to make money work. In terms of what you should do with that money you really have 2 routes… 1 is real estate holdings that generate you money like rentals and 2 is stocks that pay dividends.
Real estate can be a big cash boon but it can also be very risky and have some long term upkeep costs. I do not know what the laws and mortgages are like where you live so I will base them off Canadian ones. For a $250,000 CAD mortgage with insurance, interest, strata fees, property tax, and upkeep over 25 years you are looking somewhere around spending close to $370,000 (there is a large amount of math involved there, check out http://www.calculator.net/canadian-mortgage-calculator.html?chouseprice=250000&cdownpayment=5&cloanterm=25&cinterestrate=3.8&caddoptional=1&cpropertytaxes=0.3&chomeins=1200&cpmi=1200&choa=3000&cothercost=3000&cstartmonth=10&cstartyear=2016&printit=0&x=54&y=15 for a good calculator). Now I can probably rent that place out for anywhere between $1000-1500 a month where I live which gives me $12000-$18000 gross a year. Now I am not also factoring in the time and $ for finding a tenant that will not destroy your place, plus also the headache of managing a tenant unless you got a property manager which usually run 10% of rent plus other costs. You may also be susceptible to interest rate hikes, strata fee increases, unexpected major repairs etc as well so you will have to factor that in. A plus side is that you can run this property as a business and write off a lot of stuff against taxes. So all in all owning property is nice but it has some major risks involved and you are locked into that property meaning you can not easily liquidate if things get dicey.
The second option is to buy stocks that pay dividends. These are stocks that basically pay you a monthly quarterly or yearly dividend yield percentage of what the stock is worth for free. I personally like Real Estate Investment Trusts (REIT) that pay monthly. These are basically companies that own many properties they rent out to companies like Walmart or residential properties to private people. They take care of all the hassles of owning property and pay you a cheque every month on time every time for how many shares you have. So for example if you owned 10 shares of REIT X and the REIT pays $.50 per share you would get $5 per month. In Canada we have a tax free savings account so for us it’s all tax free money. Now there are also mutual funds that you can get that do the same thing but with mutual funds you are usually susceptible to management fees etc. The downside is that you are susceptiable to the stock market and the shares could lose some value off their price or even the dreaded dividend cut which really screws things up so there is risk no matter what you do.
Whatever you do make your money work for you and do your research before you dump your money into something. Good luck bud
Knowledge is power..... Don't waste your brain on bullshit
I’m not sure if I should continue to bank the cash and perhaps buy an apartment to rent out or look at investing in mutual funds now ?
I’d be interest to hear you stories if you are also saving.
Cheers from Dublin
First, congratulations!
Second, I would buy an apartment with an extra bedroom or two and use them to rent out on AirBNB.
Hey Guys,
Thought I’d report in on something I’ve been doing since Sept 2015. I was made unemployed back in the summer of 2015 after 9 years and managed to get a daily rate contracting role with a major bank here in Ireland.
This job was paying a lot more than last one and Not knowing how long I’d be at this job I decided to cut right down on my spending. Then save like my life depended on it.
I should hit 40,000 euro in the next couple of weeks and it feels amazing to have the security that brings.The whole process has opened my eyes to the amount of money we waste on crap…I’ve not bought any new clothes, I’ve turned into someone who goes out drinking perhaps once a month…I’ve always been one to look for deals at the local supermarket but I started to go when the food was in the reduction aisle and make a meal from the stuff I got that night.
Not that I date anymore but this new job and the cash would have been spent on meals out, weekends away and stuff for the woman….I couldn’t have saved anywhere the amount I have. I don’t think a woman could have had the discipline to do what I’ve done.
I’m not sure if I should continue to bank the cash and perhaps buy an apartment to rent out or look at investing in mutual funds now ?
I’d be interest to hear you stories if you are also saving.
Cheers from Dublin
@welshhibby That’s awesome bud! I know the feeling of not spending money on crap and having a nice stash saved. It takes a lot of diligence to do but the hard work pays off. I do day trading on the stock market for a living and hence have some insight on how to make money work. In terms of what you should do with that money you really have 2 routes… 1 is real estate holdings that generate you money like rentals and 2 is stocks that pay dividends.
Real estate can be a big cash boon but it can also be very risky and have some long term upkeep costs. I do not know what the laws and mortgages are like where you live so I will base them off Canadian ones. For a $250,000 CAD mortgage with insurance, interest, strata fees, property tax, and upkeep over 25 years you are looking somewhere around spending close to $370,000 (there is a large amount of math involved there, check out http://www.calculator.net/canadian-mortgage-calculator.html?chouseprice=250000&cdownpayment=5&cloanterm=25&cinterestrate=3.8&caddoptional=1&cpropertytaxes=0.3&chomeins=1200&cpmi=1200&choa=3000&cothercost=3000&cstartmonth=10&cstartyear=2016&printit=0&x=54&y=15 for a good calculator). Now I can probably rent that place out for anywhere between $1000-1500 a month where I live which gives me $12000-$18000 gross a year. Now I am not also factoring in the time and $ for finding a tenant that will not destroy your place, plus also the headache of managing a tenant unless you got a property manager which usually run 10% of rent plus other costs. You may also be susceptible to interest rate hikes, strata fee increases, unexpected major repairs etc as well so you will have to factor that in. A plus side is that you can run this property as a business and write off a lot of stuff against taxes. So all in all owning property is nice but it has some major risks involved and you are locked into that property meaning you can not easily liquidate if things get dicey.
The second option is to buy stocks that pay dividends. These are stocks that basically pay you a monthly quarterly or yearly dividend yield percentage of what the stock is worth for free. I personally like Real Estate Investment Trusts (REIT) that pay monthly. These are basically companies that own many properties they rent out to companies like Walmart or residential properties to private people. They take care of all the hassles of owning property and pay you a cheque every month on time every time for how many shares you have. So for example if you owned 10 shares of REIT X and the REIT pays $.50 per share you would get $5 per month. In Canada we have a tax free savings account so for us it’s all tax free money. Now there are also mutual funds that you can get that do the same thing but with mutual funds you are usually susceptible to management fees etc. The downside is that you are susceptiable to the stock market and the shares could lose some value off their price or even the dreaded dividend cut which really screws things up so there is risk no matter what you do.
Whatever you do make your money work for you and do your research before you dump your money into something. Good luck bud
If you don’t physically have it in your possession, you do NOT own it! If you OWN a piece of property, the value can go down that’s true. But stock can go down to ZERO and there’s nothing you can do about it. You’re just F~~~ED. NO ONE cares about your money more than you do. I would never trust anyone else with my money like that. Corporations and governments constantly f~~~ s~~~ up because THEY DON’T GIVE A S~~~ and they have f~~~ing dumbasses running them.
Read.
Couple of good basic books I have found:
1. The Richest Man in Babylon.
2. Rich Dad, Poor Dad.
Good starting point.
For real estate investing I have found books by Jay P. DeCima very valuable.
"Women are directly adapted to act as the nurses and educators of our early childhood, for the simple reason that they themselves are childish, foolish, and short-sighted—in a word, are big children all their lives, something intermediate between the child and the man, who is a man in the strict sense of the word. Consider how a young girl will toy day after day with a child, dance with it and sing to it; and then consider what a man, with the very best intentions in the world, could do in her place.” Quote from Arthur Shopenhauer, 17th century philosopher
If you OWN a piece of property, the value can go down that’s true. But stock can go down to ZERO and there’s nothing you can do about it.
I’ve always thought the opposite…stocks can only go to zero where as real estate can go negative. Your property value doesn’t go up if you have to put money into it because age or a tenant damaged it and you are just getting it back to normal, and you constantly have to pay property taxes on it regardless of if its vacant or not. Also if you are trying to turn a profit on mortgaged properties you have interest payment to the banks and fees associated with obtaining a mortgage, and unexpected life events that lead to a foreclosure could more then wipe out your initial investment wreck your credit.
Yeah land itself will always have value, but from an investment standpoint any time you are playing with leverage(which most real estate investors are as the average guy can’t afford to go around paying cash for properties) or anything with ongoing costs associated with it, you can very easily go negative.
If you OWN a piece of property, the value can go down that’s true. But stock can go down to ZERO and there’s nothing you can do about it.
I’ve always thought the opposite…stocks can only go to zero where as real estate can go negative. Your property value doesn’t go up if you have to put money into it because age or a tenant damaged it and you are just getting it back to normal, and you constantly have to pay property taxes on it regardless of if its vacant or not. Also if you are trying to turn a profit on mortgaged properties you have interest payment to the banks and fees associated with obtaining a mortgage, and unexpected life events that lead to a foreclosure could more then wipe out your initial investment wreck your credit.
Yeah land itself will always have value, but from an investment standpoint any time you are playing with leverage(which most real estate investors are as the average guy can’t afford to go around paying cash for properties) or anything with ongoing costs associated with it, you can very easily go negative.
Things would have to get pretty f~~~ing bad in order to lose out on real estate long term. Let’s say you bought a $500,000 house with a 3% interest rate. That’s $1,250/month to service your debt. I can’t imagine renting a half a million dollar house for $1,250/month. Usually you should get about $3,000/month for a house like that. Let’s say the value of the house drops to $350,000, or 30%. You’re still paying $1,250/month to service your debt, but you’d still be able to rent it out for at least $2,100/month. No matter what, you still win. Just don’t rent out to psycho’s and you’re good to go. And in the end, you’ll actually own an asset, and that gives you great financial security. There’s a reason why real estate tycoons exist. Take advantage of these super low interest rates while they last, because the interest rates have very little to do with the rental market. If we had a 10% interest rate, rental real estate wouldn’t make much sense.
Oh, and as for taxes on the property, yes they exist. Taxes on a half a million dollar house are about $700/month here. Even with taxes you still make out, even if the value of your home collapses 30%, which is a HUGE collapse and unlikely. Though I do believe that real estate is overvalued in general right now and we could very well see a 30% collapse in the next 10 years. On the bright side if the value of the home collapses, the property taxes go down. And even with a 30% collapse in value, you still make it okay. The same can NOT be said about stocks, and the risk of 100% collapse is always there with stocks. Not so much with real estate unless you’re buying in the ghetto or somewhere like Detroit.
Things would have to get pretty f~~~ing bad in order to lose out on real estate long term. Let’s say you bought a $500,000 house with a 3% interest rate. That’s $1,250/month to service your debt. I can’t imagine renting a half a million dollar house for $1,250/month. Usually you should get about $3,000/month for a house like that. Let’s say the value of the house drops to $350,000, or 30%. You’re still paying $1,250/month to service your debt, but you’d still be able to rent it out for at least $2,100/month. No matter what, you still win. Just don’t rent out to psycho’s and you’re good to go. And in the end, you’ll actually own an asset, and that gives you great financial security. There’s a reason why real estate tycoons exist. Take advantage of these super low interest rates while they last, because the interest rates have very little to do with the rental market. If we had a 10% interest rate, rental real estate wouldn’t make much sense.
Oh, and as for taxes on the property, yes they exist. Taxes on a half a million dollar house are about $700/month here. Even with taxes you still make out, even if the value of your home collapses 30%, which is a HUGE collapse and unlikely. Though I do believe that real estate is overvalued in general right now and we could very well see a 30% collapse in the next 10 years. On the bright side if the value of the home collapses, the property taxes go down. And even with a 30% collapse in value, you still make it okay. The same can NOT be said about stocks, and the risk of 100% collapse is always there with stocks. Not so much with real estate unless you’re buying in the ghetto or somewhere like Detroit.
Have you ever owned any property? You’ve literally just described a rental property with negative cash flow. First off, you wouldn’t be able to borrow 500k @ 3% with zero down without additional costs. You’d have to take a secondary loan to cover the down payment, which would be at a higher rate, or you would get socked with PMI. 1,250 a month to service that debt would be interest only. You’d be talking about 2,200 a month on a 30 year loan for principal an interest alone. Add in another 400 a month for PMI, and the 700 a month you say in taxes and you are already up to 3,100 plus additional for insurance on a property you could get 3,000 for. You’d run into the issue of most people don’t even have the debt to income ratio to acquire a 500,000 dollar loan anyhow, and you won’t get as good a rate on an investment property as you would a primary property, so 3% isn’t going to happen to begin with.
Additionally, you will have to put money into the property in other ways. At a minimum you will be painting and cleaning in between tenants, and other things are going to need maintained…appliances break, driveways need sealed, lawns maintained, roofs may only go 20-30 years depending where the house is, pipes leak, you might need an exterminator, time spent driving back and forth to the bank to cash checks and keep financial records, etc. Even if you are a handy man and can do a lot of this stuff on your own…some of us run into the issue of how much money am I losing because time invested in said rental could instead have been time invested at work? If you put 100 hours worth of effort a year into a rental property that could have instead been 100 overtime hours at work, that is another factor. 100 hours of overtime for me is going to be north of 6,000 dollars guaranteed…so from a what makes me the most money perspective I might as well just tack on another 500 a month as my time doesn’t come free, and even if you hired a property manage, its still going to cost you.
The concern isn’t so much the property value itself if you are going long…I’d be willing to bet pretty much any property you buy today is going to be worth more in 30 years…the risk is you lose the property. Look let’s run an example…you put 20,000 down on a property. Over the next 5 years all your rental income goes back into the property as the earliest years are the most expensive to own until you’ve had time for inflation to make your P/I payment relatively smaller and for you to be able to raise rents a bit, and you put 50 hours a year of effort into managing it. You then get laid off at your job, your tenant stiffs you right at the start of the winter making it a bitch to evict them, and before you can find a buyer willing to pay enough for you to at least break even or get your s~~~ together with finding a good enough job to cover your expenses you get the property foreclosed on and the town still wants 6 months worth of property taxes from you. You are now out your 20k and 250 hours worth of labor, and owe thousands in taxes. Now how about if you put that money into a stock paying a 4% dividend, and over the same 5 year period you literally put no effort into that stock sitting into your brokerage, and the stock stayed flat then went to 0 over night. You’d still lose your initial 20k investment but have 4,000 dollars worth of dividends that accumulated, and you wouldn’t be walking away with any additional debt or trashed credit.
I’m not trying to say nobody makes money in real estate…its just that if your argument against stocks is they could go to zero while you are completely blind to the fact that a real estate can leave you in a hole with trashed credit, that is quite the foolish argument.
Plus ultimately, real estate is going to tie you down to an area. Do you want to spend your whole life where you are right now so you can stick around and manage your properties? Do you want to have to basically work a part time job forever managing properties? If no to either of those, or if you plan on hiring a property manager anyhow, you could still have exposure to real estate investments without the hassle by investing in REITs…they trade like stocks but the underlying business is based off real estate investments…you basically end up a percent owner of thousands of properties with professional managers rather than full owner of a few properties you have to manage on your own.
On the bright side if the value of the home collapses, the property taxes go down.
Actually…if your property value goes down they just raise your mill rate, and considering how the government works, when your property values recovers, your mill rate isn’t going to go back down, they’ll just find more s~~~ to waste the extra tax revenue on.
The same can NOT be said about stocks, and the risk of 100% collapse is always there with stocks.
I’m just curious, since you seem to be so concerned about this, just do a little exercise without going to google. How many major publicly traded companies in the last twenty years or so can you name that have gone to zero? No buyouts, no mergers, no period of stagnation in which as an investor you might decide to move your money elsewhere…just a rapid decline in a short period of time to zero that would have been a 100% loss for you as an investor. I’m thinking for most of us on here, we’d probably come up with Enron and maybe a bank or two during the financial crisis, and a couple fast food chains if they were even publicly traded.
Now how many major companies can you name that have been around for at least 20 years that are doing well today? I guarantee the list will be much longer, and if you research some of those companies you’ll find their price per share has gone up and a lot have paid steady dividends over the years.
The thing is, if you invest in stock you very well may pick one that goes to zero…but chances are the other 5 you pick are going to do well and pay dividends long term. If you invested 10,000 dollars each and reinvested dividends in companies like let just say Disney, GE, ATT, General Dynamics, and Enron 20 years ago…your 50,000 dollars is going to be worth a half million today. Are you going to sit around crying about your Enron stock when overall you’ve still crushed it?
Its really not that risky if you go long term, you diversify, you aren’t gambling on penny stocks, you aren’t trying to be a hot shot day trader, and you aren’t the sucker who jumps on the bandwagon for the latest hot stock that gets hyped up in the media, then pumped and dumped. A doomsday scenario of the entire market going to zero means the entire global economy, all currencies, and the government have just collapsed. If that happens, managing rental properties or stock prices aren’t going to be too high up on anyone’s list of concerns as there would be mass starvation, riots, looting, etc.
You can make out either way, or lose out either way. I’m not saying to make stupid decisions. If you can’t afford to be a landlord, then DON’T DO IT. It can get expensive, but a lot of s~~~ would have to happen all at once to sink me. I understand you need a down payment. Everyone knows that. I wasn’t putting that into the equation.
I own my own business so I don’t ever have to worry about being without a job. And even if I was without a job, I’ve got 2 years worth of emergency funds in addition to other properties. Yes, if you buy a rental property while you’re living paycheck to paycheck and with one little unfortunate event you’re on the street, then yes that’s not a very smart move. I’m not saying that it’s all roses and perfect, but at the very least you should break even and if you do your research you could clear up to 20% profit from the rent each month and all the while your tenants are giving you a free house little by little.
And I’m sorry, but a stock has absolutely ZERO real intrinsic value. It’s not even a piece of paper. It’s numbers on a screen. In the event of another economic crisis, I would MUCH rather be holding my properties than some promise from a corporation. You can “diversify” all you want, but in the end you’re relying on a flawed system and a bunch of BS for your retirement and that’s not smart.
I own my own business so I don’t ever have to worry about being without a job.
And I’m sorry, but a stock has absolutely ZERO real intrinsic value.
I don’t see how you can possible believe owning your business is a guaranteed income stream while being a partial owner of a business, which is what stock represents, is worthless and risky.
Yeah the stock itself is worthless, even if you order a paper copy of it, the same way the sheet of paper a title is printed on is, its what it represents that has the value. In the end though you own part of a company with assets, like for example I work for a large utility and have accumulated a bit of company stock. They own everything from LNG to nuclear to solar and wind plants. Its pretty hard to claim such a company is worthless when they own multiple profit producing power plants, and ironically the real estate those plants sit on.
In the event of another economic crisis, I would MUCH rather be holding my properties than some promise from a corporation. You can “diversify” all you want, but in the end you’re relying on a flawed system and a bunch of BS for your retirement and that’s not smart.
How is it flawed, you are buying partial ownership of a business. Do you think owning a business is a bad move or something?
http://www.investopedia.com/university/stocks/stocks1.asp
Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.
You are basically saying its awesome to be sole owner of a company with 100k a year in profits but a bad move to be a partial owner of a company making 100b a year in profits…I’m just failing to see how that makes any sense at all, especially when during an economic downturn its generally the big guys with the deep pockets and access to near unlimited financing that are the ones that are more successful at weathering the storm.
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