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The stock market has been very good to me and I definitely didn't have nor have $10 million. If you are patient and disciplined, the stock market is the best way for the small person to grow their money. Most people don't have money to invest in real estate and investing in real estate on loans is very risky.
Bingo. You may not have $10 million to invest but you can grow your money by investing steadily through the years. Like everything in life there are no guarantees but your chances of growing your money are better than not being able to grow it. Steady investing, saving and patience is key. Taking the time to educate yourself on investing is also an important factor.
Seriously?
Individual stocks are risky - stock index funds are much less so. Taking on an acceptable amount of risk for your circumstances is the only way that most folks will be able to have a decent retirement. Stocks do quite well over the long term - 10+ years.
Real estate requires a lot more knowledge - knowledge that people like to THINK they have but don't. You're lucky if you can buy your own house and it appreciates, much less any other real estate.
The stock market has been very good to me and I definitely didn't have nor have $10 million. If you are patient and disciplined, the stock market is the best way for the small person to grow their money. Most people don't have money to invest in real estate and investing in real estate on loans is very risky.
So true. This is exactly what I did. Since I started investing in stocks back in July, I've doubled my bank account a few times already. I definitely don't regret it.
The stock market has historically outperformed real estate.
You have to take a long term view and don't view it as your emergency savings.
If you need money out of your house, you're also subject to market timing problems.
you can't actually get money out of the house without selling . you can only get a loan you have to pay using the house as collateral . you need money to pay for the loan the same as any loan whether it requires collateral or not .
You want to really see what a scam it is??? Take a look (if you can find the true cost which is normally very well hidden) out how much in "management fees" was taking from you via your 401K over the 20 years.
to do really well in real estate it is a professional game . as someone who lucked out by having a chance to partner up with one of america's real estate moguls i can tell you the deals and opportunity's they get are not things the layman is privy to.
sure you can buy a rental and collect rent and capture some appreciation , but that is not where the really nice money is usually found .
it is usually found in special situation real estate or commercial projects or lease right sales , bulk tax lien sales etc .
while we do have 2 co-op apartments left where we are doing the typical collecting rent thing that wasn't the plan or the game . we have now pretty much liquidated everything we held .
our thing was buying rent stabilized co-op apartments in manhattan over looking central park , then taking a shot by offering big dollars for them to sell us back the leases and leave so we can sell the apartments for big profits .
we would buy the commercial lease rights to spaces in nyc buildings that had storefronts , we would get the rents up and sell the lease rights to investor groups for big dollars .
these are all things folks who dabble at being a landlord will rarely get the opportunity to partake in but these are the kinds of things where the big money in real estate is made .
it takes contacts , big pools of money and knowledge far beyond what most of us know to pull off ourselves ..
but real estate to us is not passive and in retirement we want nothing to do with tenants , courts and laws anymore . we want nothing but true passive investing now where our money works for us instead of us working for the money .
MJ, right you are.
Speaking strictly personally, I'm not in it to sit in the big chairs. What I want is more on the merchant banking model: get a building or apartments or whatever at a cash flowing price, and grow the margin sloooowly over time at a reasonable rate of return, cash on cash. I want to plug the modest gap between my current income streams and my "needs" until I turn 70 and have to do RMDs and SS.
Between now and then, the gap simply does not warrant getting suited up to the degree you describe (speaking STRICTLY for myself). I want a prosaic little quad or a duplex or two, all within commuting range. Enough to plug (let's say) $1-2K/mo net without working myself into a lather, while being able to read and walk my dog in scenic places. Or go visit a spell with my sisters, cousins or far-flung kidz. Or go RV-ing to the National Parks. Or whatever. Not ALL the time, mind you - just when the spirit moves.
You might say I've gotten somewhat low key during my pre-retirement years. I've done enough heavy lifts to swear off doing another one. Best, Jane
to do really well in real estate it is a professional game . as someone who lucked out by having a chance to partner up with one of america's real estate moguls i can tell you the deals and opportunity's they get are not things the layman is privy to.
sure you can buy a rental and collect rent and capture some appreciation , but that is not where the really nice money is usually found .
it is usually found in special situation real estate or commercial projects or lease right sales , bulk tax lien sales etc .
while we do have 2 co-op apartments left where we are doing the typical collecting rent thing that wasn't the plan or the game . we have now pretty much liquidated everything we held .
our thing was buying rent stabilized co-op apartments in manhattan over looking central park , then taking a shot by offering big dollars for them to sell us back the leases and leave so we can sell the apartments for big profits .
we would buy the commercial lease rights to spaces in nyc buildings that had storefronts , we would get the rents up and sell the lease rights to investor groups for big dollars .
these are all things folks who dabble at being a landlord will rarely get the opportunity to partake in but these are the kinds of things where the big money in real estate is made .
it takes contacts , big pools of money and knowledge far beyond what most of us know to pull off ourselves ..
but real estate to us is not passive and in retirement we want nothing to do with tenants , courts and laws anymore . we want nothing but true passive investing now where our money works for us instead of us working for the money .
Not everyone is trying to compete against real estate developers and everyone has different risk appetite. I consider myself more of a value investor with a longer time horizon compared to someone looking to flip real estate properties (so I am not directly competing against them). Real estate is very versatile asset being as I get to both consume it and extract money from it (multi-family property). In addition I am able to push my edge with leverage (loan) that normally wouldn't be available to me if I strictly invested in stock market. The property I bought appreciated in value, rent roll increase, and I am able to live in the property (claim tax deductions instead of paying rent). From a psychology standpoint it far easier to take a 5% decline in property value than stock portfolio.
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