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I think people don't appreciate how risky it is to put all their money into rentals. Typically they own property all in the same state and even the same city. In addition to all of the risks already mentioned, there is the non-zero possibility of being completely wiped out by some natural disaster they're not insured for.
If you put half your money in stocks and half in bonds, you won't be wiped out unless the U.S. goes "out of business".
so basically if all of the s&p 500 went bankrupt, another 500 would take its place?
so basically if all of the s&p 500 went bankrupt, another 500 would take its place?
Probably not, but it wouldn't matter. The 500 biggest US corporations have all just gone bankrupt. What happened? Whatever the event was, it took all of your wealth with it. It doesn't matter if your wealth was in stocks, bonds, real estate, or savings accounts.
Probably not, but it wouldn't matter. The 500 biggest US corporations have all just gone bankrupt. What happened? Whatever the event was, it took all of your wealth with it. It doesn't matter if your wealth was in stocks, bonds, real estate, or savings accounts.
This. Plus, the more realistic scenario is that a company which is now currently listed in the S&P 500 begins a slow decline that eventually ends in bankruptcy. (Think Radio Shack, or Sears.) Long before that company actually folds, it will have declined enough in value that it won't be on the S&P 500 list any more - which means the S&P 500 index mutual fund or ETF would have sold off its shares and replaced them with shares in whatever company took the failing one's place on the list. So you won't be riding that particular company's stock into bankruptcy (although the fund may have taken a loss selling the failing company's stock off).
With an S&P 500 index fund, you take only market losses, not individual company losses. The downside is you only earn market gains, not individual company gains. You avoid Enron, but at the cost of avoiding Apple.
You said yourself you made far more in real estate than stocks.
I did make more in my real estate ,,, but that does not mean the 10.80% average return since 1986 was bubkas on the equity's . it grew a lot of money .
as far as our little real estate buddy
[mod cut: referenced post deleted]
Last edited by volosong; 10-05-2016 at 03:06 PM..
Reason: the matter has been taken care of
When I owned just one house that I rented out, I made out like a banshee at tax time. Considering all the deductions for depreciation, up keep, and damage, I paid no taxes in those years. if you add that up my yearly income from just having one house was way way higher than any year I had a varied portfolio in stocks, CD's, precious metals, foreign currency, bonds, and Real Estate Investment Trusts(excluding the period when silver sky-rocketed and every time I took some out for college education for the kids I had the same amount again when I came back the next semester.
Stop right there....when the hell did I say I knew ALL of anything? Nobody (including you and
- Furthermore, everytime I comment over here I get some type of stupid infraction. I know LowExpectations for example HAS tried to get me banned over here, he has "complained" to moderators countless times. Also that Dave In the Military guy, I know has done it. There are countless other guys doing it....I'm not making the stuff up, I have no reason to MAKE IT UP.
Assuming I am "Dave in the military guy" no I have not contacted the mod to get you banned, I have no idea who the mod here is. But I was one to call for your ban publically in a post a long time ago.. The reason is obvious. You clutter up the board with needless pissing matches base on your ignorant posts and more importantly the confrontational manner you use in those posts. There is a reason you are under constant attack with few if any supporters of your opinion. The analogy of going to a board on religion and preaching atheism while lecturing the other posters on how wrong they are for having faith with the condecending manner that you use, is a good one.
You are clueless about investing and you are extremely confrontational.. So why on Earth would we want you here?
Probably not, but it wouldn't matter. The 500 biggest US corporations have all just gone bankrupt. What happened? Whatever the event was, it took all of your wealth with it. It doesn't matter if your wealth was in stocks, bonds, real estate, or savings accounts.
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