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No, it doesn't mean he was playing the lottery. It means that he had the foresight to know that it was a good investment and that land values would skyrocket over time.
The proof is in the pudding. Results are all that matters. "Theory" without results doesn't count for anything in investing, even though there are "experts" out there who want you to think otherwise.
It was likely luck unless he had some top secret inside information no one else had. He was guessing the land value would skyrocket. It was a risk. All investing is risk and return. Same thing in all real estate. When I lived in Chicago people were always trying to invest and guess the next up and coming neighborhoods. There was no way to really know, but people make their best educated guesses. But there is no way to "know" which area would gentrify. Point is don't use this one example to say that buying land and real estate is the best way to go when a lot of it is luck and a risk/return ratio.
I am not trying to be critical of him, he is doing great, but every article I read online says he is going about things wrong.
Any insights?
Yep - if he's just your 'boyfriend', why are his finances your business? My advice would be to work on your own financial literacy (even if he's asking for your help - and especially if he is not).
Yep - if he's just your 'boyfriend', why are his finances your business? My advice would be to work on your own financial literacy (even if he's asking for your help - and especially if he is not).
Depending on their age at the very least very basic conversations about finances should be had even at the boyfriend/girlfriend level and I’d say even more so once living together. Imo that’s stuff you gotta have or should have hammered out well in advance of any relationship advancement to engagement, marriage or possibly children without the first two items. To say what is it any of her business is shortsighted
............................... am not trying to be critical of him, he is doing great, but every article I read online says he is going about things wrong.
Any insights?
Most articles you read are reprints from some article the author read. So they all say the same thing.
I retired in 2010 with hard, paid for assets. I don't have a 401k. So it can be done, and it sounds like your boyfriend has his own path mapped out.
I'd just leave him alone.
Depending on their age at the very least very basic conversations about finances should be had even at the boyfriend/girlfriend level and I’d say even more so once living together. Imo that’s stuff you gotta have or should have hammered out well in advance of any relationship advancement to engagement, marriage or possibly children without the first two items. To say what is it any of her business is shortsighted
Except a discussion as to whether they share the same financial goals (or thoughts on money) is quite different than relaying her boyfriend's strategy to a forum, lol (which is why I assumed they were a younger couple; additionally she stated he was her 'boyfriend' in the thread title).
Either way, to the contrary, it's short-sighted on her part not to be focusing on her own financial plan (rather than worrying about her boyfriend's). It's 2020 as opposed to 1959.
Rule number 1, and I've said this for all the years I've been here - is to live below your means.
I bought a very modest house and paid it off 7 years ago. And I've been plowing money into savings for decades. So even though my overall returns, especially after the recent drop, haven't been good, I'm still in good shape. All I need to do now, is to not lose money. So I've got my account hedged to the point where it isn't going to go up, or down, too much at this point. I'm going to sit back and see what happens.
My commentary on posting 3, Five Loaves...
# 1 - pay the bank first, get that house paid off
# 2 - agree
# 3 - agree
# 4 - disagree. Every situation is different. I'm taking mine at 62 and getting out of the rat race, even though I could delay and get more money later.
# 5 - agree. The employer match is a very important item. Tell him to continue to contribute. But he may want to go more conservative with his holdings in his account.
Not losing money is a key to making money!
Consider this: If you start with $1,000 and lose 20%, you'll have $800 left. Now to get back to your original $1,000 your $800 would have to go up 25%. Thus, one must try hard to avoid loss. Common sense, but difficult to achieve.
1. Of course he should take the match. It's free money. I don't know what his vesting period is, but if it's four years, he's basically getting a 25% yield each year. Who would say no to that?
2. Gold is a terrible investment. Just look at its chart. It's only doubled since 1933. And, contrary to popular opinion, it is quite volatile. Again, just look at the chart.
Commodities typically produce below-average returns. There's a reason gold's biggest proponents are also doomsdayers about the economy in general or think there's going to be massive inflation. You have to be, otherwise it's a terrible investment.
Real estate is a great investment. Stocks can be a great investment. For most people, it should be one of those two (or both). No gold, classic cars, baseball cards or tulip bulbs.
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,124 posts, read 7,607,087 times
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Quote:
Originally Posted by Lowexpectations
How would one determine that the match is a small issue and would not amount to much? The match and it’s growth in both my wife and I’d cases is what I would consider a substantial amount of money. I believe the matching totals 16,000 a year or so annually for us
IF BF, doesn't want to do 401k, doing a 401k to get a 5% match (like amount) is just folly.
Apparently BF has a plan, he plans to stick to it. He has an alternative plan and believes that the 401k + matching is insignificant to his plan.
Personally I can't say if one plan is any better than another. If the Plan works, it works.
$16k /yr matching? Your income must be very large and who you work for is very generous.
He just sounds like one of those old school guys who doesnt trust the government or financial systems. Keep in mind that all those gold coins could be stolen, and people would literally kill to steal those.
He is a libertarian that thinks the Federal Reserve System is ruining the currency.
Thanks, we don't tell others about his coins offline. Probably shouldn't have mentioned it on here either.
Quote:
Originally Posted by CorporateCowboy
Yep - if he's just your 'boyfriend', why are his finances your business? My advice would be to work on your own financial literacy (even if he's asking for your help - and especially if he is not).
Quote:
Originally Posted by CorporateCowboy
Except a discussion as to whether they share the same financial goals (or thoughts on money) is quite different than relaying her boyfriend's strategy to a forum, lol (which is why I assumed they were a younger couple; additionally she stated he was her 'boyfriend' in the thread title).
Either way, to the contrary, it's short-sighted on her part not to be focusing on her own financial plan (rather than worrying about her boyfriend's). It's 2020 as opposed to 1959.
Well:
#1 we are living together so we are serious.
#2 he talks to me about his strategies and wants me on board with his strategy. So if I am going to follow his lead, it is nice to you know, make sure it is right.
#3 as I've said, I've done my own research and it says to do a different strategy, which I have been doing. I do the more normal funds in a 401K and brokerage...which I just started both not long ago.
#4 he has a large income, I don't. He is a bit older and highly educated, I am not. So normally I would follow his lead, but wanted some advice.
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