U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-12-2017, 02:09 PM
 
4,003 posts, read 3,225,942 times
Reputation: 13039

Advertisements

It has been proven over and over that if you start saving money early, in your twenties, saving as little as $100 a month, in the stock market, you will have plenty of money for retirement. The problem is, people have to do it. People dont think about it until they are 55 and all of a sudden, retirement is staring them in the face.

I have never made over $50k a year. Most years much less than that. I never failed to put $100 a month in the stock market. I didnt get smart until I was in my mid 30's, so I lost a lot of time, but still in a couple of years when I retire, Ill be just fine.

People want to blame everyone else except themselves for having no retirement. Unfortunately you can't turn back the clock. I wish it was a requirement that everyone at 21 years of age had to save $100 a month in a good mutual fund. Retirement wouldnt be near so bleak for those whining now.
Reply With Quote Quick reply to this message

 
Old 01-12-2017, 02:10 PM
 
Location: SoCal
13,265 posts, read 6,351,451 times
Reputation: 9885
Quote:
Originally Posted by BayAreaHillbilly View Post
And leverage can wipe you out.

I personally know (some of them related to me) a number of people who actually started out wealthy, gambled just a bit too hard, and ended up poor.

Leverage cuts both ways (but all the blabbering "financial" people on the radio most of whom are jointly realtors and debt merchants don't want you to know that, nor do snake oil sales people like Mr. "Rich Dad")
I've heard more cases of the opposite. The key is to know when is too much.
Reply With Quote Quick reply to this message
 
Old 01-12-2017, 02:30 PM
 
12,825 posts, read 20,154,879 times
Reputation: 10910
Quote:
Originally Posted by Serious Conversation View Post
Keep in mind that many areas, especially the most affluent areas, have seen basically "once ever" run-ups in values in raw percentage of terms. I can't see a house that sold for $50,000 in the Bay Area a generation ago but is worth $2,000,000 today appreciating another forty fold.
You are correct. There is not going to be another period like 1970 - 2000ish. The next best thing was people who bought after the '08 crash, but that is a distant second. Now, let's see, who were those 1970 - 2000 buyers? Up until 1980 almost all Silents, up until 2000 mostly Silents and Boomers.
Reply With Quote Quick reply to this message
 
Old 01-12-2017, 02:32 PM
 
7,803 posts, read 4,397,312 times
Reputation: 11604
My salary finally hit $40k just this year (almost ready to retire), and my net worth is half a million. Yes, I'm thrifty.
Reply With Quote Quick reply to this message
 
Old 01-12-2017, 02:46 PM
 
Location: Central IL
15,253 posts, read 8,548,360 times
Reputation: 35688
Quote:
Originally Posted by Aredhel View Post
Real estate has always been a way for people of modest means to significantly increase their wealth, because it can be purchased using significant leverage. But leverage con only go so far; if someone barely has two pennies to rub together, they're simply in no position to take advantage of real estate's potential for appreciation and income generation.
Sure, there are a few winners but you never hear about the losers - bankruptcy, foreclosure...the stories no one tells you about. So you only hear the good and that makes you feel bad when YOU can't be a millionaire too. And once you have some money, everyone is running to lend you more...look at our soon to be (esteemed?) leader.
Reply With Quote Quick reply to this message
 
Old 01-12-2017, 02:50 PM
 
12,825 posts, read 20,154,879 times
Reputation: 10910
Quote:
Originally Posted by NewbieHere View Post
I've heard more cases of the opposite. The key is to know when is too much.
Let me know when you find a good crystal ball I can buy.

I'm not saying don't use leverage.

But let's imagine a realistic scenario that would apply to a blue collar worker.

How much of a down payment can they assemble, especially if it is for an income property beyond their own domicile. I don't know too many such people who have a lot left over after paying their own domicile's mortgage plus other ongoing bills and whatever can be set aside for emergency fund, non-retirement investments, etc. Also, one would not be wise to put all of their retirement savings into income property, way too much asset concentration from a risk management perspective.

Realistically, to get into the income property game, a person of limited means needs to go big on the leverage. It's gambling. Some win, some lose.
Reply With Quote Quick reply to this message
 
Old 01-12-2017, 02:52 PM
 
12,825 posts, read 20,154,879 times
Reputation: 10910
Quote:
Originally Posted by reneeh63 View Post
Sure, there are a few winners but you never hear about the losers - bankruptcy, foreclosure...the stories no one tells you about. So you only hear the good and that makes you feel bad when YOU can't be a millionaire too. And once you have some money, everyone is running to lend you more...look at our soon to be (esteemed?) leader.
Especially if listening to Mr. "Rich Dad" selling snake oil. Gotta have a positive attitude to sell snake oil.
Reply With Quote Quick reply to this message
 
Old 01-12-2017, 03:11 PM
 
Location: SoCal
13,265 posts, read 6,351,451 times
Reputation: 9885
Quote:
Originally Posted by BayAreaHillbilly View Post
Let me know when you find a good crystal ball I can buy.

I'm not saying don't use leverage.

But let's imagine a realistic scenario that would apply to a blue collar worker.

How much of a down payment can they assemble, especially if it is for an income property beyond their own domicile. I don't know too many such people who have a lot left over after paying their own domicile's mortgage plus other ongoing bills and whatever can be set aside for emergency fund, non-retirement investments, etc. Also, one would not be wise to put all of their retirement savings into income property, way too much asset concentration from a risk management perspective.

Realistically, to get into the income property game, a person of limited means needs to go big on the leverage. It's gambling. Some win, some lose.
You did not specify income producing property specifically. But I know in my areas there are people who invest in duplex or triplex and have done very well. These people started with nothing, they had business, and they invest in these income producing properties and have done very well.
Now you throw in the people who don't have income after paying for mortgage, etc.. Frankly these people probably can't do much, let alone investing. They barely can keep a roof over their head. It's the same as people who borrow from home equity to invest on a second property. Leverage on top of leverage, and when it torpedoes, they will get hurt and complain.
Reply With Quote Quick reply to this message
 
Old 01-12-2017, 03:14 PM
 
Location: SoCal
13,265 posts, read 6,351,451 times
Reputation: 9885
Quote:
Originally Posted by BayAreaHillbilly View Post
Especially if listening to Mr. "Rich Dad" selling snake oil. Gotta have a positive attitude to sell snake oil.
I don't know about others but I know one guy who bought 9 investments in California and did very well. One should know your local real estate because it's all about location. Even within California, it still depends on the location. Of course you have to do a lot of research on investment. You just don't buy land of auctions.com and hoping to get rich.
Reply With Quote Quick reply to this message
 
Old 01-12-2017, 03:17 PM
 
33,046 posts, read 22,077,624 times
Reputation: 8970
Quote:
Originally Posted by NewbieHere View Post
I don't know about others but I know one guy who bought 9 investments in California and did very well. One should know your local real estate because it's all about location.

Lifetime low earners (remember this thread title) rarely purchase an investment property, let alone nine of them.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top