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Old 04-14-2013, 09:58 PM
 
Location: NE Mississippi
17,925 posts, read 10,516,668 times
Reputation: 24944

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Quote:
Originally Posted by germaine2626 View Post
Well, I learned the hard way. If I ever wanted to have a million dollars (heck, even $100,000) I shouldn't stay married to MR. germaine2626!

He spends money like water (esp. when the money starts out as my inheritance).
OOoooooh! That 'erts my ears!

Yeah. You're gonna have to do something about that. Dunno what you're gonna do, Sweetie, but like Clint Eastwood said, "You're just gonna hafta get mad-dog mean"
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Old 04-18-2013, 12:36 AM
 
Location: Los Angeles (Native)
25,304 posts, read 17,170,506 times
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Quote:
Originally Posted by stoutboy View Post
Even after adjusting for inflation, the returns of the market outpace every other category, particularly real estate. Starting a business entails significant risk, not the least of which that 70% go kaput within five years. Most people would be better off indexing.
The issue with the stock market is that you can't really leverage. With real estate 5x leverage is common.
This means when property goes up which it historically has over long periods of time you're returns are going to be much higher. With FHA financing (owner occupied) there is even the option of 20x leverage.

Also that is true that many businesses fail..but if you study successful entrepreneurs you will see that they did often have failed businesses early on..but they continued starting businesses , learned from their mistakes and eventually became successful. So I don't think it's a great idea to think "I could start a business..but it will probably fail...why bother?"

But that is true I am sure not everyone is cut out to be a business owner.

I agree with boner that one has to keep their eyes open for opportunities and seize them.
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Old 04-18-2013, 01:32 AM
 
83,481 posts, read 80,994,166 times
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can't leverage? what the heck do you call buying on margin?

besides margin you can take a loan to buy anything you like and thats with no money down.
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Old 04-18-2013, 02:22 AM
 
Location: Los Angeles (Native)
25,304 posts, read 17,170,506 times
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True but that's only 2x leverage correct? Also you can be at risk of a margin call with market fluctuation.

Options could be a way to leverage but they are pretty risky even if you know what you are doing.
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Old 04-18-2013, 02:37 AM
 
83,481 posts, read 80,994,166 times
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you can take a loan , it does not have to be a margin loan. then you invest that loan. that is no money down.

buying a leveraged home has just as much risk. how many can't pay those loans or are under water? there is no such thing as leverage being safer in one or the other.

a leveraged loss is a loss.
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