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My Daddy always believed in having land and thought it was better to be "land poor" with taxes than in the stock market. I think I will be joining him in that sentiment.
Once again, great advice--the game plans are excellent. I will just have to make the best of it.
God Bless.
Ooooh, be careful with that "land poor" theory these days. This is not your Daddy's Oldsmobile, taxwise-speaking. Property taxes are much higher than they used to be. I'm sure you understand to only buy properties in current use (or whatever they call the agricultural/forestry/swampland tax valuation of raw land in your state of interest). Paying "residential" tax rates on investment property is killing many of the folks who bought during the real estate bubble, even if they paid cash for the property.
Inflation is the real bugaboo we all need to fear most. I'm still hoping that the CD interest rates of 15-20% we saw back in 1981 will make a comeback! (Yeah, yeah, don't hold your breath!) I was in college then and had no money, but my mother took out 10 year CDs at the highest rate she could. Man, did she clean up! But again, this world today is not behaving in ways that mirror anything we have known before.
Study after study has shown that people buy high and sell low. That's why having most folks manage their retirement income is such a bogus concept. We just get too scared (and lie awake nights grinding our jaws!). After all, unlike the wealthy elite, we're playing with our LIFE SAVINGS!
Ooooh, be careful with that "land poor" theory these days. This is not your Daddy's Oldsmobile, taxwise-speaking. Property taxes are much higher than they used to be. I'm sure you understand to only buy properties in current use (or whatever they call the agricultural/forestry/swampland tax valuation of raw land in your state of interest). Paying "residential" tax rates on investment property is killing many of the folks who bought during the real estate bubble, even if they paid cash for the property.
Inflation is the real bugaboo we all need to fear most. I'm still hoping that the CD interest rates of 15-20% we saw back in 1981 will make a comeback! (Yeah, yeah, don't hold your breath!) I was in college then and had no money, but my mother took out 10 year CDs at the highest rate she could. Man, did she clean up! But again, this world today is not behaving in ways that mirror anything we have known before.
Study after study has shown that people buy high and sell low. That's why having most folks manage their retirement income is such a bogus concept. We just get too scared (and lie awake nights grinding our jaws!). After all, unlike the wealthy elite, we're playing with our LIFE SAVINGS!
Be careful out there.
that 15% we saw was still a loser back then when inflation was running 18%... its only after inflation dropped those were a great deal, but if inflation continued or went higher those would have been a horrible deal
jason zweigs book your money your brain proved we as humans are flawed.. we hate loosing money more then we like making it according to jasons research using mri and brain scans.
we panic at thought of loosing money and sell exacley when we should be buying... with almost 50% of the risk out of the markets now compared to the high we should be snatching this stuff up.... if you were buying at the high because you thought it was a good deal why arent you buying now.?.
the answer is we are flawed in our thinking if left to our own devices...... we paralyze our selves by beliving our own bull crap our brain feeds us.... we sell exatly when we should buy, buy when we should sell and then blame the markets as impossible to make money
Last edited by mathjak107; 04-26-2009 at 05:46 AM..
Just my $0.02 - I've found that selling covered calls (mostly in large caps, energy, transportation and tech stocks) has been a fairly profitable way to generate modest returns. You won't get rich but if you pay attention it's been a pretty safe play.
Ooooh, be careful with that "land poor" theory these days. This is not your Daddy's Oldsmobile, taxwise-speaking. Property taxes are much higher than they used to be. I'm sure you understand to only buy properties in current use (or whatever they call the agricultural/forestry/swampland tax valuation of raw land in your state of interest). Paying "residential" tax rates on investment property is killing many of the folks who bought during the real estate bubble, even if they paid cash for the property.
Inflation is the real bugaboo we all need to fear most. I'm still hoping that the CD interest rates of 15-20% we saw back in 1981 will make a comeback! (Yeah, yeah, don't hold your breath!) I was in college then and had no money, but my mother took out 10 year CDs at the highest rate she could. Man, did she clean up! But again, this world today is not behaving in ways that mirror anything we have known before.
Study after study has shown that people buy high and sell low. That's why having most folks manage their retirement income is such a bogus concept. We just get too scared (and lie awake nights grinding our jaws!). After all, unlike the wealthy elite, we're playing with our LIFE SAVINGS!
Be careful out there.
This is good advice. I have done alot of research on timberland and this area of Arkansas has the best site index--growth rate--and least expensive land and low taxes. But you are correct that to tie up capital and not have an immediate income stream while paying taxes can be a disaster. I will meet with a timberman in Camden, Arkansas--but if I do get involved I will not pay "retail" for any land and make sure I have a more immediate rotation on a timber crop that is out no more than 5-10 years. I will be extremely cautious and will probably just talk and look around. I think I would have to physically move closer to the area in order to make this a smart investment.
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Land Poor advice.
