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What is the best wealth building strategy out there?
Posted on 4/2/17 at 11:12 pm
Posted on 4/2/17 at 11:12 pm
Real estate, business, Wall Street, etc??? Would be interested to get your thoughts.
14
Posted on 4/2/17 at 11:16 pm to player711
Your biggest wealth-building tool is your income.
Minimize debt as much as you can and good things will happen.
Minimize debt as much as you can and good things will happen.
Posted on 4/2/17 at 11:21 pm to Paul Allen
(Your biggest wealth-building tool is your income. )
So - there are several types of incomes- how many incomes should one shoot for with minimal debt?
I would say your biggest wealth building tool is you- and getting financially educated.
That could tie into making more money, investments, etc.,,
So - there are several types of incomes- how many incomes should one shoot for with minimal debt?
I would say your biggest wealth building tool is you- and getting financially educated.
That could tie into making more money, investments, etc.,,
Posted on 4/2/17 at 11:30 pm to player711
(no message)
This post was edited on 5/29/17 at 4:31 pm
Posted on 4/3/17 at 2:43 am to player711
quote:
What is the best wealth building strategy out there?
don't have kids early with a random
don't do drugs
remain employed
avoid debt
regular scheduled investment in stock market
While these seem obvious it somehow painfully manages to escape some folks.
Posted on 4/3/17 at 7:48 am to Paul Allen
quote:
Your biggest wealth-building tool is your income.
Minimize debt as much as you can and good things will happen.
This is correct. With the ample revenue you generate, yes, do the basics - emergency fund, invest in an IRA, etc.
Posted on 4/3/17 at 8:36 am to player711
Reinvesting dividends
Posted on 4/3/17 at 9:38 am to bigblake
quote:
The ROI's for Stock Market vs Real Estate are not that different.
incorrect. You are only thinking RE appreciation versus a stocks capital gains. Yes, then they are similar.
However, when you factor in PCF/appreciation versus capital gains/dividends........... RE wins.
quote:
I think that's why you hear of people making lots of money in real estate and not the market.
incorrect. There is a reason my RE COC returns are in the 20s and 30s( this is only PCF and not appreciation! If i used appreciation it would be even higher!) and my BEST seemingly stable dividend payers are 8% to 10%. That is mainly because I invest in BDC's and REIT's which give the best dividend yields. Most dividend payers are 3% or 4% or 5%. Remember, my stocks getting nice yields won't have much capital gains. The stocks getting the lower dividends are more prone to get that average capital gains growth over time we so often hear.
LINK
the return he is stating in link is gross and not PCF/after expense returns as I have outlined earlier. doesn't matter. RE still wins when factoring in all numbers.
LINK
quote:
But there’s a gigantic problem with this argument. That chart gave no credit for the income received over that period if you held real estate as rental property! When you use cash flow data plus appreciation of real estate vs. the stock market, stocks don’t stand a chance. This point is even more true when you use leverage.
LINK
This post was edited on 4/3/17 at 10:01 am
Posted on 4/3/17 at 9:40 am to Fat Bastard
quote:
Fat Bastard
Spreading the truth
This post was edited on 4/3/17 at 9:41 am
Posted on 4/3/17 at 9:48 am to player711
Spend less than you earn
Put the difference to work in a diversity of risks
Put the difference to work in a diversity of risks
Posted on 4/3/17 at 10:15 am to player711
quote:
What is the best wealth building strategy out there?
cash flowing businesses and RE. Again, this is probably the best for most people. No doubt we have some whales here I am sure who make a killing in the stock market. I'm not denying that at all. I am sure maybe, just possibly, LSURussian, Iowa Golfer and dabigfella can back me up on that.
However, i believe Iowa Golfer and dabigfella have cash flowing businesses and RE which backs up my first claim. Why your 401k will fail you
quote:
With 90% of Americans retiring at or below poverty income levels, only 10% retire wealthy. Guess what the majority of that 10% own. They own income producing businesses and real estate.
quote:
At age 27 I stopped trying to save my way to retirement and started building cash flow. The goal was to get enough cash flow that it met and exceeded my bills. By age 32 I was done. What was the difference? Am I just smarter than everyone else? Do I work harder than everyone else? Do I care more than everyone else? No is the answer to each of those questions. I simply had an effective map.
FTR, I believe in diversification as I have used/use wall street, RE, private lending, trading commodities,tax liens, etc. I am not a fan of 401ks but I do put in the match for obvious reasons.
This post was edited on 4/3/17 at 10:29 am
Posted on 4/3/17 at 10:50 am to player711
quote:
What is the best wealth building strategy out there?
Time
Posted on 4/3/17 at 11:45 am to Fat Bastard
Everything that Fat Bastard said. 
Done right (smart use of leverage) and managed properly, outside of a lottery lucky investment in a unicorn startup, I know of no better way to build wealth (not just income) in modern day America than real estate.
Just like with stocks, but more so, you have to have the temperament and intestinal fortitude to deal with the long term ups and downs of being a real estate investor. But the opportunities and potential...
There's just not many areas where, with a minimal downpayment, you can control an asset that can also bring in enough income to pay the asset loan off over time and still give you a positive cashflow. And at the end of it, there you are with a generous free cashflow and a free and clear asset. I invest in stocks (and other things too). But I've hit a LOT more bases loaded home runs in real estate than in the stock market.
That's how I've seen it over the years. But YMMV.
Done right (smart use of leverage) and managed properly, outside of a lottery lucky investment in a unicorn startup, I know of no better way to build wealth (not just income) in modern day America than real estate.
Just like with stocks, but more so, you have to have the temperament and intestinal fortitude to deal with the long term ups and downs of being a real estate investor. But the opportunities and potential...
There's just not many areas where, with a minimal downpayment, you can control an asset that can also bring in enough income to pay the asset loan off over time and still give you a positive cashflow. And at the end of it, there you are with a generous free cashflow and a free and clear asset. I invest in stocks (and other things too). But I've hit a LOT more bases loaded home runs in real estate than in the stock market. That's how I've seen it over the years. But YMMV.
Posted on 4/3/17 at 12:47 pm to player711
Buy low, sell high.
Posted on 4/3/17 at 12:57 pm to player711
if you just want to build wealth, get married and dont have kids. You'll be an OT baller within 2 years.
Posted on 4/3/17 at 1:00 pm to Fat Bastard
quote:
After taking this advise and buying this sales pitch, families buckled down and did just what they were told. They scrimped, saved and invested in their 401(k) plan.
What is the end result? The median household headed by a person aged 60 to 62 has less than one-quarter of what is needed to retire and maintain their standard of living after retirement.
This article basically says your 401k will fail you because most people don't save enough in their 401k to retire on. While this may be true, it's hardly an indictment of the 401k as a savings tool. If you plan for a reasonable rate of return and save your money, you can certainly retire on it.
Most people don't have the financial ability to take on additional mortgages to purchase real estate for an income stream, not to mention it takes a substantial amount of time and business savvy to get and manage good renters. That's not even addressing the fact that in certain areas the real estate market has gone into the ditch, resulting in the loss (inverting the investment) of five or six figure investments to private individuals. If you've put most of your investment income in a single building or even a couple of buildings in the same real estate market you would call this 'putting all your eggs in one basket'.
If you have the money to reasonably invest in real estate as part of a diverse portfolio of investments, it is absolutely a great additional investment. Your average citizen is not in a position for this to be a wise choice though.
Posted on 4/3/17 at 2:48 pm to player711
quote:
What is the best wealth building strategy out there?
Rich parents.
Posted on 4/3/17 at 3:03 pm to player711
To make more money than you spend, and invest the difference.
Posted on 4/3/17 at 4:14 pm to Fat Bastard
Great info, FB. What are your thoughts on investing in NNN leases?
Posted on 4/3/17 at 4:26 pm to player711
1) Buy low, sell high.
2) Only buy stocks that are going to go up.
3) Sell all your stocks just before the market crashes.
4) Buy your stocks back when they reach the bottom.
2) Only buy stocks that are going to go up.
3) Sell all your stocks just before the market crashes.
4) Buy your stocks back when they reach the bottom.
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