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Message
Is the market a must?
Posted on 1/20/19 at 9:34 pm
Posted on 1/20/19 at 9:34 pm
I’m 43 and don’t have $1 invested in the markets. All my money has gone towards eliminating debt and starting a small construction company. I have a house, 60 acres and 3 vehicles all paid for and a company that finally took off in the last quarter of 2018. As the money comes in, I’ve been planning on buying property and improving and selling some and renting both residential and commerical and possibly partnering in some other business ventures. I’ve always felt like investing in my own interests is a better path vs investing in someone else in hopes they succeed, but I also understand the principle of diversification.
I’ve been reconsidering routing some cash into the markets, but the idea of losing money on someone else’s poor business practices may be more than I can stand. Is there a financial advisor in America that would endorse investing only in your own ventures? Is not throwing in with conventional investing wisdom definitely a mistake?
I’ve been reconsidering routing some cash into the markets, but the idea of losing money on someone else’s poor business practices may be more than I can stand. Is there a financial advisor in America that would endorse investing only in your own ventures? Is not throwing in with conventional investing wisdom definitely a mistake?
9
Posted on 1/20/19 at 9:37 pm to olgoi khorkhoi
quote:
but I also understand the principle of diversification.
If so, then you'd understand how the market provides the ultimate diversification.
If you are investing in your own businesses, properties, or joint ventures then you likely are more exposed to variation in your local economy than you are realizing.
With that said, there isn't one right answer here. The market gives liquidity that you aren't going to have with all / most of the investments you listed.
Posted on 1/20/19 at 9:42 pm to olgoi khorkhoi
I’d be wary of being entirely risk concentrated on a say 100-200 mile radius with a construction company and local real estate.
That being said sounds like your overhead is low. It all depends on what your goals are.
That being said sounds like your overhead is low. It all depends on what your goals are.
Posted on 1/20/19 at 9:43 pm to lynxcat
quote:
If you are investing in your own businesses, properties, or joint ventures then you likely are more exposed to variation in your local economy than you are realizing.
The construction company takes commercial projects nation-wide. Outside of expanding the const co, future ventures would very likely be locally based, though. I’m close to Nashville, so the economy is in a growth phase.
Edit:
quote:
That being said sounds like your overhead is low.
Extremely low.
This post was edited on 1/20/19 at 9:49 pm
Posted on 1/20/19 at 9:50 pm to olgoi khorkhoi
Sounds scary as shite to have everything riding on very illiquid investments. You can stay away from the market if you want to, but I'd be holding onto aot of cash through CDs or munis or treasuries that will at least keep up with inflation.
Posted on 1/20/19 at 10:12 pm to Mingo Was His NameO
quote:
Sounds scary as shite to have everything riding on very illiquid investments.
Things I’m looking at would not be liquid, but the commercial construction is. I pay for a job that takes a week on average to complete, 45 days after completion I get my money back + profit margin.
Posted on 1/20/19 at 10:57 pm to olgoi khorkhoi
I'm honestly not sure if you are here for advice or just stating your opinion. Obviously it's up to you how you invest your money and nothing is a must.
That being said, if you understand diversification you should at least entertain low cost index funds as part of your retirement planning.
That being said, if you understand diversification you should at least entertain low cost index funds as part of your retirement planning.
Posted on 1/20/19 at 11:43 pm to olgoi khorkhoi
As long as your local pharmacy accepts wheelbarrows of dirt for payment, your 60 acres is wealth enough for several generations.
Posted on 1/21/19 at 6:22 am to olgoi khorkhoi
So, no 401k/IRA?
Posted on 1/21/19 at 7:26 am to olgoi khorkhoi
Do you not plan to retire?
Posted on 1/21/19 at 8:17 am to kciDAtaE
quote:
Do you not plan to retire?
This. The OP may have net worth doing what he describes, but he's going to have very little cash flow
Posted on 1/21/19 at 8:59 am to deeprig9
quote:
As long as your local pharmacy accepts wheelbarrows of dirt for payment, your 60 acres is wealth enough for several generations.
This is why I came here.
So the biggest potential problem I’ll have is cash when I need it. Or it I have cash sitting around, it will be stagnant.
So maybe the market is something I should look into closer to retirement as a way to keep whatever I’ve accumulated growing during my golden years. I just don’t think the kind of returns I’m getting are possible in the market.
Posted on 1/21/19 at 9:05 am to olgoi khorkhoi
quote:
I just don’t think the kind of returns I’m getting are possible in the market.
Famous last words
Posted on 1/21/19 at 9:23 am to Mingo Was His NameO
What I’m saying is I’d doubt the market is my best option (or even top 10) for growing assets. It’s probably a good option at retirement, if I retire. I’m doing what interests me, and I can’t imagine doing nothing all day, especially when my kids are out of the house.
Posted on 1/21/19 at 9:28 am to olgoi khorkhoi
quote:
As the money comes in, I’ve been planning on buying property and improving and selling some and renting both residential and commerical and possibly partnering in some other business venture
Just please do not overleverage yourself. Make sure you take away vulnerabilities to market downturns.
Posted on 1/21/19 at 9:29 am to olgoi khorkhoi
quote:
What I’m saying is I’d doubt the market is my best option (or even top 10) for growing assets
It's not a get rich quick scheme. Dollar cost averaging into index funds is more about slow growth over time, while diversifying your money over thousands of companies.
If you don't see the value of it as part of your retirement strategy, this board will be zero help for you.
I would suggest finding fee only financial advisor to help with retirement planning.
Posted on 1/21/19 at 10:11 am to olgoi khorkhoi
YES, the market is a must. The extent to how much you place your assets in it can vary but I say a 401k plan invested in the market or some type of retirement plan invested in the market is a must.
Posted on 1/21/19 at 10:33 am to tigerforever7
quote:
a 401k plan invested in the market or some type of retirement plan invested in the market is a must.
Why?
Posted on 1/21/19 at 10:37 am to olgoi khorkhoi
quote:
Why?
Pretax benefits and liquidity.
Posted on 1/21/19 at 10:45 am to olgoi khorkhoi
This post makes me realize you don’t understand risk/return. You are certainly taking on more risk than you realize right now but it doesn’t sound like you are interested in hedging that risk.
Adding liquidity to your financial profile is going to be something you will eventually be thankful to have.
Adding liquidity to your financial profile is going to be something you will eventually be thankful to have.
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