Originally Posted by
Excargodog
Sure you can, it’s called buying on the margin - if you are stupid enough to play that game. But the low overhead tax efficient index fund is a slow but sure winner. Real Estate? Got a shyster neighbor that simply doesn’t pay his mortgage. Or taxes. He hasn’t paid a dime since the foreclosure ban went into effect. So how have your rentals done the past year?
My two rentals have done great the last year. Luckily they’re in decent neighborhoods and the rent is high enough to not attract that type of tenant. But even if they did stop paying and I had to cover the mortgage it’s still an investment that is appreciating. If a home goes up a set percentage it’s the same as an index fund going up a certain percentage. Just haven’t found a way to take a $300k loan out and invest it into an index fund, but let me know what brokerage is giving you that kind of leverage and maybe I’ll change my mind.
But I’m not by any means saying it’s the best investment or only investment. Just saying that not everyone who doesn’t max out their 401k is doing something wrong.