Originally Posted by Dash8Pilot
(Post 2594735)
I’m not sure you actually know what an index fund is.
This is the problem with many of them: "Total market index funds are typically “cap-weighted”. In English, that means that most of your money, when invested, goes into the largest companies based on market capitalization. So if I buy a mutual fund investing in the entire US stock market I might own over 3,000 stocks, but most of the money I invested goes to buying companies like Apple, Exxon, GE, Chevron, IBM and other massive US firms. That may sound good to some investors. “Great, I own the most successful US companies. Now I can sleep easily.” Here’s the problem. Concentrating too much money in ANY one area of the market can lead to less than desirable results over long periods of time. Case in point: From 1966 through 1982, the S&P 500 (another popular cap-weighted index) had an annualized return of 0% per year when inflation is considered. From 2000 through 2012, the index lost .7% per year to inflation. Those are long stretches of time to go without returns, especially if you depend on your investments for income. What is important to understand is that different areas of the market, which are not well represented by these funds, did quite well during these periods in history. Smaller companies, which only make up a tiny fraction of the holdings of total market funds, can be the real game saver when large stocks go through their periodic seasons of draught. We also need to recognize, as investors, that the biggest and most important companies of today will likely become the “has-beens” of tomorrow due to changes in technology and competition. " SOURCE: An Easier Way To Invest? ? Paul Winkler, Inc |
My side hustle used to be in Chicago, at an old department store.
I don’t work there anymore..... |
Real Estate can make sense if you purchase at the right numbers. Remember it's not just the profit you make monthly but also paydown of the mortgage that makes you wealthier. The typically rule of thumb is look for deals where you can rent for 1% of purchase price. Obviously in many of the hot markets these days that is impossible, but here are areas where it does exist. Typically midwestern cities but the downside there is they generally are stagnant or in decline.
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I've flown with guys that have so much side, either hustle or a little something, I don't know if they enjoy the time off. Remember the 3 F's and pick the right spouse. This is not brain surgery.
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Originally Posted by SonicFlyer
(Post 2594753)
This is the problem with many of them:
"Total market index funds are typically “cap-weighted”. In English, that means that most of your money, when invested, goes into the largest companies based on market capitalization. So if I buy a mutual fund investing in the entire US stock market I might own over 3,000 stocks, but most of the money I invested goes to buying companies like Apple, Exxon, GE, Chevron, IBM and other massive US firms. That may sound good to some investors. “Great, I own the most successful US companies. Now I can sleep easily.” Here’s the problem. Concentrating too much money in ANY one area of the market can lead to less than desirable results over long periods of time. Case in point: From 1966 through 1982, the S&P 500 (another popular cap-weighted index) had an annualized return of 0% per year when inflation is considered. From 2000 through 2012, the index lost .7% per year to inflation. Those are long stretches of time to go without returns, especially if you depend on your investments for income. What is important to understand is that different areas of the market, which are not well represented by these funds, did quite well during these periods in history. Smaller companies, which only make up a tiny fraction of the holdings of total market funds, can be the real game saver when large stocks go through their periodic seasons of draught. We also need to recognize, as investors, that the biggest and most important companies of today will likely become the “has-beens” of tomorrow due to changes in technology and competition. " SOURCE: An Easier Way To Invest? ? Paul Winkler, Inc 2) Regarding the scenarios of low returns, who invests all their money at once? The use of those points by the source you cited shows either ignorance of how real people invest, or more likely, intentional intellectual dishonesty in an attempt to promote his coaching as being necessary. Pilots at Delta are investing every two weeks like clockwork, not in one huge lump sum. Picking an absolute peak of the market like 2000 can look scary until you realize you aren’t buying in or selling at any one point, but spread out over decades. |
Originally Posted by SonicFlyer
(Post 2594753)
Thats a lota bling behind his name, but conspicuously absent is the "CFP"-gold standard IMHO. Caveat emptor. |
Originally Posted by DWC CAP10 USAF
(Post 2594760)
My side hustle used to be in Chicago, at an old department store.
I don’t work there anymore..... A front door from the store.... |
Originally Posted by gloopy
(Post 2594589)
LOL doubt it. Slam dunk legal loss if they try that, even if they attempted to enforce it. They might reinforce the "show up rested" part of it all, but there is ZERO chance they can do that.
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Originally Posted by Hank Kingsley
(Post 2594782)
I've flown with guys that have so much side, either hustle or a little something, I don't know if they enjoy the time off. Remember the 3 F's and pick the right spouse. This is not brain surgery.
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Originally Posted by SonicFlyer
(Post 2594415)
I'm curious about this, do you mind sharing some numbers? :confused:
Originally Posted by poor pilot
(Post 2594471)
Where do you invest?
Originally Posted by Name User
(Post 2594764)
Real Estate can make sense if you purchase at the right numbers. Remember it's not just the profit you make monthly but also paydown of the mortgage that makes you wealthier. The typically rule of thumb is look for deals where you can rent for 1% of purchase price. Obviously in many of the hot markets these days that is impossible, but here are areas where it does exist. Typically midwestern cities but the downside there is they generally are stagnant or in decline.
Everything I make goes straight into an account that I use only for business expenses (repairs, move-in/move-outs, taxes, pay down debt, etc). Whatever funds that accrue are then available to purchase additional properties when opportunities arise, repairs and upgrades to existing properties or cover expenses during periods of vacancy. Bad renters happen and stuff breaks so it's nice to not have to sweat it when you need to buy a new A/C unit, repair a busted door or just let a property sit vacant for a month while you wait for the right tenant to come along. Like I said in my original post, it ain't glamorous or "cool" but the steady cash flow is nice, the equity is even better and for the most part, it's pretty headache-free. My advice to anyone looking to get into rental property would be this:
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