SonicFlyer

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

DWC CAP10 USAF

My side hustle used to be in Chicago, at an old department store.

I don’t work there anymore.....

Name User

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.

Hank Kingsley

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.

Dash8Pilot

1) They have to be cap weighted or the valuations of small companies would be absolutely absurd. There are equal weight index funds available, though most have to close to new investors because once they are too large they can’t put new money to work in small companies without distorting the market. I have no objection to equal weight index funds. If you want more small cap exposure or international exposure there are index funds for those as well, all much cheaper and likely to outperform actively managed mutual funds.

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.

SideSticker

Paul Winkler, ChFC®, RFC®, CLU®, LUTCF, CASL®, AAMS®, RICP® is the President and founder of Paul Winkler, Inc.

Thats a lota bling behind his name, but conspicuously absent is the "CFP"-gold standard IMHO. Caveat emptor.

webecheck

A woman came in for a front door...

A front door from the store....

tunes

For the military guys their option to comply with USERRA is either do exactly that, or remove the restriction on mil

Peoloto

Yup, they are so stressed and work harder on their days off. Meanwhile the guys that just go to work and go home seem much more relaxed and more financially sound.

freezingflyboy

What kind of numbers are you interested in?

Texas. Laws are very landlord-friendly, barriers to entry are low (ie. houses are cheap, relatively speaking), market prices and economy are relatively stable, renters are plentiful and if you decide to incorporate your business, the income tax rate on corporations is extremely low (usually less than 1%).

Bingo! Great rule of thumb that has served me well. Don't look for the flashy condo in the trendy neighborhood in the sexy town. The ROI just isn't there (unless you want to go upscale AirBnB-type situation, but that's a whole 'nother conversation). If you wanna talk numbers: My first rental property I paid $135K (3BR, 2BA in a good subdivision on a nice lot). Currently rents for $1500/mo with my total cost being $800/mo (mortgage, insurance, taxes, HOA fees, management company fees). I've stuck to single-family homes and try to rent to families or young couples. The turnover tends to be lower which means lower costs and fewer headaches.

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:

• Flashy properties in trendy neighborhoods are not for the small-time investor. Start small and be reasonable.
• Have a plan and be prepared for those inevitable unplanned expenses or extended vacancies. If you can't afford to let a property sit vacant for a month or two without sweating bullets, then you are probably over-extended.
• Be picky with tenants. Late/unpaid rent, damages or evictions are far more expensive than letting your property sit vacant for an extra month.
• If you don't live within an hour or two of your property, save yourself the headache and get a manager. It'll cost you a little bit but will save you a ton of headache and inconvenience. No one wants to have to cut a day at the lake short or try to find a handyman at the last minute just because your idiot tenant put a potato down the disposal (ask me how I know).
• Even if you do live nearby, a good manager/management company will take care of a lot of the tedious, back-end "office stuff" like listing your property in MLS, showings, screening tenants, running background checks as well as keeping track of expenses and income for you which comes in very handy at tax time.