[2014] What's the next stock market bubble?

[easyrider]

LOL

For all the people on this forum that accumulated wealth and retired by hoarding gold or silver - speak up ! (besides you

Meanwhile ........ "gold glitters but earnings compound"

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I read that only 10% of American's , not including commercial investors, hold precious metals. Out of that 10%, less than 1% hold substantial amounts which are mostly commercial investors.

I agree that most people riding stocks can have a great income for retirement. Precious metals are not really held to retire on. Most people I know pass it down to the next generation like Scroog McDuck.

Bill

 

[Carolinian]

Brett, I have never said that people should rely on just precious metals. Our own portfolio is much heavier in rental residential real estate than precious metals but both have done well for us. In the last five years, our rental properties have appreciated well over 100% in market value and we get a very good income stream from them with rents increasing 50% during that period We have been looking for the past two years to buy some more properties, but the tightness of the real estate market in the two small cities where we have properties have meant we haven't found any deals, so we have been putting funds into gold and silver instead, bolstering our holdings there.

That repetitively posted (look a mere three posts above!) chart is clearly geared toward those who push financial products with a view to making a commission off of their customers. The absence of directly owned rental residential real estate in favor of a financial product, REITs, is a good example of that. I would much rather directly own real estate than a share of a REIT any day.

 

[Brett]

I read that only 10% of American's , not including commercial investors, hold precious metals. Out of that 10%, less than 1% hold substantial amounts which are mostly commercial investors.

I agree that most people riding stocks can have a great income for retirement. Precious metals are not really held to retire on. Most people I know pass it down to the next generation like Scroog McDuck.

Bill

Of course

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And like "Scroog McDuck" our stock and real estate returns have been passed down to my children for buying their real estate "bubble" houses

 

[Carolinian]

I read that only 10% of American's , not including commercial investors, hold precious metals. Out of that 10%, less than 1% hold substantial amounts which are mostly commercial investors.

I agree that most people riding stocks can have a great income for retirement. Precious metals are not really held to retire on. Most people I know pass it down to the next generation like Scroog McDuck.

Bill

Precious metals are mostly held to preserve wealth and should be one asset in a portfolio. I have been invested in some stock funds in the past, but liquidated those for funds to buy real estate which I like better as an investment. Our own portfolio is geared to hard assets - real estate and precious metals with the much larger portion in real estate.

Luckily, around our area, there is a community of folks into gold and silver, and it is often possible to buy or sell gold or silver if you need or want to among that community. So far, for us, that has been a few good buying opportunities, but, for example I know of a friend here in town that would take any of our German gold 20 marks at spot if I wanted to get rid of any and several others who seem to constantly be in the market for US pre-33 gold for a little over spot.

One strategy many use to acquire a real estate portfolio is to put 20% down and borrow the rest of the purchase price. As the loan gets paid off, that can generate a paper loss which helps on taxes, mainly due to depreciation. The loan term is set so that the property will cash flow with a small amount of actual positive income. When one reaches retirement, or perhaps before, you own it free and clear, and you no longer have to turn over the lions share of the rental income to your lender.

 

[easyrider]

Real estate definitely outperformed stocks in the last 40 years. From 1984 to 2024 real estate values have increased 494% as a National average. In Washington, the increase is more like 800%. Add in the rent, tax deductions and depreciation and it's even higher.

I'm with you on helping family members buying a house. It's a forced savings and keeps their noses to the grindstone making those payments.

Bill

 

[Brett]

Precious metals are mostly held to preserve wealth and should be one asset in a portfolio. I have been invested in some stock funds in the past, but liquidated those for funds to buy real estate which I like better as an investment. Our own portfolio is geared to hard assets - real estate and precious metals with the much larger portion in real estate.

Luckily, around our area, there is a community of folks into gold and silver, and it is often possible to buy or sell gold or silver if you need or want to among that community. So far, for us, that has been a few good buying opportunities, but, for example I know of a friend here in town that would take any of our German gold 20 marks at spot if I wanted to get rid of any and several others who seem to constantly be in the market for US pre-33 gold for a little over spot.

One strategy many use to acquire a real estate portfolio is to put 20% down and borrow the rest of the purchase price. As the loan gets paid off, that can generate a paper loss which helps on taxes, mainly due to depreciation. The loan term is set so that the property will cash flow with a small amount of actual positive income. When one reaches retirement, or perhaps before, you own it free and clear, and you no longer have to turn over the lions share of the rental income to your lender.

OK, - good luck with your community gold and silver and the costs with guarding that basement hoard of gold and silver

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(it may be easier with real estate and index funds )


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https://www.nerdwallet.com/article/investing/what-are-long-term-investments

 

[emeryjre]

Rental Real Estate is a great investment until you meet the tenant from hell
I certainly am not wishing you any bad luck
But it can and does happen every day in the rental real estate business
The tenant with a great track record has a change in his/her life that makes them desperate
The list of expensive actions they can take against the owner are numerous

 

[Brett]

Rental Real Estate is a great investment until you meet the tenant from hell
I certainly am not wishing you any bad luck
But it can and does happen every day in the rental real estate business
The tenant with a great track record has a change in his/her life that makes them desperate
The list of expensive actions they can take against the owner are numerous

My relatives and friends with real estate holdings in Northern Virginia have experienced the "tenant from hell" but using a property managment firm mitigates the hassles.

I'm now more into the REITs as an investment

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[WorldT]

Just got back from Costco - ribeye steaks were up $4 a pound.

I must speak with my Costco manager cos non-ribeye beef in my Costco is 1.5 the price of your ribeye. Why?