Guest Ethen Posted July 23, 2008 Share Posted July 23, 2008 I have some amount of earnings apart from the ones that I save for my necessities. I want the earnings invested in some real estate or may be in stocks. I do have some knowledge on stocks but, earlier my cousin had invested in the stocks and had a set-back. I know that you need to be updated in that but Link to comment Share on other sites More sharing options...
BryanS Posted July 23, 2008 Share Posted July 23, 2008 If you Link to comment Share on other sites More sharing options...
TheNiche Posted July 23, 2008 Share Posted July 23, 2008 Read Suze Orman's Road to Wealth. Great book for beginners.I hate that _____. She talks down to people and gives inordinately conservative advice.Invest where you see the greatest opportunity. Tax implications should be taken into account, but screwing the government is basically irrelevent insofar as you maximize your return on investment.Also don't forget that real estate investment is illiquid, and that it absolutely will require some time on your part to manage and maintain, and that if you don't pay the bills it will affect your credit rating...but that you can be highly leveraged because it is a collateralized asset and multiply even modest gains. Link to comment Share on other sites More sharing options...
houstonmacbro Posted July 23, 2008 Share Posted July 23, 2008 I hate that _____. She talks down to people and gives inordinately conservative advice.Invest where you see the greatest opportunity. Tax implications should be taken into account, but screwing the government is basically irrelevent insofar as you maximize your return on investment.Also don't forget that real estate investment is illiquid, and that it absolutely will require some time on your part to manage and maintain, and that if you don't pay the bills it will affect your credit rating...but that you can be highly leveraged because it is a collateralized asset and multiply even modest gains.I've never cared for her brand of advice either. It always seems belittling.Maybe it's tough love or whatever they call it, but it comes off as smug and condescending. Link to comment Share on other sites More sharing options...
BryanS Posted July 23, 2008 Share Posted July 23, 2008 I've never cared for her brand of advice either. It always seems belittling.Maybe it's tough love or whatever they call it, but it comes off as smug and condescending.Who cares. Have you read the book? ... Explains everything you need to consider in your financial life from debt management, stocks, bonds, buying a home, insurance, annuities, etc. - all of it. Easy to read, easy to understand, for beginners. For something more advanced, read a Random Walk Down Wallstreet. Is her advice on the conservative side? Maybe a little... but her goal is not to lead you to your financial destruction. I would argue she's helped a lot of people.She's a real man hater, though. If you ever watch her show on CNBC, she's always ragging on the men. And telling the women that call into the show to dump the men in their lives. And then there's that lap dog of a man that always reads the mail to her. Link to comment Share on other sites More sharing options...
TheNiche Posted July 23, 2008 Share Posted July 23, 2008 Who cares. Have you read the book? ... Explains everything you need to consider in your financial life from debt management, stocks, bonds, buying a home, insurance, annuities, etc. - all of it. Easy to read, easy to understand, for beginners. For something more advanced, read a Random Walk Down Wallstreet. Is her advice on the conservative side? Maybe a little... but her goal is not to lead you to your financial destruction. I would argue she's helped a lot of people.If her book reflects the kind of advice she gives on her show, then there's no reason to ever read it. Personal finance is about optimization, the goal being the long-term planning and sustainability of consumption patterns. Sometimes that entails high levels of risk. Sometimes it entails splurging on a frivilous purchase.And you're right that her advice will lead to fewer bankruptcies. But there's more to succeeding in life than not failing. Link to comment Share on other sites More sharing options...
crunchtastic Posted July 23, 2008 Share Posted July 23, 2008 If her book reflects the kind of advice she gives on her show, then there's no reason to ever read it. Personal finance is about optimization, the goal being the long-term planning and sustainability of consumption patterns. Sometimes that entails high levels of risk. Sometimes it entails splurging on a frivilous purchase.And you're right that her advice will lead to fewer bankruptcies. But there's more to succeeding in life than not failing.But you're an exception to the rule, Niche. The average American may fantasize about succeeding on those terms, but the main goal is stay afloat and keep a decent standard of living. Most people have little to no financial education and are too proud to admit they don't even understand the concept of compound interest. And while I think Orman is a cow, her advice for her audience ( apparently bitter man hatin' midwestern women with brightly colored track suits) is sound. Link to comment Share on other sites More sharing options...
TheNiche Posted July 23, 2008 Share Posted July 23, 2008 And while I think Orman is a cow, her advice for her audience ( apparently bitter man hatin' midwestern women with brightly colored track suits) is sound.Fair enough. For everybody else, though, I encourage more thoughtful investing. Link to comment Share on other sites More sharing options...
houstonmacbro Posted July 23, 2008 Share Posted July 23, 2008 She's a real man hater, though. If you ever watch her show on CNBC, she's always ragging on the men. And telling the women that call into the show to dump the men in their lives. And then there's that lap dog of a man that always reads the mail to her.Wonder if her being a lesbian affects how she feels about men? I have lots of lesbian friends and they aren't men haters. Link to comment Share on other sites More sharing options...
spiderman Posted July 23, 2008 Share Posted July 23, 2008 I have some amount of earnings apart from the ones that I save for my necessities. I want the earnings invested in some real estate or may be in stocks. I do have some knowledge on stocks but, earlier my cousin had invested in the stocks and had a set-back. I know that you need to be updated in that but Link to comment Share on other sites More sharing options...
BryanS Posted July 23, 2008 Share Posted July 23, 2008 If her book reflects the kind of advice she gives on her show, then there's no reason to ever read it. Personal finance is about optimization, the goal being the long-term planning and sustainability of consumption patterns. Sometimes that entails high levels of risk. Sometimes it entails splurging on a frivilous purchase.And you're right that her advice will lead to fewer bankruptcies. But there's more to succeeding in life than not failing.Actually, it doesn't. The book is neutral, and straight forward, in terms of advice, and easy to read. It talks about optimization, long-term planning, consumption, good debt, bad debt, and insurance. Her show, is filled more with her counseling people regarding their relationship with money, and the financial intimacy you may have with other people in your life (husband, wife, partner, parents, etc.). It makes for better TV. There are people in some seriously screwed up financial situations that she's helped.Obviously, yes. However, (not that you advocate this) telling someone to go bet their life savings on a hot stock, or buying questionable real estate, day trading, or even better yet... pulling $10,000 cash advances on four or five credit cards - and then taking that money and "betting"... and then failing (I know people who have done this)... not a good idea. I guess for some people an 8 or 9% long term return just isn't good enough... Link to comment Share on other sites More sharing options...
houstonmacbro Posted July 24, 2008 Share Posted July 24, 2008 I like the ideo of owning LAND. Not necessarily buildings but land (lots, unimproved acreage, etc.). Houston is starting to fill up, meaning that the prices will eventually go higher.Just my two cents. Link to comment Share on other sites More sharing options...
TheNiche Posted July 24, 2008 Share Posted July 24, 2008 I like the ideo of owning LAND. Not necessarily buildings but land (lots, unimproved acreage, etc.). Houston is starting to fill up, meaning that the prices will eventually go higher.Just my two cents.Unless you can buy it highly leveraged at slightly below-market price, and basically engage in arbitrage, or unless you have insider knowledge about something going on nearby that will improve its value, don't bother with land. It produces no income, is subject to taxation, requires maintenance, and still exposes you to some legal liability. Link to comment Share on other sites More sharing options...
musicman Posted July 24, 2008 Share Posted July 24, 2008 Unless you can buy it highly leveraged at slightly below-market price, and basically engage in arbitrage, or unless you have insider knowledge about something going on nearby that will improve its value, don't bother with land. It produces no income, is subject to taxation, requires maintenance, and still exposes you to some legal liability.it can be a good investment however i do agree that taxes and maintenance are factors. Link to comment Share on other sites More sharing options...
houstonmacbro Posted July 24, 2008 Share Posted July 24, 2008 Unless you can buy it highly leveraged at slightly below-market price, and basically engage in arbitrage, or unless you have insider knowledge about something going on nearby that will improve its value, don't bother with land. It produces no income, is subject to taxation, requires maintenance, and still exposes you to some legal liability.Yeah, but that is the advice of the real estate guru Rich Dad Poor Dad (Robert T Kiyosaki).it can be a good investment however i do agree that taxes and maintenance are factors.Guess you could always put a trailer on it and let the neighbors buy you out at double what you paid for it to get rid of you. Link to comment Share on other sites More sharing options...
musicman Posted July 24, 2008 Share Posted July 24, 2008 Guess you could always put a trailer on it and let the neighbors buy you out at double what you paid for it to get rid of you. no trailers needed. they are now going for about 8x what i paid for them Link to comment Share on other sites More sharing options...
houstonmacbro Posted July 24, 2008 Share Posted July 24, 2008 no trailers needed. they are now going for about 8x what i paid for them Excellent investment then! Congratulations. Link to comment Share on other sites More sharing options...
BryanS Posted July 24, 2008 Share Posted July 24, 2008 Yeah, but that is the advice of the real estate guru Rich Dad Poor Dad (Robert T Kiyosaki).Guess you could always put a trailer on it and let the neighbors buy you out at double what you paid for it to get rid of you.That guy is an idiot. http://www.johntreed.com/Kiyosaki.html. You have compared TheNiche... to an idiot. I would be insulted. Link to comment Share on other sites More sharing options...
houstonmacbro Posted July 24, 2008 Share Posted July 24, 2008 That guy is an idiot. http://www.johntreed.com/Kiyosaki.html. You have compared TheNiche... to an idiot. I would be insulted.Yeah, he's a snake oil salesman. Link to comment Share on other sites More sharing options...
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