Any wealthy, Financially-Free Audiokarma members, feel free to chime in.
- Thread starter nick parkin
- Start date
"The lamp, the chair, the dog...don't need the dog".
Let’s see. Do I have a lot of money in the bank? No.
What I do have is a roof over my head. I have plenty to eat, clean water to drink. I have a job I enjoy. I’m married to a wonderful woman who loves me as much as I love her. I have friends and family who enrich my life immensely. I am in good health. There’s enough great music to listen to for this lifetime and more.
Yes, my friend, I am wealthy beyond measure.
What I do have is a roof over my head. I have plenty to eat, clean water to drink. I have a job I enjoy. I’m married to a wonderful woman who loves me as much as I love her. I have friends and family who enrich my life immensely. I am in good health. There’s enough great music to listen to for this lifetime and more.
Yes, my friend, I am wealthy beyond measure.
KingBubba
"Too Much Stuff"
It is important to invest your money. It is important to understand your own appetite for risk. Real estate can, at times, be a good investment, but not always. If you were fully invested in real estate in 2008/2009, you would be sweepings streets today. The common advise for rudimentary investing is to allocate your investment to create a balanced investment portfolio that give you some protection from one source of trouble or another. If you are fully invested in only one type of asset you are open to disaster.
As an example of the types of things that can happen, I will use my own situation as an example. As noted in my previous post I had discussed the rental house that the tenant died in. I made the choice to demolish the house, it was due to the kind of money I would have had to pay to have the house livable again. I had to hire a hazmat company to come to remove the mattress that my tenant died on. The cost, just for the removal of the mattress was almost $2000. When asked by me about restoring the house to livable standards, I was told that it would exceed $60,000. Now imagine if that building was a apartment complex. The entire structure would have to be remediated in some way. You would lose all your rent income and have to pay a cost that would be much higher than $60,000. Suddenly your real estate bounty would be sunk in a matter of days. Talk about risk, real estate is at the top of the list for risky investments. $5000 for a demolition is a bargain.
Now, on the subject of 401Ks, IRAs and other structures of retirement saving, People don't do their homework. People do not do a complete study of their risk tolerance. People do not do a complete study of the investments available to them; so they just choose the safest choice, which turns out to be a bank savings account or a money market fund. They are not taking any risk. They are not making any money. You have to accept a certain amount of risk to expect to have a decent return. Jumping in and out of investments will not help either. Think index mutual funds.
Even at the age of 66, I am having to have a risk allocation of 60% stock, 35% bond and 5% money market (cash). With this kind of allocation, I am able to sleep easy at night. This was my allocation when the crisis hit in 2008/2009. By having an allocation of bonds and cash, I was able to weather the storm. Between the crisis and now my allocation has returned a solid 7% annually. This may not sound like much, but it is a substantial amount and allowed me to retire at 61. The hunt for the biggest bestest return can put your risk at a way higher amount than it should. Grandma said "Don't put all your eggs in one basket". She was right.
As an example of the types of things that can happen, I will use my own situation as an example. As noted in my previous post I had discussed the rental house that the tenant died in. I made the choice to demolish the house, it was due to the kind of money I would have had to pay to have the house livable again. I had to hire a hazmat company to come to remove the mattress that my tenant died on. The cost, just for the removal of the mattress was almost $2000. When asked by me about restoring the house to livable standards, I was told that it would exceed $60,000. Now imagine if that building was a apartment complex. The entire structure would have to be remediated in some way. You would lose all your rent income and have to pay a cost that would be much higher than $60,000. Suddenly your real estate bounty would be sunk in a matter of days. Talk about risk, real estate is at the top of the list for risky investments. $5000 for a demolition is a bargain.
Now, on the subject of 401Ks, IRAs and other structures of retirement saving, People don't do their homework. People do not do a complete study of their risk tolerance. People do not do a complete study of the investments available to them; so they just choose the safest choice, which turns out to be a bank savings account or a money market fund. They are not taking any risk. They are not making any money. You have to accept a certain amount of risk to expect to have a decent return. Jumping in and out of investments will not help either. Think index mutual funds.
Even at the age of 66, I am having to have a risk allocation of 60% stock, 35% bond and 5% money market (cash). With this kind of allocation, I am able to sleep easy at night. This was my allocation when the crisis hit in 2008/2009. By having an allocation of bonds and cash, I was able to weather the storm. Between the crisis and now my allocation has returned a solid 7% annually. This may not sound like much, but it is a substantial amount and allowed me to retire at 61. The hunt for the biggest bestest return can put your risk at a way higher amount than it should. Grandma said "Don't put all your eggs in one basket". She was right.
the lamp can go but I need the dog
The way to get the best return is to start a company founded on values with people who you care about who share the same values.
Don't forget to start your business in a field with growth potential ...
See, life is more than "a good tribe" ....
usedto
Lunatic Member
Ramsey lost a lot of credibility with me when he started doing commercials for some of the local companies, saying "I trust....................." or "my friends at............." so-and-so company, that he probably knows absolutely nothing about. He used to mention his religion during his program. I guess the Almighty Dollar is part of it.
usedto
Lunatic Member
I doubt he uses a plumber or solar company in Sacramento, CA.
the skipper
Professional Curmudgeon
Contentment is a blessing. All I can really add is that the sooner you start laying aside funding, with an eye on compounded interest for you're future self, the better off you'll be, Also, learn to be content with a Hyundai instead of a Mercedes and a happy man you'll be.
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One man's treasure.....
Wait until someone has to deal with all YOUR stuff...
Wait until someone has to deal with all YOUR stuff...
"Night On Earth" by Jim Jarmush.
New York taxi driver Helmut Grokenberger from Eastern Germany (Armin Müller-Stahl):
"Money... okay, was soll ich sagen... er... money... money ist nicht... is not important to me. Yes, I need money, but it is not important to me. Not important to me."
My attitude.
New York taxi driver Helmut Grokenberger from Eastern Germany (Armin Müller-Stahl):
"Money... okay, was soll ich sagen... er... money... money ist nicht... is not important to me. Yes, I need money, but it is not important to me. Not important to me."
My attitude.
Bill Ferris
Lunatic Member
Well put Sir.
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