The Investment Thread (stocks, bonds, real estate, retirement, just not gold)

[mentos]

No one should rent cheap houses. 200k valuation or higher. Those low rent ones might make you more money at times but you are just asking for trouble.

Where do you live that 200k isn't considered cheap? Can't even get an empty lot for that in many areas.

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[BenJammin]

Don't buy houses for rent. Get you a multi family unit. That's what I'm doing right now and my complex is getting way more return than the townhouse.

 

[gwarm01]

Did you buy that house solely for the purpose of renting it out? How did you screen your tenant?

No, it was my personal residence for years. We rented it out to someone based on a personal recommendation and that was clearly a mistake.

 

[wagrxm2000]

Where do you live that 200k isn't considered cheap? Can't even get an empty lot for that in many areas.

I live in the Midwest where everything is cheap!!!! Average homes are near 300k.

Point is, don't rent to people that can't afford it. So 200k is probably 400k for you fancy folk.

 

[BMBiology]

Don't buy houses for rent. Get you a multi family unit. That's what I'm doing right now and my complex is getting way more return than the townhouse.

Multi vs single family home debate is location specific.

 

[BMBiology]

No, it was my personal residence for years. We rented it out to someone based on a personal recommendation and that was clearly a mistake.

Thank you for clarification. I pointed this out because not every house is a good rental and screening tenants is always needed.

I prefer not to rent it to a friend or family. I want to keep it strictly business.

 

[BMBiology]

I also want to point out that my RE investing posts have survivorship bias. RE investing is not for everyone. It does take work and you need to have good business sense. You can make a lot of money in RE but you have to be good at it.

 

[wagrxm2000]

Just like picking stocks, made a lot of money in my day.


From my couch.

 

[mentos]

Like a duplex?

That would work but he was probably referring to one of those triple deckers, usually a 2-3 bedroom apartment on each floor.

 

[ExpressMaiL]

Anyone see the news of that doordash driver drinking a customer's milkshake before delivering?

 

[pezdispenser]

Anyone see the news of that doordash driver drinking a customer's milkshake before delivering?

I just dropped a pill on the floor. Perhaps I should tell everyone on Twitter.

 

[mentos]

What if the burger flipper spit in the food before the driver took it?

 

[wagrxm2000]

Stocks up 1% in one day, it takes a house 4 months on average to make that much.

 

[BMBiology]

Stocks up 1% in one day, it takes a house 4 months on average to make that much.

1% of $200,000 is $2,000 (you)

1% of $3,000,000 is $30,000

$30,000 > $2,000

 

[wagrxm2000]

1% of $200,000 is $2,000 (you)

1% of $3,000,000 is $30,000

$30,000 > $2,000

Yes I did make almost $30k, thank you for pointing that out

0% of your houses is $0

 

[Thoughtfulsinner]

WBA with big earnings miss and lowered guidance.

 

[wagrxm2000]

Bitcoin is back, better get in while you still can

 

[streetskooler]

I really don’t know why WBA didn’t buy a PBM years ago. Now it’s too cost prohibitive and they’re in a lot of trouble. I didn’t think budgets could go lower but apparently they’re about to.

 

[nextyearrx]

will buy some penny stocks and see my fortune pays off!!!

 

[gwarm01]

My portfolio is up around 18% for the year. That's usually about the time we see a giant dip.

 

[wagrxm2000]

My portfolio is up around 18% for the year. That's usually about the time we see a giant dip.

No dip, all news is good news. Think of it this way, we are approaching previous highs. While we're up 15% on the year, we still have another 2% before we're back where we were.

People need to remember we were in a correction, this is a new bull market.

Just think it would take a house around 5 years to see these returns.

 

[BMBiology]

Bitcoin is back, better get in while you still can

Wag is down and out! I don’t think you have much money at all.

 

[wagrxm2000]

Wag is down and out! I don’t think you have much money at all.

View attachment 256508

I don't have and haven't owned a single stock of Walgreens in years. This has no change on me.

Don't worry you'll be a multimillionaire in all your wood/brick/stone someday.

 

[BMBiology]

I don't have and haven't owned a single stock of Walgreens in years. This has no change on me.

Don't worry you'll be a multimillionaire in all your wood/brick/stone someday.

Damn you are good! All your bets are winner. You are a Walgreens star....the cuts got nothing on you.

 

[mentos]

How do you calculate net worth?

401k and HSA are pre-tax, do you multiple by 0.7 or so then add to your taxable $$?

Do you include home equity? If not, what if you sell your house - all of a sudden your net worth increases by hundreds of thousands? Do you use current value or the price you paid for the house?

What if you own rental properties? You'll probably have several mortgages, so on paper it looks like you have tons of debt but in reality you're wealthy.

Do you include other stuff like vehicles, precious metals, jewelry, etc?

 

[wagrxm2000]

Damn you are good! All your bets are winner. You are a Walgreens star....the cuts got nothing on you.

View attachment 256610

Says the guy who literally comes in here showing off everyday when he's actually making a huge mistake. Let me know what happens when you need to sell but can't find a buyer for months.

You keep forgetting I can retire whenever I want, what Walgreens does will not hurt me. Feel free to keep trying though if it makes you feel better.

Yes all my bets are winners since I index.

 

[wagrxm2000]

How do you calculate net worth?

401k and HSA are pre-tax, do you multiple by 0.7 or so then add to your taxable $$?

Do you include home equity? If not, what if you sell your house - all of a sudden your net worth increases by hundreds of thousands? Do you use current value or the price you paid for the house?

What if you own rental properties? You'll probably have several mortgages, so on paper it looks like you have tons of debt but in reality you're wealthy.

Do you include other stuff like vehicles, precious metals, jewelry, etc?

Personally I stick to liquid assets only so no to your home. Most people don't downsize anyways in retirement. My family would be well over 3 million if we included our home but plan on living there for years to come.

You don't need to multiply by 0.7, no reason to.

 

[mentos]

Personally I stick to liquid assets only so no to your home. Most people don't downsize anyways in retirement. My family would be well over 3 million if we included our home but plan on living there for years to come.

You don't need to multiply by 0.7, no reason to.

We sold our home and rent now. So our net worth is 100k higher than a month ago?

We have about 300k in 401k, 200k in Roth IRA/taxable accounts. 300k+200k+100k from home sale so our net worth is 600k then? Doesn't make sense to me if the 401k is pre-tax? If we didn't sell, our net worth would only be 500k?

 

[wagrxm2000]

We sold our home and rent now. So our net worth is 100k higher than a month ago?

We have about 300k in 401k, 200k in Roth IRA/taxable accounts. 300k+200k+100k from home sale so our net worth is 600k then? Doesn't make sense to me if the 401k is pre-tax? If we didn't sell, our net worth would only be 500k?

It all depends what your plans are in retirement. Are you renting the rest of your life or planning on putting that money into a down payment later on.

If you don't plan to sell in retirement, why add it?

 

[BMBiology]

Says the guy who literally comes in here showing off everyday when he's actually making a huge mistake. Let me know what happens when you need to sell but can't find a buyer for months.

You keep forgetting I can retire whenever I want, what Walgreens does will not hurt me. Feel free to keep trying though if it makes you feel better.

Yes all my bets are winners since I index.

You are a fool if you think real estate doesn’t go up when the stock market goes up.

Just because you can retire in the middle of nowhere does not mean you have money.

How can you think you are a financial expert when you only have $200 k in your trade account?

 

[TheBlaah]

Personally I stick to liquid assets only so no to your home. Most people don't downsize anyways in retirement. My family would be well over 3 million if we included our home but plan on living there for years to come.

I include home equity (how much you've paid for so far into it). But I also include mortgage as a subtraction from net-worth since it ties up future income and it has its own interest rate.

 

[mentos]

I include home equity. But I also include mortgage as a subtraction from net-worth since it ties up future income and it has its own interest rate.

That's what I was thinking. Say you own multiple rental properties though, you'll surely have a negative net worth even though your rental income is greater than mortgage. How does that work when calculating net worth?

 

[wagrxm2000]

You are a fool if you think real estate doesn’t go up when the stock market goes up.

Just because you can retire in the middle of nowhere does not mean you have money.

How can you think you are a financial expert when you only have $200 k in your trade account?

I think you keep looking at your own account.

 

[wagrxm2000]

I include home equity (how much you've paid for so far into it). But I also include mortgage as a subtraction from net-worth since it ties up future income and it has its own interest rate.

That's what I was thinking. Say you own multiple rental properties though, you'll surely have a negative net worth even though your rental income is greater than mortgage. How does that work when calculating net worth?

Do you guys both plan on selling in retirement?

If so then include it, it not, don't.

Everyone should have a number that they need to reach in order to retire comfortably and it should be in liquid assets only.

 

[BMBiology]

My family would be well over 3 million if we included our home but plan on living there for years to come.

You live in the middle of nowhere and you expect us to believe you live in a $1M house? #internet_faker

 

[BMBiology]

Do you guys both plan on selling in retirement?

If so then include it, it not, don't.

Everyone should have a number that they need to reach in order to retire comfortably and it should be in liquid assets only.

How can you not count your home as an asset when you can refinance and withdraw money from it? #fake_financial_guru

 

[TheBlaah]

That's what I was thinking. Say you own multiple rental properties though, you'll surely have a negative net worth even though your rental income is greater than mortgage. How does that work when calculating net worth?

For rental properties, you take the value of the asset minus liabilities. So in this case, you take the total value of the rental property, and subtract the mortgage. For example, if you put 20k down for a 100k property (so 80k mortgage), it's 100k-80k. If it depreciates to 95k, it's 95k-80k, even though you already put down 20k.
Personally, I subtract 30% from any profit that would be made as well due to taxes/fees.


Technically, this is how you calculate it for your home value as well, but like wagrx2000 said, it's your home so it's not nearly as liquid and you'll always need a home, so I personally am much more conservative with my home value.

Do you guys both plan on selling in retirement?
If so then include it, it not, don't.
Everyone should have a number that they need to reach in order to retire comfortably and it should be in liquid assets only.

The main reason I include home equity is due to people who rent; since I doubt they account for future rent when net worth is calculated, it makes sense to me to include it almost as if I sold the home and was renting as well for better or worse. I don't include my home value though if I'm trying to determine my retirement savings.

 

[wagrxm2000]

How can you not count your home as an asset when you can refinance and withdraw money from it? #fake_financial_guru

my point is simple, you are retired, you own your house and don't plan on selling. Why include it?

 

[wagrxm2000]

You live in the middle of nowhere and you expect us to believe you live in a $1M house? #internet_faker

View attachment 256636

Why would my house be worth a million?

My net worth is well over 2 million at this point.

 

[BMBiology]

Why would my house be worth a million?

My net worth is well over 2 million at this point.

Anyone with some basic understanding of finance would know you are a faker.

Your brokerage account has $200 k. So where is the rest of your $2M?

 

[BMBiology]

my point is simple, you are retired, you own your house and don't plan on selling. Why include it?

Let me get this right...even if you have fully paid off your mortgage, your home is still not an asset?

 

[wagrxm2000]

Let me get this right...even if you have fully paid off your mortgage, your home is still not an asset?

Are you going to sell it so you can use the money during retirement?

 

[BMBiology]

Are you going to sell it so you can use the money during retirement?

So if I don’t sell my stocks..therefore, it is not an asset?

 

[wagrxm2000]

Anyone with some basic understanding of finance would know you are a faker.

Your brokerage account has $200 k. So where is the rest of your $2M?

I have explained this multiple times. My family indexes, we have retirement accounts and I used to trade an account with $200k in it that I would reset each year and spend the rest on my family.

That's not that hard to understand is it?

 

[wagrxm2000]

So if I don’t sell my stocks..therefore, it is not an asset?

Are you living off dividends?

Why are you acting so clueless today?

 

[BMBiology]

I have explained this multiple times. My family indexes, we have retirement accounts and I used to trade an account with $200k in it that I would reset each year and spend the rest on my family.

That's not that hard to understand is it?

I knew you would say that. That is why I asked.

First, you claim to be in your 40s (probably got hurt by the 2008 bubble..maybe even in the housing bubble)

Second, there is a limit to how much money you can put in your 401 k per year.

Third, no way you could have made $2M in that short period of time, with limited fund by just indexing.

NOT possible. So, why do you gotta lie on an Internet forum?

 

[wagrxm2000]

I knew you would say that. That is why I asked.

First, you claim to be in your 40s (probably got hurt by the 2008 bubble..maybe even in the housing bubble)

Second, there is a limit to how much money you can put in your 401 k per year.

Third, no way you could have made $2M in that short period of time, with limited fund by just indexing.

NOT possible. So, why do you gotta lie on an Internet forum?

Huh?

We've been working over 20 years each. How's it not possible?

Momus has only worked 9 years and is just behind us.

 

[BMBiology]

Huh?

We've been working over 20 years each. How's it not possible?

Momus has only worked 9 years and is just behind us.

What year did you start to put money in your 401 k? Do you max out every year? Simple question.

Like Momus, I graduated at the right time...during the Great Recession. I bought assets for cheap.

 

[wagrxm2000]

What year did you start to put money in your 401 k? Do you max out every year? Simple question.

Like Momus, I graduated at the right time...during the Great Recession. I bought assets for cheap.

I max every year while my wife didn't always, my actual year I started working is more info then I'll be putting on here. All you need to know is I've been an rxm since 2000.

Feel free to do the math.

 

[BMBiology]

I max every year while my wife didn't always, my actual year I started working is more info then I'll be putting on here. All you need to know is I've been an rxm since 2000.

Feel free to do the math.

Because you are a faker.

You are fine with throwing your $2M, $3M net worth around but you are not willing to tell us the year you invested in your 401 k?

Knowing you are in your 40s and knowing you got caught in the 2000 tech bubbles then 2008 housing/stock bubble, there is no way you would have that much money in your 401 k, even if you have been maxing it out every year. No respect for you.