What are your thoughts on realistic returns from the S&P 500?

[Splenda88]

I'll bite on this one. I am in a competitive referral-based specialty and bought a huge and gorgeous house in a great location to be able to entertain large groups including referring. It has been a huge success and the house has easily paid for itself through practice-growth.

Your house is like a business that generates income, so that is great.

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[Splenda88]

That's great for you but that's not most people.

Most people do not need a big house. It's just a waste of money. If you don't like it when I say it, listen to almost any financial genius online. Dave Ramsey included.

Houses barely keep up with inflation and you are throwing money away on taxes, utilities, and upkeep.

I realized that when I purchased my first home (a townhome) about 15 yrs ago. There was always something to fix/repair. That is why my mortgage right now is a VERY low percentage (around 8.5%) of my take home income from work and investment. However, I still keep my real estate investment in order to maintain a diversified portfolio.

 

[worthless]

That's great for you but that's not most people.

I didn’t say it was. Just addressing the reason that I did it

 

[voxveritatisetlucis]

Large houses would only be a waste of money if we know the utility that others get from having a large house. It’s like saying designer clothes, super cars, extravagant hotels are a waste of money, when in reality these items may have more utility than the alternative (ie retiring early). Not everybody wants to retire. I took a break between school and my initial job and was so bored by the monotony that I resolved to never retire unless unable to perform. Even then, I’d still try to teach or do consulting or something

 

[deleted1133766]

I didn’t say it was. Just addressing the reason that I did it

The question you replied to was referencing MOST upper middle class families. Most upper middle class families are not buying a house for the same purpose that you did.

 

[deleted1133766]

Large houses would only be a waste of money if we know the utility that others get from having a large house. It’s like saying designer clothes, super cars, extravagant hotels are a waste of money, when in reality these items may have more utility than the alternative (ie retiring early). Not everybody wants to retire. I took a break between school and my initial job and was so bored by the monotony that I resolved to never retire unless unable to perform. Even then, I’d still try to teach or do consulting or something

 

[worthless]

The question you replied to was referencing MOST upper middle class families.

Actually the opposite - they said they don’t know why anyone would. Nothing mentioned about most.

 

[deleted1133766]

Actually the opposite - they said they don’t know why anyone would. Nothing mentioned about most.

Do you feel that most upper middle class families would buy a house for the same reason you did though?

 

[worthless]

Do you feel that most upper middle class families would buy a house for the same reason you did though?

It’s probably a lot more than you think.

 

[deleted1133766]

It’s probably a lot more than you think.

Really? Do you have any data that you can share?

 

[voxveritatisetlucis]

View attachment 359894

Responding to a counterargument with memes is definitely a sign of a mature, intellectually competent individual

 

[deleted1133766]

Responding to a counterargument with memes is definitely a sign of a mature, intellectually competent individual

Putting you on ignore now. You have been trolling this thread and hijacking this conversation.

 

[voxveritatisetlucis]

lol

 

[Noemata]

How do you preserve your wealth?

1. Put it in cash, lose 99% over a hundred years.

2. Put it in the stock market, companies dilute their stocks over time.

3. Put it in real estate. 2% tax, 2% maintenance fee. Adds up over years.

4. Gold. Miners make more gold. Almost every country over the past 100 years has seized their citizens' gold, including US.

5. Bonds. Negative real yields.

How can you preserve your wealth?

 

[worthless]

Really? Do you have any data that you can share?

Do you?

 

[deleted1133766]

Do you?

Ah, I guess you don't then.



For beginners, you can check this out

Does the American dream require a big American home?

We've been led to believe that bigger homes are better. But is that true? Studies have shown that most of the space in a big American home is wasted. It's never used. And big homes cost a lot more to buy and maintain. Let's take a closer look...

www.getrichslowly.org

A Growing Problem in Real Estate: Too Many Too Big Houses

Baby boomers and retirees built large, elaborate dream homes across the Sunbelt—only to find that few people want to buy them.

www.wsj.com

 

[worthless]

Ah, I guess you don't then.



For beginners, you can check this out

Does the American dream require a big American home?

We've been led to believe that bigger homes are better. But is that true? Studies have shown that most of the space in a big American home is wasted. It's never used. And big homes cost a lot more to buy and maintain. Let's take a closer look...

www.getrichslowly.org

A Growing Problem in Real Estate: Too Many Too Big Houses

Baby boomers and retirees built large, elaborate dream homes across the Sunbelt—only to find that few people want to buy them.

www.wsj.com

The links are marginally interesting, but not particularly important and relevant to me

 

[deleted1133766]

The links are marginally interesting, but not particularly important and relevant to me

Oh those were not meant for you. Actually the thread is not about you either.

Good luck with your future financial goals however.

 

[deleted1133766]

Not to belabor the point but doing a formal post bacc and going DO rather than MD is probably the epitome of what Ramsey would call a bad financial decision considering the cost of post baccs and exorbitant tuition at DO schools

@Goro @Lee

Gentlemen, your thoughts please since you are DO guys.

This is the type of "advice" that does not belong on this forum.

 

[Goro]

@Goro @Lee73

Gentlemen, your thoughts please since you are DO guys.

This is the type7 of "advice" that does not belong on this forum.

It was foolish advice because beggars can't be choosers and reinventors have to gave DO schools on their school lists.

And once you're an attending, your salary in your specia, you'll be making the same as your MD peers.

 

[voxveritatisetlucis]

@Goro @Lee

Gentlemen, your thoughts please since you are DO guys.

This is the type of "advice" that does not belong on this forum.

The average tuition of a DO school is literally higher than the average tuition of an MD school. This is literally a fact. Ramsey advocates no debt.

I wasn’t saying I personally think it’s a bad decision but Ramsey certainly would.

 

[deleted1133766]

It was foolish advice because beggars can't be choosers and reinventors have to gave DO schools on their school lists.

And once you're an attending, your salary in your specia, you'll be making the same as your MD peers.

Thank you @Goro

It should be an automatic ban for anybody who posts anything so foolish. That is the advice people take and then apply to the Caribbean.

Total recklessness from that user.

 

[Goro]

The average tuition of a DO school is literally higher than the average tuition of an MD school. This is literally a fact. Ramsey advocates no debt.

I wasn’t saying I personally think it’s a bad decision but Ramsey certainly would.

Ramsey doesn't know anything about the med school application process.

Of course it's a great idea to not have debt! But not many students have $250,000 lying around to pay for tuition.

They'll make it back once they become an attending. The medical education process is a decade long experience in delayed gratification

 

[Goro]

Thank you @Goro

It should be an automatic ban for anybody who posts anything so foolish. That is the advice people take and then apply to the Caribbean.

Total recklessness from that user.

The Ignore function is a very handy tool.

 

[worthless]

Ramsey doesn't know anything about the med school application process.

Of course it's a great idea to not have debt! But not many students have $250,000 lying around to pay for tuition.

They'll make it back once they become an attending. The medical education process is a decade long experience in delayed gratification

Actually most financial gurus don't advocate for no debt - that's a Dave Ramsey special. The Money Guy, Graham, etc encourage reasonable leverage. No debt usually means lost opportunity.

 

[deleted1133766]

Actually most financial gurus don't advocate for no debt - that's a Dave Ramsey special. The Money Guy, Graham, etc encourage reasonable leverage. No debt usually means lost opportunity.

I think you're thinking too hard on this one man.

Most financially educated people know what good debt and bad debt is. "Good debt is when you borrow money to start a profitable business...blah blah blah."

The other stuff concerns me though. Not that I care lol.

 

[worthless]

I think you're thinking too hard on this one man.

Most financially educated people know what good debt and bad debt is. "Good debt is when you borrow money to start a profitable business...blah blah blah."

The other stuff concerns me though. Not that I care lol.

Nah. You’re just assuming he’s financially educated. And most aren’t.

 

[deleted1133766]

Nah. You’re just assuming he’s financially educated. And most aren’t.

If you're referring to @Goro well I think he knows what he is talking about considering his response was quite correct.

You, on the other hand, I'm not so sure about.

 

[Goro]

If you're referring to @Goro well I think he knows what he is talking about considering his response was quite correct.

You, on the other hand, I'm not so sure about.

Enough bickering already, all of you

 

[Mad Jack]

I have always just played it safe and calculated all potential returns at 8%. Dave Ramsey seems to think 10-12% which is theoretically correct based on history but I don't believe he is telling the whole story with those numbers.

After inflation, fees, and taxes can you still be at 9% per year long term?

Or, can you explain to me what numbers are realistic and how you calculated them?

Use FireCalc if you want something that aggregates every potential cycle for a given profile and graphs them for you. It will give you a portfolio success rate based upon every possible stock market cycle you could have invested or retired in

 

[annoyedpsychiatrist]

I just want to add that if you areinvesting monthly, rather than dumping huge sums of money once a year, then its hard to lose money in the long run. You're putting money in at different points during the market, so you may buy in at 3900 which will mitigate some loss if you had bought in previously at 4000.