Quote:
Originally Posted by toy71camaro
I check it multiple times a day. Trust me. I'm reading. Seeing the differences of opinion is actually nice, it re-iterates some of our lessons learned into a new way of saying it.
<the silent one> lol |
Quote:
Originally Posted by glassman
^^^^^^^^  |
Thanks guys.
I have to tell ya --- that what I've been trying to do -- is to "dumb down" the entire process of thinking about "investments". I run around with some pretty smart people - professionally… Doctors/lawyers/CEO's etc… and they're the WORST investors ever (in the universe) and the reason for that - I've discovered - is that they all try to make too much of it. The Doctor goes to his accountant to try to figure out all manor of "tax" avoidance investments. The lawyer tries to take the opposite side of every issue -- that's his training -- I get it. The CEO's are too busy trying to build their futures with all manor of deferred compensation - and Options and such.. that mostly all depend on the current company doing exceptionally well (i.e., going public).
They all sit at my dinner table and ask me about my investments. And what I keep trying to tell them is that what I concentrate on is MAKING MONEY in a very simple fashion. I don't try to invest to avoid taxes… in fact… I pay a fortune in taxes! Why - because I'm making an even larger fortune on my investments. Taxes are only a small percentage of what I make. To me - the more taxes I pay - the more I've made! And while I understand Options and deferred income -- that's putting all your eggs in one basket - a big no no!
Lawyers are just lucky that they make partner level and never retire so are always on the payroll. They stop "practicing" but are still on the board of their firm etc…
The theme is -- too much thinking and not enough doing… and keeping it simple and making some money. You want to make money in real estate - you can't do that living in the place -- you have to buy INCOME property. You let the tenant pay the mortgage - and give you a bit of cash flow… and down the road it's either all paid for and you pocket the "rent" (which after 20 years is like dividend increases - it should be far higher than when you started!)… I don't care if that's houses - apartments - or commercial property. The premise is the same. Someone else paying your debt - and paying you. OVER TIME this works out real well.
Stocks are the same -- You put your money into great stuff -- get paid while your price grows.. eventually it's paying you nicely -- and or you can sell some when you need to not because you have to. It takes TIME to get to that point - and it takes you putting your money in on a consistent basis…
Some guys invest TOO MUCH --- and then they're forced sellers at the wrong time. When do people get laid off? When business is crappy! When is the market crappy? When business is bad! If you've put every dime into the market -- and you have too much debt service -- and you have no cash… you become a forced seller and lose your butt! So putting too much into the market -- while at the same time having too high of a lifestyle -- can defeat everything you've worked for.
Some guys - my friends - try so hard to talk themselves into so much BS style investments because "they don't pay any taxes" -- or they invest in "annuities" (that is NOT an investment and you'll never convince me otherwise!). What I say to them is -- they want to abdicate their future to someone else rather than taking control -- keeping it real simple -- and just banking the proceeds.
When I show them I make 3 or 4 times what they make - and I don't do anything to earn it…. they're always shocked. Then they always say to me -- ah ha! Now I understand why you're always going to some race somewhere -or some car show - or some trip… YEAH! Because I keep it simple… I have all my money in great stuff that pays me to do nothing. How hard is that?
