Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : CFZ E-Wiggle Workspace -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (40159)	4/8/2024 11:33:58 PM
From: robert b furman	Read Replies (1) \| Respond to of 41471

Hi perspective, What a loaded post! <smile> Ok , so we both had good jobs, no debt, and met. We bought a home, because we has great credit and the monthly was (after a 30% down payment was an equivalent to what the rent of a nice place was (not cheap pace was). So we had interest and tax deductions that justified the big move. BIG MOVE because we bought the home before we got married - it was stressful before the closing, but we knew it made sense, and then we made plans for a modest wedding, because we were going places - a new home of our modest dreams. That today is often missing - sadly. IMO - It's more about experiences vs. savings and going somewhere in the asset achievement world. They'll sooner or later regret their lack of discipline. I suspect. As for how to keep up with inflation. Go without, be frugal and save. Inflation will cause higher interest rates, big rewards for those who have savings, invest in short term commercial paper and Treasury bills and notes. Lock in high interest income - especially if you are on the lower income entry level range. If in higher combined income ranges - buy Dividend Aristocrat stocks that pay high dividend yields based on cost. I like to accumulate them by selling puts on dips and hopefully get them assigned on unpredictable dips on the date of expiration. I use Da Cheif's CLX studies to identify dips. It's the best timing I've ever seen. JMHO It's not easy money, it is slow methodical wealth creation. When younger, I focused on tech completely and as I reached retirement, I focused on Dividend Aristocrats more. As my growth stocks went up, I sold them and bought dividend stocks. I have without the plan met the 60/40 equities and fixed income at the age of 72. If you have too much exposure to equities and fixed income, my next best idea is a really nice home that makes you feel successful and you enjoy it daily, then buy ag land that can produce food everyone needs. It pays the taxes without having to work it (farmers lease it from you above the cost of taxes) and it goes up in price as an inflationary hedge. NOT a big cash maker , but a perfect hedge to inflation. Substitute that with wooded property you can hunt and love to be in. In periods of high inflation (and we may not be out of that yet - if fossil fuel costs rise due to lack of investment from ESG BS (a wall street sales pitch - that will fail ) IMO. Then we are well on our way to rental properties becoming a major housing lifestyle, that those without trade skills or an advanced education income level that finds themselves locked into a EUROPEAN LIFESTYLE. A land owner as one group and renters as the other. I don't have all the answers, but those are my best ideas, and I have pursued them with a good sleep at night lifestyle. I hope it stays that way. Don't we all eh? Let me know what you think, you've asked valid questions - all worthy of the right answers, and it may require several smart viewpoints beyond ours. Great post! Bob

To: Perspective who wrote (40159)	4/9/2024 1:19:07 PM
From: skinowski	1 Recommendation Recommended By robert b furman Read Replies (2) \| Respond to of 41471

In retrospect, the housing prices led wages, not the other way around, but that's fine. My wife, who is a retired CPA and interested in such things, thinks that the largest jump in housing prices around that period occurred after the government ordered the banks to consider [also] the wife’s salary while calculating the size of the mortgage a family would be eligible to receive. This may not be related to average wages (and your observation may be correct), but it does explain a large part of the increase in housing prices. Or, you can turn this around - that - it may explain RE price stagnation before that order was issued. At any rate, the prices in the late 70’s - early 80’s seemed very reasonable. Let’s put it this way - even if you financed 100%, in most cases the rentals could pay all the costs - plus, “normally”, generate some cash flow.