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Originally Posted by cumminscowboy
the actual compound rate of return of the S&P 500 since the year 2000 is actually a negative number when inflation is factored in. That means if you took 100k and invested it in the stock market and the gain was based on the S&P 500 you would have about 130 something k in 16 years in the market. that is what all the mutual funds and all the crap never tells you. The problem is if a stock or mutual fund loses half its value it has to have a 100% increase to make up for the 50% decrease. that is how they cook the books and make something look better than it is.

contrary to that if you simply bought a house in my area at fair market rate, it would be worth double its 2000 sales price. it would also be providing a healthy dividend. and example I ran was a 256% increase over that time.

I want to talk to someone who made a fortune in mutual funds because I don't believe they exist. real estate creates rich people.



I'll take my 7%-8% dividend (rent) plus the property valuation over paper stock money any day. Aside from the 2008-2011 downturn property is a good log term investment done properly.

Besides, it's easier protect physical assets than a piece of paper.


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Originally Posted by cumminscowboy
the actual compound rate of return of the S&P 500 since the year 2000 is actually a negative number when inflation is factored in. That means if you took 100k and invested it in the stock market and the gain was based on the S&P 500 you would have about 130 something k in 16 years in the market. that is what all the mutual funds and all the crap never tells you. The problem is if a stock or mutual fund loses half its value it has to have a 100% increase to make up for the 50% decrease. that is how they cook the books and make something look better than it is.

contrary to that if you simply bought a house in my area at fair market rate, it would be worth double its 2000 sales price. it would also be providing a healthy dividend. and example I ran was a 256% increase over that time.

I want to talk to someone who made a fortune in mutual funds because I don't believe they exist. real estate creates rich people.


You keep believing and do what you do. I wish you well. I am a happily retired 54 year old dumbazz that was screwed by the market...


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Don't confuse a bull market with brains!
The ONLY decade real estate EVER won over Dow stocks was the 1970's.
And I have never, ever owned any type of index fund in my life.
My actual, authenticated rate of return beginning 1/1/2001 is 13.85% annually. My documented cash flow has grown 11.66% annually, that's a growth of over 400%, inflation has gone up 32.3% in the same time frame.
You had to pay, Federal taxes on income at a higher rate, up keep on your property and local propert tax.
I own 3 types of rental property, commercial, residential and farm ground. Never, even on a rolling 5 year cycle has any out performed my equity holdings. And my commercial properties are leased on a Triple net lease basis.
I am not arguing here, if real estate, gold/silver, cattle or whatever it is grew my assets at a consistent rate better than the capital markets I would over weight that sector. The math simply is not in you corner unless you limit the scope to the 1970's. Don't get mad, make yourself more competitive.

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Originally Posted by Sharecropper
Don't confuse a bull market with brains!
The ONLY decade real estate EVER won over Dow stocks was the 1970's.
And I have never, ever owned any type of index fund in my life.
My actual, authenticated rate of return beginning 1/1/2001 is 13.85% annually. My documented cash flow has grown 11.66% annually, that's a growth of over 400%, inflation has gone up 32.3% in the same time frame.
You had to pay, Federal taxes on income at a higher rate, up keep on your property and local propert tax.
I own 3 types of rental property, commercial, residential and farm ground. Never, even on a rolling 5 year cycle has any out performed my equity holdings. And my commercial properties are leased on a Triple net lease basis.
I am not arguing here, if real estate, gold/silver, cattle or whatever it is grew my assets at a consistent rate better than the capital markets I would over weight that sector. The math simply is not in you corner unless you limit the scope to the 1970's. Don't get mad, make yourself more competitive.




Dow and NASDAQ have returned 5% during that time, so your way better than the indexes.




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Originally Posted by Sharecropper
Don't confuse a bull market with brains!
The ONLY decade real estate EVER won over Dow stocks was the 1970's.
And I have never, ever owned any type of index fund in my life.
My actual, authenticated rate of return beginning 1/1/2001 is 13.85% annually. My documented cash flow has grown 11.66% annually, that's a growth of over 400%, inflation has gone up 32.3% in the same time frame.
You had to pay, Federal taxes on income at a higher rate, up keep on your property and local propert tax.
I own 3 types of rental property, commercial, residential and farm ground. Never, even on a rolling 5 year cycle has any out performed my equity holdings. And my commercial properties are leased on a Triple net lease basis.
I am not arguing here, if real estate, gold/silver, cattle or whatever it is grew my assets at a consistent rate better than the capital markets I would over weight that sector. The math simply is not in you corner unless you limit the scope to the 1970's. Don't get mad, make yourself more competitive.


ok maybe your the guy I have been looking for that I say doesn't exist. what in the world equity funding did you have? here is the calculator I got my info from S&P calculator compound actual rate of return.

another thing you might not be factoring in, you have to pay income taxes on those equity gains. real estate can be 1031 exchanged for more expensive property. basically the seed you have increased by, (looks like you have something to do with farming) is siphoned off to the government with stocks, real estate not only can you keep all the new seed but you can use it all for other property PLUS you can depreciate things as well.

maybe you have something really figured out, PM me with details seriously I would like to know.


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Cumminscowboy, Stromin and Sharecropper , you are all right. The thing is, Sharecropper know what he is doing in stocks, the other two know real-estate . Peter Lynch said, " buy what you know. My dad did extremely well in rental houses in the far suburbs west of Milwaukee. He bought 1 ac. lots for $4000 and built some nice houses on them. At 84 he still refuses to sell them. But he was a carpenter , and could frame houses in a few weeks, have them done in 6 months. We would live in them, then build another and rent out the one we moved out of. I hate the rental life , so I took the money and bought REITS when several house bids fell through. I would rather have a house I can see with my eyes. I am making the same money as the rental property with the same amount of money. I dont get calls of whining people being short on rent. Dad just put 4k into a roof too. Alhtough , I am getting hammered in real-estate the last 2 weeks, I think it will come back, even though AGNC cut div. by 10%. I just get dividends reinvested and I sleep at night. I am not sure I am better off with the REITS or renting a house but the REIT is easier.


But the fruits of the spirit is love, joy, peace, patience, kindness, goodness,faithfulness, Gentleness and self control. Against such things there is no law. Galations 5: 22&23
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Clearly and logically folks go about investing in what they are comfortable with and there really is zero wrong with that other than the folks that put money in a bank. In fact, it is more than logical. The key is, those of us doing so are planning well for our future so we can enjoy retirement that we so deservedly worked for. There is no "one answer".


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Originally Posted by ihookem
I think the DOW will hit 19,125 by Thanksgiving. We will see.


Well , I found my old post! . Two weeks ago this was looking like a pipe dream. As of now I am 102 points shy of my guess. I doubt it will go up 102 point tomorrow but who knows, maybe Wacko Street will feel the new spirit of making America great again. Happy Thanksgiving !!!!


But the fruits of the spirit is love, joy, peace, patience, kindness, goodness,faithfulness, Gentleness and self control. Against such things there is no law. Galations 5: 22&23
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MAGA!!!

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Is it time to start buying muni bonds yet? I bought some 2 weeks ago and quickly found out I bough on a dead cat bounce. Is it too earl yet for Muni bonds?


But the fruits of the spirit is love, joy, peace, patience, kindness, goodness,faithfulness, Gentleness and self control. Against such things there is no law. Galations 5: 22&23
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Ok, another question. I have a stock I've had for 1 1/2 yrs. I get quarterly dividends . What dividends are qualified ? Are all the div. given in less than a yr qualified since I had it 1/5 yrs? I dont understand qualified div.


But the fruits of the spirit is love, joy, peace, patience, kindness, goodness,faithfulness, Gentleness and self control. Against such things there is no law. Galations 5: 22&23
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Sell, sell, sell. I have been reading the demise of the NYSE for years here. Now folks are hopeful with Trumps win...


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Originally Posted by ihookem
Is it time to start buying muni bonds yet? I bought some 2 weeks ago and quickly found out I bough on a dead cat bounce. Is it too earl yet for Muni bonds?


Now is not the time to buy munis. As interest rates rise 1% the price of a muni can drop 10%. The FED has already promised three more interest rate hikes in 2017.

An alternative to individual munis are these two CEFs - NID and MTT. They won't be adversely affected by rising interest rates.


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Originally Posted by ihookem
Ok, another question. I have a stock I've had for 1 1/2 yrs. I get quarterly dividends . What dividends are qualified ? Are all the div. given in less than a yr qualified since I had it 1/5 yrs? I dont understand qualified div.


Qualified means tax deferred as in an IRA or a 401(K). It is an IRS "qualified" investment account.


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Originally Posted by OrangeOkie
Originally Posted by ihookem
Ok, another question. I have a stock I've had for 1 1/2 yrs. I get quarterly dividends . What dividends are qualified ? Are all the div. given in less than a yr qualified since I had it 1/5 yrs? I dont understand qualified div.


Qualified means tax deferred as in an IRA or a 401(K). It is an IRS "qualified" investment account.


Not in this instance. There are qualified and non qualified dividends that you can receive from stocks outside of an IRA or any retirement plan. Qualified dividends receive a special reduced tax rate.

https://www.irs.gov/publications/p17/ch08.html

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I invested in powder and primers

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This is in a taxable account, I forgot to mention. Thanks, I read all over on the web but can't seem to find much of an answer from Yahoo, finance, Investopedia ETC. Also, if you invested in powder and primers the last few years, you gains are 0% as of now. Powder and primers most likely went down and most likely will continue to do so. SWHC ( Smith& Wesson ) stock went from 30 bucks to 21. Americans are tapped out on guns, primers and powder, although, nothing wrong with being stocked up , however , you won't see capital gains form them, just a good time using them.


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Originally Posted by ihookem
This is in a taxable account, I forgot to mention. Thanks, I read all over on the web but can't seem to find much of an answer from Yahoo, finance, Investopedia ETC. Also, if you invested in powder and primers the last few years, you gains are 0% as of now. Powder and primers most likely went down and most likely will continue to do so. SWHC ( Smith& Wesson ) stock went from 30 bucks to 21. Americans are tapped out on guns, primers and powder, although, nothing wrong with being stocked up , however , you won't see capital gains form them, just a good time using them.


The link above from the IRS will explain it.

https://www.irs.gov/publications/p17/ch08.html

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Longbob, It is no wonder we need a total revamp of the tax code. A bunch of dicck head made those laws. Why not just say, if ya have the stock 1 yr and 1 day, the div. are qualified. It seems 61 days before the 120 days before the ex div. date makes them qualified ( something like that ) It seems after 6 months or so , they are qualified. Ya need to be some politician to understand something that should be so simple.

Last edited by ihookem; 01/05/17.

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Originally Posted by cumminscowboy
. The problem is if a stock or mutual fund loses half its value it has to have a 100% increase to make up for the 50% decrease. that is how they cook the books and make something look better than it is.

contrary to that if you simply bought a house in m....

y area at fair market rate, it would be worth double its 2000 sales price. it would also be providing a healthy dividend. and example I ran was a 256% increase over that time.

I want to talk to someone who made a fortune in mutual funds because I don't believe they exist. real estate creates rich people.



I am not wealthy. I do, however, live in a region in which wealthy people abound.

The trend is that those who have BIG money either inherited it or own/run their own business. Its a pretty high correlation.

Those who are wealthy or comfortable (upper middle but not big money ) made most of their cake buying real estate and flipping up with the market.


Yes, everyone and their brother has funds and stocks, but real estate does seem to be the greater wealth creator.

The mid-late 90's were the anomoly, where idiots (truly, many idiots) made stupid money buyer ticker symbols for comanies they never heard of or even know anything about.


Originally Posted by Archerhunter

Quit giving in inch by inch then looking back to lament the mile behind ya and wonder how to preserve those few feet left in front of ya. They'll never stop until they're stopped. That's a fact.
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