Getting rich is largely about luck – shame the wealthy don’t want to hear it

Apr 2014
38,699
24,981
Maryland
I am not saying it is wrong, I am saying you at greater risk of loss, than I am.. I am saying I prefer growth with less risk.
True, but we have made so much more money because of the risks.....but like I said I would probably be very happy where you invest because I am not a risk taker but I am married to one and he sure has done well. Often when the stock market goes down so this property value but they both come back up. As I said we have gone through stock market crashes and my husband will always point out that it will come back and he is always been right
 

TNVolunteer73

Former Staff
Nov 2014
33,633
8,723
TN
True, but we have made so much more money because of the risks.....but like I said I would probably be very happy where you invest because I am not a risk taker but I am married to one and he sure has done well. Often when the stock market goes down so this property value but they both come back up. As I said we have gone through stock market crashes and my husband will always point out that it will come back and he is always been right

did you.. if you got 10% return on your market investments, you have to subtract the 2.75% from that 10% return you only got 7.25% Return.

you made money, nothing wrong with that. I just like having the 100% return.
 
Jun 2013
18,494
16,339
Here
Getting rich has nothing to do with luck. too many people believe you become rich overnight (this is possible but those that do usually end up broke again within a decade).

how to get rich

1. Spend less than you make.
2. Save money (for example if you save 166.67 dollars/month from age 20 to age 55 you will have ~2,000,000 dollars in cash). This does not include home equity, equity in other assets.

real simple getting rich is like cooking with a crockpot not a microwave. (you also learn fiscal habits that keeps you from blowing the money.


I got an inheritance in 1972 of 4500 dollars, I wanted a Mercedes car.. instead I put it into a mutual fund.

that car today is worth about 2000 if I in good condition. That mutual fund is around 750,000 TODAY. I took some out and purchased a Ram 2500 truck and 5th wheel camper a 4 years ago.
Nothing to do with luck? Who are you kidding? How many people do you know that got a million dollar loan from their daddy to help them start off in life? Stop the BS!

I know lots of people who work hard and save, but can't get ahead, because life tends to happen and it sends them backwards. I know other people who fell into situations that led to their making a lot of money, in some cases by working much less than those who work very hard, but never fell into similar situations. In addition, once someone needs to hire another person, their "wealth" or earnings are no longer ONLY the result of their work, but of their work and someone else's. When a mutual fund invests in something, it is not investing in an inanimate thing, it is investing in human action and OTHER working people, with the hope and level of confidence that their work will lead to productive earnings and either a dividend, growth in value or both, for those invested. They are MUTUAL in more than one way. Aside from the mutuality of other investors (a fund) investments work mutually for those that need the capital to start or grow their business and those who earn a return for their investment. That's NOT a one way thing. If ever you take or took out a loan, it was a mutual arrangement, but you were able to enjoy the use of whatever you borrowed the money for, while given time to repay an amount you didn't have in your pocket to purchase what you enjoyed the use of. You pay/paid a price for the use of someone else's money, but get to do something like live in a home or drive a vehicle you could not otherwise afford, without the time needed to save the money to pay cash.

Many, many, many people fully understand and are grateful for all that contributed to their great wealth. Some, think the world, begins and ends with themselves. The latter is called vanity and it often accompanies greed. It has been written about by many, including Charles Dickens in the well-known story of "A Christmas Carol".

Unfortunately, history also tells a story of how and why money came to be thought of as the root of all evil and repeated records of revolutions that evolved from the failure of the greedy to check their greed and pay the price of an uprising against it. Almost invariably, the wealthy become the losers when they refuse to note, then mitigate income gaps voluntarily. Greed and gluttony, may include gray areas where wealth can be considered "relative", but there is a point at which it becomes very difficult, if not impossible to claim one needs the obscene amounts of wealth they accumulate, in order to survive, much less live in the lap of luxury. There is no natural law of survival that says one needs a $10 million paycheck to survive, much less dictates anyone needs to buy and own a multi-million dollar residence or multiple such residences. Attempts to justify or defend such things not only fools no one, it defies much of what those who claim to be Christian, claim to believe, when it comes to obsession about materialism.

Also, people of lower income levels tend to give to charities and others, more, relative to their incomes, than the very wealthy. There are also plenty of wealthy people who are not just grateful for all the factors and people that contributed to their wealth, but pass much of their wealth on to others, while living relatively modest lifestyles.
 
Last edited:
Nov 2013
11,601
11,605
NY
did you.. if you got 10% return on your market investments, you have to subtract the 2.75% from that 10% return you only got 7.25% Return.

you made money, nothing wrong with that. I just like having the 100% return.
Gee.. how difficult is it to explain this so you understand the premise?

I have 150,000 $ cash. I want to buy a house for 150,000$.

Your approach: I pay the house in cash.
My return on investment will be the increase of value my real estate makes over time.

My approach: I borrow 100,000$ as loan at 2.74% interest.
100,000$ of my cash I invest. 10 % return on investment, for a loan paid 2.75% interest. Net return is 7.25 % , as you said.

My return on investment is the increase of value my real estate makes over time.
PLUS 7.25 % gained interest per year on the 100k USD investment.
 
  • Like
Reactions: 1 person

TNVolunteer73

Former Staff
Nov 2014
33,633
8,723
TN
Gee.. how difficult is it to explain this so you understand the premise?


I have 150,000 $ cash. I want to buy a house for 150,000$.

Your approach: I pay the house in cash.
My return on investment will be the increase of value my real estate makes over time.

My approach: I borrow 100,000$ as loan at 2.74% interest.
100,000$ of my cash I invest. 10 % return on investment, for a loan paid 2.75% interest. Net return is 7.25 % , as you said.

My return on investment is the increase of value my real estate makes over time.
PLUS 7.25 % gained interest per year on the 100k USD investment.

Yes, you have 150,000 in cash, you buy a house for cash, you just made a real estate investment of 150,000

You yourself said that your house is worth $100,000 more than you purchased it for, so the lifetime return on your real estate investment was 67%

so only thing you did was put one risk free investment that has given you a collective 67% return. Turned it into a 2.75% liability, to put the money into another account.

How much do you pay on a mortgage over a lifetime of the mortgage.. (we are using 150,000 as the figure in our examples)

30 year you are paying 675/month to pay off the loan. you pay 243,000 in TOTAL to the mortgage company. that is a 87,000 you lose in that deal.
 
Jul 2013
40,888
27,001
On a happy trail
My middle brother's father-in-law. Worth millions, and the most miserable son of a bitch I've ever met. Absolutely obsessed with money...beating people out of a dollar is what he thinks life is all about. Won't get into all of it, but I came very close to killing him a year ago next month due to the cheating scumbag trying to weasel out of paying me for about six weeks and $30K worth of work on his two Suwannee River houses. Had my hand on the grip of my little .380 S&W. Bad bad BAD scene, but I regained my composure, said "better sleep with one eye open the rest of your miserable life", and drove away...literally shaking with rage. My SIL and his other daughter told him they'd never speak to him again if he didn't settle his account. He ultimately did, but that rift will never heal.
Trump screwed over the company that my cousin worked for, putting him out of a job during the Bush recession when it went belly up. Then he lost his house.

Now he gets to see him everyday on the TV. I doubt the rift will ever heal.
 
  • Like
Reactions: 1 person
Apr 2014
38,699
24,981
Maryland
Yes, you have 150,000 in cash, you buy a house for cash, you just made a real estate investment of 150,000

You yourself said that your house is worth $100,000 more than you purchased it for, so the lifetime return on your real estate investment was 67%

so only thing you did was put one risk free investment that has given you a collective 67% return. Turned it into a 2.75% liability, to put the money into another account.

How much do you pay on a mortgage over a lifetime of the mortgage.. (we are using 150,000 as the figure in our examples)

30 year you are paying 675/month to pay off the loan. you pay 243,000 in TOTAL to the mortgage company. that is a 87,000 you lose in that deal.
We have made a lot more in investing over the 16 years we have lived here. It sounds like you are talking about the entire time you lived in your house rather than annually. Whether you have a mortgage or not, will still get the same profit. If my house appreciates $50,000.. I will still see that profit . Plus I will have made more than the 3% I pay in my mortgage and I have that money to bring in a lot more than 3%. One is riskier, no doubt, but my husband has been right in our case.
 
Jul 2013
40,888
27,001
On a happy trail
Yes, you have 150,000 in cash, you buy a house for cash, you just made a real estate investment of 150,000

You yourself said that your house is worth $100,000 more than you purchased it for, so the lifetime return on your real estate investment was 67%

so only thing you did was put one risk free investment that has given you a collective 67% return. Turned it into a 2.75% liability, to put the money into another account.

How much do you pay on a mortgage over a lifetime of the mortgage.. (we are using 150,000 as the figure in our examples)

30 year you are paying 675/month to pay off the loan. you pay 243,000 in TOTAL to the mortgage company. that is a 87,000 you lose in that deal.
I guess in your world there no such thing as title insurance, escrow fees and property taxes.
 
Jun 2013
18,494
16,339
Here
Nothing "free" about mutual funds.

Mutual Funds: The Costs

If one can earn 5% on their own money and pay 8% for a loan, they are effectively paying 3% for the loan and in the end, have both the money they otherwise would have put into their home, PLUS the equity put into the home and use and enjoyment of it. over the period of the loan. If one purchases an auto with an interest free loan and maximizes the period of the loan, the money they would have otherwise put down as a down payment, can be earning money over that period of time, thus in that case, money is made by using other people's money.

Yes, there are costs, but nothing is for free, unless one does it all by themselves and even then, there is a cost, in time and in some cases, physical and mental wear and tear.

If everyone did everything on their own, if that were even possible, there would be no commerce and nothing to call an "economy", because no one, would NEED anyone else, to trade with, since all would be 100% self-sufficient. Unless there is a necessity to do everything by one's self, which in itself is limited and limiting to what one can do on their own, working to be an isolationist and 100% self-sufficient seems pointless, as in trade and commerce, people can specialize in what they do best and trade that skill and products from it, with others and enjoy their skills and products, often things that other people can do and have talents for, that expand the richness of variety and life. Not sure why some people are so averse to the idea of living in a society where there is give and take as well as an exchange and sharing of ideas and talents.

I know of very few, if any, companies or businesses, that do NOT depend, somewhere, on someone else's delivery, of parts, ingredients, materials, to them as well as delivery of their final products or services which use tools that are often manufactured and delivered to them, by OTHERS.

Even mountain men and hermits depend(ed) upon others to trade with or to scavenge from.
 
Last edited:
  • Like
Reactions: 1 person