Well let’s see CAR…Let’s see how a kid’s attitude if they took your advice literally….
1. Don’t ever buy a house as an investment.
2. Don’t invest in the stock market/bond market, because it’s all gambling.
3. Don’t go to college, or if you do go, don’t major in anything technical, because we’ll all be replaced by robots or outsourced.
4. Don’t speculate and take risks on opportunity
Seems to me the only thing left for a said kid with your viewpoint would be to work for the government and hope for a guarantee.. If that’s the sort of mentality you think would be productive, have fun… It exactly the sorry ass, victim mentality that I would not want to have any part of.[/quote]
1. I never said don’t buy a house as an investment. My family was heavily invested in real estate, and Mr. CAR and I have made multiple offers on rentals over the past few years, but we won’t overbid or accept a low rate of return just because that’s the best thing around (for now) when the Fed is keeping rates at these low levels.
I do have a problem with everyone wanting to become a landlord because I think that everyone should have the opportunity to own their own home — it’s better for neighborhoods, and better for their retirements. IMHO, investors should not have access to low-interest, government-subsidized/guaranteed loans, nor should they reap the benefits of things like Prop 13 (and we stand to benefit greatly from it, so have no problem advocating for a position that hurts us if it’s the right thing to do). That’s a personal issue that stems from my socio-political beliefs, it doesn’t mean that rentals are bad investments.
2. Never said people shouldn’t invest in stocks or bonds. I’ve been heavily invested in both over the years. As with #1, I think that there is a difference between “productive” investing and speculation. Buying and selling existing assets isn’t productive, but investing in small businesses, making direct loans to businesses, etc. is productive. Again, that’s just a personal opinion, but I’ve never said that people should not invest in stocks or bonds.
3. Never said people shouldn’t go to college or major in technical degrees. My whole family went to college, and my father and FIL were both professors. I did say that people should avoid student loans whenever possible, and that they should seriously consider the JC->state university->grad school route in order to save a significant amount of money. Yes, we all need to seriously think about what it is we/our kids want from a college degree, and we have to weigh the costs and benefits of various degrees.
4. I’m all for taking calculated and intelligent risks (that’s how all my personal money was made), but too many people think this means that they should gamble with leverage. Sure, sometimes one can mint money, but most of the time, it will end in disaster. And when this gambling means that everyone else will have to pay for it down the road, then I have a much bigger problem with it. Yes, that includes the gambling done by pension funds.
