[Coronita]

Fearful"It is a sense of superiority. When you know better, and sit on the sidelines during an asset bubble,"

I made the best purchase deal of my life in San Diego in 2004.Many of my friends were still doing fine.It's called experience. The excuse you use actually only works for the last two years. What about the rest of the time? It's convenient to compare yourself to losers.I bet you are young. You are sitting in a really great position now. Your time will come.
Best wishes

 

I have to side with Rustico on this one. Everyone always has 20 20 vision in hindsight. I'm not sure what's worse, folks who blindly rush in, or folks who never take advantage of a situation   The former imho is too reckless, the latter are the forever skeptics at everything.

As far as sitting on the sidelines. The way I look at it…There are different reasons why a lot of folks are sitting on the sidelines. Some are sitting there because they made an active decision (sold home,  renting because they believed homes are coming down).Some just don't care if they rent. Others are sitting on the sideline because they were priced out.  I'm not going to judge the buy/rent decision or whose in what category. It just seems like there's a lot of confusion these days about folks that were proactively smart sideliners versus the coincidental sideliners. Just like there are those who sold homes and made money out of smart decision making process, and those who happen to have just done that out of coincidence (I'll admit, I'm more the latter).

What I don't understand is that for most folks that hope for a utter demise, I don't think they're really going to be in that much better shape then everyone else if the financial market completely collapses. Because if we really do have a financial crisis, unless you are sitting on millions in gold,

tough credit tightening + high mortgage rates + inflation/dollar devaluation  ==> home still not affordable.

And if you are sitting on gold millions, you're probably not one of the folks wishing for people's demise because there's really no point. 

 

 

[Coronita]

Though I'd agree that the media are usually are confused, you are incorrect. If you read the article there is a column on the right-hand side listing assets and liabilities. Net worth = Assets- liabilities. Assets were estimated at nearly 2.4 million Liability (primarily mortgage debt) was ~ 750K You could argue that their assets aren't worth as much as they estimate. But please get the facts straight before typing.

 

Exactly what I was saying. The couple can liquidate the vacation home. Wife is choosing not too, but instead cutting expenses elsewhere (medication). Also hubby going back to work…From a financial perspective they can exit just fine, but are choosing not too. That part is dumb, but this couple isn't exactly taking it up in the shorts.

Actually, my real question is why did this couple want to be in an article in Money? To demonstrate what not to do? Why do people like to opening disclose their net worth. It's one thing to post in blogs without really identifying who you are…But an article…

 

I generally find the Money articles pretty dumb. My favorite dumb articles are all the "Millionaire in the Making" ones. Every single article, the primary home's equity was part of computation. Yeah whatever. And who isn't a millionaire these days using that metric.

[Coronita]

Though I'd agree that the media are usually are confused, you are incorrect. If you read the article there is a column on the right-hand side listing assets and liabilities. Net worth = Assets- liabilities. Assets were estimated at nearly 2.4 million Liability (primarily mortgage debt) was ~ 750K You could argue that their assets aren't worth as much as they estimate. But please get the facts straight before typing.

 

Exactly what I was saying. The couple can liquidate the vacation home. Wife is choosing not too, but instead cutting expenses elsewhere (medication). Also hubby going back to work…From a financial perspective they can exit just fine, but are choosing not too. That part is dumb, but this couple isn't exactly taking it up in the shorts.

Actually, my real question is why did this couple want to be in an article in Money? To demonstrate what not to do? Why do people like to opening disclose their net worth. It's one thing to post in blogs without really identifying who you are…But an article…

 

I generally find the Money articles pretty dumb. My favorite dumb articles are all the "Millionaire in the Making" ones. Every single article, the primary home's equity was part of computation. Yeah whatever. And who isn't a millionaire these days using that metric.

[Coronita]

What i don’t understand is how the heck does a person spend $700-$800k for homes in temecula? I’m sure it’s a nice home but it’s soooo far away from central san diego….

Any thoughts?

[Coronita]

What i don’t understand is how the heck does a person spend $700-$800k for homes in temecula? I’m sure it’s a nice home but it’s soooo far away from central san diego….

Any thoughts?

[Coronita]

I hear about friends of friends that made a killing day-trading during the dot-com boom but I haven't heard of anyone making any money at it in the last few years. One of my buddies went to a seminar and dropped $3,000 for a computer program that tells him what/when to buy/sell. It was worthless! He might as well have have used a random number generator to make his picks. Total loss of 3K. I think he roughly broke even on his day trading – some gains, some losses but the software was a total loss.

 

I have found that most people that talk about making a killing day-trading only tell you when they are right, and never when they are wrong. Although most people think they are professionals, most are not. There are probably a handful of folks that could probably day trade that don't work for institutions, but for the rest of us, it's not going to work. Either (1) we get to emotional or (2) we are out gunned by the I-banks or both. Also, one reason I stopped trying to day trade…. Pain in the ass end of year tax calculations even for my cpa.. It just wasn't worth the time for me, because I didn't personally  do that well to really justify the pain in the ass things at the end of the year. If you think you're one of the handful of folks that can actually be successful, by all means try it.

[Coronita]

I hear about friends of friends that made a killing day-trading during the dot-com boom but I haven't heard of anyone making any money at it in the last few years. One of my buddies went to a seminar and dropped $3,000 for a computer program that tells him what/when to buy/sell. It was worthless! He might as well have have used a random number generator to make his picks. Total loss of 3K. I think he roughly broke even on his day trading – some gains, some losses but the software was a total loss.

 

I have found that most people that talk about making a killing day-trading only tell you when they are right, and never when they are wrong. Although most people think they are professionals, most are not. There are probably a handful of folks that could probably day trade that don't work for institutions, but for the rest of us, it's not going to work. Either (1) we get to emotional or (2) we are out gunned by the I-banks or both. Also, one reason I stopped trying to day trade…. Pain in the ass end of year tax calculations even for my cpa.. It just wasn't worth the time for me, because I didn't personally  do that well to really justify the pain in the ass things at the end of the year. If you think you're one of the handful of folks that can actually be successful, by all means try it.

[Coronita]

Hahahahaaaa !!! I hope nobody wonders where all those old Wal-Mart greeters come from !! They pissed away their retirement ! hahahahahaaa…now they will work until they die….fools

 

Wow, that's mean. Actually what are you doing shopping at Walmart to begin with 🙂 ? Second, this couple isn't in exactly dire financial shape. Read the article again. They are choosing to bleed because they don't want to sell their vacation home, which they should be able to pocket about $500k from.  

[Coronita]

Hahahahaaaa !!! I hope nobody wonders where all those old Wal-Mart greeters come from !! They pissed away their retirement ! hahahahahaaa…now they will work until they die….fools

 

Wow, that's mean. Actually what are you doing shopping at Walmart to begin with 🙂 ? Second, this couple isn't in exactly dire financial shape. Read the article again. They are choosing to bleed because they don't want to sell their vacation home, which they should be able to pocket about $500k from.  

[Coronita]

Bring out the champagne folks!!!!!! 🙂

[Coronita]

Bring out the champagne folks!!!!!! 🙂

[Coronita]

Actually, this couple isn't in that bad of shape. The solution for them is just to sell their vacation home. ($550kish profit, if I read correctly- discounted by $100k of what the article quoted) The issue is that the wife seems to be pigheaded and doesn't want to get rid of the vacation home, and rather stop taking his/her medication. That's imho stupid. Stop taking medicine, get a heart attack,die and not enjoy the vacation home anyway, or sell your vacation home and stop the financial bleeding. Seems like a no brainer to me. What I don't understand is that with there assets, why oh why would they assume such a big risk over just a measely $100k possible profit….Particularly at their age. at 60-61, you should be converting your assets into cash, not the other way around.

 

Possibly the worst advice yet:

The Daimlers have too much of their net worth tied up in real estate and low-growth cash investments, Cirino says. He suggests creating a more balanced portfolio by shifting most of the money left in their retirement account out of money markets and into stock and bond funds. The planner urges the couple to pay off their credit cards and start rebuilding their savings as soon as Steve starts working.

Uh..So at 60-61, they should "invest" in the stock market…Uh, yeah, that's the logical thing for them to do. I'm pretty bullish about the stock market these days, but I can take a hit if it happens because I got like 30 years ahead before I retire. These folks are already retired, and won’t have other income sources LEFT.

 

Another thing I don’t understand about the couple. They have credit card debt of $31k at probably some ridiculous apr (15-18%), and yet they bought investment property?????? Doesn’t make any sense to me. So stereotypical.

[Coronita]

Actually, this couple isn't in that bad of shape. The solution for them is just to sell their vacation home. ($550kish profit, if I read correctly- discounted by $100k of what the article quoted) The issue is that the wife seems to be pigheaded and doesn't want to get rid of the vacation home, and rather stop taking his/her medication. That's imho stupid. Stop taking medicine, get a heart attack,die and not enjoy the vacation home anyway, or sell your vacation home and stop the financial bleeding. Seems like a no brainer to me. What I don't understand is that with there assets, why oh why would they assume such a big risk over just a measely $100k possible profit….Particularly at their age. at 60-61, you should be converting your assets into cash, not the other way around.

 

Possibly the worst advice yet:

The Daimlers have too much of their net worth tied up in real estate and low-growth cash investments, Cirino says. He suggests creating a more balanced portfolio by shifting most of the money left in their retirement account out of money markets and into stock and bond funds. The planner urges the couple to pay off their credit cards and start rebuilding their savings as soon as Steve starts working.

Uh..So at 60-61, they should "invest" in the stock market…Uh, yeah, that's the logical thing for them to do. I'm pretty bullish about the stock market these days, but I can take a hit if it happens because I got like 30 years ahead before I retire. These folks are already retired, and won’t have other income sources LEFT.

 

Another thing I don’t understand about the couple. They have credit card debt of $31k at probably some ridiculous apr (15-18%), and yet they bought investment property?????? Doesn’t make any sense to me. So stereotypical.

[Coronita]

But I earned this money. I already paid taxes on this money. And I'll be damned if te government tells me what I can do with it upon my death. You have a very healthy sense of entitlement fat_lazy guy. No doubt you've been supporting yourself sincy you came out of the womb. You probably also never used a public highway and funded your very own personal police force and military. I bet you personally paid for private education while growing up also. Yep, no doubt you earned all that money and would have done just as well in the 1960's Soviet Union as you have done in the modern United States. In case you're not getting my point, every U.S. citizen benefits simply by being born in the U.S. The richest have benefitted the most and should pay the most in taxes. If you don't like the U.S. tax system, then renounce your citizenship and move someplace that will better respect your monies. I'm not about to shed a tear for the rich when the second-richest person in the United States pays a lower tax rate than his secretary.

 

Actually, I'm pretty happy with the way things are run here. It seems like it's all the folks that are disgruntled are the ones that bitch about how expensive everything is, how they want kick out the illegals, tax the upper income more…everything but  instead of getting off their own lazy asses and earn more. Imho, those people should renounce their citzenship and get the hell out of here. Your secretary analogy versus the second-richest person…Maybe the secretary should figure out something better for his/her career? Maybe he/she should have taken their education more seriously instead of worshiping Britney Spears….The problem that I see, is that a lot of folks don't give a hoot about education or self improvement. When an education system fails, they blame the system, and not themselves. And when their stuck in a bad job that doesn't pay enough, they blame the system and not themselves. And/or they attempt to live well above their means..I've seen it all. They folks clearly not entitled to anything that I worked hard for. 

[Coronita]

But I earned this money. I already paid taxes on this money. And I'll be damned if te government tells me what I can do with it upon my death. You have a very healthy sense of entitlement fat_lazy guy. No doubt you've been supporting yourself sincy you came out of the womb. You probably also never used a public highway and funded your very own personal police force and military. I bet you personally paid for private education while growing up also. Yep, no doubt you earned all that money and would have done just as well in the 1960's Soviet Union as you have done in the modern United States. In case you're not getting my point, every U.S. citizen benefits simply by being born in the U.S. The richest have benefitted the most and should pay the most in taxes. If you don't like the U.S. tax system, then renounce your citizenship and move someplace that will better respect your monies. I'm not about to shed a tear for the rich when the second-richest person in the United States pays a lower tax rate than his secretary.

 

Actually, I'm pretty happy with the way things are run here. It seems like it's all the folks that are disgruntled are the ones that bitch about how expensive everything is, how they want kick out the illegals, tax the upper income more…everything but  instead of getting off their own lazy asses and earn more. Imho, those people should renounce their citzenship and get the hell out of here. Your secretary analogy versus the second-richest person…Maybe the secretary should figure out something better for his/her career? Maybe he/she should have taken their education more seriously instead of worshiping Britney Spears….The problem that I see, is that a lot of folks don't give a hoot about education or self improvement. When an education system fails, they blame the system, and not themselves. And when their stuck in a bad job that doesn't pay enough, they blame the system and not themselves. And/or they attempt to live well above their means..I've seen it all. They folks clearly not entitled to anything that I worked hard for. 

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