Why Saving and Paying Down Debt Is Stupid
So You Want To Be Rich?
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Vagabond Investors expose why the most common financial advice is obsolete.
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He’s absolutely …
He’s absolutely right. A consequence of artificially low interest rates in the US is to discourage savings. If rates do not keep up with inflation, and since the 1960′s they have not, investors must put their money elsewhere. The Fer Reserve and securities dealers want it that way. Besides, the devalued currency makes repayment of US gov. debt cheaper. Fiat currency (which is really the most basic derivative instrument) is designed to devalue on command.
I’m paying off my …
I’m paying off my house as fast as I can! Why? If we lose our jobs then making house payments will be impossible. If we continue working, then I can do wealth building that much faster with no payments over our heads. If I pay the house off early, the interest I’m not paying will be a heck of alot more than what I can earn in investments right now. And not paying that interest to the bank will be a sure gain for me, not a risk!
Leverage. Fine, I …
Leverage. Fine, I get that. But understand that it multiplies your risk too. It’s irresponsible not to mention this.
land is precious …
land is precious but heavily taxed
best investment now is food ,guns, and gold or silver
dept is always bad …
dept is always bad
the best investment you make is when you buy somthing that does not loose value over time & do so without encuring dept . it is true that dept can be manipulated to your advantage but cases where there is no devaluation are rare .
afterall house pricing may go up but can also go down rapidly due to inerent risk in the house itself (it can go up in flames for example)
but the land it sits on is the real value !
(land is verry precious!)
these guys actually …
these guys actually have it right.
Rated 5 for “im …
Rated 5 for “im here to come a little bit on your face” — 44s
what does a public …
what does a public park got to do with the guy’s financials?
If this guy is rich …
If this guy is rich, then why is he doing a video in a public park?
Gwad forbid peeps …
Gwad forbid peeps stop investing in you and save their loot……you’d be selling apples.
There is insurance …
There is insurance for stocks and there’s insurance for real estate. Real estate provides the easiest example on good debt. While this is not a video about et allocation, you’re right, you have to have other et classes as well and you have to keep your debt/equity ratios under control. Too many people don’t respect the fundamentals and they experience what you said – their debt turns sour and they lose it. Personally I think it’s better to know your game better.
I’m not a real …
I’m not a real estate investor. Just a student of Mises and Dave Ramesy. You can be good at buying houses that are the best in the market, but if the market fails – you did well and still lost money. To further your stock analogy, buying houses with debt reminds me of buying stocks on margin. But I cannot figure out how you are hedging real estate risk unless you are referring to diversifying your house purchases.
An interesting …
An interesting point of view. How long have you been investing professionaly in properies? The way I see it is that the risk you issued is manageable. It’s like saying “You own a stock and now it goes down in value. You lose money.” While it’s true, it doesn’t always happen and you can hedge against that. You can hedge risk in real estate as well as with stocks. You have to be a better investor than buy houses that all turn out to be lemons. That just never happens if you’re good at what you do.
A renter stops …
A renter stops paying you and won’t leave the house. Too many other people rent out houses in your area. Now your house is “BAD DEBT”. Your methods do not account for risk.
I wish I’d known …
I wish I’d known this a couple of years ago. balls.
great advice, 1 ? …
great advice, 1 ? for ya, how do i get the house loan?
Doesn’t it look …
Doesn’t it look like deflation now?
Fair enough. Mr. …
Fair enough. Mr. Kiyosaki, who I greatly respect, probably discovered that by studying economics and economic history. But this information is available to anyone. The fact that I’m repeating it here doesn’t change the facts about inflation. Nor do I think it makes the facts his teachings but rather general knowledge that all people should have access to.
This guy is right …
This guy is right in all he says except that he should be mentioning that what he teaches are his teachings but of Robert Kiyosaki
Hey Jaakko, lots of …
Hey Jaakko, lots of my rich friends are investing in gold + silver, isn’t that the best hedge against the dollar at this time?
I’m naive on this …
I’m naive on this stuff, so correct me if I’m wrong. But isn’t leverage exactly what’s brought our economy to its knees? I mean, there are REAL ets, and then there’s all the paper that’s leveraged against those real ets. Problem now is that the ets were overvalued, and eventually lost value. So all that leverage built on top of the overvalued ets came crashing down. Please correct me if I’m wrong.
Sepero1, that’s …
Sepero1, that’s true. You can’t take one piece of financial education and expect to do well with just that. You have to know more. In fact, in my opinion, knowing the difference between an et and a liability is the most important thing. I want everybody watching this video to get the point that Sepero1 made. He’s 100% right.
This is true advice …
This is true advice. Unfortunately, most people would fail with this advice for two reasons. Either they don’t know the difference between ets and liabilities or, they are simply unable to control their desire for liabilities.
Despite the quite …
Despite the quite bitter sarcasm of your comment, I agree on your point. Most so called “experts” on the investment arena are salespeople. I hate to say this, but I had the opportunity to see the inside game of that for too many years. The good thing is that investing doesn’t have to be so hard. An average fellow (like me) can learn it if they want to. It may take more than a visit to an “experts” office to do that, though.
How to make money: …
How to make money: Find (stupid) people who have money and get them to “Invest” in your crackpot ideas. You can easily do this by Dressing Nice and Talking Slick and Fast with CONFIDENCE like you know what your talking about and most STUPID RICH PEOPLE will believe everything you say. Americans LOVE the idea of “Investing” their money to make money… It’s mostly a CON because most investments LOOSE more than they make.