Stocks are soaring, but most Black people are missing out

[dora_da_destroyer]

I've been scared of the stock market ever since I got out of college in the late 2000s and everybody was fukked up

And those people who, at least those who were in index funds, rode it out are eating. Had you invested in the bottom of the stock market in 09 with 10k, you’d have 50k now if you rode the S&P and 89k if you rode the nasdaq. Investing in index funds is pretty safe unless you’re less than 5 yrs from retirement, then you want even safer securities.


And this article is true, my parents know the real estate game, they’re how I was able to get my building. Now that I’m trying to sell it, my parents are like no, what other property are you going to buy? Told them I’m just gonna invest the proceeds until I decide if I want to be a landlord again, they acted like that was the craziest shyt because they never learned much about investing and the one foray they had into a brokerage account, they lost money. Investing in stocks can be more volatile, but the return in addition to not having tenants and the reinvestment you have to do into your property - stocks > real estate (well when you own in a hard to do business high tax state like CA)

 

[HonoredOne]

Is it too late to invest?

 

[Panther]

Is it too late to invest?

its never too late breh

 

[Panther]

In a lot of cases the education and generational history just aren't there for black people

In talking about stocks with people around me, i gotten a lot of fear losing money, or like the article said nikkas rather buy a house cause they can touch it

 

[ogc163]

not trying to get burnt

You Real Estate devotees don't have the numbers on your side. #RENT4EVER gang.

 

[Conan]

You Real Estate devotees don't have the numbers on your side. #RENT4EVER gang.

They really don't!

And it's not a purely financial decision (there is some sentimental value in "owning" your house") but strictly looking at the numbers, rent + invest the downpayment + money that would be spent on interest, maintenance, insurance > buying a house and waiting for it's appreciation

 

[Serious]

Is it too late to invest?

Get your ass in the boiler room thread and ask questions. It’s the coil’s diary of the stock market.

 

[Serious]

You Real Estate devotees don't have the numbers on your side. #RENT4EVER gang.

Owning a house is like a 5-7 return on your income and it’s even worse if you’re black meanwhile I can probably average a 25-30% return in the stock market. I’m sitting at 45-50% roi right now.

 

[Kyle C. Barker]

To be fair most Americans are missing out

We find that 17 million American households owned a brokerage account in 2013, down from 19 million in 2001. Most households with a brokerage account also owned an Individual Retirement Account (IRA).

That's 17 out of 123 million households in the US


https://www.google.com/url?sa=t&sou...FjAEegQICxAE&usg=AOvVaw2G5gm7eZiqOVG1CjcecmLQ

 

[Kyle C. Barker]

They really don't!

And it's not a purely financial decision (there is some sentimental value in "owning" your house") but strictly looking at the numbers, rent + invest the downpayment + money that would be spent on interest, maintenance, insurance > buying a house and waiting for it's appreciation

The coli ain't gonna like that answer.

For me right now there's so much dead money that isn't even going towards my equity.

I'm talking a PMI, the $14k transaction fee, and maintenance (such as my air conditioner breaking to the tune of $6000).

So even if my property goes up by $100k in 10 years I have to subtract whatever I paid in maintenance, and transaction costs to determine the real profit. Right now I'd have to subtract $20k from that $100k. You could make the case that I would have to subtract the PMI I've paid as well since it doesn't help to pay off my loan.

$20k in apple 10 years ago would be worth $240k now.

I'd be richer just by renting


Now, to keep it fair I do enjoy my home as a lifestyle purchase. I rented a townhouse before I came to my house and I had some shytty neighbors who were also renters. I live around other homeowners so they treat the neighborhood better in general.

 

[88m3]

You Real Estate devotees don't have the numbers on your side. #RENT4EVER gang.

Can only speak for myself but the market is hot where I am, and even with the virus I had a petty strong year and plan on expanding

I've got equity, rental income, and land. I can have a roof over my head if push ever came to shove, a place to store my cars, and all my extra stuff. Not going to get that from the market.




Don't get me wrong, I rent in the city, I've got a panoramic view of the the Manhattan skyline, and all of the bridges.

Real estate>stock market from an income and tax perspective it's a no brainer.

 

[ogc163]

Can only speak for myself but the market is hot where I am, and even with the virus I had a petty strong year and plan on expanding

I've got equity, rental income, and land. I can have a roof over my head if push ever came to shove, a place to store my cars, and all my extra stuff. Not going to get that from the market.




Don't get me wrong, I rent in the city, I've got a panoramic view of the the Manhattan skyline, and all of the bridges.

Real estate>stock market from an income and tax perspective it's a no brainer.

Where's the data on this?

 

[Conan]

Where's the data on this?

Yeah I don't believe that statement made, I wanna see the receipts on it.

The coli ain't gonna like that answer.

For me right now there's so much dead money that isn't even going towards my equity.

I'm talking a PMI, the $14k transaction fee, and maintenance (such as my air conditioner breaking to the tune of $6000).

So even if my property goes up by $100k in 10 years I have to subtract whatever I paid in maintenance, and transaction costs to determine the real profit. Right now I'd have to subtract $20k from that $100k. You could make the case that I would have to subtract the PMI I've paid as well since it doesn't help to pay off my loan.

$20k in apple 10 years ago would be worth $240k now.

I'd be richer just by renting

Every excel workbook I've created to evaluate the rent vs buy equation tilts towards renting. This changes somewhat if you're looking to buy a multifamily apartment, which is the best of both worlds, but you're fukked if your tenants can't pay in an economic crisis, or you have excessive vacancies. I'd rather just shift my funds into an ETF.

Now, to keep it fair I do enjoy my home as a lifestyle purchase. I rented a townhouse before I came to my house and I had some shytty neighbors who were also renters. I live around other homeowners so they treat the neighborhood better in general.

Very valid reason for purchasing a home.

 

[88m3]

Where's the data on this?

I can see what I can come up with but to create a revenue stream similar to what I have I would need need 6-8 million dollars worth of stock and there wouldn't be any significant deductions on that income so there would be a significant tax bill. I've achieved that at a lower cost basis and practically no state/federal taxes are on my earnings.

 

[Conan]

I can see what I can come up with but to create a revenue stream similar to what I have I would need need 6-8 million dollars worth of stock and there wouldn't be any significant deductions on that income so there would be a significant tax bill. I've achieved that at a lower cost basis and practically no state/federal taxes are on my earnings.

Interested in this.