SPY (S&P 500) is the blue line.
VINIX is the gold line.
QQQ (Nasdaq 100) is the candle sticks, and it crushed both of them, but it has higher risk.
Posted on 03/18/2022 10:09:23 PM PDT by aquila48
If you’re just tuning in, I’ve spent the last several columns explaining how everyday men and women can generate a seven- or eight-figure net worth.
Even if they’re starting from zero.
I’ve done it – and so have millions of other Americans.
Last year the Federal Reserve announced that U.S. household net worth hit a record $141.7 trillion.
Spectrem Group reported that approximately 1 in 8 American households has a net worth of more than $1 million.
How did they do it? The stories vary, but their methods are remarkably similar.
Most Americans with a net worth of a million dollars or more maximized their income, lived within their means, saved regularly, invested smartly and let their money compound for years – if not decades.
Over the last few columns, I’ve covered how to maximize your income, increase your savings and adopt the prosperity mindset of the world’s best investors.
But where should you put your money to work, in stocks, bonds, cash, gold, commodities, real estate?
You should spread your risk across all these asset classes.
But over the long haul, nothing has rewarded investors more than a diversified portfolio of common stocks.
That’s why The Oxford Club recommends them. The outperformance is not trivial.
Jeremy Siegel – a professor of finance at the Wharton School of the University of Pennsylvania and author of Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies – has done a thorough historical study of the returns of different types of assets over the past couple hundred years.
What he discovered is dramatic: $1 invested in gold in 1802 would have been worth $90.05 at the end of 2021. The same dollar invested in T-bills would have grown to $4,437. A $1 investment in bonds would have been worth $36,390.
And a single dollar invested in common stocks with dividends reinvested – drumroll, please – would have been worth over $45 million.
bingo
99 Jeep died at 103K. Put in rebuilt and got more miles out of it than from the original engine!
SPY (S&P 500) is the blue line.
VINIX is the gold line.
QQQ (Nasdaq 100) is the candle sticks, and it crushed both of them, but it has higher risk.
Divorce. One spouse and one house will build financial security in a lifetime. Take care of the car, but take even more care of the spouse!
“I agree!”
Great advice for financially irresponsible people. Not so much for those who pay their bills in full every month.
Annual income twenty pounds, annual expenditure nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
- Wilkins Micawber
I’ve always new - because I couldn’t afford two car payments. They cost more than it I’d bought used, but they had a warranty that would last through the payment periods.
Then I’d drive them into the ground. I’d not buy again until the repairs exceeded car payments.
These days I can afford to pay cash, so I don’t see myself buying new, again. I can buy used, because having a car unexpectedly die wouldn’t be a disaster.
Used car prices have inflated so much.
Those 3000 beaters I was gonna buy for my grandkids are 5000 to 6000 now.
Thanks Brandon /not
What you need to look at is when do you need the money?
Long term, small cap stocks have the highest returns, but they can be down for decades.
If you’re looking at retirement in 20 years, small cap makes sense.
If you’re looking at retirement in 5, you should move the money you plan on spending the next ten into something less volatile.
Used car prices have inflated so much.Cars last longer than they used to, so used cars have more value in them.
I agree but this happened in a 12 month period.
Amen.
What you are advocating is believing and investing in America. In the long term America will prosper.
If that is not the case, nothing else you can do is any better or even matters
That was usually the case, but not at the moment. I just sold a Z06 Vette. Prices are so high, I drove it for FREE for the last 6 years.
I'd rather have cars than cash in the current economic climate.
True, but we are in the midst of a strange time and space warp.
Yup - nobody really knows right now what to buy, sell or hold. I no longer "advise" any of my people anymore... I just tell them what I'm doing.
That is converting all my paper into tangibles. I want THINGS right now - not promises.
Very surprised how poorly gold performed.
Wonder how real estate fits in.
Gold at best is an inflation hedge. It’s not an entity that produces products that are sold at a profit.
When I was single I bought used - VERY used!
Looked for 100K plus road warriors.
Now married, her highness wants us to drive something that weighs the same at the end of the trip as at the start.
Do you miss me yet?
Gold does not perform.
It is the standard.
‘Money’ is the paper stuff that ‘performs’ or not.
Vaporware is what promised software that never appeared was called.
Vaporcoin is slowing working it’s way into the lexicon.
https://coinranking.com/coin/jWkH9lF7It8JJ+vaporcoin-vapor
I know a guy who always had six broken-down cars in his yard, at least two of which usually worked.
He paid almost nothing for his cars, but he had the skills, tools, time and space to work on them.
I didn’t.
Once you have sufficient financial cushion to cope with the loss of a car that warranty and insurance won’t reimburse you for, the rules change.
Being poor is expensive. This is only one example of it.
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