prison/con.net
Member
- May 21, 2015
- 869
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if you make 10% on an investment (quite unusual and difficult, over decades, without active involvement and a lot of knowledge) and get taxed say, 35%, counting the 15% for "self employed SS", you really only made 6.5%. Since I started watching inflation in 1970, it has averaged 5% per year. So your "10%" investment REALLY only paid you 1.5%, which aint even CLOSE to being worth risking your money. I won't even look at something that pays an average of less than 20% per year. Because i only clear 13%, really, on a 20% annual return and then I lose 5% to inflation, so 20% really means just 8%, which is quite marginal if i have to tie up much in the way of my money. Fortunately, i found a way to tie up very little money, yet make major returns. If I manage a building myself for the first 6 months, I can usually make 100% on my investment, after paying myself. the national average salary (ie, $25 an hour). I have to so manage the place, for at least that long, so that I"ll know if my assigned manager (thereafter) is messing up or cheating me. Once I start paying a manager, and having property=managment companies CHECK on my properties/managers, my ROI drops to about 25% per year. But it frees me up to not live in that area (year round). I do still have to do inspections and audits of my own, now and then, to keep everyone honest, of course.
