Comments on: More Risk, More Reward? http://thefinancebuff.com/2007/01/more-risk-more-reward.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Patrick http://thefinancebuff.com/2007/01/more-risk-more-reward.html/comment-page-1#comment-1944 Patrick Fri, 24 Apr 2009 17:44:23 +0000 http://blog.thefinancebuff.com/?p=58#comment-1944 This is a financial catastrophy of late likely if they did not change their approach fast after the artical - I am going to gues sthey had not since 50k cash was sitting in a low interest account because they "did not have time". That house is surely under water and was wa beyond reasonable expectations even for a 134, k gross income between the two. With the equity vanished in their home and aparently other realestate investments the loses there surely exceed anything they can hope to recover for years. Not as many people taking tennis lessons of late too I would bet. Also there is no planning on children in lofty saveings expectations not sure if they intend to have children. Nearly all of these singular stocks not only peaked shortly after the aritical but were some of the biggest losers and definitely not diversified amungst any other sectors to start and heavily in what turned out to be the worst. I would bet the "additional 30k" that they miraculously were going to pull from thin air and invest never happened. If 50k is only 8 months expenses then they were a bit beyond anything reasonable for their 134 gross income + 20% saveings. This is a financial catastrophy of late likely if they did not change their approach fast after the artical – I am going to gues sthey had not since 50k cash was sitting in a low interest account because they "did not have time". That house is surely under water and was wa beyond reasonable expectations even for a 134, k gross income between the two. With the equity vanished in their home and aparently other realestate investments the loses there surely exceed anything they can hope to recover for years. Not as many people taking tennis lessons of late too I would bet. Also there is no planning on children in lofty saveings expectations not sure if they intend to have children. Nearly all of these singular stocks not only peaked shortly after the aritical but were some of the biggest losers and definitely not diversified amungst any other sectors to start and heavily in what turned out to be the worst. I would bet the "additional 30k" that they miraculously were going to pull from thin air and invest never happened. If 50k is only 8 months expenses then they were a bit beyond anything reasonable for their 134 gross income + 20% saveings.

]]> By: Seamus http://thefinancebuff.com/2007/01/more-risk-more-reward.html/comment-page-1#comment-1188 Seamus Sun, 30 Nov 2008 02:35:35 +0000 http://blog.thefinancebuff.com/?p=58#comment-1188 I'd love to see their portfolio today! Just looking at a few of the stocks and funds listed and they all seem to be very close to their 2005/6 value. Not to mention how their real estate portfolio would be looking. I'd love to see their portfolio today! Just looking at a few of the stocks and funds listed and they all seem to be very close to their 2005/6 value. Not to mention how their real estate portfolio would be looking.

]]> By: Anonymous http://thefinancebuff.com/2007/01/more-risk-more-reward.html/comment-page-1#comment-39 Anonymous Wed, 17 Jan 2007 18:35:00 +0000 http://blog.thefinancebuff.com/?p=58#comment-39 More important is the attitude of less now, more later. And I believe this is key to how and why this couple will succeed. My husband and I married at 24 & 25, and had the same attitude. We worked 12 plus hour days often 7 days a week for years. We had our ups and downs, almost lost it all twice. We've hit the goal that this young couple has set in our mid 40's and hope to retire in the next 2 years. While our business ventures are slightly different, the attitude was the same. We went several years with one car and packed lunches when there was money in the bank. Keep your eye focused on your goals and keep going! More important is the attitude of less now, more later. And I believe this is key to how and why this couple will succeed. My husband and I married at 24 & 25, and had the same attitude. We worked 12 plus hour days often 7 days a week for years. We had our ups and downs, almost lost it all twice. We've hit the goal that this young couple has set in our mid 40's and hope to retire in the next 2 years. While our business ventures are slightly different, the attitude was the same. We went several years with one car and packed lunches when there was money in the bank. Keep your eye focused on your goals and keep going!

]]> By: TFB http://thefinancebuff.com/2007/01/more-risk-more-reward.html/comment-page-1#comment-38 TFB Wed, 17 Jan 2007 14:31:00 +0000 http://blog.thefinancebuff.com/?p=58#comment-38 Agreed. Just like a silicon valley stock option millionaire in 1999, I'm afraid this couple will push their luck too far. Unfortunately real estate is more difficult to unload than stock options, but they probably think it's OK to play with "house money" (pun intended). Agreed. Just like a silicon valley stock option millionaire in 1999, I'm afraid this couple will push their luck too far. Unfortunately real estate is more difficult to unload than stock options, but they probably think it's OK to play with "house money" (pun intended).

]]> By: samerwriter http://thefinancebuff.com/2007/01/more-risk-more-reward.html/comment-page-1#comment-37 samerwriter Tue, 16 Jan 2007 17:27:00 +0000 http://blog.thefinancebuff.com/?p=58#comment-37 I read that article, and it really bugged me.<br/><br/>I agree that the couple is off to a great start. But calculating the net worth of someone with significant real estate investments at the peak of the real estate bubble is like calculating the net worth of a silicon valley stock option millionaire in 1999, and claiming that "planning" had something to do with it.<br/><br/>We all rely on luck to some extent, but if they're going to profile people who lack diversification in their investments and are doing well, they should also mention that many people who lack diversification do very poorly. Like people who put all their money in pork belly futures or precious metals. Or put all their money in real estate a couple years ago, rather than 10 years ago.<br/><br/>And then they should point out that there, but for the grace of a higher power, go Luke and Hannah Wickham. I read that article, and it really bugged me.

I agree that the couple is off to a great start. But calculating the net worth of someone with significant real estate investments at the peak of the real estate bubble is like calculating the net worth of a silicon valley stock option millionaire in 1999, and claiming that "planning" had something to do with it.

We all rely on luck to some extent, but if they're going to profile people who lack diversification in their investments and are doing well, they should also mention that many people who lack diversification do very poorly. Like people who put all their money in pork belly futures or precious metals. Or put all their money in real estate a couple years ago, rather than 10 years ago.

And then they should point out that there, but for the grace of a higher power, go Luke and Hannah Wickham.

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