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Old 10.11.2020, 10:01
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Don Molina Don Molina is offline
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Re: Should I buy a home or invest? I just reached 200k in savings and they are sittin

Not getting too specific about locations, eras, etc

In times before 2008, Real Estate "always went up", and so people thought of it as a no brainer

In times after 2008, stocks "always went up", and so people realised you can get 10% or more per year with a fully liquid investment, so why bother with anything else?

The matter of the fact remains that NOBODY KNOWS
People get paid a lot of freaking money to know, and they still can't know.

Stocks have had lost decades. 1965 to 1975, 1972 to 1982, and most recently 1999 to 2009. The notion of put it in an ETF and forget about it for 10 years, does not mean you will get a return.

Real estate is generally safer, but the fact remains that you are leveraged 4x. And it's not 4x on a small investment of crypto, or stocks, or something that you can go in for money you will not cry too much over, it's going 4x for your life savings.

So since you don't know, don't try to find easy solutions or heuristics, because there aren't any. Diversify, spread it around, and think outside the box. E.g. maybe getting new skills will increase your salary substantially, or it will open up new opportunities. In many cases, the best return on investment comes from investing on yourself, and that is more true the lower the salary you're getting.
Nothing is fool-proof to a sufficiently talented fool
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