Non tech ways of supporting the cruisers lifestyle?

[denverd0n]

Originally Posted by valhalla360

The idea that someone who has never played at landlord is going to buy a couple properties and then immediately run them remotely without everything going to poo in short order is where the idea falls down in my mind.

Having owned rental property in the past myself, I have to agree 100%. This is not something that you want to just toss all of your money into, without any previous experience, and hope that maybe it will work out for you.

Despite the possibility of very steady returns, there are also some extreme pitfalls that one must be aware of, and understand how to manage. Otherwise one can lose nearly everything in a virtual blink of the eye.

[john61ct]

Pure indexed/tracking funds with very low management fees.

VERY few full-time professional stock pickers consistently out-perform their results, and for those of us in the 99%, the commissions and management fees (how the pickers actually get rich) would eat up the difference anyway.

Excellent results require consistency and leaving it in long term, not trying to time the ups and downs.

And just like real estate, the time you really need the funds for spending money will usually be when you lose maximum profitability.

[FlyingScot]

NNN or triple net leases can be a more 'hands off' approach to real estate investing. Of course, single tenant NNN are popular but can be more expensive per unit than the residential side, thus you may only own one or two. Fewer properties = more risk.

If anyone can come up with a zero risk and good return investment that isn't a Ponzi scheme, I'm all ears (along with everyone else).

[barnakiel]

Originally Posted by FlyingScot

(...)

If anyone can come up with a zero risk and good return investment (...) I'm all ears (along with everyone else).

Ha ha ha Scot!

I am all ears too.

The only zero risk thing are US or Germany short term govt papers (say 1 yr.). And this applies only as long as one remembers this is a trick of the trade and zero risk simply stands for lowest available risk (the risk is still there, but no investment is found less risky).

It is often that lay men think risk is a risk while in finance it is nothing but a measure of our investment volatility, often via the proxy of price variation.

So, in other words, the only 'zero risk' that could exist would be a hedge of sorts - and only one on the same base instrument. And such thing would be immediately arbitraged out by any liquid and well informed market.

So, this is my recipe for you:

Issue EUR bonds in Germany (at 1%), the collected money invest in same maturity EUR bonds in Greece (at 7%). Now, if you are German government and assuming you can control Greek collapse, you got your zero risk, good return thing.

Oh my gods, I am this smart ;-)

Cheers,
b.

[john61ct]

Originally Posted by barnakiel

The only zero risk thing are US or Germany short term govt papers (say 1 yr.).

Germany, maybe.
https://www.bloomberg.com/news/artic...by-bond-market

[barnakiel]

It was a mistake by the researchers, and later a possibly intentional action by the finance people, to use the word 'risk' as it is commonly used today.

As for govt bonds: if one invests in USD nominated portfolio, their zero risk benchmark is still a US govt paper, even when someone stupid says something stupid. German bonds can be your zero risk only if you are invested in EUR instruments.

Do not ask me what if the portfolio is a split of both. Possibly you chose the lower risk as your zero risk, then adjust the other part of your portfolio for the extra CCY (exchange rate) risk. But the last thing is just my guess now.

And in Europe, should Marie Le Pen win on Sunday, our zero risk may actually fly out thru the roof. She may sound as unlikely as Trump did in his 2016 statement but that's exactly why she stands a chance.

France staying in the EUR is actually no good news either. Sort of like fixing up a bad design may be draining your time and energy away from the alternative of building something newer, better.

My takeaway: invest in skills that will sell no matter what. Something people actually need to live on day to day and cannot provide homebrew: food, water, bone marrow treatment, etc. You name it. If your skills are indispensable, you never suffer hunger.

Cheers,
b.

[barnakiel]

Which got me thinking which word could be actually deployed for the general use to possibly better match the idea.

The list is here:

https://www.powerthesaurus.org/volatility

I personally like: instability, followed by changeability and unpredictability.

Now if only someone could offer me an investment with acceptable return and zero unpredictability component in its price changeability ... ;-)

BTW They say the whole verbal mess of 'risk' got viral around 1960.

Love,
b.

[gulfcoastsailor]

This is second-hand information so take it with a grain of salt. Careful if you are outside the US. Some countries, (MX) prosecute foreigners performing work without a work visa. It can be as simple as changing oil for a dock-mate.