Stacking physical cash

[Atlas Shrugged]

One area of my investments that I have given a great deal of attention to has been income producing assets that can track fairly well with inflation. After all, in retirement, we don't need so much a pile of cash to live off of, as we need a steady income stream. The two are not the same.

PG, while I agree with you in spirit, having had two rental properties I can safely say that investors have been burned on real estate in the following ways:

- Negative equity where the cost or buying and repairing the property is less than its market value.

- There is a reduction in property values generally due to prices going up too much when borrowed money was more freely available prior to the credit crunch and they are now retracting.

- Cost of maintenance and other unexpected repairs.

- Tenants trashing the rental property.

- Cost of eviction.

- Interest rates going up pushing up costs of borrowing caused by banks trying to rebuild their balance sheets because they have bad debts associated with real estate.

- Over leveraging where banks call in loans and put real estate businesses into liquidation to recover some capital.

- Unavailability of capital to complete projects.

- Increases in property taxes by governments scrambling for cash to fund bail out plans caused by unavailability of funds due to the financial system crises.

- Rent controls.

- Planning permission delays and rejections.

- Falling rents due to oversupply. Entire estates have been destroyed in some areas due to oversupply. There can also be periods when the property can not be rented due to oversupply.

- Exorbitant property management fees being charged on apartment complexes.

Also, other "passive" income, like blogging, rental businesses, etc all require work. Building a small business nowadays is difficult due to regulations, taxes and employee issues.

There is no free lunch. I am glad that you, at 70+- years old have been able to be successful. For all the Jeff Bezos and Steve Jobs of the world (and Plantguys), there are hundreds of failures. And they are not ALL from being lazy, uninformed or stupid.

Quit making it sound like getting into passive income is a snap. Also, be more specific about it if you really want to help people here out. What were some of your greatest failures? What do you need to be a success? What are your top five (specifically) passive income ideas?

Atlas.

[Atlas Shrugged]

Precisely the whole thing is a giant ponzi scheme on the verge of blowing up. It's like a stick of TNT waiting for a match. Anyone selling physical assets is going to loose their shirt.

You can't loose your shirt when you take profits.

I doubt that many people will refuse to take my FRNs, even if it does collapse, it will take a couple of days to weeks for the realization to occur.

Plus, you don't have to sell ALL your PM's. Since my DCA is around 17, I have a nice profit thus far.

[woodsgirl]

I ave the same concerns re rentals. Been there done that. TPG has mentioned heavy equipment, but here, contractors Are going bust. I am wondering what else there could be to invest in?

[Atlas Shrugged]

I ave the same concerns re rentals. Been there done that. TPG has mentioned heavy equipment, but here, contractors Are going bust. I am wondering what else there could be to invest in?

I like PG, but his answers are vague at best. I am all for hard work, but sometimes he makes it sound like were are all imbeciles because we did not have the same fortunate outcomes that he had over the years.

I have run a business, had rentals, invested in the market, bought physical, worked for a fortune 500 company, been in the military...

None of it is easy.

I am usually very good at seeing the big picture, but monetization of an idea is much different than identifying the current trend.

Also, I am usually out too early. Most of the time (like the internet bubble) I am WAY too early. I thought the SM was insane in 1997. I thought the RE market was insane in 2003.

I think RE still has about 10-15 years before it becomes a viable investment again.

Oh well, life is still good everyday.

PS: He will not answer my question above specifically. He never does.

[DaRkNeSsIsRiSiNg]

its better to have 99.99% of your wealth in PMs and .01% in toilet paper (for paying bills and food, nothing else)

if the toilet paper is "strong" right now, according to a member on here, then why are prices of food rising, pretty much every 2-3 months??? a "strong" dollar shouldnt be doing this.... right??????

if you hold toilet paper, you lose your wealth, but holding PMs, it protects it..

[DaRkNeSsIsRiSiNg]

QE's have tended to make the market rise. At one point over 2000 points. Having cash on hand would have enabled one to participate in that. There has been a lot of negativity toward FRNs in these forums. But they definitely have a place in your financial toolbox and there are times when FRN's are the best tool for the job. Another example would be that when silver bottoms out, having the cash on hand to load up would be very advantageous.

and when may that be? do you have a crystal ball?

lets say you sell at 30, and hope for 20. 20 doesnt happen, and the next day, silver shoots up to 40 and keep climbing and climbing in the three digits.. what will you do then? create a time machine to go back? what you are doing is PURE gamble.

real investors buy low and buy at every level until the bull run is over, and thats when you sell. selling is pointless right now, unless you have a time machine and can predict the future.

[EO 11110]

and when may that be? do you have a crystal ball?

lets say you sell at 30, and hope for 20. 20 doesnt happen, and the next day, silver shoots up to 40 and keep climbing and climbing in the three digits.. what will you do then? create a time machine to go back? what you are doing is PURE gamble.

real investors buy low and buy at every level until the bull run is over, and thats when you sell. selling is pointless right now, unless you have a time machine and can predict the future.

guess i'm not a real investor

i buy more as it falls and then stop buying when it starts making its run upward

what am i? a rotsevni?




(investor backward)

[Silver Finger]

Somehow this thread reminds me of this:

stacking_cash.jpg

[HardlyPeeved]

A few weeks ago...is this considered stacking physical cash ?

Some might consider it just an old-fashioned bank run.

I needed to make sure I have enough cash to pay my County Taxes (every 6 months).

I was concerned BofA might have a major bank run any day now...so I got my County tax money together early...then put money back in slowly based on income.

I also converted some of the physical cash to Gold as another way to hedge my extraction.

It feels better to have less in-the-bank cash...to avoid pesky bank runs or SHTF events.

Keep stacking.

[Atlas Shrugged]

A few weeks ago...is this considered stacking physical cash ?

Some might consider it just an old-fashioned bank run.

I needed to make sure I have enough cash to pay my County Taxes (every 6 months).

I was concerned BofA might have a major bank run any day now...so I got my County tax money together early...then put money back in slowly based on income.

I also converted some of the physical cash to Gold as another way to hedge my extraction.

It feels better to have less in-the-bank cash...to avoid pesky bank runs or SHTF events.

Keep stacking.

Yep, that is what I am talking about. Physical cash, like 20's and 100's. You know, the stuff with past presdent's heads on them.

Oh, and did you close that BofA account? Use a credit union or local bank.