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Originally Posted by alnorth
You can buy no load index funds with microscopic fees less than half a percent. 5 or 6 index funds to cover all major sectors and you are diversified with hundreds of stocks while paying almost no fees. If someone wants to pay a point or two for an active money manager, some of those guys are smart enough to beat those fees and the index combined.
Real estate returns do not grow to the sky, eventually the economic conditions of the country as well as supply and demand will hammer you as much as everyone else, though the capital gain exemption is nice.
Everyone has to live somewhere, but outside of personal residence, these days it is getting very hard to find real estate that will bring in enough rent to beat the returns from CD's, assuming its not just a wash or losing money. If your counting on appreciation, youll eventually get some, but how much? Nothing is guaranteed here as anyone from the coasts are now finding out. I'd prefer to be diversified into a market that has historically returned 8-10% over the long haul.
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This is a great post. My dad is a real-estate proponent... The biggest gain to real-estate is that there's only so much of it. Plus, its tangible. I wouldn't buy real estate to never use or see. If you're gonna rent it out, use it as a vacation property, or something of the like, its really a great thing. Its a FAIRLY low risk investment that has adequate returns and the potential to be a LOT of fun.
Moooo