Author Topic: do not want to invest in stock market  (Read 22160 times)

mpbaker22

  • Handlebar Stache
  • *****
  • Posts: 1095
Re: do not want to invest in stock market
« Reply #50 on: July 23, 2013, 09:00:35 AM »
I skimmed this thread pretty fast, so please excuse me if this has been mentioned:

If you do end up avoiding the stock market (I don't, but I have friends that do), you could invest in straightforward real estate.  That is, buy a house and rent it out.  Lots of research must be done, you'll need to get good at picking renters, and you'll have to do more work than you would with the stock market, but it will avoid any ethical concerns associated with the stock market (though I'm not saying there are any).

Why instead of municipal bonds?  You often make way higher return on investment.  Where I am I might get 2% on those bonds?  Real estate (I hear) is usually quite a high ROI (6-8%?), or at least by comparison.

+1.  It's a little bit scarier from a risk factor.  I think the risk is being a dumbass and losing out.  There are ways to decrease that risk like planning to live in one of your units if you already rent.  It could be even more ethical and helpful towards others if you have friends and you'll rent to them at below market - you help them out, and they help you out.

SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 753
Re: do not want to invest in stock market
« Reply #51 on: July 23, 2013, 10:22:30 AM »

I am having trouble with: why should I invest in the stock market at all?  (given what I said above)

Maybe you shouldn't. You don't have to talk yourself into anything. Use your money to start or buy or build a business, or use it to get your expenses so low you don't need much money coming in on a monthly basis. Get your income so low you aren't paying tax money to support things you don't believe in. Use community banks, etc.

The challenge, which I don't think is insurmountable, is that you so often are enriching others by the financial and lifestyle decisions you make. It's hard to say, "I'm not going to give my money to those bastards," because those bastards are everywhere!

Have you read Your Money Or Your Life? I remember the first edition of the book discussed this in some detail, as several of the people profiled felt similarly to you. 

Crash87

  • Stubble
  • **
  • Posts: 165
  • Age: 33
  • Location: St. Louis
Re: do not want to invest in stock market
« Reply #52 on: July 23, 2013, 04:25:35 PM »
Get your income so low you aren't paying tax money to support things you don't believe in. Use community banks, etc.

Suggesting someone actively make an effort to reduce their income because of taxes is really stupid. You could argue there are diminishing returns on your income producing efforts with marginal tax brackets, but you will always increase wealth by increasing income.

karabara

  • 5 O'Clock Shadow
  • *
  • Posts: 9
Re: do not want to invest in stock market
« Reply #53 on: July 24, 2013, 08:49:54 AM »
I want to say thanks to all of the people who gave thoughtful replies to my simple question, especially big thanks to fiveoclockshadow.  Your posts were thorough and taught me a lot.

I would like to add that I am new to this forum and new to the idea of investing, and a few of the posts did not make me feel welcome here.    I would advise people to "attack the argument, not the person."

Cheers and thanks again.