What to do when your parents are incompetent?

Page 2 of 3 [ 35 posts ] Go to page Previous 1, 2, 3 Next

Previous topic | Next topic

zacb
Veteran
Veteran

Joined: 7 May 2012
Age: 31
Gender: Male
Posts: 1,194

10 Oct 2013, 9:16 pm

AngelRho wrote:

You should have her read "Total Money Makeover" by Dave Ramsey.

Better yet, buy it for yourself, read it, and then politely suggest she read it. Say something like how you know she's really interested in this whole investing thing, and TMM might be a good way to learn so me good, proven investment strategies.

In short, she's not looking at this from a long-term investment perspective. Investing in things like foreign currency and commodities (precious metals, etc.) carry a LOT more risk than most sensible people are willing to take. If I had enough money coming in to justify it, I'd put everything in a Roth IRA and divert most or all of it to growth stock mutual funds. Given the sorry state of affairs the USA is in right now and how that's ultimately going to throw the economy, things are going to look really bad in the short term. Gold is in a bubble just like the housing market used to be, and when Armageddon hits, gold is going to be pretty much useless. Stay away from commodities and foreign currency. Too much risk involved.

Now, yes, it's looking like the economy is about to take a turn for the worse. But that doesn't mean to stop investing in a retirement account. That's why it's LONG TERM investing. You always end up in a better position in the most volatile markets when you're consistent over a couple or three decades. You're going to win some and lose some over the short term, but over the long term you're going to reduce your risk.

With the whole Iragi dinar thing, she's not counting on risk. It SOUNDS like a great idea, but I think if we're being honest, it's largely driven by emotion. A lot of investors get in bad trouble and make bad deals when they fail to take risk into account. It's like mortgaging your home just to play the lottery. DON'T DO IT.

Props on Dave Ramsey. I have taken his class twice, one in college, and one on my own. I was watching silver when it was at 10 an ounce, and pounced when it went from 20 to 35, and made a tidy profit. I think that it is at fair value, and needs to drop a bit to be worth it. I personally like silver better than gold, but that is besides the point. I am not investing for retirement yet, but I am looking into real estate, since it looks cheap in some places. Some oil funds are interesting as well, although I wonder if the thawing of Iranian diplomacy may change the oil situation. I am kind of a Grahamite, and the only time I lost money is when I did not follow that, or did not have a gut feeling about it (such as the examples I provided). But yeah. I am thinking Paraguay or somewhere in SA long term, but I need to save in the mean time. But I think maybe I should spend like a month there, and see if I could get a job. Worse comes to worse, I could always come back to live with my mom. I have tried to offer her Rich Dad, Poor Dad to read, but she has refused to be knowledgeable about investing. This of course bugs me crazy, but what are you going to do. I have considered currency, but mine is more with Iran (which seems to be thawing, but still has a ways to go) and the Kroner (which I think is undervalued). Besides that, I think the majority of those trades are BS. Most those countries have little to show as far as exports, or are in debt up to their eyeballs. If Canada had a pullback further, I might consider buying. But since I am using my savings to "move", I can't consider that for now.

ASDMommyASDKid
Veteran
Veteran

Joined: 27 Oct 2011
Gender: Female
Posts: 3,666

10 Oct 2013, 9:22 pm

The things that I would consider are if you left school, would you go back or would you get caught up in the inertia of not going. Some people handle breaks from college really well, and go back even more mature and motivated when then they left, and some never return.

The other thing is if you have a better source of income will your mother guilt you into giving her even more money to sink into her investments and living expenses. Going to school may be insulating you from even more financial demands than you are already getting. If she does attempt this, will you be able to either put conditions on your assistance, (or turn her down ) or will you be apt to cave? You said you could transfer your credits. Would you be able to swing going to school in TC, getting a part-time job of some kind that you can put away towards your plans and then tell her you don't have any extra money to give her? It is easier to tell someone "no" when you don't live with them and they are not in your face.

zacb
Veteran
Veteran

Joined: 7 May 2012
Age: 31
Gender: Male
Posts: 1,194

10 Oct 2013, 9:36 pm

I think I could handle it. And as far as money, I could just say I don't have it (who said I did not spend it on hookers and blow XD. Just kidding, at least in the blow part haha. I would save my money ) . But I think I could volunteer for causes that I believe in over there more easily than here. I would be interested in forming a chapter of the Libertarian Party, joining NORML, maybe tech groups, etc. . All would look good on a resume, and thus would advance my career, unlike here, where I try to start something, and nobody care. So I think besides employment, there would be other benefits. As far as work, I am thinking of working full time, saving for a down payment on a 18k apartment downtown of my current city, which is also within a mile of a college, as well as within a block of a river. I think I could fix it up, and rent it out , and pay for it within 3 or 4 years. I could then build on that success, and eventually have a few rentals. But I seriously don't think i could find back rooms jobs where I am. I am thinking about finishing year two here, then going over in June. It is only two hours away.

AngelRho
Veteran
Veteran

Joined: 4 Jan 2008
Age: 48
Gender: Male
Posts: 9,366
Location: The Landmass between N.O. and Mobile

11 Oct 2013, 5:38 pm

zacb wrote:

) . But I think I could volunteer for causes that I believe in over there more easily than here. I would be interested in forming a chapter of the Libertarian Party, joining NORML, maybe tech groups, etc. . All would look good on a resume, and thus would advance my career, unlike here, where I try to start something, and nobody care. So I think besides employment, there would be other benefits. As far as work, I am thinking of working full time, saving for a down payment on a 18k apartment downtown of my current city, which is also within a mile of a college, as well as within a block of a river. I think I could fix it up, and rent it out , and pay for it within 3 or 4 years. I could then build on that success, and eventually have a few rentals. But I seriously don't think i could find back rooms jobs where I am. I am thinking about finishing year two here, then going over in June. It is only two hours away.

You do realize that most people who try what you're talking about with a fixer-upper and renting it out eventually go broke, right? :lol:

In all seriousness, good luck with that. There's still plenty money to be had in real estate.

zacb
Veteran
Veteran

Joined: 7 May 2012
Age: 31
Gender: Male
Posts: 1,194

11 Oct 2013, 11:03 pm

AngelRho wrote:

zacb wrote:

You do realize that most people who try what you're talking about with a fixer-upper and renting it out eventually go broke, right? :lol:

In all seriousness, good luck with that. There's still plenty money to be had in real estate.

True. This house is near a college and river, as well as within walking distance of downtown. Plus it is rather inexpensive, as well has having an upstairs loft that I could rent out, as well as a downstairs. But I get what you mean. I think that I could at least rent the upstairs. There is also a new store coming in, a drone factory, one factory in the making, and supposedly the plan is to develop a strip. I think there will be people needing housing. If there was not those competitive advantages, I would not buy, but because I have competitive advantages, I believe I can kick tail, unlike others, and with a little effort (assuming no major structure problems), I will just need to paint and maybe new siding). But You are right, just buying a rental won't do, you need an edge. I have also been reading up on it as much as i can find about it.

DW_a_mom
Veteran
Veteran

Joined: 22 Feb 2008
Gender: Female
Posts: 13,689
Location: Northern California

12 Oct 2013, 8:33 pm

AngelRho wrote:

zacb wrote:

You do realize that most people who try what you're talking about with a fixer-upper and renting it out eventually go broke, right? :lol:

In all seriousness, good luck with that. There's still plenty money to be had in real estate.

Real estate involves a lot of luck, but I've worked for years with many real estate success stories as clients. A whole lot of it is impeccable gut instinct, and solid negotiating power. But that first purchase - I feel like its always a 50/50 shot, and even for good real estate people at least 1 in 10 investments are going to tank. You have to attack it all very frugally, and be willing to accept that you are going to take losses sometimes. You just hope that it isn't on your first one. You also have to accept that it takes a while to build up positive cash flow on a property, plus have to budget for vacancy. The time to try is while you are young and "hungry" so to speak, without a wife and kids to worry about, so that you can afford to take risks and deal with recovering from mistakes.

I do really value education, but I also think there is a lot to be said for seeing opportunity and riding it, be willing to take on risk in order to create a future. The later has never been my personality, so I'm the CPA that advises those who do take that route, and I make a solid living but not a spectacular one. Some entrepreneurs are amazing, really good at it, and some ... well, are clueless, and destined to wonder why they can never make it. We don't advise too many of the later, because they tend not to need us for long. Anyway. I don't know enough about you, your location, or your life to have a clue what you should do. You sound like a pretty level-headed person, so I'm going to say follow your heart and follow your gut. Some things no one can teach you. Or choose for you.

_________________
Mom to an amazing young adult AS son, plus an also amazing non-AS daughter. Most likely part of the "Broader Autism Phenotype" (some traits).

Fnord
Veteran
Veteran