I've said it before and I will say it again:you want to show off how much money you want people to think you have "buy a house", you want to build up assets and wealth buy liquid items. What are liquid items:stocks, bonds, treasury: notes, bonds, bills;options, SOME commodities and raw material precious gems and metals.
Yes those things have fluctuating values but they are a lost faster and easier to sell than a house. Those who have read some of my past blogs talking about my portfolio will see what I mean. I talked last year about selling ford, now with a bank account attached to my brokerage account its at most a 5 day turn around between me selling the stock(if I do it at market value not a stop order which of course would require the stock to first hit my target sale price up or down) and the money being in my bank account ready to spend.
Also with stocks and other "smaller" liquid assets you don't need as much down and credit isn't that big an issue. If you have enough money to start the account they let you. While its better to buy in "round lots"(usually a stock order of 100 shares or multiples of 100) you could buy 1, 5, 10, 50 etc(and anywhere in between or above one of those numbers) as long as you have the money for the shares plus brokerage fees. Usually the brokerage fee is added per every X shares purchased PER order, so if you go over that share amount even by a share tack on another brokerage fee, if you make another stock order whether it be the same or a different stock tack on another brokerage fee.
Is it perfect no, I mean yeah gold, gems etc if you had a vault you could see and visit those but for most folks you log in to see your stock certificates. So yes if you wish to parade around your wealth you have to have a house or a car. What's wrong with saving up for those things? I mean what good is putting all of your money into something you don't actually own yet? Most trade able vehicles as long as it doesn't crater, expire, or self destruct whether it goes up or down you still own it. Miss a few car payments they take the car back and you don't get a dime. At least if a stock, right or warrant(different names for trade able vehicles) implodes if nothing else you get the tax write off.
I mean yes if you wanted to you could just hoard the cash in various bank accounts. Cash is always good and always king, so yes if you aren't worried about playing the casino game of investing its hard to argue with just keeping the cash on hand. Hell even IF you invest part of your portfolio should always be cash, money market account whatever always have cash on hand.
Yes you could also show off the piles of cash all Scrooge McDuck style if ya wanted to but flaunting isn't always safe. I mean hey I've never been one for flaunting so some of this is my own personal philosophy on life and the way this should go. I still say you want to accumulate something then accumulate it. Just you know lay off the debt for a little while, I could look up numbers and charts but I'm pretty damn sure anybody in america(and even a few of my international readers) knows someone who has lost a house or car. So some abstract number or series of numbers is unnecessary all you have to do is look around. Repo men and foreclosed signs are all around. Bigger isn't always better if you can't hold on to it
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