Only a moron throws money into a savings account without buying real property. Renting is money down the toilet. First thing any Financial Planner says is "Buy the most house you can afford". As for buying muscle cars, leasing luxury sedans, and the like, that just sounds like more style over substance. Bottom line is that if Mr. 300K bought a 1000sf condo 5 years ago for 200K, it'd be worth at least 600K today. Chances are his "Kiddie Savings Account" made him less than 1% interest. I know bodybuilders are supposed to be stupid, but not that stupid.
I mean, take a moron like Craig Titus. He may not know how to properly cover up a murder, but the guy knows how to invest. Rumor has it, his Titus Hedge Fund was recently acquired by Warren Buffett.
Special "Suzie Orman" Ed
That is totally silly. Property canot keep going up indefinitely. Anyone worth their sense can tell you that California real estate is tremendously over priced. If Chic bought now he woul be buying at the top of the market. He's doing the smart thing by renting, saving his cash, and waiting for a house to get to realistic price levels.
Lesson for the day: Before the stock market crashed around the Great Depression, Joseph P Kennedy made it through with most of his money. When people asked how he escaped, he said he went to get his shoes shined and the shoe shine boy was offering stock tips. At that point he realized that if so many speculators were in the market, that stocks had to be way too overvalued. He sold his stocks and took his money out.
If every idiot is on TV talking about getting rich with real estate, the market is just too over hyped. I have degrees in both Real Estate and Finance but simple economics can tell you the same. The average family in Cali makes like 55k, so who is going to buy your 600K house? If prices went like this, our kids would have to buy houses for a Billion dollars....
Chic can soon buy a house at a song from all the idiots who fail to make their payment on the $350,000 on a $45,000 salary...
