by Lance Roberts
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| (4/12/23) With many investors heavily shorted in the market, today's Inflation Report could spell success or failure (CPI clocked-in at a cooler-than-expected 5% rate of inflation, year over year). Chances for volatility are high in today's trading session as markets near the upper end of the current rally. Oil price increases have yet to appear in CPI numbers, generally three months behind. Gold is very over-bought. NASDAQ is overbought. A discussion of investing philosophies and clients' needs: the difference between philosophies and views; how to avoid confirmation bias. How to change your wife's philosophies. Correcting Warren Buffett: FDIC/SIPC are funded by depositors/tax payers. Why are banks losing money on mortgages? Real Estate locality; the expense of getting a mortgage is higher as home affordability increases. Seniors sacrificing retirement to bail out kids; the difference between assistance and enabling; bad luck or bad behavior? 3:09 - Inflation Day as Markets Near Upper End of Rally 14:28 - The Difference Between Investing Philosophies & Views 30:25 - Why Banks Are Losing Money on Mortgages 44:23 - Sacrificing Retirement: Bad Luck vs Bad Behavior Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO, w Senior Advisor Danny Ratliff, CFP Produced by Brent Clanton, Executive Producer -------- The latest installment of our new feature, Before the Bell | "March Inflation Lower Than Expected" is here: &list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 -------- Here is an article mentioned in today's show: "Bullishness Remains Missing, Which Is A Good Thing:" https://realinvestmentadvice.com/bullishness-remains-missing-which-is-a-good-thing/ ------- Our previous show is here: "Will Inflation Weaken Enough to Cause a Fed Pause?" _oRAzqWBE&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=7s -------- Register for our next Lunch & Learn: "What's New with Social Security?" https://us06web.zoom.us/webinar/register/1116747818184/WN_1UI2lJqsSSS3N5r8lmWovg ------- Get more info & commentary: https://realinvestmentadvice.com/newsletter/ -------- SUBSCRIBE to The Real Investment Show here: http://www.youtube.com/c/TheRealInvestmentShow -------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #InvestingAdvice #MortgageBanking #FederalReserve #InterestRates #Inflation #RateCuts #Markets #Money #Investing |
Finally, financial news that makes sense. Lance Roberts, the host of "StreetTalkLive", has a unique ability to bring the complex world of economics, investing and personal financial wealth building to you in simple, easy and informative ways but also makes it entertaining to listen to at the same time.
Lance – you’re the best! I listen to you every morning👍
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My issue with your comment is when one is paying $900 to 1000 rent for 10 to 15 years to save cash for a down payment on a house with a 15 year loan. That rent money is gone so why not purchase a 30 year loan and start making a home payment for $750 a month, would it not be better to pay the 750 instead, which is an investment in your future, whereas the 1000 is going in someone else pocket for those 5 to 15 years. Rent or interest, you are not getting that cash back. Once we had our home we were able to budget to make double payments when we could. Having a 30 year loan is wrong if , living in that house and selling 6 years after will cost you more than rent and selling will be a REAL pain in the ass! We did that too early on, we planned to stay in that house longer but life changes. I'm still a fan of the 30 year, it's the only option for some. As long as in the long term your plan is to pay it off in 15 years, it's a much better investment option than renting. Maintenance on a house isn't that much, if you budget and maintain as the issues come up.
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It would be interesting/revealing to chronicle your TOTAL home ownership expenses over the years, and not just the P&I payment. Homeownership also requires taxes (in Texas, they're unconscionably high) and maintenance. Replacing roofs and A/C's are no small expense. Sadly, too few are able to "budget and maintain" as issues arise.
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@The Real Investment Show pretty much echoes my thoughts. The costs of home ownership goes way beyond just the mortgage/rent payments. Things can and will break during home ownership. I have both rented and owned and far love renting soo much more given the flexibly and way more money in the bank. I hate staying in same area for more than 2 years at a time too.
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@The Real Investment Show Our taxes are a part of our payment. Maintenance, yes mowing the grass, trimming the trees, repairing minor things as they occur. The major stuff like roofing and A/C, well I'm a poor white privileged male and if it broke, I fixed it. When a tornado rolled through town (18 years after purchase) I took off the old roof and replaced it myself. When the A/C stopped working, I called a friend who hooked me up with the unit and I installed it. While I understand the majority of people would not have the wherewithall to budget for these major repairs, for those who do have the forward thinking wouldn't it be better to pay $750 a month in an investment (your home) than pay rent ($1000/mo)for those same 15 years and save the +$250 toward paying the 30 year mortgage off in 15 years. I can honestly say we would not own our home today if we would have waited and tried to save. Having the incentive to pay the home off early was a more realistic scenario than trying to save up to buy a house while you're raising kids and just trying to keep your head above water. I wasn't trying to argue with the idea of saving for a down payment, if you have the finances and the planning it is absolutely the better option but realistically for most people it's not the best way in terms of a home purchase. We will be in this house until they ship me off to the old folks home. Thank you for the morning show, I look forward to learning more about investing and your experience.
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Danny – exactly! Watch where you get your info and it doesn’t hurt to at least listen and think about those that disagree. The hardest thing for me is taking out the emotion but I am trying.
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Lance, I have found that there are people on these social media sights that are just there to argue, no matter the logic – sort of like AOC. I see it in your chat and Adam’s chat and others. Same people show up and just want to find something they can argue about.
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"Good things come to people who wait, but better things come to those who go out and get them." –
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Hey Lance and Danny, good discussion about being an advisor vs. enabler. Taking on the role of advisor is sometimes very tough and requires appropriate self-confidence. Often, and especially in these times, you are then called stingy or too strict, a father of ravens, so to speak…
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Lance please write a fiscal parenting guide book for parents with young kids!
I would absolutely love to learn from an expert like you. My parents are great and instilled tough love when I was younger but never had a financial aspect to it.
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