Hard Truth Week in Review – Cynics Edition
I’m a generally cynical person about personal finance. No surprise there. I’m not saying that’s a good thing. I’m just owning up to my flaws as a human being. Here’s an explanation of why you may be a cynic too.
Here are a few more cynical readings in the world of money.
If you think that being a landlord is a pathway to wealth, think harder. The Four Pillars blog reports his real returns on investment (6.8%) and equity (4.6%) from his single rental property. These meager returns are not worth the risk, particularly considering the lack of liquidity in the investment. Also, the typical small-time landlord actively manages his own properties with no compensation other than net income from rents. That time spent is an opportunity cost that should be considered as well.
I was going to write something about this week’s bogus celebrations of GM “repaying” its government bailout money. The cynical Money Musings blog beat me to it. Michael did a fine job of explaining why the report of the so-called GM loan pay-off is complete B.S. If you pay taxes, it’s definitely worth your time.
Don’t forget to visit this week’s Carnival of Personal Finance at Punch Debt in the Face.