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Discuss Latest POF Blog Post: The 15 Worst Ever Pieces of Financial Advice

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  • Discuss Latest POF Blog Post: The 15 Worst Ever Pieces of Financial Advice

    Every bit of financial advice you hear should be taken with a grain of salt, including advice you read here ... Read more

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    Helping those who wear the white coat get a fair shake on Wall Street since 2011

  • #2
    "renting is throwing money away' is one of the most pernicious ones that affects high income professionals.
    i wonder how many billions have been lost by doctors due to that little canard.

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    • #3
      Originally posted by MPMD View Post
      "renting is throwing money away' is one of the most pernicious ones that affects high income professionals.
      i wonder how many billions have been lost by doctors due to that little canard.
      Totally agree. There is some confirmation bias people have when looking at homes. The RE agents don't help.

      Delayed gratification + New high income + industry that loves to take money from doctors.

      It is difficult to appreciate how much more a new house will cost. It is rarely a lateral move in terms of lifestyle.

      It is tempting to buy when you get that first attending job in the new city.

      Aside from the financial costs it is so much better to be in a "stable" situation in a job you love (or at least like) and a city you know.

      Commuting alone is impossible to know until you live there.

      It is better to wait and feel things out, but not easy to do and it seems like every day that someone is talked off the ledge by the WCI forum and that is just the people who ask the question: "is this a good idea?"

      With interest rates rising I imagine it will push people to buy before they are ready, but who knows.

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      • #4
        i'll never forget the story of a med school friend who bought a residency condo on the dip as the housing market was cratering.
        guy had bought condo for like $300k
        she was offering $200k or so and was the only offer
        buyer called her sobbing and yelling on phone saying how could she do this, his condo was worth so much more than that
        everything always works right up until the moment when it doesnt

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        • #5
          2: Follow your passion.

          I saw this advice giving to my kids around the time they went to college. A passion for many 17 year olds is doing make up and hair , posting instragram pictures or playing sports. I have always found this terrible advice. If you want to follow your passion , do it as a hobby and maybe one day your hobby will be a good business but in the mean time find study hard or develop a good skill. I told my kids when they were at the college age , find something hard that no one else wants to do and pays well.

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          • #6
            The thing about rent vs buying is if the person considering buying would purchase a sensible investment such as something below their means maybe ugly with appreciation potential at a reasonable time and be able to delay gratification by remaining in the property or dealing with the hassle of renting it out until an appropriate time to sell I would imagine a majority of the time it would work out to their advantage. I have made a profit on every single primary residence I have lived in over the past 25 years. Unfortunately most people in this country seem to have a limited discomfort tolerance and lack the discipline to wait on both ends. Which I suppose is why that made the list of generally poor advice.

            Good article and I bet there are even more that could be added to the list.

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