<p>The richer one is, the higher the quality of investment advice available, and the cheaper any given quality of advice becomes per dollar investable. Information is also more available if one has resources to pay for it and time (or advisors) to process it.This is another reason why the value of each dollar increases the more dollars one has, and why poor dollars are worth less than rich ones. </p>
<p>It will be interesting to see whether BCeagle91 or those agreeing with him can rebut the arguments of Calmom and others with more than words like “rubbish” or “class warfare”. Progressive taxes and Robin Hood financial aid may not be to everyone’s liking, but they are among the very few areas where the poor have tangible economic advantage over the rich, and there is a certain social logic to such compensatory measures when everything else is a de facto tax on poverty.</p>
<p>hey guys i wanna go to uci but im an out of state transfer and my costswere 47000 and my efc was 14000. uci only gave me 1900 for the year…is there any way i can get them to lower my costs or give me more money?</p>
<p>“The richer one is, the higher the quality of investment advice available, and the cheaper any given quality of advice becomes per dollar investable. Information is also more available if one has resources to pay for it and time (or advisors) to process it.This is another reason why the value of each dollar increases the more dollars one has, and why poor dollars are worth less than rich ones.”</p>
<p>Rubbish.</p>
<p>“It will be interesting to see whether BCeagle91 or those agreeing with him can rebut the arguments of Calmom and others with more than words like “rubbish” or “class warfare”. Progressive taxes and Robin Hood financial aid may not be to everyone’s liking, but they are among the very few areas where the poor have tangible economic advantage over the rich, and there is a certain social logic to such compensatory measures when everything else is a de facto tax on poverty.”</p>
<p>“The richer one is, the higher the quality of investment advice available, and the cheaper any given quality of advice becomes per dollar investable.”</p>
<p>Comical! Where have you been the last 10 years??</p>
<p>The internet has brought about the democratization of information and a plethora of cheap or free financial services.</p>
<p>There’s a program that I use called QuoteTracker that allows one to put up real-time charts of as many charts as they have screen real-estate for. In the 1980s, the ability to get this kind of information would have cost millions of dollars in computer hardware and software programming. Today it is available. For free.</p>
<p>In the 1980s, doing stock research was a pain. You could pay a broker hundreds or thousands of dollars in commissions per trade to get financial information. Today, trades are $10 or even $1 with certain brokers. And you can do the research yourself. Yahoo Finance stock screener allows you to search for stocks by a variety of criteria that would have been incredibly expensive in the 1980s.</p>
<p>To illustrate BCeagle’s point- if you were given one million dollars today, and were told you could only spend what you earned from investing the money, what would you do with it? A 2%/5yr CD? Less than 1% treasury bond? Rental property that could have bad tenants and leave you upside down? Real estate that might not make money for years?
These may be high class worries, but there is no safe haven for investment right now.</p>
<p>The question was whether the 5000 dollar net worth investor has any options that the 5 million dollar investor doesn’t (per dollar, and not involving government or nonprofits).</p>
<p>The 5K investor doesn’t meet the threshold for the higher yield CD’s. Both investors are equal when it comes to buying treasury bonds. For most other categories of investment the 5-millionaire has natural advantages. There are few (if any) investments the 5K guy can make that don’t scale up to an equivalent investment for the 5 million, and with lower transaction costs.</p>
<p>“There are few (if any) investments the 5K guy can make that don’t scale up to an equivalent investment for the 5 million, and with lower transaction costs.”</p>
<p>[The 5K investor doesn’t meet the threshold for the higher yield CD’s. Both investors are equal when it comes to buying treasury bonds. For most other categories of investment the 5-millionaire has natural advantages. There are few (if any) investments the 5K guy can make that don’t scale up to an equivalent investment for the 5 million, and with lower transaction costs.]</p>
<p>No one here can see the obvious error here?</p>
<p>The 5M investor can take out multiple CD’s, at multiple banks if necessary, and those CDs pay higher interest the larger the amount (e.g., jumbo CD’s). The scaling is favorable, in other words.</p>
<p>“The 5M investor can take out multiple CD’s, at multiple banks if necessary, and those CDs pay higher interest the larger the amount (e.g., jumbo CD’s). The scaling is favorable, in other words.”</p>
<p>Have you actually tried it?</p>
<p>There was a large bank failure last year on the West Coast and there were many stories of people lining up in front of the bank to try to get their money out. One case was a man that went to the bank before they closed - he had about $400,000 in the bank and asked the bank manager if he should take his money out because of the problems that he had read about on the news. The bank manager assured him that his money was safe and secure. He went on vacation and returned when he heard about the bank as that was his family’s savings.</p>
<p>Yes, you can run around to multiple banks. At $250K a shot that’s a lot of running around though.</p>
<p>The FDIC insurance fund is under a huge amount of stress. It’s something that I started watching back in 2001-2002 because I expected bank failures back then. I was a little early. The FDIC could change their insurance rules to $250K per person in the future to protect their insurance fund. It’s something that would have broad public appeal given the level of class warfare that politicians are trying to exploit and fuel</p>