That would be tempting. Usually isn't worth the risk to hold single stocks. 15% is a pretty good return! Take it and run.Originally Posted by Scott Campbell
That would be tempting. Usually isn't worth the risk to hold single stocks. 15% is a pretty good return! Take it and run.Originally Posted by Scott Campbell
So I put 20% in the 401k plus the 5k in the roth. What if an emergency comes up and I need money? How does one build up a decent emergency reserve, invest, and save for a down payment on a house?!?
Discipline.Originally Posted by Partial
It isn't easy Partial, no matter how much you make. I guess I thought you had an emergency fund. You need that before you start. 3 to 6 months of expenses. Since you have no bills it shouldn't take long to do that.
Then max the 401K, you have until April to fund the Roth if you need extra time. Building a fund for a house will probably have to wait until after that. and really, you've got time for that. dont forget charity either.
Thank God PR is still free. If it wasn't, you probably couldn't afford it. :P
Interesting. One could argue that, depending on the interest rate your paying, you'd be much better off paying the extra principal into an index fund... over the course of 30 years, you'd come out much ahead.Originally Posted by Scott Campbell
Busting drunk drivers in Antarctica since 2006
Why an index fund? Why not one that adds alpha?Originally Posted by falco
After lunch the players lounged about the hotel patio watching the surf fling white plumes high against the darkening sky. Clouds were piling up in the west… Vince Lombardi frowned.
Many have tried things like this, few succeed. When you understand why, you'll have your answer.Originally Posted by falco
Ahh, Alpha is a myth. Very few can outperform an index fund year after year, except when accounting for the higher expense ratios.Originally Posted by HowardRoark
EDIT: should read, "especially when accounting"
Busting drunk drivers in Antarctica since 2006
But, oh wise one, I did not ask a question...Originally Posted by retailguy
Busting drunk drivers in Antarctica since 2006
Originally Posted by falco
How'd your index fund do in Q4 of 2008?
Valuations on condo's are going through the floor around here and and as a result sometimes a borrower will have to put 20% down on a condo based on the condo associations specifications. They are not holding value. Doing a loan for a first time homebuyer and the appraisal on that condo came up 6G short and it looks very nice. They just are not selling and many of these condo projects are unfinished and going back to banks so the rules and guidelines are getting worse.
Go single family when you are ready or rent cheap and pack the loot away.
LIFE IS ABOUT CHAMPIONSHIPS; I JUST REALIZED THIS. The MILWAUKEE BUCKS have won the same number of championships over the past 50 years as the Green Bay Packers. Ten years from now, who will have more championships, and who will be the fart in the wind ?
About the same as my house...Originally Posted by Scott Campbell
In all seriousness, its a long term strategy. The benefit of dollar cost averaging is that you are continuing to poor money in while it is low. In fact, the extra principal you would have put on your house during Q4 of 2008 has now already returned you 30% or more, instead of the 5-6% you are earning in interest.
For the record, I don't partake in this approach - although I do believe it has merit.
Busting drunk drivers in Antarctica since 2006
"Very few" is stretching it......there are many that have over long periods of time added alpha and lower beta. Your premise is a myth that index funds have spoon fed the investing public.Originally Posted by falco
How did those index funds do over the past 12 years? Low fees, but, as of this spring, 0% return over 12 years.
After lunch the players lounged about the hotel patio watching the surf fling white plumes high against the darkening sky. Clouds were piling up in the west… Vince Lombardi frowned.
How much is renting cheap? I'm finding it tough to find single person units for less than 500, and that just seems like too much to pay in rent My last apartment was about 380ish and super nice but I don't want to live with roomates again I don't think.Originally Posted by Bretsky
sorry if this was mentioned earlier. but this sounds alot like Dave Ramsey's plan. (not that he was the first to think of it, he's just the most popular now) baby steps. $1000 in the bank, 3-6months emergency fund. pay everything off but the house, 15% towards retirement, and so on.Originally Posted by retailguy
Youre a fucking sorry bitch. If you get paid bank like you said you should be living in a pimp place. Instead you actin like a little bitch. Live the high life just so you can taste it once before you die.
Originally Posted by Partial
I think what is cheap is relative; I'd say cheap would be around 15% of your monthly wage. Then I'd hope you can pack away the extra for a down payment. Given a figure, I'd probably say a decent place for 500 or less is a good deal
LIFE IS ABOUT CHAMPIONSHIPS; I JUST REALIZED THIS. The MILWAUKEE BUCKS have won the same number of championships over the past 50 years as the Green Bay Packers. Ten years from now, who will have more championships, and who will be the fart in the wind ?
It takes far too long to become a mogul.
I've got about 15 grand sitting in the bank and could either A) pay down all debt or B) keep saving and buy a duplex to rent w/ 20% down before the home buyer tax dealy runs out.
Growing up sucks. All I do is worry about how I'm going to get ahead. I don't know how some of you guys have the patience and nerves of steal to take on the risk of buying homes, etc.
I need to get married. I will have much more money coming in then and will be able to do much more to put my money to work. If the lady is going to rent a place, I know she isn't going to rent a dump, so she will be paying 650-800 a month minimum I would think. I cannot fathom us each having an apartment for a 1200 a month rent + each person having internet, etc. Just seems ridiculous.
One parent is strongly advocating paying back my debt, but they also recommend continuing to live in the basement to save a down payment. Living in the basement has to stop asap as far as I'm concerned.
Other parent is advocating saving money over the new few months and buying a duplex before the tax credit expires.
What do the rats advocate? I take home about 1500 in cash every other week and then have typical expenses like car insurance, etc.
Marriage is difficult enough when you get married for the right reason.Originally Posted by Partial
You might find yourself living in your parents basement again when your 30 something if you get married for the wrong reason....have a few kids....marriage ends up a bust, blah, blah blah.
Bah we're going to eventually it is just a matter of when. We've been dating like 7 years.Originally Posted by GrnBay007
Originally Posted by Partial
I advocate that you quit worrying so much. The boys here have been telling you for years that it's the power of savings, time and compound interest that will get you where you want to be financially. You're gainfully employed with very little debt during one of the worst recessions in the history of this country. Keep your situation in perspective.
And then do the math.
Making great financial decisions can often be no more complex than avoiding the really stupid move. And it looks like you're there already. You're not going to buy a car you can't afford. You're not going to live beyond your means. You're going to systematically save. You'll be fine.