Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

sometimes rather you can make more investing or not people find it more relaxing and stress free to be debt free. that's one of those your call deals. neither is wrong.

 

My rule is that if I can make more on the money than the cost to borrow, I take the loan. I am paying my truck off over 6 years with a loan of about 3%. My portfolio yields about 4.5%. I would be better off paying the loan off slowly than taking money that is working for me away from the market. That's just me, the stress of investing as said above might be a factor for some people.

 

I picked up a few shares of Visa just now

 

this morning was a good time to buy, lots of equities are clawing back

 

Guess I should have picked up a couple of shares in ROKU instead...

 

I think when you’re 50 years old you’ll look back and think it was a dumb decision to sell an ‘appreciating’ asset for a depreciating one.

See if you can refinance without penalties at a local to you credit union. You should be able to get closer to 2%.

 

I was thinking the same. 4.5 IR seems high.

 

credit score bad?

 

I'm trying to figure that one out. If you got a bunch of assets, why would the CS be in the shitter?

But yes, bad credit usually means a higher IR.

 

Do they count assets in credit scores? When I look at Credit Karma and Capital One, they break my score down, and assets aren't listed as a factor. I don't know much about it so I have no idea.

 

No it's based on your payment history, amount of credit not assets

 

I understand it to be calculated by: payment history, oldest credit line, credit used (percentage), recent inquiries, new accounts, total accounts, derogatory remarks, and available credit.

 

Correct

 

Ok just checking. I have done some things related to that list to increase my score, always open to new methods. It helps a lot when taking out loans.

 

My credit karma shows 804 and 796, I've always had good credit I think it was just the dealers way of making some extra money out of me. I thought it was high too. I checked lending tree for some rates and they didn't really seem any better (without running a credit inquiry) I'll check my nearby credit union. Thanks guys!

 

i second try through a credit union, I refinanced after a year of payments and my credit union cut my interest rate in half.

 

Sounds good, I'm a little over a year into payments.

 

You are gonna save some money when you refi!. Just don't be asked to extend your loan term. With a lower rate, but more payments, you will be right back where you started.

 

Heck I bought a truck in November through dealer financing and a couple months later refinanced with my credit union.

Credit unions dont pay taxes so they can offer lower rates than banks

 

If it were me. Is the apple stock part of your retirement plan? If so leave it be but stop buying more and get the truck paid off without touching principal.

If not than you could leverage your money like was mentioned and pay down the loan, however there is risk. If the market goes recessionary / underperforms then that plan does not work- hindsight will only tell if you made money- does a 1-2 point swing really mean a lot? the Dave Ramsey in me says pay it off, don’t borrow again. I will say everything I have I own without Lien or loan and that has taken a lot of stress off our family while we have a kiddo going through some serious medical issues.

Additional note I went back and got some TGT again- it was kind to me before and being back at $74.50 I am giving it another go...