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

My dad saved and bought his first house cash in the mid 80s. Another house down the street foreclosed immediately after purchase. He could have bought both and flipped one to pay for the other. To this day he reminds me to weigh the consequences of dumping too much into one asset and not hanging on to enough for investing elsewhere.

So, kinda related to your question?

 

It’s certainly related. If anything, this crazy covid market should show everyone the value of having liquid assets available for when an opportunity presents itself.

 

pretty much this right here. Make sure you don’t have PMI. After that the market is a better place to camp it. As far as how much to use for a down payment, typically 18% is the minimum you’ll see to not have PMI, but you’ll also see a lot of 20%.

but then after down payment you’re at, right now probably 3 or less on a 30 year? F THAT I’m leaving money in the market instead. Also, you’ll have a lot of random stuff you didn’t know you needed. Did you know how expensive curtains are? What about grass seed? Etc etc.

Dumping it all into down payment isn’t what I would do. Minimum to remove PMI and then pay down monthly strong, pretty much double your principal payment each month, that’s my method.

 

When you deduct the home mortgage interest from your income taxes, that 3% interest rate becomes closer to a 2% rate depending on your individual marginal income tax rate at state & federal level.

 

yeah. I’m at 4.25 interest and I’m happy to not be racing that down vs leaving it in the market. If I was at some of these insane ones recently I’d have even less incentive.

 

Next month I'll be at 2.75%, so I have zero incentive to pay it off early.

 

even PMI can be cheap, depending on your FICO and LTV ratio. I am putting 10% down and paying about $75/mo for PMI (aka not much at all)

 

Yeah. I keep seeing rates, but nothing worth the time/effort to jump on.

We refi'd our home to 3.5 on a 15 year fixed back in 2014, and the remaining balance is low enough the interest rate savings wouldn't be much.

 

I got a tip to get in last week when it was around $1.50. I regret highly not jumping then. I got in earlier today at $4.27. I'm hoping to ride it up to around 10

 

mine is currently 110. Also not bad. And the way I see it all in, I’m still “in the green” vs paying rent the extra time instead and waiting. Also the house we landed is awesome.

but. With 75/mo for 5 years with an 8 percent ROI you’re at about 5k in the bank instead. So rare that vs leaving it in the market etc all the math you want. For me, pmi is bad. Even if I make a smidge more with paying pmi, the heart says get rid of that shit.

 

yeah I’m in the same boat. If we were staying, for sure I’d refi. But there’s a chance we sell in 6 months time or so. So at that point it’s not worth it to refi now.

 

I just do a couple extra payments a year. It lowers your interest rate if you do the long math, since those extra payments go directly to the principle.

My 15 year note took 9 years when I just decided to pay it off.

I know there is no advantage, but I wanted to invest that payment my own way every month.

 

Has the DKNG backslide begun?

 

No, I also have a lot in NCLH and NAIL

 

I got out on Friday. I think it's reached it's height.

 

Some speculate it skyrocketing, but I’m skeptical. I also don’t know what I’m doing.

 

Me neither. All I know is I made money off it and I'm on to the next one

 

Getting closer to being back even for the year. Still down 1.6% so that could be any year. Heck, 2018 I was down 2% for the year so I'm already ahead of that and 7 more months of dividends to come.

 

I like that approach and I'm leaning more and more towards adopting it. Even if 2 or 5 "next ones" down the road ends up being the same one.

Get in, get out with profit, rinse, repeat.

 

It does ya no good to look back and say "if only I did..." As long as you're makin money it's hard to complain.