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

Ok guys I’ve been busy so haven’t been able to respond until this morning. I’m not sure how my comment yesterday got all mixed up. $125416 is the amount of interest paid over 30 years.
$50,210 is the amount of interest paid over 13 years and 4 months by paying an extra $500 a month towards the principal.

$125416 - $50,210 = $75,206

Now, if I take $500 a month a put it into a no interest gaining account, at the end of 13 years and 4 months I will have $80,000. That is clearly more than the $75,206 saved by paying extra on the mortgage every month.

That being said, my money will not go in a “non interest saving account”
I was just saying that to prove a point.

If this still confuses you then I’m sorry. I’m either bad at explaining things or you’re an idiot

 

It can be both


This is what I was getting at though:
I'll use the same "starter" amounts, 165k/30 year/4.5%.



Note the interest payments, but now add 500/mo extra:



Already by October you're paying less interest. If you used one of these mortgage calculators, it will take that into account.
https://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx

This one just adds it as "Extra payments" which I would assume they add that as a principal payment - have to be careful with your mortgage in knowing that it's going to principal and not just added as an extra payment!




Could be an interesting day. I don't have any oil/energy exposure in my fun account now hope CSCO takes up the slack?

 

Run that at 3% and you’ll see the interest drop much faster

 

Yeah I used a mortgage calculator and the amount $500 was added to the principal and not a future payment. By the way I’ve already paid an extra $500 a month for over a year now so I’ve already knocked off tons of interest.
At some point in time it would almost not even be worth it to add an extra $500 to the principal because the interest amount go down with every single payment. I think someone said that above, but I’m not going to figure for every single scenario and find out when the best time to quit making principal payments is.

Edit: and I do have an amortization schedule. So that helps in determining when that tipping point is, but I think the money would be better suited in the market.

 

I said before either way is right, I don't think you'll see anyone vehemently arguing for one way or the other, for me though - I agree, market. Gains + dividends, suddenly at the end of your mortgage (with rates as low as they are right now too), you have a steady income stream and giant principal. And, the big one here: Things change! if you decide to have a kid or more kids (I don't know your life ) in 10 years, say, now you have 60k invested - let's say you do it in SPHD and get 5% dividends, you now have 250/mo in dividends coming in, where as if you did your house that whole time, your house is in a better spot, BUT you don't have an extra 250/mo that you could have right now (...in 10 years), instead you have to wait until the house is paid off and you get to start investing your additional payment funds there instead.

Just for adding more info to others who might be looking:

https://www.bankrate.com/calculators/home-equity/additional-mortgage-payment-calculator.aspx
This one is a decent setup for actually comparing totals with extra payments

https://www.mortgagecalculator.org/additional-payment-calculator/
This one is my go-to, because it can have multiple additional payments. I don't pay 500/mo or reliably the same extra every month, etc etc. So, this one actually lets me say "Oh boy christmas bonus, I paid an extra 1000 in Dec 2018, and then I had an extra 200 on Feb 2019 and then an extra 700 in Oct 2019 and then an extra 100 in Jan 2020" etc etc. It can handle regular payments as well, but this one has been good for me because I have a sporadic extra payment schedule, if I really give a rip about getting down to the nitty gritty about where my mortgage is/forecasting.

 

So, how about them AAPL's?


I should have taken that dam bet.

 

Still can right? I’d imagine they’ll keep going up

 

There up $15 pre-market. Meaning they're at $513. lol

 

Crazy....People WANT to own it...
Hmmm...Today is looking like a lot of green...Might have to close a few october calls today...

 

Yep. Remember when I got out of NVDA Friday? Well, I maybe, sorta, kinda got back in for some Sept 4th calls. I'll set a tight stop loss on those and they will most likely get sold today. It will go down again before the Sept 1st GeForce announcement and I'll buy more when it does.

 

Ford really held onto that Bronco bump...not...$6 18SEP20 calls are down $0.35 since I bought them...Waiting for a little green to get out at a loss

 

My Apple calls are looking excellent today

 

What's the expiry?

 

1 11/20 450 call
2 12/18 600 calls

 

I also took a gamble on 4 Spy 340 calls on Friday with an expiry of 8/28. Gonna be a good day to get out of those for sure

 

I never listen to my gut.

Hey, tech is going to skyrocket as everyone is trying to get computers and figure out virtual conferencing and whatnot, they're going to need new hardware, there's going to be software dev and new programs and new setups. Tech will be strong through Q3 and into Q4, likely into Q1 '21.

What do I do instead? Let's buy some PMT!

 

That's ok because all PC/Chromebook makers are saying our human rights sanctions (via the present administration that receive NO coverage) on chinese manufacturers are hurting OUR children because they can't get the computers they need to remote school...so get those chinese slaves back to work...
But we can find the UK covering it...

 

https://apnews.com/01e9302796d749b6aadc35ddc8f4c946

 

AZN finally making that run I need to get my calls in the money... AZN Oct 16 2020 $60 Call