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

Yep.. and the current place I'm looking at is a little further away from my job than where I am now, but the mortgage payment will be less than my rent. Which means I will actually end up with more to invest anyways. It's worth the 10 minute drive to work rather than biking to work (hopefully)

 

I can see that logic, sort of. If someone is paying super cheap rent in an effort to save for a down payment.

But what is blowing my mind are fellow millenials renting for $1500/month. That's a $300k home! It becomes laziness at that point. Forgo the dope apartment for a year to save a down payment

 

You are absolutely correct from a financial standpoint. I just mean that for some, it may be worth renting and not having to deal with repairs, yard care, etc. I mean for some people, not building equity can be the trade off for, I guess, being able to be lazy lol

 

just like forgoing retirement savings because #YOLO, I think it would benefit my future self far greater if I just suck it up and buy a house now. Future me will be thankful. At least that's my thinking.

 

Definitely! And I think that's my pet peave when people make poor decisions and try to justify them. Just admit to being lazy lol

@ThunderOne that's a valid point on maximizing where you are seeing returns. But the market is volatile, equity is not (can never be zero)

Edit: Damn, no 401k at all? Bold move, cotton

 

Wait what? Haha

 

I was going to stop contributing to my 401k and just be able to invest more in my brokerage account. I talked to a guy about something else at my brokerage and discussed this. He broke out some paper and ran some numbers. It became very clear that if your employer will match your contributions (i.e. 100% return), then it's a better deal to do that, and then cash it out with the penalty when you stop working there if you want to do that. I was impressed, he explained in a way that I hadn't looked at it, and he was absolutely right.

I also don't want a retirement account, but I look at it now as an investment that is actually about the best return you can find (even after you cash it out after every job you work at).

 

Oh, I see what caused confusion.

I was basically echoing the whole "millennials paying $1500 in rent and not thinking about home buying" with "millennials also don't believe in retirement funding because #yolo".... I am neither of those things haha. I definitely take full advantage of my employer match. That's a guaranteed hedge against a zero to 50% loss at worst, and maximizing returns at best!

 

Returns aren't necessarily my priority with my retirement. Stable growth is my priority. I take risks with other money buy my employee-matched 401k is relatively conservative.

Hell, even 3% growth over 30 year is still a lot of money when vested

 

Okay yeah we're on the same page then. Bingo! I've never thought about employee match serving as a hedge, too, good point

 

I want to get back into a house but renting right now for $1250/month is so cheap compared to a house with the crazy property taxes in my county

Market has been slowing, and houses staying on market longer, if i can get a better setup with price/extra down it could mean getting a loan for 15yr/20yr instead of 30yr by just waiting a couple years...... at least that is what i am convinced of

 

Oh yeah. If my employer matches $500 on a $1000 investment, I'd need to lose more than $500 on that investment before it starts affecting MY money. So I actually am a little more aggressive because of that.

 

I've tried to look at 15 vs 30 year mortgages and one thing you have to consider is inflation - the dollar value of your loan will decrease in future dollars. So the longer your loan, the "cheaper" it gets. Also you could be forgoing extra money that you could have with a lower payment (i.e. 30 year) to invest and make up for losses on a slightly higher interest rate and a longer loan term.

There's a lot of variables to consider, that's for sure!

 

LYFT IPO coming. A lot of millionaires are about to be made when the early investors sell their shares the minute it goes public!

 

Yeah normal people usually dont win off a IPO unless your in it for the long haul

 

YETI has been doing surprisingly well. I was skeptical.

 

I read that YETI went public to raise money to pay debt, which seemed like a horrible investment (for retail investors). But, their share price is soaring. Missed out on that one.

 

who'da thunk a cooler company would have a market cap of $2.5B

 

I was gonna add, YETI's performance might just be a rising tide that is lifting all of the ships (or however that saying goes).

 

I went 15 just cause I hate debt lol

And save $40k interest over the life of the loan