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

I got it, bought an hour before ER, sold today to take my 19.5% gain, missed out on some AH action and might keep going up
Huge gamble but have to take shots sometimes

 

I think i have convinced myself that selling my rollover IRA (from last job) is a good idea to pay for a new 2019 Tacoma so i have no loan interest or payments

If anyone has time can they look this over? Am i being a total idiot? Or do i have a little bit of sense?

IRA history
-From previous employer i had about $27,000 i rolled into this IRA about 4 years ago, its now worth $42,000 (yes up 56% Fund: Fidelity OTC)
-Even with 20% tax + 10% penalty (below 59.5) I would get about $29,000, that is more than invested and cash in hand
-Of course the drawback to this is possible gains, but if FANG stocks go down my IRA tanks, but if they keep growing then its free money, and im going to still have to pay that 20% if i wait till 59.5 anyway its just the 10% penalty i am taking a hit on (about $4200, so in my mind this is all i am losing)

My other option to pay in full is to clear out my cash from Fidelity, but this money is all invested in stocks that i swing or collect nice dividends from
or of course get a loan

I am a numbers person so did all the math, numbers are not exact but close
Here is what i have on my notepad as i think this over:

60 month payments based on 3.84% interest
Balance of $35,000 after trade in

$0 down
Total Interest $3500
$58 per month interest
$637 per month payment

$5000 down
Total interest $3000
$50 per month interest
$545 per month payment

$10,000 down
Total Interest $2500
$42 per month interest
$454 per month payment

Use IRA
$42,300-30%= $29,000
+$6000 down To pay off, no monthly payment, no interest

My current contributions to show im not totally blowing it
10% 401k +4% employer match
10% (maxed) Stock purchase program + 5% discount on stock purchase
Maxing ROTH IRA yearly
$150 bi-weekly deposit into savings account (not really a retirement account, but my rainy day fund or friend in need fund)

Freeing up income with no car payment i could go more aggressively on savings, or roll into stock fund to invest more
(and of course be free and clear)

 

You can use your roth contributions without penalty as they are after tax. Use that first then get truck loan but pay it down aggressively (pay it off early) would be my suggestion. Of course the best solution is to not buy a new Tacoma lol

 

To me if you don’t pay a new truck off before the first year is up what’s the point in paying off early except a bit of piece of mind.

After the first year the amount of interest you’re paying is so much lower anyways.

 

I personally wouldn’t touch a retirement account for a truck. To me retirement money is sacred. I wouldn’t even touch it going into bankruptcy (protected in most if not all states). The only time I would consider it is with a Roth for a down payment on your first house. But to each their own. Try this calculation, calculate the future value of that at age 65 at a rate of 7.5%. If you can live with that number, then sure, buy the truck.

 

Seems to me, if you have that good of a handle on your money, you should have good credit and be able to shop for a very low interest rate for that truck loan.

 

When I consider debt, I look at what I can make on that money vs. the interest rate on the loan. If you have a portfolio that yields 4%, then it wouldn’t make sense to pay off a 2.5% loan. If I can make more than the interest being charged, I will pay off the loan with regular payments over time. Just my take, debt isn’t always bad, take advantage if someone wants to give you money at a low rate.

 

Just fyi i recently purchased a 2016 4runner and my credit union offered 3.49%.

Money is still cheap but zero debt is even cheaper!

 

leftovers you may be able to get for 0%, most new vehicles at credit unions you can get 1.9 for 6 years, maybe lower if you finance for 5 years.

 

I lucked up owning GE, but damn I’m still upset about not buying amd

 

Mad, but all new highs hit today in my few years!

 

It has been pretty incredible this month, but still not enough to make up for what happened in December. I think I am close to having recovered, but not quite there yet.

 

all that work to make money... only to dump it into a brand new car... cars are depreciating assets but if you have a lot of money then do what your heart desires. But if you don't have that cash on hand and have to use your IRA to buy a car then I'm gonna say you don't... and you shouldn't buy a new car if that's the case

 

I've FOMO'd about 6% so far since I put my money into short term treasuries. This may or may not be a learning experience for me.. depends on what happens next month. January was predicted to be an 'up' month. My oil holdings are the only thing giving me solace

 

I think it depends on your time horizon. I have heard a lot of "analysts" (who I think know about as much as you or me) who think we will retest the lows. If that happens, jump in then. If you plan to hold forever, none of this even matters. That is more for the traders in my opinion.

 

I think I will majorly consider jumping in around re-tested lows. It would be lovely to put my retirement savings in somewhere near the bottom so I have a "fall cushion" for the long term future

 

You can FOMO your way in now, I think we go higher this year.

 

I know... I think maybe I should but I need at least a small dip to do so, we have risen too far too fast IMO. Same as the precipitous drop in October, things gotta balance out and right now the market has no friggin idea where to be haha

 

I couldn't agree more, at this rate we would be up almost 100% this year. That ain't happening.