Meh... maybe. You will probably pay on the order of $5000 in closing costs and your extra principle payment could have been invested at your hypothetical 6%. Also consider that most people move every 5-10 years so they don't recover the cost of the refi...
That is really great advice, I would add 'waiting on retirement, then they realise they have run out of health' no amount of money can help you there,
AND, we still own the complex, free and clear, which we could sell and buy me a larger sail boat, but then I would lose the monthly income, so maybe invest the profits into Corona Virus vaccination companies
Some absolutely are taking advantage of the eviction ban. But that "law" is how we are getting some of our best buys right now as we know how to get tenants out by working with them rather than treating them like the enemy. Lots off homes on the market with "tenant has not paid since ....".RobG and Psycho ---I concur gentlemen.
Do you think anyone is taking advantage of the "Ban on eviction" laws ??
I like what Garth said in "Dance" " I could have missed the pain, but I would have had to miss the dance"
Without a doubt this has been a tough year in a multitude of ways, but this old girl isn't ready to roll over and play dead yet. I have had some great, fantastic years, investing in a multitude of investment vehicles and they have provided a great ride for many years, some Ferrari years and some Ford pickup years--this is definitely a Ford Pick up year, but as long as it runs long enough to get me to next year, I am all in
Great advice - thanks for sharing. I never got this growing up and, like you sounds like, I have had to learn it the hard way. You'd better believe I'm drilling it into my kids' heads. Doesn't matter to me if they don't heed it, I'll rest easier knowing I put the cookie on the plate and it was theirs to take.One thing I think we don't do well as a society is talking candidly about money. So I thought I'd start up a thread to encourage people to a) provide their real world insights about money (not "I'm worth this much" but more..."this is what I've found that works"), b) encourage the younger crowd to ask dumb questions, understand what is likely/possible and get advice.
-I remember starting out (seems not that long ago) fresh out of college with somewhere around $10k from working a lot of jobs during high school and college, finishing in 2009. My goal was to graduate with $10k to my name, and I just barely cleared this hurdle but then lost most of it when my dad's company gave him the opportunity as a management member to buy preferred shares with a 12% "guaranteed" return. I put $8k in and lost it all in a few months when gas prices skyrocketed and trucking-related companies (my dad's industry) stopped ordering new trucks, and the company went bankrupt = $8k gone. LESSONS LEARNT: if it sounds too good, it probably is + be careful with single-stock risk. Damned if I haven't had to re-learn these lessons a couple times.
Investment thoughts:
-Leapfrogging from house to house each year (keeping the old one and renting it out) is a decent (if sometimes exhausting) way to build wealth. Wifey and I moved 6 summers in a row, buying (and keeping) a house in 5 out of 6 of those, renting them out. Some things we learned there: 1) the big wins come when you do some rehab, 2) the cheap side of town doesn't appreciate like the 'nice but not rich' side, 3) Section 1031 is your friend, 4) buying condos carries extra risk (our condo board decided to forbid renting, so we had to sell 2 condos and buy other houses, adding a lot of transaction cost), 5) while sometimes you come out making some actual 'cashflow', a lot of the time the game is to just break slightly above even with repairs, vacancies, etc, but each year pay down mortgages, take depreciation-based tax writeoffs, and ride rising real estate values, 6) it's easier to make your money on the buy, 7) for multifamily, go big or stay SFH, 8) if you wouldn't live in it, don't buy it.
-Rent vs buy...too many people are afraid to buy. With FHA, etc, you can buy with a small amount down, and your house payment still be less than your rent. Unless you're moving soon, buy. Rates are super low.
-401k money: go big, esp if married. Money unseen is money unspent. Don't borrow from it unless there's a health emergency.
-Don't buy individual stocks. I know you're special. Just don't. Just...don't (sadly, I still do...it's like a drug)
-Celebrate big financial milestones. Finances are part of your (and your partner's) life, and are worth being celebrated. I remember my wife and I celebrating when we hit big meaningful 'financial markers'. We usually blow $50 on a nice bottle of wine to celebrate!
-Warren Buffett is a stock market genius. You're not. You should follow John Bogle. Go to the Bogleheads site and do what they tell you...basically live cheap, index, and avoid paying fees.
-Options are fun but often a distraction. They (often) rely on predicting market TIMING rather than fundamentals. Theta can kill you. Better to own the underlying security and miss the timing by a month, and a year later be rich vs have your options expire worthless.
-Don't neglect the obvious things: your credit card has to be paid in full every month, you should save minimum 10% of your gross income each month (shoot for 20%), if you're young avoid bonds and go mostly into equities (and real estate if you're scrappy). Of course get any free money first (401k match), then think carefully whether you want to bank Roth or 401k (etc)...fundamentally it's a gamble on your future earnings and future tax rates. On balance, I give a nod to the Roth (better optionality as emergency savings, better down the road vs the ACA, better if you ever leave the country, better if tax rates go up, which I deem likely), but that's a larger topic.
-The Index Card investing philosophy is really good. Google it and see below.
-Never stop learning and don't be afraid to take advantage of company help.
-Live cheap but it's easier to raise your topline most of the time than marginally improve your savings rate, once it is reasonably optimized.
-Don't live so cheap that you don't enjoy the ride. Remember what Warren Zevon said, "Enjoy every sandwich".
Look forward to picking up on some collective wisdom.
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It's worth revisiting this. I think the ban is no longer in effect, and to take advantage of it there were several stipulations.RobG and Psycho ---I concur gentlemen.
Do you think anyone is taking advantage of the "Ban on eviction" laws ??
I like what Garth said in "Dance" " I could have missed the pain, but I would have had to miss the dance"
Without a doubt this has been a tough year in a multitude of ways, but this old girl isn't ready to roll over and play dead yet. I have had some great, fantastic years, investing in a multitude of investment vehicles and they have provided a great ride for many years, some Ferrari years and some Ford pickup years--this is definitely a Ford Pick up year, but as long as it runs long enough to get me to next year, I am all in
p.s. psycho: And, not just in the U.S. They are giving away villa's in Italy.
On the other hand, if your physically fit with no prexisting conditions, life insurance can be fairly inexpensive?
You can always change the beneficiaries of a term plan.
The post is from so long ago I don’t remember the exact context. Regardless… Some companies sell plans to college graduates. No evidence Of insurability needed. They aren’t always the largest in terms of payout, but if you have a PEC they may be the only option. It was for me (and automatic eligibility plans from employers). I carried a college plan for 25 yrs until the premium was so high due to increases with age I decided it wasn’t worth it.
The life insurance I have is with TIAA and the premium rate has stayed the same for 20 years.
Wow. That is great!. I wish mine did. The premium increased every 5 yrs I think. The payout would step up, for an extra premium of course. At the end of the day, my family had enough saved and the premium wasn’t worth it unless I died within the next 8-10yrs. I guess all life insurance is only worth it when you’re dead, but it just didn’t make sense.
The only one I’ve ever talked to was from northwestern mutual. He was the son of a prominent guy at my employer and a bunch of folks had him help with their money every year after bonus time. Even as a somewhat ignorant 20-something it was clear his motivations were not in my best interest.
This is possible and requires meticulous record-keeping. You can also add in formulas to calculate mileage reimbursement (usually changes every year) to boost the money you can withdraw. HSA's are the only income that I know of that are never taxed at any point if used for medical expenses. Don't be like me and pilfer the HSA fund for eligible hunting gear like Tetra Ear Protection/Sheepfeet Orthotics and you'll be fine.
