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#1246 |
Woman should only make babies
Join Date: Nov 2003
Location: Apartment "G UNIT!"
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i will be back later to show what i bought in vanguard should I move that to another etf.
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Posts: 54,401
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#1247 |
Woman should only make babies
Join Date: Nov 2003
Location: Apartment "G UNIT!"
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it feels great to have it paid off but you could invest money monthly to have a better overall profit. Like I have 0 interest in my car. Would love to pay it off but using my money now to pay off the car instead of using money to make money isn't a good play.
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Posts: 54,401
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#1248 |
Kind of a mod
Join Date: Aug 2005
Location: Donkey Land
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If your interest rate on your mortgage is particularly good (say, less than 5%, and especially if you're below 4%), you could likely come out more positive by just paying the minimums on your mortgage and investing the money elsewhere. This is particularly true since mortgage interest is deductible, so your effective interest rate is probably even a little lower.
So as an example, if you've got a 4.0% APR on your mortgage, your effective interest rate is probably closer to 3.0% (assuming you're in the 25% tax bracket). Compare that with the rule-of-thumb rate of 7% that you could get in a typical set of investments, and you're actually leaving money on the table by paying off your mortgage early. That said, there are benefits to knocking out a payment to give you more flexibility too. All personal finance is a bunch of rules that just depend on your situation and priorities. Last edited by DaFace; 08-12-2017 at 02:18 PM.. |
Posts: 52,163
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#1249 |
Veteran
Join Date: Sep 2011
Location: MO
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I have been using the betterment app on my android and I put about $125 a week into it. I'm happy with how it has been doing. I'm basically using that instead of a savings account at my bank.
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Posts: 1,528
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#1250 |
Starter
Join Date: Oct 2012
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Yeah, I'm only looking at maybe doing 100 or 200 just to get a feel for it. Heck a coworker of my wife's paid off her house doing this. Not that I even expect to break even dabbling around with it, but its fun to daydream about the success stories.
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Posts: 416
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#1251 | |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
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Quote:
We refinanced last year into a 3.6% rate. I need to roughly have my investments gain 6% to come out ahead for putting more money towards investing, rather than paying off the mortgage early. So far, we are definitely coming about ahead by paying the minimum mortgage payment and dumping extra cash into investments. |
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Posts: 45,937
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#1252 | |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
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Quote:
I find many individuals stock buyers are similar to fisherman in their stories and successes. |
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Posts: 45,937
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#1253 | |
Kind of a mod
Join Date: Aug 2005
Location: Donkey Land
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Quote:
So just make sure you keep some back for an emergency fund in cash. |
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Posts: 52,163
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#1254 | |
Starter
Join Date: Oct 2012
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Quote:
I know my old man dabbled in day trading for a few years not long ago. It worked well for him, he bought things he ordinarily wouldn't have and then rerolled the rest into additional savings plans that helped him retire early. |
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Posts: 416
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#1255 | |
Veteran
Join Date: Sep 2011
Location: MO
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Quote:
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Posts: 1,528
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#1256 |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
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Welp, I had a limit order that's been sitting there for a few weeks fill today.
Canopy Growth Corp. TWMJF. No available Marijuana ETFs and I wanted some skin in the Green Game. Hit at $7. This is a total risky move and I know it, but this was my take some money to the casino and let it ride type of move. |
Posts: 45,937
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#1257 |
MVP
Join Date: Oct 2012
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I was the pixie dust spreader on the tilt a whirl, I saved a couple hundred.
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Posts: 16,855
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#1258 | |
Veteran
Join Date: Oct 2008
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Quote:
The pitfall I see others falling into is investing too heavily into stocks and penny stocks before they've built a portfolio when their real goal should be to build a baseline of wealth. It can be frustrating to lose on some penny stocks early and be compelled to stay with that strategy to try to make it all back. Similar to a gamblers mentality. You feel much less obliged to take unnecessary risk when your percentage of investments as a whole are making satisfactory returns. |
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Posts: 1,606
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#1259 | |
Veteran
Join Date: Oct 2008
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Quote:
You're in a good position. The luxury you have as you near retirement is being able to move to a more defensive position to mitigate the risks of a downturn. A cash and fixed income portfolio, or variable/indexed annuity may be good choices in this situation. I know annuities catch a lot of flack because the sellers usually do take a fairly large upfront commission, but they offer guarantees that can make them well worth the cost. I heard it put well once "The car you drove up in, that has heated seats and blind spot detection right? Why did you pay extra for those things? Because you perceived value in them. You don't need them to go from point a to point B, but they still have worth. The death benefit and guaranteed returns of annuities are the exact same. There is value there, but that value has a cost." |
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Posts: 1,606
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#1260 |
Veteran
Join Date: Oct 2008
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Demonpenz's financial IQ is literally skyrocketing before our very eyes.
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Posts: 1,606
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