potetoboy
Krauser's Shoe Shiner
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- Jan 10, 2014
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- 240
^yup, same here..
Financial Checkup, Let's Discuss Positions, Holdings, and Thoughts for Near Future
- Thread starter RabbitTroop
- Start date
Krauser's Shoe Shiner
^yup, same here..
- Joined
- Dec 26, 2000
- Posts
- 13,852
Property can be a really great investment, but it does come with much higher borders of entry. The one really great thing about property is its ability to create passive income. There are REITs, Real Estate Investment Trusts, you can enter into now if you don't have a lot of cash for a down payment on actual property, and still want to ride some of the rising property value wave.
Problem is, they've been declining pretty heavily since May, and normally run inverse to rates rising so... I have a feeling the bump they've been seeing over the past few years is going to get a little more choppy soon.
It really depends on what you can honestly manage. I was a forever-renter, not thinking I could afford my own place. Once I bought something, I slapped myself for how stupid I had been. I'm now saving up to purchase an investment property. So, I'm right there with you and theMot.
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- Jan 22, 2012
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Control of assets, not necessarily ownership. People with significant wealth built it by being able to obtain control over businesses, lands, armies etc.
For the every day guy like us the way to do this is via leverage - borrowing money. That's why I like property more than stocks because banks will lend against it in most cases up to at least 80% and generally higher when the market is good and their balance sheets look nice. If you want to buy a property for 300k you only need to come up with 30k. You have basically been given control (but not ownership, as the bank really owns it) over an asset worth significantly more than you could otherwise afford. Provided the market doesn't tank and you maintain the repayments (interest only, no point even trying to pay it off) the bank will leave you alone and over time inflation, demand, human nature will see that property worth significantly more than what you paid for it provided you bought right. In a nut shell you want to start early, build your asset base as wide as possible, build cash buffers to allow for changes in interest rates and whatever else life throws at you and then just let time do it's thing and compound the returns. Go through a couple of growth cycles (around 20 years) and you laughing. That's a very low risk strategy anyone on an average salary can implement provided they can save the initial deposit.
It's hard to get into that position with stocks because banks don't lend against them in the same way they do with property even though the returns are similar over time, you have to do all the heavy lifting by saving the money yourself which is hard (impossible really) and if you do borrow against them as the market fluctuates the bank can margin call you and you have to kick in some cash. There are amazing examples of returns that you would never hear of with property, you know the stories of people who bought Google when it was run out of a garage etc but those stories are about people who basically took a gamble on something, it's not the kind of strategy that will generate reliable returns in the long run for someone just starting out on an average income.
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- Mar 30, 2010
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- 4,485
The one thing i loathe about property investment is property tax. Property tax is the most fucked up tax there is...You get tax for owning your property...Let that shit sink in for a moment. So once you get done paying for your home, you really never own it. Its a forever rental, if you dont pay your property tax, you lose it. You make improvements to your home, they will increase your taxes. At any time your local officials can increase to help pay for a new school or some shit like that. Why should property owners have to foot the bill for the whole community.
This is one of the main reason why im hesitant to invest in property or even invest in a really nice home. One more thing to worry about when getting old.
This is one of the main reason why im hesitant to invest in property or even invest in a really nice home. One more thing to worry about when getting old.
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- Dec 26, 2000
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Well, I brought this up in the home buying thread, but it's worth mentioning here again... You're always going to be paying property tax. I know, it doesn't seem like you're paying it when you're renting, but trust me, you are. At least when you own a home you have an actual asset you're paying tax on, instead of just shilling out monthly and paying your property-owner's mortgage and taxes.
Like they say, the one thing you can't escape is death and taxes...
Don't let that hold you back.FiXD. This ex-superpower is no longer able to even stand up to Putin.
You're in China, you already know that no dynasty lasts forever.
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- Joined
- Dec 1, 2002
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- 22,048
Soooooooo...
Anyone making any adjustments to start the new year? I just funded my 2014 Roth contribution so it would be nice to see the market continue down until that order clears. Planning on funding the wife's before tax time. I was looking to put it into FUSEX, Fidelity's S&P 500 Index fund.
We'll also be upping our 401k and Simple IRA pre-tax contributions with no more house to pay on but with the new child starting daycare in a month we probably won't be able to max our contributions but hopefully we can get a big chunk put away this year. We are also planning to start saving more cash for a 5 year plan on buying a new house, but I'm not sure how to store that money. I guess just a high (hah!) interest savings account maybe through Discover. Any other suggestions?
Anyone making any adjustments to start the new year? I just funded my 2014 Roth contribution so it would be nice to see the market continue down until that order clears. Planning on funding the wife's before tax time. I was looking to put it into FUSEX, Fidelity's S&P 500 Index fund.
We'll also be upping our 401k and Simple IRA pre-tax contributions with no more house to pay on but with the new child starting daycare in a month we probably won't be able to max our contributions but hopefully we can get a big chunk put away this year. We are also planning to start saving more cash for a 5 year plan on buying a new house, but I'm not sure how to store that money. I guess just a high (hah!) interest savings account maybe through Discover. Any other suggestions?
MidnightMonkey
Loyal Neo-Disciple
- Joined
- Jun 1, 2014
- Posts
- 825
You bastards make me sick with all this percentages and returns jibber jabber. Someone learn me some stocks so I can know what the hell you're talking about. And so I can make some money. I'm with T.A.P. on the broke as fuck thing.
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- Oct 22, 2000
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- 11,100
There's quite a few under-performers from 2014 that I think I still doing good business. Amazon is a risk with some of their failed projects and low margins, but I still see them continuing to expand. I think they are overstaffed, but Bezos plays the long game, and doesnt try to satisfy the short trading Wall Street folks.
FUSEX is a good index fund, and I'll likely be allocating to this one or a similar index fund this year. I'm backing down on pharma as patent portfolios start to weaken.
There's money to be made in Biotech and Pharma, but it's damn near random to predict performers. This is the industry I work in, and I still have no idea what is going to stick. I'd inside trade if I could, but everyone is always jaded on their own tech.
This may also be a decent time to get back into Oil. Exxon Mobil is/will to tank in the short term, but these prices are not going to stick. $2 gasoline is a mirage. It belongs at $4-5/gallon, and we all know it.
Qualcomm is probably going to continue to dominate the mobile market. I'm still holding onto Intel, but I don't think they are going to make gains without a major regime change in mobile tech. 64bit mobile maybe? Qualcomm is not without risks tho. They are high on morale and are going to attempt to go after Intel's server market....dumb IMHO. Qualcomm has also stirred up controversy in China, and there is potential for major issues there.
FUSEX is a good index fund, and I'll likely be allocating to this one or a similar index fund this year. I'm backing down on pharma as patent portfolios start to weaken.
There's money to be made in Biotech and Pharma, but it's damn near random to predict performers. This is the industry I work in, and I still have no idea what is going to stick. I'd inside trade if I could, but everyone is always jaded on their own tech.
This may also be a decent time to get back into Oil. Exxon Mobil is/will to tank in the short term, but these prices are not going to stick. $2 gasoline is a mirage. It belongs at $4-5/gallon, and we all know it.
Qualcomm is probably going to continue to dominate the mobile market. I'm still holding onto Intel, but I don't think they are going to make gains without a major regime change in mobile tech. 64bit mobile maybe? Qualcomm is not without risks tho. They are high on morale and are going to attempt to go after Intel's server market....dumb IMHO. Qualcomm has also stirred up controversy in China, and there is potential for major issues there.
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- Dec 1, 2002
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- 22,048
There are plenty of suggestions to reduce expenses in this thread.
http://www.neo-geo.com/forums/showthread.php?237724-Living-like-a-cheap-motherfucker
We spent just under $27k last year* for two people, a dog, and a newborn for 1.5 months of the year and the rest went to savings/investments
*For everything with the exception of principal paid on the mortgage, so if you rent you would be counting rent paid where I only count taxes, insurance and interest paid on the house.
- Joined
- Dec 26, 2000
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- 13,852
Last three days have been brutal. Brutal, I tell you. 
Best just to look away during the bloodletting. I'm staying firm with my current positions. They did good by me in 2014, and I had around 11% returns across investments. Not too shabby at all.
This year is simple for me, keep the course, buy more when I can, and keep saving up for the rental property. Like a few members in this thread, I'm very pro real estate and hopefully with requirements for getting loans relaxing a bit in 2015 and interest rates remaining low, I'll be able to snatch up a nice place to add as an investment property.
The goal at the end of all this is to be self sustaining. You can't count on a job, and... Who'd want to anyway? I personally feel like I'm a slave to the 9 to 5 and am redirecting any and all cash I can each month into areas that will hopefully start paying dividends and returns (whether from rental income, or what have you). I don't expect this to be a get rich quick sort of thing... This is investing for the long haul and hopefully when the time comes and the inevitable happens, I'll have the safety net in place to soften the blow.
Anyone who is looking to start... Start! Start saving today, really. It gets easier once you get some momentum. Use websites like Mint and Personal Capital. Set a goal. Measure yourself on that goal. Don't go insane. Don't sit and eat ramen every night (unless you like eating ramen every night), but do try and save something. Few people ever do, and... That's the real goal here. You can work and make enough to get by, but if you aren't creating a little nest for yourself... Your working years are finite, and there will come a day... for some sooner than they think... when you can no longer work and make money. Start carrying those twigs while you still can.
Best just to look away during the bloodletting. I'm staying firm with my current positions. They did good by me in 2014, and I had around 11% returns across investments. Not too shabby at all.
This year is simple for me, keep the course, buy more when I can, and keep saving up for the rental property. Like a few members in this thread, I'm very pro real estate and hopefully with requirements for getting loans relaxing a bit in 2015 and interest rates remaining low, I'll be able to snatch up a nice place to add as an investment property.
The goal at the end of all this is to be self sustaining. You can't count on a job, and... Who'd want to anyway? I personally feel like I'm a slave to the 9 to 5 and am redirecting any and all cash I can each month into areas that will hopefully start paying dividends and returns (whether from rental income, or what have you). I don't expect this to be a get rich quick sort of thing... This is investing for the long haul and hopefully when the time comes and the inevitable happens, I'll have the safety net in place to soften the blow.
Anyone who is looking to start... Start! Start saving today, really. It gets easier once you get some momentum. Use websites like Mint and Personal Capital. Set a goal. Measure yourself on that goal. Don't go insane. Don't sit and eat ramen every night (unless you like eating ramen every night), but do try and save something. Few people ever do, and... That's the real goal here. You can work and make enough to get by, but if you aren't creating a little nest for yourself... Your working years are finite, and there will come a day... for some sooner than they think... when you can no longer work and make money. Start carrying those twigs while you still can.
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- Jul 29, 2004
- Posts
- 9,940
Well, I brought this up in the home buying thread, but it's worth mentioning here again... You're always going to be paying property tax. I know, it doesn't seem like you're paying it when you're renting, but trust me, you are. At least when you own a home you have an actual asset you're paying tax on, instead of just shilling out monthly and paying your property-owner's mortgage and taxes.
Like they say, the one thing you can't escape is death and taxes...
The benefits of home ownership vs renting entail a number of variables...
If you're a wage slave making payments on a home + car + taxes + hydro + heating and then clearing almost NOTHING by the end of the month, then I'd say you're WAY worse off than renting a room somewhere and saving a few hundred bucks a month to put aside for investments/retirement/leisure/etc.
IcBlUsCrN
Vanessa's Drinking Buddy
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- Mar 13, 2008
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- 1,184
i learned the hard way i took a huge hit this month , depressing something like 7k in a week.
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WTF happened...
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- Dec 19, 2005
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More chemical explosions for everyone!
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- Sep 15, 2013
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- 840
Wow, didn't even realize this happened until I caught these posts. Oh well, my 401k purchases are going to net me more shares than usual in next few paychecks. Ain't like I'm retiring anytime soon. Silver linings. 
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Somebody here remembers all the way back to 2008! Kudos bro.
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- Dec 20, 2004
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Quiet you, adults are talking.
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- Dec 1, 2002
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Who are you ditto-ing? Do you know what ditto means?
IcBlUsCrN
Vanessa's Drinking Buddy
- Joined
- Mar 13, 2008
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- 1,184
while i know this is mostly true , ill have a hard time buying back in. Most if not all my trading is in the tech sector and china does heavily effect it. ( i know its not good to have all your eggs in one basket)
when the technical s bounce im thinking of getting back in PG and KO they are my "goto" safe harbor trades.