Investing 102

[XLexusTech]

all politics aside. If trump is not elected in November expect a major decline..
The street loves his "Pro business" approach..

[rustomatic]

How about that 1860-ish point drop in the Dow today, dudes? We're in new territory as of this year with the markets (and that market disaster, Robinhood). I get fearing the future, but do we have to fear hobbies, recycled air, and gangs of internet trading cults who can kill your day with a crappy service outage?

The future is fun!

[WSSix]

I was looking like a genius earlier this week. Now, I'm wondering if this is the start of another dip. I wasn't expecting another until 2nd quarter numbers rolled in.

[rustomatic]

Too look "like a genius," you needed to go to a bar or a really crowded beach party in the last two or three weeks. Then, you would have been able to be super-current with coronavirus.

Everyone likes to get in at the bottom to make the most of the uptick . . .

Originally Posted by WSSix

I was looking like a genius earlier this week. Now, I'm wondering if this is the start of another dip. I wasn't expecting another until 2nd quarter numbers rolled in.

[slow4dr]

Always a good read in this thread.

It's been a while since I've checked in so I figured I'd post an update. My Real Esate (rental) plans changed this year. The house we bought for our primary residence a few years back had appreciated enough to sell, cash out and pay off our rental plus have some extra to invest. It wasn't a decision made overnight but our long term, very good renter put in their notice so the timing was perfect.

The sell of the house took a little longer than expected and we had many sleepless nights. We ended up getting asking price(minus $5K in closing) even though we had lots of competition in our price range. The 45 day escrow ending up being about 65 with delay after delay. Finally, we closed and got funded.

We moved back into the rental house which is now paid off. We had lived in this house for 10 years previously. We always considered it to be our "Forever Home" so it was an easy transition. I am pretty excited to have my shop back too. It's got a 800 sq ft shop with 11' ceilings and A/C.

Old pic



On paper, this financial move is only about a $400 swing in our favor. Which will dwindle considering no longer having the mortgage & rental writeoffs. Although, I think my stress level will be much less without the rental.

I know there is still a chance of going through this whole process again in the future. When the time comes we'll be confident in our ability to make it happen after learning so much this first time around. If the housing bubble pops again we'll be ready to pounce.

[Vince@Meanstreets]

Originally Posted by slow4dr

Always a good read in this thread.

It's been a while since I've checked in so I figured I'd post an update. My Real Esate (rental) plans changed this year. The house we bought for our primary residence a few years back had appreciated enough to sell, cash out and pay off our rental plus have some extra to invest. It wasn't a decision made overnight but our long term, very good renter put in their notice so the timing was perfect.

The sell of the house took a little longer than expected and we had many sleepless nights. We ended up getting asking price(minus $5K in closing) even though we had lots of competition in our price range. The 45 day escrow ending up being about 65 with delay after delay. Finally, we closed and got funded.

We moved back into the rental house which is now paid off. We had lived in this house for 10 years previously. We always considered it to be our "Forever Home" so it was an easy transition. I am pretty excited to have my shop back too. It's got a 800 sq ft shop with 11' ceilings and A/C.

Old pic



On paper, this financial move is only about a $400 swing in our favor. Which will dwindle considering no longer having the mortgage & rental writeoffs. Although, I think my stress level will be much less without the rental.

I know there is still a chance of going through this whole process again in the future. When the time comes we'll be confident in our ability to make it happen after learning so much this first time around. If the housing bubble pops again we'll be ready to pounce.

congrats

[GregWeld]

Originally Posted by slow4dr

Always a good read in this thread.

It's been a while since I've checked in so I figured I'd post an update. My Real Esate (rental) plans changed this year. The house we bought for our primary residence a few years back had appreciated enough to sell, cash out and pay off our rental plus have some extra to invest. It wasn't a decision made overnight but our long term, very good renter put in their notice so the timing was perfect.

The sell of the house took a little longer than expected and we had many sleepless nights. We ended up getting asking price(minus $5K in closing) even though we had lots of competition in our price range. The 45 day escrow ending up being about 65 with delay after delay. Finally, we closed and got funded.

We moved back into the rental house which is now paid off. We had lived in this house for 10 years previously. We always considered it to be our "Forever Home" so it was an easy transition. I am pretty excited to have my shop back too. It's got a 800 sq ft shop with 11' ceilings and A/C.


On paper, this financial move is only about a $400 swing in our favor. Which will dwindle considering no longer having the mortgage & rental writeoffs. Although, I think my stress level will be much less without the rental.

I know there is still a chance of going through this whole process again in the future. When the time comes we'll be confident in our ability to make it happen after learning so much this first time around. If the housing bubble pops again we'll be ready to pounce.

Great move!!!!


Now - let me ask you what you're going to do with the monthly payment you used to make - because in the long run - that decision will be the important one. In the sense of whether or not you just end up buying "stuff" (car payment etc) or you practice good finances and save most of it and invest it in "something".

I used to discuss "write offs" with my old accountant. His view was - If you make a dollar and you pay Uncle Sam 40 cents you still get to keep 60 cents.... If you spend a dollar to save 40 cents... which way will get you ahead?

[slow4dr]

Originally Posted by GregWeld

Great move!!!!


Now - let me ask you what you're going to do with the monthly payment you used to make - because in the long run - that decision will be the important one. In the sense of whether or not you just end up buying "stuff" (car payment etc) or you practice good finances and save most of it and invest it in "something".

I used to discuss "write offs" with my old accountant. His view was - If you make a dollar and you pay Uncle Sam 40 cents you still get to keep 60 cents.... If you spend a dollar to save 40 cents... which way will get you ahead?

Great point.....spending will never get you ahead.

I won't lie, we've already splurged on a new couch and I plan to put some new LED lights up in the shop. After that though we will take money out of each pay check and set it aside. I don't want to get analysis paralysis but I plan to take my time and research and finally take a dive into dividend stock shopping.

[SSLance]

Originally Posted by GregWeld

I used to discuss "write offs" with my old accountant. His view was - If you make a dollar and you pay Uncle Sam 40 cents you still get to keep 60 cents.... If you spend a dollar to save 40 cents... which way will get you ahead?

OMG! I've had that same conversation with so many people and it is amazing to me how many people just don't get it.

Fact...the only things that are really "write offs" are expenses that you never get back.

Even the depreciation write off typically doesn't work out because if you ever sell the depreciated asset, you have to reclaim every dollar that you had written off as regular income.

[GregWeld]

In markets like we are having or have been having the last few months.... you'll all discover the "comfort" from collecting dividends while you wait for the dust to settle.

These are the times when - if you're automatically reinvesting the dividend - that you actually want. WHY? Because those dividends are buying more shares... and that's how you get the snowball rolling!! Be happy! It will pay off. Trust me.