Investing 102

[GregWeld]

Can you guys tell I love this stuff??

[Bucketlist2012]

Originally Posted by GregWeld

Can you guys tell I love this stuff??

If you want to be Wealthy, you have to study Wealth....You sir, are a Top student in the class...

Thanks for all the insight...It helps my self taught Brain to process and analyze info...

My Wife doesn't want to know, it scares her...I am the one keeping her from buying certain non liquid assets right now...We bought Real estate in 2009, and I told her we are staying liquid right now until we know more about the uncertainty.

[GregWeld]

I hear ya Mike!


We just bought this condo in Sun Valley --- and against my better judgement and the way I "normally" do things -- we'll take a mortgage on it. The cost of money is too cheap not to. I'm using Schwab "influence" via their loan offering and getting a pretty sweet rate.

Just a little "funny". I like funnies.... This guy calls and asks me "how much do you want to finance"? I said -- I don't know - what are my options? He says how much do you want to put down? I said - I don't know... I'll put down whatever I have to until I'm happy with the rate etc I guess... This raised another question. What happens if it doesn't appraise for the sales price? I said - well - then I guess I'll just have to throw more money at it until the numbers work.

What I ended up with is a "conventional" mortgage - I think they call it - No --- wait --- it's called "conforming". We settled on that amount and whatever money I need to bring to close the party is what I'll bring.

My take on the whole process.... super easy.... WHY? Because I have lots of cash! If I didn't - we'd have had to have a whole different discussion - and I'd be sitting on pins and needles wondering what the end result would be. Now -- I'm just telling him "you put in this much - and I'll just bring all the rest!"

By the way -- Gwen's credit score is way higher than mine! We've been married for 33 years this month! Go figure that one out! I pay all the bills. Why should hers be higher than mine by like 50 points!?!? Both are quite high -- but I did get a good laugh out of that. Like her credit quality is any DIFFERENT than mine! Geez --- we're hooked at the hip!

[Bucketlist2012]

Haha..

My Wife's score is higher than mine too..I pay all the bills, and love to pay them early..She likes to leave them for the last minute..

But yet, she has the higher FICO, go figure..

I don't have a lot of wealth, another funny is that back in December 2008, we were looking at the Home we have now, it was an REO that sold in 2006 for 660,000 Dollars...I was buying it for 275,000 plus getting a 9000 Tax credit.

When I went to get a loan, they asked how much do you have to put down ?

I said all of it... But I want to finance 50% at these rates...You should have seen their face.

If the rates were high like in the 1990's , I would have paid cash, but now ? No way...at 4%, I can invest the rest and pay the payment with Investment profit.

[chr2002ca]

Originally Posted by Bucketlist2012

But yet, she has the higher FICO, go figure...

I work for FICO and I can tell you that the reason people often can't figure out how their FICO score is calculated is because we often can't figure that out either. I won't go into detail.

Love this thread. Learning a lot. Thanks to all the contributors.

[Rybar]

Looks like a good buyers market right now, some deals to be had. Alot of my portfolio is in the red since Obama was re-elected but that's ok. Sticking to them win or lose like Greg's suggested.

[GregWeld]

Originally Posted by Rybar

Looks like a good buyers market right now, some deals to be had. Alot of my portfolio is in the red since Obama was re-elected but that's ok. Sticking to them win or lose like Greg's suggested.

I wouldn't be buying YET... keep your powder dry... I'm thinking we have many more days / weeks yet to listen to the two sides go at each other with guns and knives ------ and that will roil the markets.

[GregWeld]

Originally Posted by chr2002ca

I work for FICO and I can tell you that the reason people often can't figure out how their FICO score is calculated is because we often can't figure that out either. I won't go into detail.

Love this thread. Learning a lot. Thanks to all the contributors.

I laughed at the FICO score deal -- because I said to the guy -- DUDE! I don't need ANY credit -- so whatever it is doesn't bother me one bit! I just thought it was funny that the two would be different numbers. I also found it interesting that both of ours are LOWER because we don't have revolving debt! WTF! I have 3 credit cards --- two with 60K limit and one with 100K limit - I don't OWE ON ANY OF THEM -- and that's considered a "negative". Really? My thinking is that I should be given a friggin' gold star! And apparently I get NO credit for my net worth either.... or that I own 13 cars with ZERO payments.... again that must be considered a negative? OMG! No wonder our world is so screwed up!!

[96z28ss]

Originally Posted by GregWeld

I hear ya Mike!


We just bought this condo in Sun Valley --- and against my better judgement and the way I "normally" do things -- we'll take a mortgage on it. The cost of money is too cheap not to. I'm using Schwab "influence" via their loan offering and getting a pretty sweet rate.

Just a little "funny". I like funnies.... This guy calls and asks me "how much do you want to finance"? I said -- I don't know - what are my options? He says how much do you want to put down? I said - I don't know... I'll put down whatever I have to until I'm happy with the rate etc I guess... This raised another question. What happens if it doesn't appraise for the sales price? I said - well - then I guess I'll just have to throw more money at it until the numbers work.

What I ended up with is a "conventional" mortgage - I think they call it - No --- wait --- it's called "conforming". We settled on that amount and whatever money I need to bring to close the party is what I'll bring.

My take on the whole process.... super easy.... WHY? Because I have lots of cash! If I didn't - we'd have had to have a whole different discussion - and I'd be sitting on pins and needles wondering what the end result would be. Now -- I'm just telling him "you put in this much - and I'll just bring all the rest!"

By the way -- Gwen's credit score is way higher than mine! We've been married for 33 years this month! Go figure that one out! I pay all the bills. Why should hers be higher than mine by like 50 points!?!? Both are quite high -- but I did get a good laugh out of that. Like her credit quality is any DIFFERENT than mine! Geez --- we're hooked at the hip!

Cause you wife had a job, and a steady stream of income. it adds to the score.

[GregWeld]

Originally Posted by 96z28ss

Cause you wife had a job, and a steady stream of income. it adds to the score.

Probably so!


Hadn't thought about that!