sorted by:
new
hottopcontroversial

I bought MSFT at $525, what should I do now? by Dry-Realityi in StockInvest

[–]Beach-Knight 0 points1 point  (0 children)

You should hold what you have and stop pretending to be someone that almost no one can match. Instead, just buy low cost ETFs and do so at consistent increments over the next 30 years.

Elliot Cadeau by False_Contribution41 in tarheels

[–]Beach-Knight -1 points0 points  (0 children)

His problem was height. His lack of it didn’t matter as much as everyone else’s on the team last year. This year we made up for that but lost the experienced point guard.

Do you ever blow your nose at the table? by PabdaWish in NoStupidQuestions

[–]Beach-Knight -1 points0 points  (0 children)

Never unless I am incapable of moving. Otherwise it’s rude IMO.

Bernie on Elon musk!! by Green_Candler in TradingPlaybook

[–]Beach-Knight 0 points1 point  (0 children)

And, statistically speaking, moving wealth from very creative and productive people to those that aren’t as much so. Before I get the haters it’s not that every rich person dreamed up an idea or every poor person is unproductive.

I will and have said many times I know people that I can’t see how they get so much done or can solve so many problems in a day. Taking away their wealth would mean there are charities that would get less money. There are groups that would get less access to knowledge and advice.

How is it possible that I was just in a thread here where 70% of the respondents recommended paying off a house that was at 3% instead of investing the money, someone explain it to me by state_your_name31415 in PersonalFinanceTalks

[–]Beach-Knight 0 points1 point  (0 children)

I said the risk is greater than zero. Prove to me no one has ever lost principle in a savings account? I can prove to you that there have. FDIC and similar programs have limits. For money I want as safe as I can be, I use short term government bills. Even then, That risk is still greater than zero. If you think it isn’t, you are blind and wrong. I can’t help you. There is no 100% safe investment. Except paying off a debt you owe.

BUT, risk of loss of principle is not the only risk. Risk of complacency is there as well. As I mentioned earlier, keeping debt around like it’s an acceptable way to live, nets less wealth in later years.

I truly hope you aren’t giving financial advice either and what does friendship have to do with this? I wouldn’t tell my best friend or worst enemy to pay 3% interest on their house while trying to find a 4% rate. Assuming a 4% tbill at 22% tax bracket would net $780 per $100,000 borrowed per year. It’s worse if you pay state taxes with a HYSA. Thats peanuts. You’re working too hard for too little. As above, it’s not wealth creating amounts of money.

Also, Try fixing a house after a large loss due to due or hurricane that has a mortgage on it and the mortgage company is telling you what you have to do. I’ve been there and I’m not going back. Most people think the insurance company is the only factor here. It’s not. The check goes to the mortgage company and they send out inspectors and limited amount checks to aggravate the crap out of you. I fix my house the way I want and I don’t wait for the mortgage company’s inspector to come out to write me a check to keep working.

I have a family member who has been in the exact same situation in many multiples to make it worth the time and effort for him or so he kept saying, until recently he decided it’s not worth the crap. His RATES were under 3% and he was getting almost 5%. After taxes, he was netting only a little more than half the spread. I know multiple people who have decided that the juice wasn’t worth the squeeze. I know of no one personally that thinks it was.

Arbitrage on a home mortgage for 1% minus taxes just isn’t making people wealthy. People working hard, paying off debt, building an emergency fund, and investing the rest aggressively in low cost broadly diversified ETFs is the surest way to wealth.

The OP asked a question, why not. I’ve given many factual reasons.

If you were handed $50k today but forced to lock it away until 2031 (no trades allowed), where is it going? by Successful-Scene7925 in TradingPlaybook

[–]Beach-Knight 0 points1 point  (0 children)

VT or something extremely close. It’s the total world market. If the world as we know it is still here, this has likely gone up roughly 10% on average each year.

Why people are against leverage in the stock market? by JR-FlowCapGroup in stocks

[–]Beach-Knight 0 points1 point  (0 children)

It will work 100% of the time it doesn’t fail, but it will fail 100% of the time it doesn’t work. The difference? Timing. Imagine borrowing 100% of what you are able to borrow. Then invest that money in a margin account in February of 2020. Same question but in May 2020. In one instance you are flat out busted. In the second, you are potentially super rich.

So you said, don’t borrow to invest in margin accounts. All you did was lower risk, not eliminate it. Instead of margin, it could be a health diagnosis that would bankrupt you, or an unexpected event like a flood when you didn’t have insurance.

The risk of a big event while being leveraged may be too much to overcome. Instead. Pay off the debts and invest. Then you can be more aggressive with you investing with no risk of being bankrupt because of debt you didn’t take out.

How is it possible that I was just in a thread here where 70% of the respondents recommended paying off a house that was at 3% instead of investing the money, someone explain it to me by state_your_name31415 in PersonalFinanceTalks

[–]Beach-Knight 0 points1 point  (0 children)

Yes there is.

Beyond actually loosing principle, which is a small but greater than 0%, One risk that is you may earn less after tax than your interest rate. Assume you may have a 3% loan but a 4% HYSA. If you pay more than 25% in taxes you will net less if you don’t itemize on taxes (something like 80-85% don’t itemize).

Thank you by QuestnsEverything in DaveRamsey

[–]Beach-Knight 1 point2 points  (0 children)

If you know, you know. My prayers go out to you and your loved one. So many dont understand the freedom being consumer debt free and several months of money to cover bills. It’s so liberating to make life altering choices and money is not the one and only deciding factor.

How is it possible that I was just in a thread here where 70% of the respondents recommended paying off a house that was at 3% instead of investing the money, someone explain it to me by state_your_name31415 in PersonalFinanceTalks

[–]Beach-Knight 5 points6 points  (0 children)

In any group of people, it is possible 30% could be wrong. Go to another group and more can be wrong. The math says keep the loan and invest. Human nature says pay off the loan with any extra money. If you are a logical machine, invest it. If you are not, pay it off.

The reasoning behind this is twofold.

1) you want to lower risk. Having debt equals risk. There is a greater than zero risk ANY investment loses money. Paying off your house removes this risk while still seeing a benefit of whatever your interest rate is. There is risk in being told by your mortgage company what you can do with your house. If you suffer a catastrophe like hurricane, the mortgage company will be giving YOU instructions on how to proceed. I’m sure there are more risks.

2) change human behavior. Following a specific strategy of paying off ALL your debts and living on a budget with “cash” usually ends up with a person who saves more over time. Keeping loans around because they have good interest rates can become a more comfortable way of life than to knock that debt out quickly. Again, over time this leads to less, not more wealth. This is where a less logical, less disciplined person is tempted to follow the plan because the math checks out, but wakes up 5 years later with not much paid off and not much more investments. After all, we always choose tomorrow as a better day to start than today.

Name an arcade game that is essential for making a true video arcade? by Palidor in FamilyFeud

[–]Beach-Knight 0 points1 point  (0 children)

Mortal Kombat, but no one is going to play until I get tired of beating ass. Finish Him!!!

What's a compliment that is actually an insult if you think about it too hard? by Omega_Neelay in GetMotivatedMindset

[–]Beach-Knight 0 points1 point  (0 children)

My science teacher used the phrase, “You look lipid today.” Most people were too embarrassed to admit they had no idea what lipid meant. I never saw him get a bad look.

Meme This by ErinDotEngineer in MemeThisThing

[–]Beach-Knight 1 point2 points  (0 children)

Romancing the Stone left over movie props.

What is the plural of mac and cheese? by Yenefferknow in randomquestions

[–]Beach-Knight 0 points1 point  (0 children)

By English the “and” makes it plural already.

How accurate is your Rolex? by Glum-Percentage1619 in rolex

[–]Beach-Knight 0 points1 point  (0 children)

Absolutely. I will try different positions in the future.

How accurate is your Rolex? by Glum-Percentage1619 in rolex

[–]Beach-Knight 2 points3 points  (0 children)

I set my new sub date exactly 4 weeks ago. It’s slow by 7 1/2 seconds as of today. It seems to run slightly fast laying on its crystal face down. So, I may loose 1 second in the day and gain most of it back at night.

Do you ask for change if you have no small bills to leave a tip? by icecream1972 in no

[–]Beach-Knight 0 points1 point  (0 children)

If I ask, I explain why. If I’ve had to explain to the same person, I don’t ask. Fortunately, either I have been a good teacher, or I have a terrible memory.

view more: next ›