MitchThe$nitch Posted June 2, 2009 Share Posted June 2, 2009 wow - there are some cheap houses out there. my place is 1600sf, brand new, private rooftop deck, in chicago, and was more like in the mid $300,000's. Though with the current market place I'm probably down around $25-$50 thousand right now. Not to worried though, I'm just going to sit on it until it flips back up. I have zero investments though, thats something I want to get into... Quote Link to comment Share on other sites More sharing options...
MitchThe$nitch Posted June 2, 2009 Share Posted June 2, 2009 lol@ edited by balls deep oner. Quote Link to comment Share on other sites More sharing options...
!@#$% Posted June 2, 2009 Author Share Posted June 2, 2009 haha ok so in a city like chitown with a rooftop deck i am not surprised, location location location. i agree you will likely recoup most if not all of your loss. the housing market was pretty wildly inflated for some places though, be glad you aren't in a house like that in vegas. sheet manhattan anyone?? i too do not have enough investments going. i'd like to get into T Rowe Price, they seemed to have endured the investment banking bubble well Quote Link to comment Share on other sites More sharing options...
ClueTwo Posted June 2, 2009 Share Posted June 2, 2009 and also your mortgage payment may only be about $850 indeed, but i hope you didn't forget to include PMI, home insurance and taxes in that figure. that's for everyone thinking about a house too. The 850 is with taxes and insurance... Quote Link to comment Share on other sites More sharing options...
AllTheWrongWords Posted June 2, 2009 Share Posted June 2, 2009 Thank ya kindly, people. Props given. I got 3 cards nearly maxed making min payments, a phone in my name and a loan I pay on time everytime. So I'm hoping for the best but expecting the worst, just like my pops taught me. Good thread. Quote Link to comment Share on other sites More sharing options...
KILZ FILLZ Posted June 16, 2009 Share Posted June 16, 2009 A guy at my work was telling me to start a TSP. Said since I'm a federal employee it's the beast thing todo. He was talking about it for a while but has a thick philipino accent so I only understood some of it. Can anyone in here help me out? 1 Quote Link to comment Share on other sites More sharing options...
serum Posted June 16, 2009 Share Posted June 16, 2009 ok so i know nothing about investing and for the past year or so ive been doing research. this is what i found. i have not yet invested so for those that think there is a problem in this approach let me know. one book that I like was by Libertarian Harry Browne called Fail safe investing create a permanent portfolio whatever you are going to invest per year split into four groups Cash aka money market funds (short term treasury securities) short term securities are better because you dont have to evaluate credit risks these are safer than bank accounts if funds allow divide holdings between 2-3 funds for protection against the unthinkable research funds and make sure that they are fully invested in treasury bills so that they dont dilute their holdings Metals aka Gold (bullion coins) price represents the gold content rather than the rarity they allow divisibility making it as for you you to re balance your portfolio with sales or small purchases if necessary this is the best inflation hedge because its more reliable and powerful than anything else during inflation once it reaches 6% 3-5% bonus is a premium you pay for having the gold in a recognized package you get the premium back when selling it since it needs no assaying Stock Market aka Mutual funds to profit when stocks are in a broad upward market your holdings must represent the entire market not just selected industries split 25% investment in 3 mutual funds choose funds that invest in broad cross section of stock and remain fully invested in stocks at all times buy the funds directly from the funds themselves 5 standards are fully invested broadly invested across the whole market not commissions minimum investment reliability dont replace a fund unless it loses its character and becomes unsuitable for the porfolion since chasing performance is a losing game use atleast 3 different funds in case any fund fails to capitalize on the bull market Bonds (us treasury bonds) you dont want to monitor the credit risk so choose a us treasury bond they can fall in price or lose purchasing power to inflation but there is virtually no credit risk as long as the US govt can tax the people. choose a bond with the longest time, these series of bonds mature (meaning will be paid off) at various dates over 30 years there may be times when the bonds will have to carry the entire portfolio so youll want a bond with the potential for big price movements choose a 30 year bond then 10 years later replace it with another 30 year bond purchase the bond through a commercial bank or stock broker if you object in investing in govt securities use a long term corporate bond with AAA rating that have no call provision (this allows the bond issuer to pay off the bond early which reduces the potential price rises that you want in a long term bond) Quote Link to comment Share on other sites More sharing options...
serum Posted June 16, 2009 Share Posted June 16, 2009 if you actually read all that i will continue say you take 25% of your yearly income and invest it in these 4 groups. 2 will most likely do poorly and 2 will do good metals and stocks rise bonds can do poorly stocks and bonds rise but metal can do poorly at the end of the year sell a part of the groups that are doing good and buy more of the groups that are doing bad. next year repeat. the ones that are doing poorly will eventually bounce back and the ones that rose will plummet. in times of prosperity living standards are rising economy growing interest rates are falling and unemployment declining this produces an upward market in stocks and as interest rates decline long term bonds go up in price stocks take advantage of prosperity and cannot be undone by losses taken during inflation recession and deflation bonds take advantage of prosperity gold does poorly in times of prosperity cash is neutral in times of inflation consumer prices are rising, when US$ weakens everyone replaces their holding with gold, stocks bonds and cash do poorly in inflation. in times of recession when money is tight this leaves people with less cash economics conditions are poor rising interest rates which increases the returns on cash the only attractive investment in a recession is cash however a rescission can never be permanent like the other 3 stocks bonds and gold do poorly in recession in times of deflation consumer prices decline purchasing power of money grows which can lead to a depression when the US$ strengthens interest rates fall dramatically price of bonds then goes up as well as cash become more valubale as prices fall stocks an gold do poorly in deflation. So will the rises and gains then neutralize each other? on a day to day basis, Yes. Long term, No. Winning investments add more value to the portfolio then the losing investment take away. after year one the portfolio should grow to become worth 25% more and one more will be worth less than 25% if anyone of them becomes less than 15% or more than 35% you need to restore them to original 25% by selling off the winning investments and buy back the losers this locks in profits in the long term. now any other money (not your investment money) that you have you can speculate with so if you lose it all you still have your solid portfolio. Quote Link to comment Share on other sites More sharing options...
MarcoFromHouston Posted June 16, 2009 Share Posted June 16, 2009 I went thru a rough spot back in 2003/2004. I was late on 2 credit cards for a few months and on a student loan. Things have picked up since then, paid off & closed the credit cards, consolidated my student loans, etc. My question is: how long does that derogatory info stay on the report and to what extent does it affect my credit score? I'll be looking to purchase a house in the next 2-3 years, so I'm worried that my score & history, despite a healty downpayment, will negatively effect my chances at getting a mortgage with a decent interest rate. Quote Link to comment Share on other sites More sharing options...
KILZ FILLZ Posted June 16, 2009 Share Posted June 16, 2009 A guy at my work was telling me to start a TSP. Said since I'm a federal employee it's the beast thing todo. He was talking about it for a while but has a thick philipino accent so I only understood some of it. Can anyone in here help me out? Bump... Quote Link to comment Share on other sites More sharing options...
2009 Posted June 16, 2009 Share Posted June 16, 2009 Quote Link to comment Share on other sites More sharing options...
KILZ FILLZ Posted July 28, 2009 Share Posted July 28, 2009 been told i could take out a small loan spend none repay all at once a small time later and it would really boost my credit... any truth to this? Quote Link to comment Share on other sites More sharing options...
morton Posted July 29, 2009 Share Posted July 29, 2009 I do not think that would do much to improve your credit. It is all about having a long steady history of using credit that improves your score. Quote Link to comment Share on other sites More sharing options...
Pistol Posted July 29, 2009 Share Posted July 29, 2009 My 457B aka govt. 401k finally was in the positive this quarter. Not that i sweat it. Im not retiring for a couple decades. Plus I am able to buy more. My credits in the upper 700's and i have like 1200 in cc debt. Probably pay it off in 2 months. Looking to buy this year. Quote Link to comment Share on other sites More sharing options...
MAR Posted July 29, 2009 Share Posted July 29, 2009 A guy at my work was telling me to start a TSP. Said since I'm a federal employee it's the beast thing todo. He was talking about it for a while but has a thick philipino accent so I only understood some of it. Can anyone in here help me out? http://www.tsp.gov/ My dad does it. He really likes it. I can't tell you too much but wikipedia might help. http://en.wikipedia.org/wiki/Thrift_Savings_Plan Quote Link to comment Share on other sites More sharing options...
KILZ FILLZ Posted March 10, 2010 Share Posted March 10, 2010 ^ hell yeah. Thanks MAR So this year will be the first that I should be getting back a really nice tax return instead of spending the money on something fun like a Vegas trip, I'm gonna save it I'm thinkin of dumping maybe $500 in mutual funds. maybe 1k in a Roth. and dump the rest in a CD I already have goin. these figures seem ok? I'm obviously gonna do some research before going into the bank but I figured i would bounce it of you guys first. Any tips or input would be appreciated. And how do I go about finding a CD with a better interest rate? Do I need to go to different spots 1 by 1, or is there some easier way to do it? I know it's gonna be tough to find a good one right now. Thanks in advance Quote Link to comment Share on other sites More sharing options...
injury Posted March 10, 2010 Share Posted March 10, 2010 From what i know about CDs shopping around is a good idea. But like someone already said, interest rates are nonexistent now. Quote Link to comment Share on other sites More sharing options...
Mercer Posted March 10, 2010 Share Posted March 10, 2010 My mom just got a "good deal" on a nice vacation home in Las Vegas. I'd think over investing in real estate in an area on the brink of a water crisis. That regions economy is so fragile and dependent on cheap energy that it will be worthless in 20 years. Oil's drying up, even the Saudis are drilling way off shore in the gulf right now spending 50 times more for drilling costs. I'd invest in sound urban areas with public transit and watch it skyrocket, look at how NYC prices stayed stable. 1 Quote Link to comment Share on other sites More sharing options...
LUGR Posted March 10, 2010 Share Posted March 10, 2010 Oil's drying up, even the Saudis are drilling way off shore in the gulf right now spending 50 times more for drilling costs. LOL Quote Link to comment Share on other sites More sharing options...
ERIZENO Posted March 10, 2010 Share Posted March 10, 2010 Thank ya kindly, people. Props given. I got 3 cards nearly maxed making min payments, a phone in my name and a loan I pay on time everytime. So I'm hoping for the best but expecting the worst, just like my pops taught me. Good thread. [/color] Pay down the cards. DO NOT CLOSE them when paid off !!!! One of the key elements to your score is available credit to debt ratio. Being maxed out or close to it doesn't look good. Having longer trade lines looks good too ... so if you have had the cards a while and they have a good ratio its helpful to keep them around. Even once you have paid them off. Someone mentioned the debt consolidators, DO NOT US THEM unless you have to. They look the same as bankruptcy on your credit report and hang around as a negative almost as long. Quote Link to comment Share on other sites More sharing options...
!@#$% Posted March 10, 2010 Author Share Posted March 10, 2010 I'd think over investing in real estate in an area on the brink of a water crisis. That regions economy is so fragile and dependent on cheap energy that it will be worthless in 20 years. no shit. Parts of the West and Southwest may be dry as the dessert that it is by mid-century, as the Colorado River and the vast reservoirs it supports dry up. That's the conclusion of a new study to be published in Water Resources Research, which concludes that -- under present management conditions and population growth projections -- climate change could result in a 50-50 chance of bone-dry reservoirs on any given year. Considering that those 12 reservoirs currently hold about four years' worth of water, that's a shocking fact, even in the midst of a decade-long drought. Read more: http://www.thedailygreen.com/environmental-news/latest/colorado-river-47021303#ixzz0hnmmBU0L Quote Link to comment Share on other sites More sharing options...
abcs Posted March 10, 2010 Share Posted March 10, 2010 im like 20K in debt. Calls from bill collectors and all that and im unemployed = very stressful times 1 Quote Link to comment Share on other sites More sharing options...
LUGR Posted March 10, 2010 Share Posted March 10, 2010 I have no debt...I have no credit...but I have stock. Quote Link to comment Share on other sites More sharing options...
SystemFailure Posted March 10, 2010 Share Posted March 10, 2010 Jars of peanut butter and twinkies. Safest stock to purchase with the highest rate of return Quote Link to comment Share on other sites More sharing options...
fatbastard Posted March 10, 2010 Share Posted March 10, 2010 Australian real estate is pretty safe to invest in but compared to what you guys are paying it's ridiculously expensive. 1 bedroom appartments in my building (old and crappy) go for around $250k Quote Link to comment Share on other sites More sharing options...
SystemFailure Posted March 10, 2010 Share Posted March 10, 2010 Fatbastard take my advice. Peanutbutter&Twinkies Quote Link to comment Share on other sites More sharing options...
MrChupacabra Posted March 10, 2010 Share Posted March 10, 2010 I'm pretty sure my credit is very good, but i have no money, so it really doesn't matter currently. Down the road whenever i buy a house or make another large purchase, i'll be in a good place though. I've had a credit card since i was like 16 and just used it for gas and a couple bills for years to start building something. For awhile now, i've been charging pretty much everything that i know i'll be able to pay off when the bill comes. In all the years, i'm almost positive i've paid 100% of my payments on time and in full. I never really understood people running up gigantic credit card debts. If you don't have money to afford whatever purchase you're making, don't make it. I understand if it's a necessity purchase, like food or rent, but people love to buy dumb bullshit with credit cards that they clearly aren't going to be able to pay off for months/years. Quote Link to comment Share on other sites More sharing options...
Pistol Posted March 11, 2010 Share Posted March 11, 2010 Funny this got bumped. I got my wife and I's reports today. Im 748 and my wife is 734. Not too shabby. I currently have 900 in debt on my CC. I have about 25000 in my money market savings account. A couple hundred in another credit union account. Savings Bonds program for when I die for the wife. bi-weekly of about 200$ payments to my 457B plan. Hopefully getting a house soon. Quote Link to comment Share on other sites More sharing options...
Mercer Posted March 11, 2010 Share Posted March 11, 2010 people love to buy dumb bullshit with credit cards that they clearly aren't going to be able to pay off for months/years. I know so many people in this boat. I've never carried a balance over, can't understand why people do. Why pay all way more because of interest trying to look like a baller. All it does is make the person less of a baller IRL, and fucks the paper up. Quote Link to comment Share on other sites More sharing options...
!@#$% Posted March 11, 2010 Author Share Posted March 11, 2010 i charged a lot of my college education it was dumb, but i have no regrets about it because i paid that shit off fast. i never racked it up for anything dumb like a stereo and clothes these days i have great credit. i think mine is 738. i've never had debt, my car is a piece of shit but it's paid for.. my house is so affordable, i'm a few months ahead on my mortgage. i have savings to live on for about a year, and a retirement plan with TIAA-CREF i need to start the IRA next. Quote Link to comment Share on other sites More sharing options...
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