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Dirty_habiT
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Good call on a thread start. 
 

To retouch on my conundrum -

 

im indefinitely laid off due to covid, and have been at a loss on what I should do with both my time and money now that I’m 6 months in. 
 

considerable amount of money in savings. Also a considerable amount of money in retirement. Looking towards my future, having all this time to think over my career and sacrifices I’ve made, I’ve flattered the idea of pulling out of my retirement and using it to get out of the ‘rat race’. Tired of giving up my time and identity for the sake of the almighty dollar. Maybe take this time to reinvest in what I have available to me to create a more fulfilling career/ source of income.

 

@Dirty_habiT- you mentioned real estate, which I’ve strongly considered. I’ve been conflicted on this. The interest rates are way down, but the market value for a house is at a high. I can’t receive a loan while I’m laid off, and I don’t want to throw all my money in to one property since a loan isn’t available,  so it’s kind of out of the question for the moment. Definitely thinking that way once the world goes back to normal though.

 

Im open to any ideas or suggestions. Between work and  health, my life has taken a big break. So I want to make the most of the thing I’ve been gifted as a result. Time.

 

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I've usually got a ton of unsolicited advise to dole out on this subject, finally a thread where it's somewhat acceptable. lol Good call @Dirty_habiT

 

There's always this group for more private, in depth convo especially the crypto.

 

 

1 hour ago, Dark_Knight said:

Good call on a thread start. 
 

To retouch on my conundrum -

 

im indefinitely laid off due to covid, and have been at a loss on what I should do with both my time and money now that I’m 6 months in. 
 

considerable amount of money in savings. Also a considerable amount of money in retirement. Looking towards my future, having all this time to think over my career and sacrifices I’ve made, I’ve flattered the idea of pulling out of my retirement and using it to get out of the ‘rat race’. Tired of giving up my time and identity for the sake of the almighty dollar. Maybe take this time to reinvest in what I have available to me to create a more fulfilling career/ source of income.

 

@Dirty_habiT- you mentioned real estate, which I’ve strongly considered. I’ve been conflicted on this. The interest rates are way down, but the market value for a house is at a high. I can’t receive a loan while I’m laid off, and I don’t want to throw all my money in to one property since a loan isn’t available,  so it’s kind of out of the question for the moment. Definitely thinking that way once the world goes back to normal though.

 

Im open to any ideas or suggestions. Between work and  health, my life has taken a big break. So I want to make the most of the thing I’ve been gifted as a result. Time.

 

The thing with the real estate is this, prices just took a huge bump up. Bought a house in August and consistently got outbid even offering 30k over asking price. A little of that is because I bought in a hot market, (Colorado's front range) but on top of that, nobody is willing to put their house on the market now for a few reasons:

 

People are scared of  the 'rona, don't want anyone looking through their house sneezing on all their shit if they live in it. The only houses we saw on the market here are dead people's houses that their kids were selling, and landlords who can no longer rent the house out after the tenants bailed. We only looked at 1 house that wasn't vacant, and actually had people living in it (I accidentally sneezed on all their shit).

 

This shortage of houses on the market has multiplied, and caused even more shortage because people know about it. Home owners know that if their house hits the market it will sell after the first weekend, guaranteed. The longer it sits on the market the lower the bids get coming in so they're under contract within a week or two. Now, the homeowner has to make sure they're closed on another property or they'll end up renting for a while. It's a frustrating market because of the bidding wars. It just takes longer to get a place under contract unless you're paying cash or qualify for well over what the mortgage will be. Normal people can't do this type of new bid they have now for this cutthroat market, where you guarantee 5k over the highest official offer fucking over people like me who think they've got it sewn with a 30k over asking offer.

 

With all of that said, you should cash out a 10% to 20% down payment from the 401K and buy a fucking house before it's too late. Here's why.

 

Not to get all Ron Paul in here but the fed is "printing money" now like crazy which causes inflation. If you think the housing market is blowing up now, just wait. There's so much money availiable to keep stocks up, banks booming, and interest rates at all time lows. We got a 2.7% fixed rate, that's insane. The political climate we're in, nobody wants to take the blame when it tanks so it's print, print, print. 

 

Your average age of a Fiat money (not tied to a commodity like gold, etc.) is 50 years before what we call hyperinflation sinks in, and Nixon took us off the gold standard in the 1970's so we're overdue.

 

Prices are going to start going up for everything, not just housing. There's currently an abundance of cash being injected, and after the lockdown far fewer goods and services (capitol) being produced to spend all this cash on. So naturally it's a sharp supply/demand shock happening right now in slow motion building up more pressure for inflation.

 

Your cash savings is losing far more than 2% a year now, and the only reason your 401k hasn't tanked yet is because of the Fed's intentional pumping of stocks/bonds etc. with this cash. We were getting 2-3% in our Marcus by Goldman Sachs cash savings account last year, but before we closed it it went down to less than 1% interest gained per year (against the > 2% loss due to inflation).

 

The only asset I recommend now outside of owning real goods like real estate, precious metals, ammo, and hard goods like machinery, etc. is crypto currency because of it's locked in, deflationary supply.

 

Also outside of all this if you withdraw up to 100k from your 401k this year, there's no additional 10% penalty. The amount you take out just goes towards the income you claim in 2020 due to the CARES act https://home.treasury.gov/policy-issues/cares and if need be you can take up to 3 years to pay the taxes on it. Being out of work for that long qualifies you automatically. That 401k has a much greater chance of tanking (even if you're in a safe/low risk target retirement group) than a house would since there's a pretty fixed supply of housing availiable, and stocks are at sitting at an artificially inflated all time high after they ramped up "printing" or rather, bank deposits from the Fed out into the economy. 

 

 

Edited by Mercer
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2 hours ago, Mercer said:

 

 

With all of that said, you should cash out a 10% to 20% down payment from the 401K and buy a fucking house before it's too late. Here's why.

 

 

 

 

Not sure if you saw this but it seems like @Dark_Knightis laid off... he won't get approved for the mortgage without a jobby job.  Unless he goes all in and pays cash for the RE and refinance after.

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Yea, wasn't thinking about that loan approval even though you mentioned being laid off, I misread your question. I quit my job end of Sept., moved to Denver and started working again almost 5 months later in February and was approved for 500k within 4 months of starting the new job if that matters.

 

Funny thing is now I'm on the same shit trying to get out of my job. What I'm doing now pays enough to keep me stuck, stagnating at this job I kinda hate way too long. After getting the mortgage thing out of the way that's one less reason I need to keep a regular 9-5 now.

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@Mercera very good point about inflation here and a reason that i'm not going to let my cash sit—i was addressing real estate investing more generally in the other thread. the economics are totally upside down right now. regardless of who wins in november i think we're gonna print money until it really burns us; markets are used to being juiced at this point 

Edited by Elena Delle Donne
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  • 4 weeks later...
42 minutes ago, Dark_Knight said:

@Elena Delle Donne Do you use Robin hood?

i don't trust myself day trading. i don't think i have the time or knowledge to consistently make good decisions, would rather sink it into funds that are managed by people who do. i'm a pretty risk-averse investor, mostly because if i lose it... i don't have anybody to catch me 

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was just recommended P2P lending as a short term investment strategy? insane. dudes are reporting 30-35% default rates and P2P companies don't try to collect after people take the money and run. do not do this. but if you want to make off with like $40,000? P2P lending is the shit

Edited by Elena Delle Donne
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On 9/27/2020 at 3:36 PM, Mercer said:

There's always this group for more private, in depth convo especially the crypto.

 

Good call!  Cause I was wondering why there was a few different financial threads in the Channel Zero Category because it's definitely easier to keep track of in Jeckle and Hyde Thread

 

 

Edited by ndv
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On 10/24/2020 at 4:43 PM, Elena Delle Donne said:

wall street genius update: i put $2k into clean energy ETFs to see what happens. only one holds tesla. i am a hater and think tesla is wildly overhyped 

 

Mind sharing what ETFs? I don't have anything in clean energy but was looking at it, seems like a safe enough bet. I bought some TWTR and SPOT today since they took a dive late last week. If Trump gets reelected I would expect TWTR to go back up.

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  • 4 weeks later...
  • 2 weeks later...
On 11/3/2020 at 11:11 AM, Elena Delle Donne said:

i'm in ICLN and ACES. ACES gets dinged for having a slightly higher expense ratio but i don't really mind. look at the 1 year if you want to be mad at yourself 

 

Word, I've been in ICLN since about $19.90. Making a slow, and steady profit, so I'm happy with it, but that's my only ETF.

 

The 1 year is +111%, fuck me. It's already pushing $70, probably missed the train on this one.

 

With that said, is anybody else in this thread into gambl...investing? Any options traders?

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I've been doing research a little bit and everything I read always comes back to real estate. It's a sound investment. Especially if its a place you plan to stay in for a while, and if you plan to remodel even in the slightest. Even if you just maintain the home and do nothing you're going to make money on your investment. 

 

I'm hoping to refinance in February next year, and I'm hopeful the low rates will still be active. I'm at 3.5% right now and if I could get that to even 3% I'd be stoked. 

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