Author Topic: New To Investing Thread  (Read 327071 times)

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Offline Emo EMAW

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Re: New To Investing Thread
« Reply #1350 on: June 16, 2016, 03:43:44 PM »
There should be a pretty high tax for the lowest income providing an incentive to earn more money and be taxed less.

Offline treysolid

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Re: New To Investing Thread
« Reply #1351 on: June 16, 2016, 03:50:41 PM »
There should be a pretty high tax for the lowest income providing an incentive to earn more money and be taxed less.

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Re: New To Investing Thread
« Reply #1352 on: June 16, 2016, 03:51:52 PM »
:lol:

Offline slobber

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Re: New To Investing Thread
« Reply #1353 on: June 16, 2016, 04:46:11 PM »
Dave Ramsey!!!!!!!!!?


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Offline catastrophe

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Re: New To Investing Thread
« Reply #1354 on: June 16, 2016, 05:01:13 PM »
Do not pay down the house first unless 1) you still have PMI 2) you are looking to climb the property ladder and want the liquidity of a down payment for your next home 2b) you want to turn it in to a rental and want to capture more income more quickly


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Isn't there a benefit to the interest you end up paying if you pay the principle off sooner? Or am I just making that up?
oddly worded question but obviously less principle on the loan means you're paying less on the interest

Well I know they frontload the interest payments up front so that by year 25-30 you're mainly just paying on the principle. I guess my question/point is that the additional principle payments can function like an investment (if I pay $100 now which allows me to save $20 on the back end it's like a 20% ROI). Less than you'd get in the market per year most likely, but guaranteed.

Offline wetwillie

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Re: New To Investing Thread
« Reply #1355 on: June 16, 2016, 05:04:51 PM »
If you had a paid for house would you take out a mortgage on it and invest the proceeds? 
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Offline slobber

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Re: New To Investing Thread
« Reply #1356 on: June 16, 2016, 05:12:13 PM »
If you had a paid for house would you take out a mortgage on it and invest the proceeds?
Oh yeah.


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Offline slobber

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Re: New To Investing Thread
« Reply #1357 on: June 16, 2016, 05:12:45 PM »
If you had a paid for house would you take out a mortgage on it and invest the proceeds?
Oh yeah.
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Offline wetwillie

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Re: New To Investing Thread
« Reply #1358 on: June 16, 2016, 05:26:49 PM »
If you had a paid for house would you take out a mortgage on it and invest the proceeds?
Oh yeah.


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Debt is dumb and cash is king
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Offline slobber

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Re: New To Investing Thread
« Reply #1359 on: June 16, 2016, 05:29:11 PM »
The paid off home mortgage has taken the place of the bmw as the status symbol in the us!!


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Offline Fedor

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Re: New To Investing Thread
« Reply #1360 on: June 17, 2016, 08:34:44 AM »
If you had a paid for house would you take out a mortgage on it and invest the proceeds?
Oh yeah.


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Debt is dumb and cash is king
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Re: New To Investing Thread
« Reply #1361 on: June 17, 2016, 08:36:02 AM »
If you had a paid for house would you take out a mortgage on it and invest the proceeds?
Oh yeah.


Royals aren't gonna win 'em all

Debt is dumb and cash is king
Mrs. Fedor got into an argument with some weirdos who were against debt of any kind.  They claimed you had to pay cash for everything and any other approach was wrong.

we had a pretty prolific poster leave this message board and call rusty the N word over an argument that I believe stemmed from roughly the same thing

Offline steve dave

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Re: New To Investing Thread
« Reply #1362 on: June 17, 2016, 08:37:58 AM »
but there is a legit cult like following for dave ramsey. I don't think it's necessarily a bad thing for some people. there are people that can handle their money and those that can't. if you can't handle it using your own brain computer then following the cash in envelopes/credit cards are the devil philosophy may be your best option.

Offline wetwillie

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Re: New To Investing Thread
« Reply #1363 on: June 17, 2016, 08:43:14 AM »
Yea I mean if you follow daves advice and live debt free and invest 15% of your income for retirement you will end up wealthy.  Actually using cash and envelopes is gross AF.
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Offline steve dave

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Re: New To Investing Thread
« Reply #1364 on: June 17, 2016, 08:47:25 AM »
Yea I mean if you follow daves advice and live debt free and invest 15% of your income for retirement you will end up wealthy.  Actually using cash and envelopes is gross AF.

there are a lot of ways to end up wealthy. and many different definitions of wealthy.

Offline Kat Kid

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Re: New To Investing Thread
« Reply #1365 on: June 17, 2016, 08:49:20 AM »
Yea I mean if you follow daves advice and live debt free and invest 15% of your income for retirement you will end up wealthy.  Actually using cash and envelopes is gross AF.

Or you will die with some cash, no debt and a cupboard full of ramen.

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Re: New To Investing Thread
« Reply #1366 on: June 17, 2016, 08:55:22 AM »
Yea I mean if you follow daves advice and live debt free and invest 15% of your income for retirement you will end up wealthy.  Actually using cash and envelopes is gross AF.

Or you will die with some cash, no debt and a cupboard full of ramen.

I don't get the ramen thing TBH, but ok.
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Re: New To Investing Thread
« Reply #1367 on: June 17, 2016, 09:04:12 AM »
I can't handle credit cards sd, so I just don't have any  :frown:

I don't buy stuff I can't afford, I just don't pay the bills and then eventually the balance is like twice the original.  But, that's me and I know my limitations.

I don't pay like any utility bills until they threaten to turn off service either, and then I'll just pay like 3 months worth. It's really not good. 
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Re: New To Investing Thread
« Reply #1368 on: June 17, 2016, 09:05:55 AM »
I can't handle credit cards sd, so I just don't have any  :frown:

I don't buy stuff I can't afford, I just don't pay the bills and then eventually the balance is like twice the original.  But, that's me and I know my limitations.

I don't pay like any utility bills until they threaten to turn off service either, and then I'll just pay like 3 months worth. It's really not good.

you should team up with someone who can handle the crap out of their money but who sucks at something you're good at and exchange services.

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Re: New To Investing Thread
« Reply #1369 on: June 17, 2016, 09:08:15 AM »
Yeah, do you know anyone like that?

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Offline Mrs. Gooch

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Re: New To Investing Thread
« Reply #1370 on: June 17, 2016, 09:12:06 AM »
I can't handle credit cards sd, so I just don't have any  :frown:

I don't buy stuff I can't afford, I just don't pay the bills and then eventually the balance is like twice the original.  But, that's me and I know my limitations.

I don't pay like any utility bills until they threaten to turn off service either, and then I'll just pay like 3 months worth. It's really not good.

you should team up with someone who can handle the crap out of their money but who sucks at something you're good at and exchange services.

That's called marriage.

Offline KITNfury

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Re: New To Investing Thread
« Reply #1371 on: June 17, 2016, 09:18:21 AM »
Ramsey is great for people that can't manage their money. I've never paid interest on a credit card ever and get money back, so cc is great for me.
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Re: New To Investing Thread
« Reply #1372 on: June 17, 2016, 09:26:56 AM »
Do not pay down the house first unless 1) you still have PMI 2) you are looking to climb the property ladder and want the liquidity of a down payment for your next home 2b) you want to turn it in to a rental and want to capture more income more quickly


Sent from my iPhone using Tapatalk

Isn't there a benefit to the interest you end up paying if you pay the principle off sooner? Or am I just making that up?
oddly worded question but obviously less principle on the loan means you're paying less on the interest

Well I know they frontload the interest payments up front so that by year 25-30 you're mainly just paying on the principle. I guess my question/point is that the additional principle payments can function like an investment (if I pay $100 now which allows me to save $20 on the back end it's like a 20% ROI). Less than you'd get in the market per year most likely, but guaranteed.

You're making this more complicated than it needs to be. 

Offline Mrs. Gooch

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Re: New To Investing Thread
« Reply #1373 on: June 17, 2016, 10:46:09 AM »
Do not pay down the house first unless 1) you still have PMI 2) you are looking to climb the property ladder and want the liquidity of a down payment for your next home 2b) you want to turn it in to a rental and want to capture more income more quickly


Sent from my iPhone using Tapatalk

Isn't there a benefit to the interest you end up paying if you pay the principle off sooner? Or am I just making that up?
oddly worded question but obviously less principle on the loan means you're paying less on the interest

Well I know they frontload the interest payments up front so that by year 25-30 you're mainly just paying on the principle. I guess my question/point is that the additional principle payments can function like an investment (if I pay $100 now which allows me to save $20 on the back end it's like a 20% ROI). Less than you'd get in the market per year most likely, but guaranteed.

If you paid an extra $100 now, it would save you $62.

(assuming a $100,000 loan on a 30 year mortgage at 3.5%)

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Re: New To Investing Thread
« Reply #1374 on: June 17, 2016, 12:56:09 PM »
Guys, just look at an amortization table for a mortgage to see why you pay more interest at first (it's not due to front loading).