New To Investing Thread

[Kat Kid]

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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[Kat Kid]

And by the way if you are both maxing out your 401K and a Roth each build up a bit of savings and then enjoy yourselves, good grief.


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[KITNfury]

I've read quite a bit about bitcoin, and it still makes absolutely no sense to me.

It has value because people say it has value. Exact same thing as the American dollar. That's the bottom line

Yea, but the American dollar is backed by a government worth Trillions and Trillions. That seems a significant difference to me.

The American dollar is backed by nothing. If the worldwide public lost confidence in it, it would be worthless.

[KITNfury]

Put money toward the highest interest rate. Doesn't matter if the interest rate is on debt or returns.

[wetwillie]

Everyone here completely ignores the element of risk associated with debt obligations, smdh. 

[Emo EMAW]

Everyone?

[Kat Kid]

Everyone here completely ignores the element of risk associated with debt obligations, smdh.

like the house dramatically losing value?

[steve dave]

We're in the highest tax bracket and I still think we only paid like ~12% effective tax rate.

I'm a tax nerd so I would be very interested in finding out how you got that down to 12%

[michigancat]

We're in the highest tax bracket and I still think we only paid like ~12% effective tax rate.

I'm a tax nerd so I would be very interested in finding out how you got that down to 12%

Would you be surprised if he cheats?

[wetwillie]

Everyone here completely ignores the element of risk associated with debt obligations, smdh.

like the house dramatically losing value?

This is the best I get with a Dave Ramsey troll job?   Dobber will come along and nibble maybe.

[Kat Kid]

debtors prison?

[steve dave]

We're in the highest tax bracket and I still think we only paid like ~12% effective tax rate.

I'm a tax nerd so I would be very interested in finding out how you got that down to 12%

Would you be surprised if he cheats?

currently the house odds are:
1:1 - Doesn't know what the top tax bracket is
3:1 - Is lying
20:1 - Cheats (a lot)
100000:1 - Donates like $250k+ a year to some weird hunting thing or something, has 15 kids, and cheats (a smaller amount)

[michigancat]

We're in the highest tax bracket and I still think we only paid like ~12% effective tax rate.

I'm a tax nerd so I would be very interested in finding out how you got that down to 12%

Would you be surprised if he cheats?

currently the house odds are:
1:1 - Doesn't know what the top tax bracket is
3:1 - Is lying
20:1 - Cheats (a lot)
100000:1 - Donates like $250k+ a year to some weird hunting thing or something, has 15 kids, and cheats (a smaller amount)

lol, that seems more accurate

[Emo EMAW]

We're in the highest tax bracket and I still think we only paid like ~12% effective tax rate.

I'm a tax nerd so I would be very interested in finding out how you got that down to 12%

My wife does the taxes.  But we basically try to maximize deductions and we have a rental property for the cheating. 

Also you should learn about odds.  To total summation of odds should equal 1:1 if they are mutually exclusive. 

[KITNfury]

Depends on what his revenue streams are. Not all income types are taxed at the same rate a typical W2 is.

Not a a tax expert, but do know of some types of income where tax rates can be very low.

[Emo EMAW]

Holy crap, had no idea there were 7 tax brackets.  Ya we are not even close to the highest. 

[Fedor]

Holy crap, had no idea there were 7 tax brackets.  Ya we are not even close to the highest.

[steve dave]

Paying 1:1! 1:1 is the winner!

[catastrophe]

I've read quite a bit about bitcoin, and it still makes absolutely no sense to me.

It has value because people say it has value. Exact same thing as the American dollar. That's the bottom line

Yea, but the American dollar is backed by a government worth Trillions and Trillions. That seems a significant difference to me.

The American dollar is backed by nothing. If the worldwide public lost confidence in it, it would be worthless.

I disagree that it's backed by nothing, even though we're off the gold standard. In the US (probably the biggest/richest marketplace in the world) you have to accept the dollar as tender. That gives it some pretty serious inherent value.

Every merchant has a choice whether to accept non-government issued currency. That makes its value really tenuous.

[yoga-like_abana]

2b) you want to turn it in to a rental and want to capture more income more quickly

yeah this is the plan, like to rent out our current house within the next 3 years or so.

[catastrophe]

Holy crap, had no idea there were 7 tax brackets.  Ya we are not even close to the highest.

Here I thought he was just some Warren Buffet type who collected capital gains and had tax shelters spread across the Caribbean.

[Emo EMAW]

Holy crap, had no idea there were 7 tax brackets.  Ya we are not even close to the highest.

Here I thought he was just some Warren Buffet type who collected capital gains and had tax shelters spread across the Caribbean.

Working stiff.     Have fished the Caribbean tho!   

[catastrophe]

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?

[yoga-like_abana]

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

[star seed 7]

What an enjoyable exchange 

Also there should be more lower earning tax brackets and less at the high end (tho the highest should be bumped up).  A step every 20-25k until 200k sounds better.

But I'm no tax nerd