New To Investing Thread

[Spracne]

Never buy whole life or an annuity of any kind


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Well yeah. Ideally, I just want someone who I pay an hourly fee to for the time they actually spend thinking/working about my stuff. Also, fiduciary is important.

[steve dave]

Yeah, I wasn’t talking about your situation. Just to the general audience. Once advisors get thrown around you have only one non shitty option which is fee based fiduciary.


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[michigancat]

Never buy whole life or an annuity of any kind


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Well yeah. Ideally, I just want someone who I pay an hourly fee to for the time they actually spend thinking/working about my stuff. Also, fiduciary is important.

That might be tough but yeah it's ideal. The pitch we got is that if you don't use them for like six months or a year they need to spend a lot of extra time "relearning" your situation which is probably a mixture of truth and salesmanship but mostly salesmanship.

[ben ji]

Everyone already has a built in Annuity like product in their portfolio, its called social security.

[Kat Kid]

Not everyone has that. In fact, in several states teacher pension system kicks people off of social security. Not Kansas, but still pretty garbage tbh.

[WillieWatanabe]

now that i'm married with a kid, I need to figure out our life insurance situation. I really know nothing about it.
My FIL works for Primerica on the side and wants to get us on some term life.
From my limited knowledge, term is the way to go? Just let him handle it or shop around to another company? I believe i have some coverage through work but obvi not enough. If it matters both me and ms. ww work and soon ms ww will be the breadwinner by a good margin.

[steve dave]

Yes, term. I have three levels 10, 20, 30 years.


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[WillieWatanabe]

Yes, term. I have three levels 10, 20, 30 years.


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Thanks. I was a bit confused why you had different tiers. But then I found a good article talking about the benefits of laddering the coverage. I think that option matches up with our situation pretty well and may look into that.

[sys]

several states teacher pension system kicks people off of social security.

yeah, a lot of teachers on the missouri side of my family.  pretty interesting the history of that.

[sys]

the roi on my house is like huge multiples of any stock i've owned.  like all the sober responsible financial advice is to live within your means and whatnot, but i would have made giant money if instead of the nice modest house i purchased i'd have bought the most expensive property i could have afforded never invested in anything else.

[Kat Kid]

several states teacher pension system kicks people off of social security.

yeah, a lot of teachers on the missouri side of my family.  pretty interesting the history of that.

Illinois too, which isn't so bad if you think the Illinois system never fails as it is very generous, but for people in most of the other states it is awful.

[steve dave]

the roi on my house is like huge multiples of any stock i've owned.  like all the sober responsible financial advice is to live within your means and whatnot, but i would have made giant money if instead of the nice modest house i purchased i'd have bought the most expensive property i could have afforded never invested in anything else.

Owning huge exorbitant property irl never fails to make you rich


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[steve dave]

This year more than most


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[Justwin]

Not everyone has that. In fact, in several states teacher pension system kicks people off of social security. Not Kansas, but still pretty garbage tbh.

You think it's shitty for someone to not be allowed to benefit from Social Security when they didn't contribute to it?  The states don't kick people off Social Security.  The federal government does.

The states set up agreements with the federal government so that people in their pension systems don't have to pay the Social Security portion of FICA taxes.  The money that would have gone to Social Security then goes to fund the pension system.  My wife's mom had this when she taught in Nevada.  The return on what she put in for NVPERS is a lot greater than what she would have got from Social Security.

[Spracne]

the roi on my house is like huge multiples of any stock i've owned.  like all the sober responsible financial advice is to live within your means and whatnot, but i would have made giant money if instead of the nice modest house i purchased i'd have bought the most expensive property i could have afforded never invested in anything else.

Owning huge exorbitant property irl never fails to make you rich


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Well that settles it. I'm doubling my house budget.

[catastrophe]

the roi on my house is like huge multiples of any stock i've owned.  like all the sober responsible financial advice is to live within your means and whatnot, but i would have made giant money if instead of the nice modest house i purchased i'd have bought the most expensive property i could have afforded never invested in anything else.

This could easily be true for a property that cost a couple hundred thousand. But if you bought a $1-2 million home, I’m pretty confident it’s not gonna consistently appreciate 7-10% a year.

[steve dave]

the roi on my house is like huge multiples of any stock i've owned.  like all the sober responsible financial advice is to live within your means and whatnot, but i would have made giant money if instead of the nice modest house i purchased i'd have bought the most expensive property i could have afforded never invested in anything else.

Owning huge exorbitant property irl never fails to make you rich


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Well that settles it. I'm doubling my house budget.

that is a winning move like 99% of the time

[wetwillie]

You guys are seeing >12% annual increases on the price of your house?!

[steve dave]

that's right

[catastrophe]

The percentage appreciation in my home value over the last 6-7 years is about the same as my S&P portfolio over last year alone.

[steve dave]

dang

[wetwillie]

A 400k home in 2012 is now a 800k home in 2020?  Holy crap I think JOCO has seen maybe half that at most and I thought it was crazy.

[Dr Rick Daris]

I bought my Mhk house 12 years ago. Got a decent deal. I don’t think it’s worth that much more today than it was then. 

[KITNfury]

A 400k home in 2012 is now a 800k home in 2020?  Holy crap I think JOCO has seen maybe half that at most and I thought it was crazy.

Likely a home on the coast. They typically are more volatile in value swings. That said, I bought a fairly basic 3 bed in  OP in 2008 after the crash for 125, probably worth over 200 now. But I put a lot of work into it.

[Kat Kid]

Not everyone has that. In fact, in several states teacher pension system kicks people off of social security. Not Kansas, but still pretty garbage tbh.

You think it's shitty for someone to not be allowed to benefit from Social Security when they didn't contribute to it?  The states don't kick people off Social Security.  The federal government does.

The states set up agreements with the federal government so that people in their pension systems don't have to pay the Social Security portion of FICA taxes.  The money that would have gone to Social Security then goes to fund the pension system.  My wife's mom had this when she taught in Nevada.  The return on what she put in for NVPERS is a lot greater than what she would have got from Social Security.

The teachers in a state that did not opt in to social security are at the whim of their state government not fulfilling their obligations and that is a much more likely scenario than Uncle Sam.

Illinois is a state that opted out and it worked out fantastically for my father in law, but I would be at least a little nervous if I were a mid career teacher. But even Illinois isn’t the state that I am thinking of as being a worst case scenario, that would be Kentucky where the state has perpetually underfunded the pension, teachers have much lower average salaries and a much less generous pension than most illinois teachers and on top of that the state seems even more hell bent on not funding it than Illinois.

Also since you brought up Nevada my sister in law worked there for a few years, the Clark County education funding was a nightmare although I honestly don’t know how specific that was to LV vs the rest of the state. I will ask her about what the LV pension looks like for someone that leaves before fully vested, which is another huge issue.

In Kansas I have a decent pension, social security, and have saved money for retirement with a Roth. Teachers don’t get a great salary, but the financial security of knowing that I have 3 different retirement savings is good piece of mind that is worth more than the actual cash benefit and I also love the job.

So again, while it doesn’t impact me I think it is a pretty bad deal for a lot of teachers (though some have no doubt done better).