501–510 of 698 posts
Then I am going to invest everything. Down payment on a rental property And the rest 50% crypto / 50% S&P 500 index funds.
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The current government spending sprees are not your parents' and grandparents' fault.
The projections for social security surpluses going away in 1983 were literally accurate within months. Not sure what any recent government had to do with that.
Newsom has plans to spend every dime, including raining $400 checks onto every Californian with a car.
https://www.wsj.com/articles/gavin-newsoms-re-election-windf...
It's massive irresponsibility. Do you think Newsom will be coming for a bailout next year as that capital gains money dries up and no more Biden Bucks?
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Unless you’re retiring in the next 10 years, or planning on purchasing a house in the next few years, then just make your emergency fund a little bigger and hold on to your job. Follow your normal financial planning. You’re not going to outplay market trends, and if you’re young/middle aged then it doesn’t matter any way.
Yes it does. If you invested near the dot com peak or the japan peak, you still haven't made your money back. This notion of passive investing that has been pounded into peoples heads for years is complete bullshit and has only worked because there was always someone else ready to pay more for the same asset and because rates were perpetually held low. Some points to consider: (1) You have fewer millennials than baby…
Great advice. So, ummmmm, how long is patient enough? 18 months, 3 months? What's low? Is this the lowest it's going to get? If you have answers to all of this, I want to invest in your fund.
My plan is simple: I stopped investing in the market for the moment. Using that money to pay off debt and get my 6 month emergency fund back up. Should be set in a couple months and debt free. Then just save every penny I can until the markets are bleeding and people are saying all assets are worthless. Then I am going to invest everything. Down payment on a rental property And the rest 50% crypto / 50% S&P 500 index…
I'm going to explain what has happened so far. What happens next entirely depends on how inflation continues and the feds reaction. 1. We had zero percent interest rates. This causes the value of assets with cash flows out into the future (think speculative tech, Tesla) to accelerate. 2. We had massive herding in megacap tech. These valuations are high in part because for a decade you would not have beat the index wi…
So for non-finance-experts, what should we be doing with our money? Investing in what? Keeping in the bank? It sounds from your comment like there is _nothing_ that won't be devalued, even gold. Is real estate worthwhile? (Note: I am in the EU not US.)
My plan is simple: I stopped investing in the market for the moment. Using that money to pay off debt and get my 6 month emergency fund back up. Should be set in a couple months and debt free. Then just save every penny I can until the markets are bleeding and people are saying all assets are worthless. Then I am going to invest everything. Down payment on a rental property And the rest 50% crypto / 50% S&P 500 index…
So you plan to try to time the market AND put 50% (or whatever is the remaining of the rental property) of your net worth in crypto...ehh good luck!
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People who bought houses will be fine, since they secured low interest loans, and will hesitate to sell because won't get good interest on next loan. This will cause low supply -> high prices -> people who didn't buy are very screwed: they will face high prices together with high interest.
It depends on a recession and how bad it is. Even if you're locked into a low mortgage, if you lose your job, can't pay, and due to rising interest rates are now underwater 500K on a mortgage, nothing good happens. Like it or not there's a lot of chaff to cut in software engineering. How many of these SaaS businesses can survive, and how many engineers bought nice homes with massive salaries that might go poof?
I think most people are doing fixed rate loans in this economy, right? Genuinely asking. I think I might be misunderstanding this aspect of your point here.
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First of all, the entire stimulus was $4.5 trillion, and most of it was allocated to handouts. A lot of the handouts were necessary, like expanded unemployment, but others were complete wastes of money, e.g. giving checks to families making 6 figures or forgiving loans for billion dollar "small businesses." Second of all, QE isn't money given to the banks. When we have a deficit, the government sells bonds to banks.…
> but others were complete wastes of money, e.g. giving checks to families making 6 figures Remember that the cutoff for stimulus was from prior year's taxes. This means you could have been making 6 figures in 2019, and then be making significantly less due to covid job loss or reduction when stimulus was handed out. As a matter of fact, stimulus helped my family greatly even though we made 6 figures in 2019. So foll…
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We also had a previous US administration handing out cash like candy in the form of stimulus checks.
The only problem with that was not taxing the wealthy to shrink the money supply.
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Real estate is going to be gutted - increasing mortgage rates (already have been happening) will decimate qualified buyers. Decreasing prices will further decimate those willing to Hail Mary with cash offers hoping to get something after years of frustration.
But the effective, on-the-ground housing shortage is going to continue to keep demand for housing extremely high in almost all areas with reasonable economic options or amenity migration destinations.
Which is changing. Houses in sunnyvale went from 750k-1m and impossible to find one for sale to 350k (yes really!) and on the market for years around ‘08.