patrick.net

FuckCCP89 says

ThatGuy says

Paid debt with interest is the same as gaining said interest, no?

Yes. Tax-free to boot.

Right!

A penny saved is like 1.5 pennies earned, if you consider taxes.

Paying off a loan to save on interest is usually an excellent investment.

Fidelity has good mutual funds.

Re: debt

I ran up a credit card debt a couple of years ago and was going to pay it off by selling something, shares of a mutual fund or stock.

I decided to just let it ride; my investments went up 40%, but my debt decreased by a little bit.

I decided to delay paying it off until I left California so I would not pay 2 capital gains taxes to take money out of investments.

I redeem some shares only if necessary of my least favorite fund.

Eventually I have to start redeeming more shares to spend my money, otherwise why did I invest?

just_passing_through says

Fucking just spent that past 6 hours doing taxes. I'm about halfway done but not quite.

I spend 100 hours during the year and hopefully only an hour filing. Sent mine in last week and it was about 2 hours. I'll get my government loan back, which sucks I loaned it to them, but it's better than owing them this time of year. Seasonal income sucks. We learned owing close to $10k one year.

Situation is always so fluid as one job could be $20-30k swing for us in income. So great years we have to be careful with tax payments and withholdings and overpay. Don't know how it's possible, but this year is forecasting to be our best year ever. By a lot. Fingers crossed.

Patrick says

FuckCCP89 says

ThatGuy says

Paid debt with interest is the same as gaining said interest, no?

Yes. Tax-free to boot.

Right!

A penny saved is like 1.5 pennies earned, if you consider taxes.

Paying off a loan to save on interest is usually an excellent investment.

Patrick I have seen you have been strong advocate of paying of loan to save interest . Do you still advice the same in very low interest era like right now mortgage rate is 2.50% for 30 yrs and 1.99% for 15 yrs.
I feel fed already committed to keep the interest rates low till 2023 not sure if paying off partial loan or holding cash to investing in stocks will fetch more returns at the end of 30 yrs. I am still confused.

I am waiting for market correction, but so far have fetched good returns in 401K as my employer also allows to open brokerage link account in fidelity for self directed investment. I have been booking profits as and when market goes into greed to increase my cash position and invest when it goes into fear . I check this and it has paid off so far https://money.cnn.com/data/fear-and-greed/

Tix2fun says

Patrick I have seen you have been strong advocate of paying of loan to save interest . Do you still advice the same in very low interest era like right now mortgage rate is 2.50% for 30 yrs and 1.99% for 15 yrs.

Yes. Debt is slavery. As long as you have debt, you are not free.

Sure, interest rates are low, but nowhere can you find any investment with as much certainty as paying off debt. If you pay off 2% debt, then you save that 2% guaranteed, plus the taxes you would have to pay to get that 2% through work. So you're getting something like 2.5% guaranteed, immediately.

Or look at it this way, if you invest in US Treasuries, which are about as equally certain, you'd get only 2%, you'd have to pay federal income taxes on that 2%, and you'd be locked in and potentially losing to inflation.

Of course if you have any higher-interest debt, like credit card debt, pay that off first.

Or look at it this way, if you invest in US Treasuries, which are about as equally certain, you'd get only 2%,

10 year treasuries are about half that, which strengthens the argument of paying off existing debt first.

Thanks Patrick for your advice .I also agree being debt free gives you peaceful sleep and I am in favour of reducing debt when one is young vs extending it beyond 50 yrs of age. I have a target to reduce my debt to less than 40% when I turn 50. And by 55 yrs to less than 25%.I hope I can achieve my goals.

Peace of mind goes a long way. Only debt is my mortgage don't see getting out from that for now.

What should I do with the $50,000 in cash I have right now? I have no debt and I have a 401k with a current employer.

GlocknLoad says

What should I do with the $50,000 in cash I have right now? I have no debt and I have a 401k with a current employer.

Bitcoin/Ethereum....3x your money in the next 6month.

GlocknLoad says

What should I do with the $50,000 in cash I have right now? I have no debt and I have a 401k with a current employer.

Just save most of it for rainy day or after stock crash investment. Always good to have some cash in bank for lifes surprises.

RC2006 says

GlocknLoad says

What should I do with the $50,000 in cash I have right now? I have no debt and I have a 401k with a current employer.

Just save most of it for rainy day or after stock crash investment. Always good to have some cash in bank for lifes surprises.

This, and gamble a little in sectors that will do well in this administration, I'd recommend biotech (if you can handle the volatility).

New company I hired onto is allowing the Mega Backdoor Roth. I'm going to be able to stuff up to (I think) 58K into retirement accounts this year. I may be off by $500 or something.

just_passing_through says

New company I hired onto is allowing the Mega Backdoor Roth. I'm going to be able to stuff up to (I think) 58K into retirement accounts this year. I may be off by $500 or something.

I have a crazy setup like that at my company. 3 retirement accounts I can max out for some ridiculous amount. It's great.

G36 says

GlocknLoad says

What should I do with the $50,000 in cash I have right now? I have no debt and I have a 401k with a current employer.

Bitcoin/Ethereum....3x your money in the next 6month.

I agree. Not sure I'd go all $50K into crypto at once, but start with $10K and ease your way into it.

This is the way I look at things. If your time horizon is at least 10 years, you shouldn't be holding onto cash except for emergencies. With the way the central banks are printing full tilt, all that inflation will find itself into liquid investment assets like stocks and crypto. Of course prices will fluctuate but you will win big in the end. This is why Warren Buffett just tells people to dump all their cash into stock index funds and hold on.

mell says

RC2006 says

GlocknLoad says

What should I do with the $50,000 in cash I have right now? I have no debt and I have a 401k with a current employer.

Just save most of it for rainy day or after stock crash investment. Always good to have some cash in bank for lifes surprises.

This, and gamble a little in sectors that will do well in this administration, I'd recommend biotech (if you can handle the volatility).

Lol that's why I got into ATHA last week, its one of a few long shots.

If I had $50k to invest, I'd drop it in BNGO

WookieMan says

I spend 100 hours

8 and I'm basically done except for a K1 I have to wait for on the 26th..

Bitcoin :)
No other asset class comes even close.

G36 says

Bitcoin :)
No other asset class comes even close.

Is that what you were saying as you watched bitcoin go from $20,000 to under $4,000?

WineHorror1 says

G36 says

Bitcoin :)
No other asset class comes even close.

Is that what you were saying as you watched bitcoin go from $20,000 to under $4,000?

@WineHorror1
heck ya! Think of buying Bitcoin below 20k.....buying opportunity of a life time.

man, 4K Bitcoin....last I checked you would have made over 10x

sry, a few minutes later it hit 44k. Want to provide you with the most recent price. (goes up quickly these days)

RC2006 says

mell says

RC2006 says

GlocknLoad says

What should I do with the $50,000 in cash I have right now? I have no debt and I have a 401k with a current employer.

Just save most of it for rainy day or after stock crash investment. Always good to have some cash in bank for lifes surprises.

This, and gamble a little in sectors that will do well in this administration, I'd recommend biotech (if you can handle the volatility).

Lol that's why I got into ATHA last week, its one of a few long shots.

Good luck! Phase 3 plays are extremely risky but if you hit it they pay well for a critical conditions where improvement is in dire need. If it runs into the read-out I'd sell 25%-75% (whatever your comfortable holding) just to hedge and keep the rest for the binary event.

Ppl, stocks like AT&t (T) and Altria (MO) are already beaten down vs the S&P500 index. With divs at 7+%, even with an additional slide in price, compounding your divs (DRIP) will get you to many more shares making it worth your while.

G36 says

WineHorror1 says

G36 says

Bitcoin :)
No other asset class comes even close.

Is that what you were saying as you watched bitcoin go from $20,000 to under $4,000?

@WineHorror1
heck ya! Think of buying Bitcoin below 20k.....buying opportunity of a life time.

man, 4K Bitcoin....last I checked you would have made over 10x

Really?!! So as you watched your profits between $20k and $4k evaporate and bounce around the bottom for months (a year(?)), you were like "Fuck yeah honkeys, load up the truck". Is that what you said/did?

I bought Bitcoin recently at around 15k in November.
I am saying anything below 20k was an opportunity of a lifetime. We are probably going to 100k (at least). So its still a great time to buy.
Did that help?

"I Guess It's Too Late to Get Into Crypto" -- a short story by Unknown

It's 2011. BTC has recently hit $32. I tell myself "Damn...I should have bought some when it was $0.50 a BTC. $32 is too expensive. Guess it's too late to get into crypto." BTC later falls to $2 and I don't buy any.

It's mid-2013. BTC has recently hit $220. I tell myself "Damn...I should have bought some when it was $32 a BTC. $220 is too expensive. Guess it's too late to get into crypto." BTC later falls to $70 and I don't buy any.

It's late 2013. BTC has recently hit $1100. I tell myself "Damn...I should have bought some when it was $220 a BTC. 1100 is too expensive. Guess it's too late to get into crypto." BTC later falls to $315 and I don't buy any.

It's 2017. BTC has recently hit 20k. I tell myself "Damn...I should have bought some when it was $1100 a BTC. 20000 is too expensive. Guess it's too late to get into crypto." BTC later falls to $3700 and I don't buy any.

BTC has recently hit $40000. I tell myself....

Rin says

Ppl, stocks like AT&t (T) and Altria (MO) are already beaten down vs the S&P500 index. With divs at 7+%, even with an additional slide in price, compounding your divs (DRIP) will get you to many more shares making it worth your while.

Rin, financially you're right. But I just wouldn't feel too good after sucking Satan's cock for cash.

porkchopexpress says

"I Guess It's Too Late to Get Into Crypto" -- a short story by Unknown

It's 2011. BTC has recently hit $32. I tell myself "Damn...I should have bought some when it was $0.50 a BTC. $32 is too expensive. Guess it's too late to get into crypto." BTC later falls to $2 and I don't buy any.

It's mid-2013. BTC has recently hit $220. I tell myself "Damn...I should have bought some when it was $32 a BTC. $220 is too expensive. Guess it's too late to get into crypto." BTC later falls to $70 and I don't buy any.

It's late 2013. BTC has recently hit $1100. I tell myself "Damn...I should have bought some when it was $220 a BTC. 1100 is too expensive. Guess it's too late to get into crypto." BTC later falls to $315 and I don't buy any.

It's 2017. BTC has recently hit 20k. I tell myself "Damn...I should have bought some when it was $1100 a BTC. 20000 is too expensive. Guess it's too late to get into crypto." BTC later falls to $3700 and I don't buy any.

BTC has...

completely silly people think the price of an asset is the only thing that matters. So they dont by a portion of Bitcoin because they think, Oh I cant even own one full Bitcoin.
So they buy some random shitcoin at a few cents (or an airline stock - LUV). Sure, Its much easier to move a low marketcap coin but the risk is much higher. Bitcoin moved 18% today....just in one day. I bought Bitcoin at around 15K (Qty of 1.9) and it hit 46k today. In just a few month I made more than 2x by doing nothing.
People who hate on bullish Bitcoin news missed out, are afraid and wont take a risk. Jealousy.

Obligatory... ALL! TIME! HIGH!

SF housing market is falling, but the liquidity in the stock market is massive. This is a melt up fueled by money printing. Corrections have been short lived though I expect a bigger correction soon, no crash. Inventory outside of SF remains relatively low, so they don't see the downward pressure SF is seeing. Rent vs buy still favors rent.

G36 says

porkchopexpress says

"I Guess It's Too Late to Get Into Crypto" -- a short story by Unknown

It's 2011. BTC has recently hit $32. I tell myself "Damn...I should have bought some when it was $0.50 a BTC. $32 is too expensive. Guess it's too late to get into crypto." BTC later falls to $2 and I don't buy any.

It's mid-2013. BTC has recently hit $220. I tell myself "Damn...I should have bought some when it was $32 a BTC. $220 is too expensive. Guess it's too late to get into crypto." BTC later falls to $70 and I don't buy any.

It's late 2013. BTC has recently hit $1100. I tell myself "Damn...I should have bought some when it was $220 a BTC. 1100 is too expensive. Guess it's too late to get into crypto." BTC later falls to $315 and I don't buy any.

It's 2017. BTC has recently hit 20k. I tell myself "Damn...I should have bought some when it was $1100 a BTC. 20000 is too expensive. Guess it'...

Maybe a little but at the same time the only thing you're basing your buying on is that it will go higher. At least with a stock you own part of a physical thing. Or at least something that generates a profit. An economy based on money printing and gambling has got to go sideways at some point.

Rin says

Ppl, stocks like AT&t (T) and Altria (MO) are already beaten down vs the S&P500 index. With divs at 7+%, even with an additional slide in price, compounding your divs (DRIP) will get you to many more shares making it worth your while.

I'd thought those two break your high-debt rule for DRIP?

WineHorror1 says

the only thing you're basing your buying on is that it will go higher.

Elon Musk just f'ed all bitcoin haters. Do you think he's starting a trend? He's the cool kid on the block and people follow him. Richest man alive buys 1.5B of Bitcoin with his company.

Watch Bitcoin shoot up to over 100k this year. Sry you gonna miss out and watch us celebrate for the next few months.

G36 says

He's the cool kid on the block and people follow him. Richest man alive buys 1.5B of Bitcoin with his company.

Yes, yes, yes.... Follow the guy risking OPM. That's the best bet. Jesus this can't get any dumber.

Look up the words leverage and risk. Musk has both, just throw the word no in front of one and you'll see how you're being conned.

Rin says

Ppl, stocks like AT&t (T) and Altria (MO) are already beaten down vs the S&P500 index. With divs at 7+%, even with an additional slide in price, compounding your divs (DRIP) will get you to many more shares making it worth your while.

How will these do in a high inflation environment?

https://www.oann.com/reports-bidens-policies-to-produce-massive-inflation/

Reports: Biden’s Policies To Produce Massive Inflation

Economists are warning that Joe Biden’s policies may cause double-digit inflation, unseen since the late 1970s.

“Unfortunately, the Biden administration may be about to repeat the same mistakes as Jimmy Carter, only this time it will be far worse,” Kevin Freeman, financial terrorism expert at the Center for Security Policy said. “In the four years of Jimmy Carter, the annual inflation rate rose from 5.7 percent before he took office, to 13.5 percent when he left.”

Economists said Biden’s crackdown on U.S. oil production would drive up gas prices at the pump and hurt U.S. consumers, while benefiting Iran and Russia. They also warned Biden’s $1.9 trillion stimulus plan would devalue the U.S. dollar, making consumer prices higher.

“President Trump slashed regulation, but Biden promises to increase it,” Freeman stated. “So a 30 percent increase in regulation, which is something we can expect, would add 2 percent to the inflation rate just by itself.”

Biden has singlehandedly raised the price of oil/gasoline.

He will fuck up lots of things before he is out.

WookieMan says

G36 says

He's the cool kid on the block and people follow him. Richest man alive buys 1.5B of Bitcoin with his company.

Yes, yes, yes....

I know right? This news is huuuuuuuuuuuuge and it will start a trend. Soon, every large player wants Bitcoin on their balance sheet.

"Bitcoin rockets to record high of $48,000 after Elon Musk's Tesla buys up $1.5 billion - with one backer saying the currency could hit $100,000 in 2021"

"You're going to see every company in America do the same thing [as Tesla]," Novogratz,

https://markets.businessinsider.com/news/stocks/bitcoin-price-record-high-48000-elon-musk-tesla-michael-novogratz-2021-2-1030059669

G36 says

Soon, every large player wants Bitcoin on their balance sheet.

Of course. When big news is an online world forum pumping BTC only having 22k people sign up... in a world of 7B people. Of course that translates to all the big players getting in.

Musk has you guys conned and it's funny. What he's doing likely will go down as the biggest pump and dump of any financial instrument in the history of the world. You do know why he wants to get to Mars, right? Maybe read up on him some more and understand his motivation. You don't know when the plug will be pulled. You don't have to be smart, you don't have to be lucky, you just have to be able to lose more if you want. You'll learn.

WookieMan says

G36 says

Soon, every large player wants Bitcoin on their balance sheet.

Of course.

Not just we agree but also the experts.

https://markets.businessinsider.com/currencies/news/elon-musk-tesla-6-crypto-experts-15-bln-investment-bitcoin-2021-2-1030056077

"Tesla's bitcoin acquisition is a strong signal for a new era of integration between the cryptocurrency ecosystem and mainstream business, in which tokens increasingly act as not only a store of value but tangible medium of exchange."

"This moment will likely be looked upon in years to come as a genuine tipping point; Elon and Tesla's support legitimizes crypto and opens up bitcoin to a whole new class of retail and institutional investors. Now it seems all of Wall Street is in bed with this industry - if they weren't paying attention before, they are now."