patrick.net

JFP says

RentingForHalfTheCost says

Also, I have been able to fully funnel all my savings into a ROTH IRA so I am not taxed on gains. Nice! There are ways to sock over 50K into a Roth IRA each year for those inclined.

So, how do you use the money if it's stuck in a ROTH? If you take it out don't you have to pay taxes on the appreciation, and a 10% penalty for taking it out early?

The Roth IRA you pay taxes already on the contribution and then don't pay taxes again on neither the contribution (already taxed) or the appreciation (tax free). That is the beauty. Tax fee earnings! There are rules for withdrawing the contribution part if you need, and there are also cases where you will not be hit with a penalty to withdraw under hardships. I don't ever plan to use either, but good to know I can in case.

I don't think there is a better form of investing for yourself over a Roth IRA.

RentingForHalfTheCost says

25% of my Cisco holding that I have been collecting for quite some time. Last I checked my average cost was in the mid teens (16 or so). I have actually been accumulation just for the dividend, but shit, moves like this must be appreciated and sold into.

In order for your average price to be 16, you would have had to buy all your stock in February 2009, July-September 2011, or July 2012. If you bought at any other time, you would be well above 16. My guess: you will claim to have perfectly timed it.

RentingForHalfTheCost says

I don't think there is a better form of investing for yourself over a Roth IRA.

I like Roth's myself, but it's not a good place to put money you intend to spend on rent.

JFP says

RentingForHalfTheCost says

25% of my Cisco holding that I have been collecting for quite some time. Last I checked my average cost was in the mid teens (16 or so). I have actually been accumulation just for the dividend, but shit, moves like this must be appreciated and sold into.

In order for your average price to be 16, you would have had to buy all your stock in February 2009, July-September 2011, or July 2012. If you bought at any other time, you would be well above 16. My guess: you will claim to have perfectly timed it.

Dude, I bought some in the $10 range in 2002 I think, not sure what you are talking about. I have accumulated from my original position over the last 2 years and glad I did.

JFP says

RentingForHalfTheCost says

I don't think there is a better form of investing for yourself over a Roth IRA.

I like Roth's myself, but it's not a good place to put money you intend to spend on rent.

True, I'll spend it on travel later then. Should have equated it to European vacations in the golden years. ;)

JFP says

RentingForHalfTheCost says

Dude, I bought some in the $10 range in 2002, not sure what you are talking about. I have accumulated from my original position over the last 2 years and glad I did.

Even though, what you claim is possible, I can't help but call people liars on pat.net. It is so easy, cause there is no accountability and it makes me feel so good.

I'm such an asshole I know. I blame my mom and that pounding I was given by the music teacher one day. I mean what she did with that trumpet still makes me sob uncontrollably. I hate having these feelings of being inferior.

Jeez, I just checked my purchases. I bought multiple times, one of them happened to be in $10.70 in Oct 21, 2002. Yah, good timing, but that was just luck. I bought 4 other times, 3 in the last 2 years, so my averaged turned out to be 16 range. Hard to believe? Wow. Good for me I guess that others can't fathom my luck.

Amazing how owners and realtors get all pissed when people make money outside of real estate. And JFP, I would really seek out some help. They are pretty serious statements to make on a social network like pat.net. Hope things work out for you.

When comparing your stock investments to a real estate investment, you need to consider the leveraging involved with the house. For example, if you put $100k down on a $500k house, and the house goes up 10% in value, you made money on the $500k, not the 100k, i.e. $50k.

Your $100k in stocks would need to go up 50% to match.

On the downside, the same multiplier applies when values go down.

robertoaribas says

I didn't like living alone.

I'm the same way about dining, Roberto. Can't stand to eat dinner alone, which is the only real reason I rent out one of the outbuildings here on my land to an old buddy of mine for cheap (he cooks for me and that's two third of his rent).

wave9x says

When comparing your stock investments to a real estate investment, you need to consider the leveraging involved with the house. For example, if you put $100k down on a $500k house, and the house goes up 10% in value, you made money on the $500k, not the 100k, i.e. $50k.

Your $100k in stocks would need to go up 50% to match.

On the downside, the same multiplier applies when values go down.

Playing leverage is dangerous. I compare owning a home with no mortgage to my investment returns. If I wanted leverage then I would compare playing derivatives or buying stocks on margin to using a leveraged house for an investment. Leverage can suck when it goes against you. I don't take that risk in today's market. Not saying everyone should be like me, but that is how I feel.

RentingForHalfTheCost says

If I wanted leverage then I would make up my investment gains playing derivatives or buying stocks on margin to using a leveraged house for an investment

corrected.

tatupu70 says

RentingForHalfTheCost says

If I wanted leverage then I would make up my investment gains playing derivatives or buying stocks on margin to using a leveraged house for an investment

corrected.

True. It reads much better. Thanks

robertoaribas says

keep deleting all the comments that show what a lying asshole I am, and I'll keep posting them over and over! What the hell else am I going to do in the hell hole called Phoenix.

Shit, that stupid phone keeps ringing from my asshole tenants saying they can't make payment again, the roof is leaking, the heater is broke, or other shit like that. I thought this landlord things would be easy, but man was I wrong. I have to work like a bastard just to sweak out a lousy 5% return. Why the hell did I get into this mess. Dumb stupid that is why.

Hey, even insulting yourself is not allowed on my threads. Even though I agree with your insult here I will have to delete it.

A lot of people on this blog disagree with "robertoaribas".

However, they are all wasting their time. Roberto works in a local market which he knows and it is workings for hm.

Your local market is not the same, and Roberto would not touch it with a 100 foot poll.

While many can predict the direction, few can predict the when the worm turns.

It has always been a problem and it always will be will be.

fedwatcher says

While many can predict the direction, few can predict the when the worm turns.

It has always been a problem and it always will be will be.

Truer words never spoken.

I wish I would have sold my last home 2-3 years later, or sold gold 2-3 years later. Sometimes you just have to take your profits before they become losses. No one can predict the exact turns of the market.

robertoaribas says

I spent a cumulative year in thailand, 3 months in china and 2 months in brazil over the past 15 years as an owner... gotta love summer break, the month off at christmas!

You are a college professor, you get 3 month government vacation. That has nothing to do with investing. Plenty of people do that. Although local teachers I know, usually for some reason pick up second jobs flipping real estate during summer vacation.

wave9x says

Your $100k in stocks would need to go up 50% to match.

The money you have in stocks could well go up 50% in anywhere from five to eight years. Remember, you might be accumulating dividends along with the stock market going up. The beauty of compounding! Also you will be able to put more money into the stock market, if you are not using all that money to pay the mortgage/upkeep on a house.

That being said, I still think it's a wonderful thing to buy a home if it's in any way affordable especially if you plan to stay in one place, because it beats inflation and gives you security that you will never be thrown to the streets in your old age. It's a place to raise your family, makes memories., leave the home to your kids if you can.