Post: #76

(05-18-2013 04:03 PM)Dexter Morgan Wrote:  Right, but if you think through what I've said, its not only real estate that would get bid up. If you have a short term perspective and want to market time, why not do a more liquid asset like equities? You can be out in a day, and without the 6% realt-whore's fee. Besides, the same bubble rarely inflates twice in a row: First it was stocks, then housing, then bonds, then gold: I'd put money that equities will re-inflate before housing. It certainly has the last few months!

No doubt. I don't know squat about stocks but I do know real estate. There are a lot of ways you can get creative if you are willing to finance it yourself.

Since I understand real estate better, I feel more in control. People will always need a place to live.

Even if he purchased RE today and there was a run up, I still think he would have purchased low enough to not worry about a bubble.

That is unless he did something stupid and refinanced at the top of the bubble.

He can even do this with a self directed ira.

Post: #77

My bills are as following:

Rent: $750 (2 bedroom for $1500)

School: $250 (20K left)

Electric: $120 Average

Cell: $40

Gym: $55 (fukin NYSC)

Car insurance ($900 semi annually)

Subway ($150ish)

Total estimated: $1450ish fixed a month....

Not including food, beer, clothes, etc etc etc....

Beer and food are variable, sometimes I go out a lot, sometimes I don't. My food is cheap, $30 a week....

Post: #78

(05-18-2013 04:07 PM)worldwidetraveler Wrote:  [No doubt. I don't know squat about stocks but I do know real estate. There are a lot of ways you can get creative if you are willing to finance it yourself.

Since I understand real estate better, I feel more in control.

Makes sense. Always do what you're most comfortable with; it's your money!

Post: #79

This is my problem with real estate:

A) If interest rates go up the shit should drop pretty bad...

B) Massive bubble in NYC, and Florida is re-bubbling

C) I might not be cash flow positive if I buy in Florida while I live in NYC


My passive income is up to around $400 a month now, I would love to get it to cover my fixed bills by age 40. Looking for a new job possibly next year after I vest at my currently company...

Post: #80

(05-18-2013 02:49 PM)samsamsam Wrote:  Not to make this terribly personal, but bankers, from my experience are not as concerned with the overall economy as much as it is making fees and bonuses. Make money on the ups and the downs. Just the average joe who really suffers.

That seems to be being demonstrated right before our eyes

Post: #81

Unless you are a ceo making millions, I think working for someone else will limit your retirement savings. You don't really add enough money to really leverage it. I guess that is why I liked real estate because of the financing that can be leveraged. It is more of a pain in the ass when it comes to maintenance, but I believe the pros outweigh the negatives.

Post: #82

What is the rate on your loans?

What I am getting at is you have 3% gains on CDs. You live in NYC that is taxes at 33% so your real rate of return is 2%. So if you paying it all off at once it may net you a higher immediate return.

What's the net expense of going out for you monthly?

Why do you have to live in Brooklyn when you're 65?

Post: #83

(05-18-2013 04:12 PM)Dexter Morgan Wrote:  That seems to be being demonstrated right before our eyes

Why should we worry about the average Joe?

A lot of the people that got bit in the real estate bubbles was because of greed. Not because they were innocent. They wanted to make some quick and easy money instead of educating themselves.

I tried to talk a guy out of buying houses at the height of the bubble. At that time, houses were going up in value monthly. He was hoping to finance 10 houses and sell them in a couple of months. I told him he was crazy. Last I heard, he was losing all those houses because it crashed around him and he didn't sell fast enough.

I have no sympathy for those people.

I also don't have sympathy for people who used their houses like an atm machine by refinancing.

Post: #84

(05-18-2013 04:12 PM)TheCaptainPower Wrote:  This is my problem with real estate:

A) If interest rates go up the shit should drop pretty bad...

B) Massive bubble in NYC, and Florida is re-bubbling

C) I might not be cash flow positive if I buy in Florida while I live in NYC


My passive income is up to around $400 a month now, I would love to get it to cover my fixed bills by age 40. Looking for a new job possibly next year after I vest at my currently company...

I'm not sure about rates...in the late 70's, rates went up but real estate boomed. All things being equal you should be right, but other factors are at play, also.

The same reality exists for gold and the greenback: When the dollar strengthens, gold TYPICALLY declines, and vice versa. Makes sense, since gold is priced in USD. But I know a lot of smart people who think USD will appreciate in the coming years (not because we're doing anything right but because Japan, the UK, the Eurozone, and China are debasing their currencies faster than we are and/or have worse troubles with their banks). But these people also think that if the next crash is, like the last crash, driven by a credit crisis, gold may actually go up. I.e., you'd have gold and the dollar going in the same direction. Unusual, but possible. It could happen re: rates as well.

I don't necessarily agree about NYC: Remember that most real estate in NYC are co-ops, and many have a 50% down requirement ( or more!). This means owners in NYC have more equity in their homes than is normal, and this seems to have lessened NYC's decline the last crash. Also, the SUPPLY in NYC is limited due to the constraint of available land and the difficulty in getting permits for teardown, so supply didn't skyrocket like Phoenix or Vegas or Miami. All that said, a lot of the supply that came on line recently in NYC was condos, not coops, so maybe it will be worse than last time.

Post: #85

(05-18-2013 10:43 AM)TheCaptainPower Wrote:  The older I get, I am starting to think of the 401K as a horrible retirement vehicle.

I just don't understand how people are going to retire with just their 401K savings, I think its going to be hard unless you really bank it.

Let's say for example you retire with $200K (average balance is around $60K), what can you do with it?

1% CD? $200 a month?

Reits? 4-6 percent, with potential huge losses in principal (2008-2009)

I've been working for a decade now and I am ONLY up to around $85K. My company only offers expensive mutual funds instead of ETF's, and if they didn't match me 6%, I'd hardly care to contribute.

I'm considering when I retire buying a property outside of NYC in cash from my 401K, and living frugally.

What else can you do?

For my own private savings I am up to around $400 a month passive income. $100K in a CD, and $5K in lending club. And my job offers a small pension.

How is anyone going to retire?

I'm assuming if I live frugally I will be OK. I also want to stay in the U.S.

If you just invest 4k a year starting at age 25 you'd have several millions projected - that's even before company matching, etc.

Post: #86

(05-18-2013 04:16 PM)WestCoast Wrote:  What is the rate on your loans?

What I am getting at is you have 3% gains on CDs. You live in NYC that is taxes at 33% so your real rate of return is 2%. So if you paying it all off at once it may net you a higher immediate return.

What's the net expense of going out for you monthly?

Why do you have to live in Brooklyn when you're 65?

I see you were smart enough to REMOVE the link to this thread from your home page. I usually delete stuff that embarrasses me, too. Smart move, Cupcake!

Post: #87

The interest on my loans are pretty low, 3%. I also get a small deduction on my taxes.

I mostly go out to happy hours now, unless I make big plans like my recent trip to Texas. $200 a month with drinking and food??

Brooklyn is in a fukin bubble. I've lived here my entire life, and hipsters are paying millions of bucks for HORRIBLE piece of crap brownstones in boring and ugly neighborhoods.

I will like to eventually leave BK. I love it, but not enough to pay out the ass in taxes.

Post: #88

? Are you retarded? That's a twitter feed I will retweet right now

Epic

You should only be embarrassed when you're a liar. I have nothing to hide. If you want to see one of our much better contributors just go to wallstreetoasis.com that guy is far above me.

Trolls gonna troll though.

(05-18-2013 04:26 PM)Dexter Morgan Wrote:  

(05-18-2013 04:16 PM)WestCoast Wrote:  What is the rate on your loans?

What I am getting at is you have 3% gains on CDs. You live in NYC that is taxes at 33% so your real rate of return is 2%. So if you paying it all off at once it may net you a higher immediate return.

What's the net expense of going out for you monthly?

Why do you have to live in Brooklyn when you're 65?

I see you were smart enough to REMOVE the link to this thread from your home page. I usually delete stuff that embarrasses me, too. Smart move, Cupcake!

Post: #89

You cook your own food? 30 dollars a week? That's very very cheap.

(05-18-2013 04:07 PM)TheCaptainPower Wrote:  My bills are as following:

Rent: $750 (2 bedroom for $1500)

School: $250 (20K left)

Electric: $120 Average

Cell: $40

Gym: $55 (fukin NYSC)

Car insurance ($900 semi annually)

Subway ($150ish)

Total estimated: $1450ish fixed a month....

Not including food, beer, clothes, etc etc etc....

Beer and food are variable, sometimes I go out a lot, sometimes I don't. My food is cheap, $30 a week....

Post: #90

Rich people got rich by taking risks.

You stay rich by diversifying.

I'm mostly in fixed income myself.

Captain, how many times you gonna read Arnold's bio before you grow some balls?

How did Arnold make his money? Big risks on real estate.

Big risks = big rewards.

Post: #91

(05-18-2013 04:29 PM)WestCoast Wrote:  ? Are you retarded? That's a twitter feed I will retweet right now

Epic

Why not just hard code it so it ALWAYS comes up to this thread?

BTW you never explained how "you're not selling anything" in light of your "approved products" page...you know, the products you SELL?

Post: #92

Go look up tax code you are fucking yourself.

Look if you get 3% on Cd's that is taxed at 33% right? So that means your gain is 2%...

If you have 3% student loans, and you pay them all off you gain 3% + write them off = 33%*3* = net 4% gain.

Also what MikeCF said, you're a positive guy and want to learn but your thought process is middle class.

(05-18-2013 04:28 PM)TheCaptainPower Wrote:  The interest on my loans are pretty low, 3%. I also get a small deduction on my taxes.

I mostly go out to happy hours now, unless I make big plans like my recent trip to Texas. $200 a month with drinking and food??

Brooklyn is in a fukin bubble. I've lived here my entire life, and hipsters are paying millions of bucks for HORRIBLE piece of crap brownstones in boring and ugly neighborhoods.

I will like to eventually leave BK. I love it, but not enough to pay out the ass in taxes.

Post: #93

So we should write to twitter and tell them. We want to hardcode a tweet to a troll? Come on.

The products we approve for sale all profits go to charity so again wtf? Super

You are basically just very angry because of my typing style which said I disagree with your view on real estate (which wasn't even directed at you, you just pulled it out and attacked me). So again people can listen to you or me and read the post on our views. Okay? Cool. Move on and feel free to debate.

(05-18-2013 04:33 PM)Dexter Morgan Wrote:  

(05-18-2013 04:29 PM)WestCoast Wrote:  ? Are you retarded? That's a twitter feed I will retweet right now

Epic

Why not just hard code it so it ALWAYS comes up to this thread?

BTW you never explained how "you're not selling anything" in light of your "approved products" page...you know, the products you SELL?

Post: #94

I'm going to start getting more aggressive. To be able to sleep at night I wanted to have a decent liquid savings before I started hustling. I used to trade like crazy, I did pretty really good from 2002-2008. I've been messing around a little bit with options, but I haven't been doing good. If the market crashes again I will take the 100K and throw it back in, but for now I am working with everything ABOVE that 100K.

@MikeCF Nobody has bigger balls than my master Arnold!!

Post: #95

(05-18-2013 04:28 PM)TheCaptainPower Wrote:  The interest on my loans are pretty low, 3%. I also get a small deduction on my taxes.

I mostly go out to happy hours now, unless I make big plans like my recent trip to Texas. $200 a month with drinking and food??

Brooklyn is in a fukin bubble. I've lived here my entire life, and hipsters are paying millions of bucks for HORRIBLE piece of crap brownstones in boring and ugly neighborhoods.

I will like to eventually leave BK. I love it, but not enough to pay out the ass in taxes.

You still may be ok just investing in the indexes (your lowest cost alternative) in your 401K, depending on what your time horizon is. If you've said this in a prior post, my apologies. When money managers give me advice, they always ask:

- What's your time horizon? I.e., how old are you, how old do you plan to work until, and will you have a need for the cash before then (kids college tuition, etc).
- They also ask about the ability to absorb risk, the WILLINGNESS to absorb risk (the two should be in sync), any other pending liquidity needs, any legal or regulatory constraints (esp if you've got a trust, or money overseas).

If you've got 25 or more years to retirement, i'd put as much as you can in your 401K, esp if you get a match, then put as much as you can in a roth or other savings, including some non-tax advantaged savings. Taxes are likely to be higher in the future, then again, YOU can control how much you withdraw in the future to minimize the tax hit.

Post: #96

(05-18-2013 04:35 PM)WestCoast Wrote:  Super

Super whatEVERRRRR! Hiss!!1! My sister used to talk that way. She was eight at the time...

I don't dislike you because of your "typing style" (whatever that means...hunt and peck??). I dislike you because you're not as smart as you think you are.

Post: #97

^^ okay I never said I was smart either. Again you are angry I disagree with your view of housing. I am not even mad that you disagree with me. So why you so upset? I don't even care. If you end up being correct cool, if you end up being wrong I won't even mention it because again I don't care.

Also you are going through a money manager but are giving advice on managing money, why would we listen to you if you can't manage your own money. If you have the exact same views as him and always see eye to eye, just do it yourself and get rid of the fees.

Post: #98

(05-18-2013 04:48 PM)WestCoast Wrote:  Again you are angry I disagree rich your view of housing.

You keep saying that but it doesn't make it true. I dislike you because you have a Cadillac ego and a Honda accord intellect. Decent, useful, above average perhaps...but nowhere near what you think it is.

I also don't believe you when you say "We donate all proceeds to CHARITY!" It doesn't say that on your page; most people who actually donate their proceeds to charity would say so (and they'd say which charity). Also, there's the "buy us a shot!" link. That goes to charity? Of course it doesn't.

You're not bright enough to talk the way you do. Check your ego a few notches so that it is in line with your abilities.

Post: #99

Go read the about us. We will donate lump sum at year end and load up the check (obviously not much money).

So now you dislike me because you believe you are smarter than me. That is cool. Why don't you still work on the street again. Why are you smarter than me? More serious question Banking or what?

I have a Cadillac ego when you are telling me you are smarter than me with no proof or any authenticity? Seriously if you have a better background and real info I will stfu and take your advice... Until then though you are coming off as a very angry guy who got fired from the street and is now running around trying to discredit people with no proof, rhyme or reason.

Post: #100

First off: read "The Millionaire Next door". Pretty good book. Second get a job with a defined pension plan. 401k is a great savings vehicle BUT they never end up replacing the income that a pension does.Get a gov't job or a big company that has an annuity option.
If you are going to risk the stock market, look into index mutual funds. They are not sexy but historically is decent returns. Most important low fees and when the market goes down you lose but you make gains quickly in the bull market. The funds follow the overall market.
Never put to much into gold funds. It is speculation but not real increases in earning power. Small amount is a good hedge though.
As for CD's. Because of the irresponsibility of our fellow citizens the gov't is keeping interest rates low artificially. This can't last. Cd rates generally will beat inflation if you know how to play the cd game. Even now I am getting 3-4% on my cds. My father is getting 6% on a lot of his money.My father taught us that saving and compounding is our friend.You start young and you leave the interest to maturity.I am 40 yrs old(retired at 38). I made sure to have a gov't job so i have a pension but i still saved and lived below my means.As of today my net worth is in the top 5% . Mostly from compounding CD'S lol. Seriously. When I see a super rate I put it in for as long a term as possible. My theory is that I can always write off the penalty if I break the cd to re invest.
The key for me was working overseas when I was very young and had my flat ,etc paid for me .i saved most of my salary. Getting married and Never having children helped in my case. Marrying a non western women is important. American chicks will take your funds. But being married it is cheaper than dating or trying to impress chicks. There are sacrifices.Living in shitty apts, No or cheap used cars, etc. But i the end giving up years of my life until 38 was worth it. Now I do what I want ,when I want.
As for another real estate bubble. One will happen in commercial real estate for sure. In some areas houses will lose value when interest rates go up. That's a no brainier. Nyc is probably one of the safer investments. Properties here took a small hit. People always buy homes here. I am thinking of buying a townhome in Staten island(cash of course).Coops kept value better than homes did.Overall the conventional wisdom is buy a home if you want t olive i none but they should not be looked at as investments.