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You mean what would I do with the $10,000 a year returns on the invested principle? I would use it to make my number bigger and look at it every day.
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Jan 27, 2015 05:09
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Bloody Queef posted:The thread deserves to know what the vanity license plate would be. BLUBARU if it isn't taken. If it is, then add about 1k to make an exchange with the person who currently has it.
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Jan 28, 2015 01:42
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$100k down payment towards an investment property nearby in Escondido - potentially for renters or potentially for my parents or mother-in-law who are getting older and may need more care from my wife and I. They are too far away for me to do much. I think we can get something decent in Escondido for around $350k and we can absorb the extra mortgage. $50k to pay off the cars - decent loans but they're the "worst" ones we have. $50k into the brokerage account $70k Wait to see whether Obama destroys the 529 plan - if not, drop the money into one of those. $80k either towards principal on our current mortgage or into savings. If no 529, make that $150k If things work out with the property, this might get me to retirement a couple of years early.
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Jan 28, 2015 19:34
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Hmm 100k 401k or some type investment which I can't touch until 65-70 200k Mortgage 20k Parents 15k Debt 10k Savings
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Jan 29, 2015 15:53
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Pay off my 100k in student loan debt, dump the rest in a fund or something.
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Jan 29, 2015 17:16
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Pay off my student debt. Pay off the student debt of my family members. Throw the rest into funding my political campaign.
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Feb 3, 2015 08:10
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Invest it all into a well diversified portfolio. My wife will quit her job and use the time to find a better one. I'll continue to work and we'll try to evaluate how much more money we need to retire. I only have a little bit of cc debt atm and there's only like $44,000 left on my home so I wouldn't touch that.
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Feb 3, 2015 15:58
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Buy a house where I'm moving outright, pay off wife's debt, use the rest to seed fund a couple companies of mine I haven't felt right to ask for funding (yes, I'd have enough to do all of this on $350k, I'm looking at $200k houses now). If they fail, at least I'll have a house, and also it's more important I get hooked into that community long-term than to mull about programming and wracking my brain over REST URL ontologies and object graphs. Nothing I really want to do can be done on much less than several million at least 
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Feb 3, 2015 18:54
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Buying a house outright is probably not a great idea. Mortgage rates are still pretty low and you can deduct the interest. Even a fairly conservatively managed investment portfolio should be able to out perform your tax adjusted intrest payments.
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Feb 10, 2015 07:10
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KernelSlanders posted:Buying a house outright is probably not a great idea. Mortgage rates are still pretty low and you can deduct the interest. Even a fairly conservatively managed investment portfolio should be able to out perform your tax adjusted intrest payments. The risk profiles are wildly different; living in a paid off home crosses off the single largest expense in almost everyone's budget on a permanent basis. Keeping a mortgage and investing equivalent cash in a conservative portfolio still requires monthly payments and a risk of loss in the portfolio, along with the transactional overhead of continually liquidating portions of the portfolio to get the cash to make payments. You can of course mix and match between the two to strike a balance with one's own risk tolerances, but having monthly housing costs covered for ostensibly the rest of your life is a great idea in all cases.
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Feb 10, 2015 18:22
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Dwight Eisenhower posted:The risk profiles are wildly different; living in a paid off home crosses off the single largest expense in almost everyone's budget on a permanent basis. I'm not saying that that stuff is high probability, but if it happens to you, the probabilities don't really matter. Buying a house is, in a lot of ways, riskier than renting. On the flip side, the savings on the tax deductibility of interest are--for most people--small to negligible.
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Feb 10, 2015 18:34
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Thanatosian posted:Buying a house is, in a lot of ways, riskier than renting. I really don't want to come off as having a lack of nuance in considering the rent vs. buy decision, but I think this is just absolutely inaccurate. While renting I personally had my rent hiked just about every single year, sometimes by a little, and sometimes by a lot. That unpredictable cost growth will absolutely start to eat into a lump sum that you intend to pay rent for X years with faster than you anticipate. Renters are subject to a whole slew of risks around sale and management; take a look at the unhappy lifetime renters in San Francisco who are getting gentrified out of their homes for an example. While a good tenant can probably expect to pay under market after a few years, they are also just at risk of all of the disasters you list destroying their home, and needing to find new housing (now at almost certainly higher market rates). Yeah, there might be dimensions in which home ownership carries greater risks, but looking at a total incidence/impact risk profile of renting vs. owning, I don't think it's credible to claim that renting is safer. In certain markets it's certainly less expensive.
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Feb 10, 2015 19:34
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Dwight Eisenhower posted:I really don't want to come off as having a lack of nuance in considering the rent vs. buy decision, but I think this is just absolutely inaccurate. Having to find new housing when you're renting just isn't that big of a deal. Yes, if I'm renting, there's a risk of having bad neighbors, or my sewer getting backed up, or a flood; but if that happens, I just pack up my poo poo (or throw away all my ruined poo poo) and move someplace else. Yeah, it sucks, but meh? If I get lovely neighbors, or a backed up sewer, or a flood (and I don't have flood insurance) when I own my house? Or even if I get offered a new job on the other side of the state? Now, the best-case scenario is I have to sell it. And I have to sell it at a point in time where my primary concern isn't "how is the market doing?" My worst-case scenario is the house is unsalvageable, and I either have to rebuild ($$$$$$$), or I have to sell just the land, presumably for a lot less than I bought it for, because again, I'm not really looking at the market. You're absolutely right about renting; there are totally risks that go along with it that make owning a home very appealing, probably chief among them the climbing prices of rent. But at the same time, my worst-case scenario if I'm renting is "poo poo, my poo poo got ruined, now I have to move."
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Feb 10, 2015 19:45
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Buying and renting is as much a personal decision as it is a financial decision. You'd have to have knowledge of the future to know you're making the "right" decision. Just decide whether you're more alarmed by the possibility of Sim City Disasters/selling in a down market, or your rent going up/the owner selling the property.
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Feb 10, 2015 19:50
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And admittedly, I work on the claims end of the insurance industry, so I probably see a lot more of the worst-case scenario than most people.
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Feb 10, 2015 19:57
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One thing to note is that while you can save some money over buying as a renter, unless you're very careful and partly lucky, you will likely not be able to beat out leveraging home equity for buying yet another home when interest rates are low again in some alternate world timeline. You can't rent out the savings over buying as a renter for certain markets where you can still make substantial profits. But low-cost markets are typically pretty harsh on renters (flyover country, most rural areas) while high-cost markets tend to be better for renting (SF, NY). I'm about as risk averse as you get after I lost pretty hard buying a place during the boom at 23 and had a quarter life crisis of sorts. For another perspective, consider the general observations from the Millionaire Next Door - reducing living costs through low-cost housing long-term and just not buying cars for no reason (top 2 expenses next to health insurance) is astronomically important if you're not going to make stupid amounts of money and plan on ever retiring. And because $350k isn't anything to retire on unless you DO have such tiny living costs, it's the first thing to do if you are not in the position of being able to start a company with said hypothetical $350k money and go make the equivalent residual above the rather risk-averse route of just buying a house and quitting the rat race. A house is a part of everyone's retirement planning unless you plan on living in hotels or an RV in retirement (a coworker of mine lives in an RV and is having fun with all this). But the buy / rent matter is absolutely a personal decision moreso than a clear-cut risk/reward decision to me like most financial matters though. I just think it's better to diversify out if you can spare some liquidity, and that's the scenario presented in the topic.
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Feb 10, 2015 21:38
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We all want to maximize our expected income, subject to some constraints (such as: being able to provide for family, probably cover emergencies, etc.). If you aren't already meeting those constraints, then obviously the money should go towards meeting them. If you are already meeting them, then congratulations! you have capital. There's a tyranny of return on capital that I think a lot of people are missing. Basically, as you have more money, your choices for what to do with it become more and more focused on the return on investment. Reducing your home payments by $2000/mo, increasing your investment income by $2000/mo, or increasing your income by $2000/mo (net of various discountings) is functionally the same thing for almost all purposes. You've got more capital now and you've got to find a place for it to earn that interest. Everything you're talking about here is just converting one form of capital to another - maybe it is in a retirement account, maybe it is in home equity, whatever. It is basically window dressing on a dollar sign. There might be a different risk profile; different liquidity. Putting it into your mortgage is going to give a pretty good return on investment with low risk and not so great liquidity. Putting it into a retirement account might give slightly better returns and even worse liquidity (although most of the benefit comes from a tax advantage...). Putting it into the stock market will give you higher returns with good liquidity, but with more market risk. The choice between the various tradeoffs changes depending on your personal details, the state of the financial markets, and the phase of the moon. The only escape from that is a reduction in income in favor of leisure, or intentional "mistakes". My line of work has large, uncertain, concentrated paydays. I've had to deal with similar enough situations to this that I have a tradition: I buy something nice for myself with a small part, and then I save the rest. In this case, I've been driving the same car for 10 years, maybe I'll buy a new one. Maybe I'll move up a home reno I've been vaguely considering. The rest goes to work in the rat race. The most interesting stuff happens in the "something nice" though. That's where your life is at. If your goal is just to maximize returns with that money, you should go get a graduate degree and get into a line of work where you get paid enough that you wouldn't change much if you got that much money again. Go become a radiologist or something, $350k would just about cover it. Don't live your life by compound interest.
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Feb 24, 2015 06:08
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So many words, and yet nothing was actually said.
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Feb 24, 2015 07:01
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I'd get a second nutsack so I'd have four balls to play with.
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Feb 24, 2015 07:02
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1) quit working for 1.5 years to complete school faster (75K living expenses, 25K tuition) 2) pay down car loan balance to some nominal amount, just to keep it current in good status on credit report (~10K) 3) down payment on a residence (100K) 4) index fund (56K), bonds (14K) 5) slumlord investment (40K) 6) as John Galt said above, E&P stock speculation (I have some professional experience with this) (20K) 7) hookers and blow (10K) metasynthetic fucked around with this message at 20:18 on Feb 24, 2015 |
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Feb 24, 2015 20:10
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If it were in literal cash I would probably spread it around on the floor and roll in it for a bit. And then I would look into building a new house. I love my current house just fine, but it has a few floorplan issues and some of the previous owner's style choices would not have been my choices. Houses of my preferred size run about 250k, but with an extra 100k for fancy upgrades and personal touches I think I could dream up a pretty bitchin home. Ornate wooden stairway banisters  ....and then I don't know what I'd do with the money from selling my current house. College fund for future kids, I guess?
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Feb 24, 2015 22:12
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Bozart posted:buy something nice for myself with a small part, and then I save the rest Good choice! Definitely the most popular vote in this thread.
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Feb 24, 2015 22:31
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1) buy some riverfront land in the middle of nowhere* 2) start building a tower* 3) purchase rope and large inner tubes* 4) tie rope off to the tower and hang onto it from an inner tube in the water/ice* 5) continue building tower until death* *drink
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Feb 24, 2015 22:31
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My answer won't be as exciting, as my wife and I don't have any current debts to pay off outside our mortgage. 1. Fix any issues with my house (probably re-piping the house and properly insulating) 2. Take a nice vacation with my wife, as we never got a proper honeymoon 3. Add the rest to principal in our investment accounts OR pay off a sizable chunk of our house early
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Feb 25, 2015 18:46
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I would kiss all 3,500 Ben Franklins on the lips
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Feb 25, 2015 18:49
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2/3 VTI 1/6 VXUS 1/6 VNQ Wait until absolutely necessary, then collect money.
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Feb 27, 2015 04:19
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BossRighteous posted:So many words, and yet nothing was actually said. I know right. A circular logic of mumble jumble. Dude must be in sales.
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Mar 4, 2015 17:42
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~7k Pay off all outstanding debt 40k in a short term bond fund/mmf/cash to use for liquidity/rainy day/part of a future primary residence down payment 100k in index funds allocated appropriately 100k into an investment property, a tiny trailer park or partner on a bigger trailer park 100k for concentrated spin-offs portfolio, see if I can beat the 100k in index funds Not waste the remanning 3k, and promptly spend it on hookers and blow.
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Mar 27, 2015 03:31
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OatmealRocks posted:I know right. A circular logic of mumble jumble. Dude must be in sales. Bozart posted:My line of work has large, uncertain, concentrated paydays. Checks out
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Mar 28, 2015 16:22
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KernelSlanders posted:Checks out Baahaha. Knew it.
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Apr 2, 2015 23:18
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So much boring in this thread. After doing the obvious like paying off debts (student loans) and saving a portion (401k or similar), it would allow me the freedom to take a couple years off work and focus on projects I've always wanted to do but didn't have the time/money for, specifically, Burning Man-related projects - i.e., theme camp execution and the related music festival-like organization that would give me some experience in that field. Another one would be starting up a mini-festival in the bay area somewhere - underground. It's the kind of thing that you need a lot of money and time to do, something you have neither of while working full time+ with student loans debt ripping out your rear end in a top hat every month. What comes after that would depend on how that went (who I met, what I learned, how I've changed), but it would have the potential to turn my life down another path entirely. Everyone else just wants to keep doing what they are doing with slightly less debt, or turn it into more money. Boring. I don't believe we were put here to make a number in a bank account as big as it can be. mitztronic fucked around with this message at 01:30 on Apr 3, 2015 |
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Apr 3, 2015 01:27
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mitztronic posted:Everyone else just wants to keep doing what they are doing with slightly less debt, or turn it into more money. Boring. I don't believe we were put here to make a number in a bank account as big as it can be. Devian666 posted:I'd get a second nutsack so I'd have four balls to play with. I dunno I think this would take my life down a different path.
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Apr 3, 2015 07:55
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mitztronic posted:Everyone else just wants to keep doing what they are doing with slightly less debt, or turn it into more money. Boring. I don't believe we were put here to make a number in a bank account as big as it can be.
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Apr 3, 2015 17:11
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$350k is nothing that will completely change your life as anyone remotely middle class in the US for very long unless they don't give a drat about retirement and financial stability... oh wait, guess which sub-forum we're in. Besides, the reason we'd want to go make more than the $350k is because anything that's actually cool would require a lot more money than some $350k. Like buying out SA from Lowtax specifically to have the terms of service read that posters' comments will randomly be suffixed with "...because I am a dickless rear end pirate."
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Apr 3, 2015 21:59
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moana posted:Yeah, we were definitely put here to go party with a bunch of other upper class white kids in the middle of the desert, that's a much more worthwhile goal in life You don't get it, (wo)man. There are literally only two uses of money in the entire world: 1. Make a number in a bank account as big as it can be. 2. Whatever nonsensical use of money I'm justifying with this false dichotomy.
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Apr 3, 2015 22:05
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I mean, Burning Man was fun, don't get me wrong, but it's about as life changing as a trip to Disneyland, and I can't decide whose fanatics are more annoying, Disney freaks or BMers.
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Apr 3, 2015 22:23
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If $350k was already in my bank account: 320 - 30k student loans and credit cards 318 - 12k pay off car 280 - 38k new car 240 - 40k liquid emergency fund 200 - 40k wedding/ring/honeymoon fund 180 - 20k New TV/computer/furniture/toys 232 + 52k sell house 32 - 200k down payment on house + any repairs 0 - 32k Retirement accounts
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Apr 4, 2015 21:08
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moana posted:I mean, Burning Man was fun, don't get me wrong, but it's about as life changing as a trip to Disneyland, and I can't decide whose fanatics are more annoying, Disney freaks or BMers. Which is to say: it's definitely the Burners.
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Apr 9, 2015 23:16
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I'd put about $20k into renovating our condo and hopefully rent it out for $1,800/mo (going rate for a non-shithole 1br in downtown Vancouver) and use all of that money for the mortgage and condo fees, paying it off in about 14-15 years. About 200k would go to a large down payment on a nicer place nearby, leaving me with maybe a $200k mortgage. Over 15 years I'd be paying roughly $1,600/mo with strata fees, about what I'm paying now. Put $35k into furnishings for the new condo and spoiling myself. $25k worth of working part time while going to school with the goal of upping my income by $10k/yr. The other $70k would go into investments. In 15 years or so when both mortgages are paid off and I've continued to work full time and be responsible with my money I'd hopefully sell both places for a million and change and retire to some Southeast Asian beach town before I'm 55.
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Apr 13, 2015 18:41
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Well... the IRS is kinda onto that game and you get kinda taxed somewhat hard on real estate gains above the exclusion limit given it's capital gains and all, plus you recapture all the depreciation at time of sale. This is a big driver for a lot of people "upgrading" homes that are baby boomers - they have so much equity from prices rising so much for their crappy homes from 30+ years ago they bought as 20-somethings... and now they have to do a 1031 exchange or something.
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Apr 13, 2015 21:23
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