Investing General Discussion

ShakyJake

ShakyJake

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Furry said:
Is it smart, almost certainly not. Will it make you feel good anyways, maybe. The power is yours.
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To be clear, I'm speaking of borrowing from your 401k, not cashing out. So no penalties are realized. The interest you pay on the borrowed amount goes to you.
 
Furry

Furry

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ShakyJake said:
To be clear, I'm speaking of borrowing from your 401k, not cashing out. So no penalties are realized. The interest you pay on the borrowed amount goes to you.
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We're in the uncharted era of PRINTMORETM and money is free, so I don't claim to know anything about the future other than we'll produce the money to fight all our problems, so I don't expect a traditional bear market in the near future. That said, when it comes to money it's often a choice between what's smart and what feels good as we've covered many times in this thread. Just because it's not a smart decision logically doesn't mean it's the wrong choice for you.
 
fris

fris

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I did this in '08, months before the dot com bust. I needed to pay off student loans or they would default, my pay checks started getting garnished. I took about 45% out.

The stock market crashed, I bought back in 50 cents on the dollar.

But outside of doing this just before a serious drop, its probably a bad idea. Time in the market beats timing the market. Almost always
 
Sanrith Descartes

Sanrith Descartes

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ShakyJake said:
This is kinda-not-really an investment question, but I think more eyes would see it here and would like to get some opinions:

I'm looking for ways to quickly pay off my mortgage beyond simply paying extra principal payments. Seems like two common strategies are the HELOC and borrow from your 401k.

Which brings me to the borrow from the 401k option. Generally, this is considered not ideal since you could lose gains while this borrowed chunk is being repaid. However, it is a hedge against a market downturn. Which, from all indications (I think?) we are probably at the "top" of the market, so checking out say, 50 grand, from my 401k to drop on my mortgage may not be too bad of an idea?
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It all comes down to market timing, which is generally considered impossible and a really bad idea. Take the interest rate on your mortgage and then look at the possible opportunity cost if the market keeps getting pumped by free money and zero interest rates. Someone in this thread famously said last year the DOW would never see 23k (I think it was) again. That was like 10k Dow points ago. Market timing is for suckers.

Edit: let me add, if there is a financial need to pay off the mortgage (job change, want to have a kid and wife won't work) then that is a different story entirely and may get a different answer.
 
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Sanrith Descartes

Sanrith Descartes

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Sanrith Descartes

Sanrith Descartes

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LMT dancing above the 200-DMA. Adjusted guidance upwards for year-end but missed estimates by a penny on EPS.
 
Shonuff

Shonuff

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Sanrith Descartes said:
Not posting this for any political purpose, strictly financial. Mask mandates are being imposed in cities in the US. LA and just now St Louis etc. Masks are being dictated for Fall enrollment in schools in places like Boston and Chicago. From an investing perspective keep watching this line of news. At the current all-time highs and lots of professional traders on vacation for the summer it won't take a lot for a mad rush to the exits to begin. Anything speculative should be give really hard due diligence right now, and some profit taking in outperforming positions is probably something to consider.


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www.cnbc.com

Dr. Scott Gottlieb says U.S. delta-driven Covid spike could peak in 3 weeks, following U.K. pattern

"If the U.K. is turning the corner, it's a pretty good indication that maybe we're further into this than we think" in the U.S., Dr. Scott Gottlieb told CNBC.
www.cnbc.com www.cnbc.com
 
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Shonuff

Shonuff

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Sanrith Descartes said:
Cramer. The same guy screaming to buy the DIDI IPO a week or two ago at 14.
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I subscribe to his actionalerts over the last year, and his picks have done me well. Of course, I don't buy everything he says. I do my own DD. No one can suss out what China is doing. Probably be better off shorting KWEB than going long on these.
 
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Furry

Furry

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Anyone investing in China can get fucked for all I care. I've had their companies as a hard nope since I started investing. Luckily it's pretty easy for me, when my main account bans investing in China or any of their funds having chinese interest. My second biggest one might have minor holdings somewhere in the basement of one of the ETFs, but definitely nothing substantial.
 
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Shonuff

Shonuff

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Furry said:
Anyone investing in China can get fucked for all I care. I've had their companies as a hard nope since I started investing. Luckily it's pretty easy for me, when my main account bans investing in China or any of their funds having chinese interest. My second biggest one might have minor holdings somewhere in the basement of one of the ETFs, but definitely nothing substantial.
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Last year these were easy money. I bought a bunch when I was thinking there would be election turmoil and they doubled immediately. Unfortunately, all this stuff China's been doing has sunk them this year, and no end in sight. They've managed to make investors not care about fundamentals, even BABA is shit now.
 
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