Investing General Discussion

Sanrith Descartes

Sanrith Descartes

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Blazin said:
It’s not the mathematical answer to lower house debt but I am always partial to less debt . I believe there are intangible benefits of living debt free. I don’t think you are going wrong with either choice though.
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Sludig Sludig I have said this numerous times, but there is no "perfect" investment strategy. It all depends on the individual. The only debt I carry is Mortgage and cars. Technically some student loans also but I am waiting to see if they get forgiven which is why they arent paid off. I second Blazin in that the mental and emotional freedom from worry being essentially debt free is hard to quantify in value. But to me its worth a lot.

I think you have discussed this previously, but calculate out the mortgage payment with the additional 100k eliminating mortgage insurance and see how that number stacks up. I can tell you that being mostly debt free allowed us to let me wife quit the job she hated and open her own business. The financial hit we took the first couple of years was acceptable almost entirely because we had so little debt. Being able to cover all the bills just on one salary opens up lots of doors for things like home schooling, raising children without day care, opening a business etc.

tldr: there are a lot of moving parts in the investing decision and not all are about the best alpha.
 
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Omayga

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Sludig said:
Number out of my ass, might be longer, in fact should be given i'm 36. Goal this year is to max 401k hopefully. Just was a circus this last year and still is but at least we have money to allocate around.

Have 200k actually, had thought about putting 100 market, 100 on house to eliminate pmi and save the 5% interest on a 30 year. Opinion? Good diversify for guaranteed return even if less than inflation? Or like recent comments in home buyer, a waste since paying it off slowly with normal payments theoretically is with money that's becoming worth less and less?
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I was in a similar situation and went with the option of paying off the house, I don't regret it one bit and would 100% do it again. Freeing up the "house payment" each month is really nice, you can push that into investments and other projects and it stacks up very quickly. Just keep making that "house payment" to yourself. The freedom of having that huge chunk of debt off my shoulders was a really nice morale boost in life. My job carries a fair bit of risk (1099 with renewing 30 day contracts) so it was nice to know that if shit hit the fan I didn't have to worry about my house payment and could take a shit paying job and still be fine.
 
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Tirant

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I’d probably split the difference and put however much you need to eliminate the PMI on the house. Assuming it doesn’t take the full 100k, depending on your loan size.

As usual the advice here is great, it won’t make sense mathematically over the 30 years but near term it will have a lot of intangible benefits to putting money on the house. Just imagine a scenario where you “lose” 25k in the market in the next 6 months and have the thought of “man I’d still have that 25k and be saving interest if I’d just put it on the house.” If that sounds stressful then I’d probably split up the allocation.
 
Sludig

Sludig

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Sanrith Descartes said:
Sludig Sludig I have said this numerous times, but there is no "perfect" investment strategy. It all depends on the individual. The only debt I carry is Mortgage and cars. Technically some student loans also but I am waiting to see if they get forgiven which is why they arent paid off. I second Blazin in that the mental and emotional freedom from worry being essentially debt free is hard to quantify in value. But to me its worth a lot.

I think you have discussed this previously, but calculate out the mortgage payment with the additional 100k eliminating mortgage insurance and see how that number stacks up. I can tell you that being mostly debt free allowed us to let me wife quit the job she hated and open her own business. The financial hit we took the first couple of years was acceptable almost entirely because we had so little debt. Being able to cover all the bills just on one salary opens up lots of doors for things like home schooling, raising children without day care, opening a business etc.

tldr: there are a lot of moving parts in the investing decision and not all are about the best alpha.
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Ya. We had talked about it before. Figured id do consensus building with multiple people and also at different times to see how answers change as id also asked me than a year ago before I even had the spare $.
 
Sludig

Sludig

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Omayga said:
I was in a similar situation and went with the option of paying off the house, I don't regret it one bit and would 100% do it again. Freeing up the "house payment" each month is really nice, you can push that into investments and other projects and it stacks up very quickly. Just keep making that "house payment" to yourself. The freedom of having that huge chunk of debt off my shoulders was a really nice morale boost in life. My job carries a fair bit of risk (1099 with renewing 30 day contracts) so it was nice to know that if shit hit the fan I didn't have to worry about my house payment and could take a shit paying job and still be fine.
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If we could pay off whole house right now id certainly look at that even if a weaker return than the market. But we would basically have roughly 200k on a 370k loan. (And keeping 40k for tractor and farm costs and another 10-20 to pay off the remaining vehicles.
 
ShakyJake

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Assuming inflation doesn't decline dramatically in the future, I think paying off a mortgage early doesn't makes much sense.
 
Jysin

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Google and Microsoft reporting earnings after hours. Then Fed tomorrow at 2pm.

Things are about to get spicy.
 
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Sanrith Descartes

Sanrith Descartes

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Jysin said:
MSFT already down over 3% on the day.

GOOG down 2.5% today.
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Not exactly outliers on the day :)

1658862781758.png
 
Wingz

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Gay play was good today. Got GOVX at 1.55 and sold at 2.40. If it drops down again will do a repeat especially if Biden does an EO on monkeypox later.
 
Sanrith Descartes

Sanrith Descartes

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$GOOGL +3% on the double miss. $MSFT less than 1% down on the double miss. Maybe the markets priced in a steeper miss?

Who Knows Idk GIF


edit: apparently GOOGL beat last years Rev by like 12% even though it missed analysts estimates. $70b vs $62B last year.
 
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Mist

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Sanrith Descartes said:
$GOOGL +3% on the double miss. $MSFT less than 1% down on the double miss. Maybe the markets priced in a steeper miss?

Who Knows Idk GIF


edit: apparently GOOGL beat last years Rev by like 12% even though it missed analysts estimates. $70b vs $62B last year.
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And those dollars are worth a lot more towards building datacenters abroad than they bought a year ago.

Stong dollar both hurts and helps and is hard to factor in. Good for expansion, bad for revenues.
 
Mist

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I like how futures are up because everyone expected way worse.
 
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