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cyphire
ParticipantMy pleasure Myito.
Look we all have our opinions – I hope for your sake that you are correct in your decision and I wish you the absolute best!
Best regards.
ParticipantMy pleasure Myito.
Look we all have our opinions – I hope for your sake that you are correct in your decision and I wish you the absolute best!
Best regards.
ParticipantThanks what_a_disasta I also don’t have the answers to how it all started… I think it’s a bit presumptuous for a mere human to figure it out.
But if someone has a answer – it better have some proof not wild flights of fantasy, each contradicting the other.
It’s funny how many religions there are, and each has it’s own dogma and rules. They each contradict each other and their members have spent centuries killing each other. Yet each is smug in it’s moral superiority and take it’s tomes as the ‘Truth’.
ParticipantThanks what_a_disasta I also don’t have the answers to how it all started… I think it’s a bit presumptuous for a mere human to figure it out.
But if someone has a answer – it better have some proof not wild flights of fantasy, each contradicting the other.
It’s funny how many religions there are, and each has it’s own dogma and rules. They each contradict each other and their members have spent centuries killing each other. Yet each is smug in it’s moral superiority and take it’s tomes as the ‘Truth’.
Participantsdrealtor… GRRRRRR….
In 1985 my dad and I went to his broker. We had just had a sizable commission on a sale of equipment to IBM (about 100K) and we wanted to buy some stock…. Like Bugs I was brought up to buy expensive fast cars and keep changing them. not exactly great financial advice.
Anyway our broker at Shearson-Leamen (american express) showed us 2 companies he thought were great. One was Microsoft (really at the beginning!) and the other was EFG (Equitek Financial Group)… EFG was a real estate trust. Long story short… Our EFG stock went from 100$ to .71cents. Please don’t tell me what the Microsoft would be worth today!
Participantsdrealtor… GRRRRRR….
In 1985 my dad and I went to his broker. We had just had a sizable commission on a sale of equipment to IBM (about 100K) and we wanted to buy some stock…. Like Bugs I was brought up to buy expensive fast cars and keep changing them. not exactly great financial advice.
Anyway our broker at Shearson-Leamen (american express) showed us 2 companies he thought were great. One was Microsoft (really at the beginning!) and the other was EFG (Equitek Financial Group)… EFG was a real estate trust. Long story short… Our EFG stock went from 100$ to .71cents. Please don’t tell me what the Microsoft would be worth today!
ParticipantMyito…
Point number #1 you are correct. I will admit that I am out of the mainstream that way.
Point #2 sorry dear. CNN’s financial calculator comes up with
Your current savings will grow to: $1,665,780.77
Inflation adjusted (3.0%): $667,989.88Assuming you save 1200/year. 28% federal rate, 9.3% state rate. I also don’t believe that 3%. Most experts are pegging true inflation at 3.4-4.0 percent for the future. this doesn’t even consider that with our countries savings / debt ratio what our currency could slide to.
At a conservative 5% you will have 20% more than your nest egg in today’s buying power.
More importantly you will have a 30 year mortgage and taxes on a house which is at the hight of the market. Don’t believe that it went down 20%. How many people actually bought at that insane price? You are going to pour double or more into this house then renting. You are going to have to landscape, window treatments (even for millionaires this is expensive!!! It should be part of the marriage vows!).
Point 3: If housing goes up with inflation, your house is only worth the same amount of money. You spent 30 years of interest (triple the cost of the house) to get back an investment which is worth the same as when you bought it 30 years before… Thats why buying at the top of the market is so dangerous. You could spend the next 10 years getting back to the preinflation rate you were at. All while paying for the asset at today’s inflated price with today’s interest rates.
How do you figure that 1.777M is equal to 1M now? That is not a hefty profit. If inflation is = to 4% (just a guess), a 1,000,000 today is worth $3,243,397.51 in 30 years. Your house BETTER be worth a heck of a lot more in 30 years than 3.25M… If it is worth 1.7M you have lost 1/2 of your investment. You spent 1.6M in payments during this time (and taxes)… You also lost the income from the 400K you put down (I only figured you at a 600K loan).
Anyway I am trying to figure this stuff out too. But your robotic logic seems to be alluding me!
Assume that your house will grow at 7% or more. That precludes you expecting it to drop in value – that is folly. Don’t buy a Million dollar asset if you think that your value would be 666K in 5 years.
ParticipantMyito…
Point number #1 you are correct. I will admit that I am out of the mainstream that way.
Point #2 sorry dear. CNN’s financial calculator comes up with
Your current savings will grow to: $1,665,780.77
Inflation adjusted (3.0%): $667,989.88Assuming you save 1200/year. 28% federal rate, 9.3% state rate. I also don’t believe that 3%. Most experts are pegging true inflation at 3.4-4.0 percent for the future. this doesn’t even consider that with our countries savings / debt ratio what our currency could slide to.
At a conservative 5% you will have 20% more than your nest egg in today’s buying power.
More importantly you will have a 30 year mortgage and taxes on a house which is at the hight of the market. Don’t believe that it went down 20%. How many people actually bought at that insane price? You are going to pour double or more into this house then renting. You are going to have to landscape, window treatments (even for millionaires this is expensive!!! It should be part of the marriage vows!).
Point 3: If housing goes up with inflation, your house is only worth the same amount of money. You spent 30 years of interest (triple the cost of the house) to get back an investment which is worth the same as when you bought it 30 years before… Thats why buying at the top of the market is so dangerous. You could spend the next 10 years getting back to the preinflation rate you were at. All while paying for the asset at today’s inflated price with today’s interest rates.
How do you figure that 1.777M is equal to 1M now? That is not a hefty profit. If inflation is = to 4% (just a guess), a 1,000,000 today is worth $3,243,397.51 in 30 years. Your house BETTER be worth a heck of a lot more in 30 years than 3.25M… If it is worth 1.7M you have lost 1/2 of your investment. You spent 1.6M in payments during this time (and taxes)… You also lost the income from the 400K you put down (I only figured you at a 600K loan).
Anyway I am trying to figure this stuff out too. But your robotic logic seems to be alluding me!
Assume that your house will grow at 7% or more. That precludes you expecting it to drop in value – that is folly. Don’t buy a Million dollar asset if you think that your value would be 666K in 5 years.
ParticipantI don’t know Alex_angel… Most of the really educated 28-33 year olds I know are still dreaming of the pre-melt down high tech days. They are not making the big bucks. But they do have big dreams and don’t feel fulfilled by the current economy. I will agree that there is an awful lot of money around. My friend in NJ was a sub-prime mortgage guy. He is writing 5% of the volume that he was previously doing. He is running out of the money and the lifestyle he had built for himself. It seems to me that with the current vogue of living way above one’s means, that even the high earners will get pounded if the economy softens. And I think it will. That’s why I sold my business – I wanted to get out while the risk was still manageable.
By the way dude – I was living that life in the 90’s. Most of they younger guys (I was 15-20 years older than them) were worth that on paper. After it crashed they went back to Raman. and had huge tax bills to boot!
A friend of mine was buying options at the time. Ended up being wiped out and owed 150K in taxes. Also paid something like 60K in just trade fees!
In 1998-9 I would pay entry level programmers 80-90K. I had to teach them to program. I had to accept that they would come to work drunk, and cry about their recent breakup with some girl. I had to give them options and promises for future rewards or they could walk across the hall and get a similar or better job the same day. These now 28-35 year old tech guys would swim through a river of refuse for a good 60-90K job now. And still have to find a place to live in their budget.
I’m glad I started my company in 86!
ParticipantI don’t know Alex_angel… Most of the really educated 28-33 year olds I know are still dreaming of the pre-melt down high tech days. They are not making the big bucks. But they do have big dreams and don’t feel fulfilled by the current economy. I will agree that there is an awful lot of money around. My friend in NJ was a sub-prime mortgage guy. He is writing 5% of the volume that he was previously doing. He is running out of the money and the lifestyle he had built for himself. It seems to me that with the current vogue of living way above one’s means, that even the high earners will get pounded if the economy softens. And I think it will. That’s why I sold my business – I wanted to get out while the risk was still manageable.
By the way dude – I was living that life in the 90’s. Most of they younger guys (I was 15-20 years older than them) were worth that on paper. After it crashed they went back to Raman. and had huge tax bills to boot!
A friend of mine was buying options at the time. Ended up being wiped out and owed 150K in taxes. Also paid something like 60K in just trade fees!
In 1998-9 I would pay entry level programmers 80-90K. I had to teach them to program. I had to accept that they would come to work drunk, and cry about their recent breakup with some girl. I had to give them options and promises for future rewards or they could walk across the hall and get a similar or better job the same day. These now 28-35 year old tech guys would swim through a river of refuse for a good 60-90K job now. And still have to find a place to live in their budget.
I’m glad I started my company in 86!
ParticipantI got a call from my broker this morning. He wanted to buy some stocks because the market is down. I told him not to… Even a small amount.
I would love to get some better returns than the money market, treasury bills, and California municipals bonds we are buying, but even though he wants to buy A+ stocks (oil drillers, large cap anti-inflation types), I am still skeptical.
I just came into a large chunk of cash and would like to get it working for me, not just sitting on the sidelines. Should I buy a couple of spec houses in Carmel Valley?
ParticipantI got a call from my broker this morning. He wanted to buy some stocks because the market is down. I told him not to… Even a small amount.
I would love to get some better returns than the money market, treasury bills, and California municipals bonds we are buying, but even though he wants to buy A+ stocks (oil drillers, large cap anti-inflation types), I am still skeptical.
I just came into a large chunk of cash and would like to get it working for me, not just sitting on the sidelines. Should I buy a couple of spec houses in Carmel Valley?
ParticipantYou wish!… and keep dreaming! (oh… and don’t be hypocritical… invalidate your medical insurance card and get a subscription to “Applying leeches to yourself – a non-scientific self help book”.
ParticipantYou wish!… and keep dreaming! (oh… and don’t be hypocritical… invalidate your medical insurance card and get a subscription to “Applying leeches to yourself – a non-scientific self help book”.
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