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recirculation pump works well for me. I’ve got mine hooked up to a wemo switch so I just remember to ask Alexa to turn on the hot water a few minutes before my shower. No wasting water or energy.

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Wow 11 percent in one day, congrats on AMD. Was thinking of buying AMD myself last week but thought it was too high. Also got burned twice in the past losing money on AMD so didn’t want to get burned a third time.

Seems to me risky growth stocks are a better investment than dividend stocks. At least until the market crashes.

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Why do people like to invest in dividend stocks? There is a much higher return with growth stocks.

I’m over 90 percent invested in growth stocks. I think it is supposed to be around 30 percent for a balanced portfolio but I don’t see why not invest in the stocks that make the most money.

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[quote=flu][quote=kev374]down again and Morgan Stanley has just come out saying this is just an appetizer and to wait for a massive crash later this year… buckle up. Seriously what did the retards in Washington think was going to happen when they took on all this ridiculous debt?[/quote]

I fail to see how this is Washington’s fault. and if a crash was so obvious that it was going to happen to everyone, why would one move a massive amount of money into the market right before it happens..

Seems to me that the beginning this year the markets were still going gangbusters and that drew even the most bearish into the markets from the fear of missing our additional gains.

My has the markets changed its tune in just a few weeks. it will be a perfect time to buy end of this month, and end of next month, and the following month, and the month after, and the month after…..

bring on the big correction. I am excited.[/quote]

Not sure why you would wish for a declining market. I much prefer the rising markets the past two years. I’m going to start increasing cash instead of making money owning stocks. Was at 99 percent stock. Even after selling GOOG a few weeks ago, I’m still at 96 percent stock. In this high volatility environment, I need to keep reducing my stock ownership by selling. This choppiness is only good for day traders.

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It will be slightly negative to housing prices due to layoffs but they are not going to be moving the facilities. When Avago bought Broadcom before and changed the name to Broadcom LTD, the SD facilities stayed but there were significant layoffs. I expect the same.

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[quote=Reality][quote=The-Shoveler]Every Costco I go to is completely packed with people filling their carts to the brim every time. [/quote]

The Costco on Scripps Poway Parkway is shockingly uncrowded.[/quote]

Even though I work a block away from the Carmel Mountain Costco, I go to the Poway one whenever I need gas, lines are much shorter there. It does get busy on the weekend.

Not sure what I would do without Costco. It covers the majority of my shopping. Then asian grocery stores and Amazon for what Costco doesn’t have. I think there is room for both Costco and Amazon, they serve different needs. Amazon is pricier but you can get whatever you want. Just bought a weather station from Amazon that cost twice as much as the Costco one but this one lets you use Alexa to get the weather report.

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I don’t understand why there should be a percentage mix between stocks and bonds. Stocks have performed much better than bonds historically so the best strategy is to have the maximum amount of stock you can tolerate. At retirement, I would think it would be best to have five years worth of withdrawals in bonds and the rest in stocks. This way you should be able to weather any downturn in stocks that last up to five years.

And until you plan on withdrawing money, it should be 100 percent stocks to maximize your gains until retirement.

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I would reserve whatever you need to weather a crash and put the rest into the SP500. The key is not to have to sell if or when the market crashes then wait for it to recover.

Learning from experience. Over the summer I put too much into tech stocks and market rotated out of tech and I lost most of my gains and had to sell some at a bad time. But if I had reserved more in cash, I wouldn’t have sold and I wouldn’t have lost anything as it came back up and went even higher.

Same thing happened in December with tech rotating out losing 10 percent but this time I had 20K in cash so didn’t sell. And now within the last 3 days it all came back up.

Going forward as the SP500 keeps increasing, there is a higher chance of a crash, so I will need to increase my cash by profit taking. But it’s very hard not to be greedy with the big stock returns lately.

I don’t think it’s wise to wait for a correction or crash to get in. I missed two years of gains because I was waiting for a correction that never happened.

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https://www.cnbc.com/2017/12/28/this-one-weird-trick-lets-blue-states-avoid-trumps-tax-hike.html

Cnbc had an article to get around the SALT double taxation by changing state taxes to be paid by employers instead and reducing employee pay to make the net the same.

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Been thinking about my mortgage interest deduction more and the AMT is still in the new tax plan so if you still have to pay the AMT even with the higher exemptions, then mortgage interest is still useful for AMT calculations. So I shouldn’t do anything because I could still be paying AMT.

If I do pay AMT next year, then I truly did get a tax cut since the AMT exemptions and phaseout was increased. And all this arguing about SALT for California was meaningless.

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[quote=flu][quote=plm]Didn’t realize a rental was an investment instead of a business. In this case I should be able to cash out some of my stock gains and pay off my mortgage. Then I can also get a mortgage on my rental and buy stocks. Although lately my stocks have been going down while the market is up but that’s another problem.[/quote]

I’m not sure I follow about cashing out stocks and paying off mortgage, only to turn around and borrow against the home to buy stocks again….If you do that…

1. You pay capital gains taxes on your stock sales.

2. You pay off a mortgage, and then take another mortgage out, you incur a new loan with most likely higher interest.

3. You run the risk that if you pick the wrong stocks or just invest at the wrong time in the stock market, you are now stuck with paying a mortgage to fund your stock losses.

4. If you now have rental issues (like lapse in tenants, or the general health of the rental markets goes down)….now that’s coming out of your pockets.

5. Depending on how much the rest of your income, you might not be able to offset real estate losses against your W2/salaried income.

Basically, you’re significantly increasing your financial risk, but I’m not seeing the potential of much greater financial reward beyond what you already have. Why take on increased risk, if the amount of reward does not significantly increase?[/quote]

The difference is with the new loan it would be against my rental so I can deduct the interest. I would have to compare whether the difference in interest rate costs is less than the ability to deduct the interest.

Stocks I need to get out anyhow. Been letting my RSUs/ESPP grow for too long incurring large tax liabilites and the new tax plan should let me start selling off large chunks at the 15% capital gains rate each year. And because of the tax plan, I think other sectors will grow at the same or better than tech so it’s about time for me to diversify.

I think financial risk will be reduced by being diversified. But financial risk will increase if my new loan is larger than my existing one.

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Didn’t realize a rental was an investment instead of a business. In this case I should be able to cash out some of my stock gains and pay off my mortgage. Then I can also get a mortgage on my rental and buy stocks. Although lately my stocks have been going down while the market is up but that’s another problem.

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[quote=SK in CV][quote=plm]Interest in loans should be an expense too, right? So I should get a loan on my rental and use that to pay off my mortgage on my house. This way I can write off the interest as a business expense as I will probably be taking the standard deduction next year. Also avoid the net investment 3.8% tax if I get a big enough loan to make rental just barely making money.

Is this legal?[/quote]

If your rental doesn’t have a mortgage, and you borrow against it, and use the money to pay off the mortgage on your principle residence, the answer is no. It’s not deductible interest.[/quote]

Makes sense. I suppose if I get a mortgage and use that money to buy another rental then that is allowed. But then I would have to manage another rental.

Thanks

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Interest in loans should be an expense too, right? So I should get a loan on my rental and use that to pay off my mortgage on my house. This way I can write off the interest as a business expense as I will probably be taking the standard deduction next year. Also avoid the net investment 3.8% tax if I get a big enough loan to make rental just barely making money.

Is this legal?

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Property and state taxes for next year can not be prepaid but do I need to pay for state for this year early? Usually pay state estimate taxes by Jan 15th. But do I need to pay by end of the year instead? Also if I estimate too much state tax and get a refund, will I still be taxed on it next year?

Only thing I know to do so far is to pay mortgage earlier so interest can be written off and pay my zoo membership early.

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