[stansd]

I’m going to go against the grain here. I agree that too much Wall Street creativity is not the best thing. That said, I think the sharing the gain (and potentially loss) is an interesting idea. It allows people to bear the risk based on their view of the market.

In the current environment, one might be able to take a mortgage at a higher interest rate in exchange for downside protection. Similarly, one could pay a lower interest rate in exchange for giving away a portion of the upside (probably based on Case Shiller for an area rather than your own house price to avoid you letting it go to pot).

I’d be interested in a product that gave me a lower rate in exchange for my gain over the next 10 years…let someone else participate in that upside. I’d be really interested in a product where I could trade the potential gain for protection from the loss and wind up with a similar interest rate. If I knew I’d get a 100K check if the market went down 100K, I might be a buyer today instead of 2010.

Stan

[stansd]

I’m 31 and in a very similar position. If you are truly maxing out your 401(k), that’s 15,000, and possibly 20,000 a year if your employer matches. Not sure how your plan works, but most folks can borrow 1/2 of their 401(k) to purchase a primary residence (up to 50K, which would mean you had 100K in your 401(k). Only downside is that if you lose your job or move to another company, you may have to repay immediately so be careful.

Regardless, if you are maxing that out, that by itself is almost 50K available in 5 years. If you can save on top (think annual bonus, other windfalls, tax refunds, etc.), you’ll get there very quickly.

Just keep at it…you’ll get there…I’m guessing we have similar salaries, and we’ve been able to get our 100K together in 5 years while giving 10% to our church.

Stan

[stansd]

This has been discussed ad nauseum, but if I read another article quoting the nonsensical ravings of the lunatic mind of Lawrence Yun, I’m going to lose it. He’s more ubiquitous these days than Brangelina.

Stan

[stansd]

This has been discussed ad nauseum, but if I read another article quoting the nonsensical ravings of the lunatic mind of Lawrence Yun, I’m going to lose it. He’s more ubiquitous these days than Brangelina.

Stan

[stansd]

This has been discussed ad nauseum, but if I read another article quoting the nonsensical ravings of the lunatic mind of Lawrence Yun, I’m going to lose it. He’s more ubiquitous these days than Brangelina.

Stan

[stansd]

I’d go see a fee only planner that doesn’t have all the hangups of a “broker” discussed above. You can probably do it once every 3-4 years. Initially it will cost you 2K or so.

http://www.napfa.org/

You can find them here, but hopefully some one on this board will give a personal recommendation (I handle my own stuff). On another note, preferably now, but certainly when you have kids, get a will (preferably a trust) together with all your wishes spelled out…will cost you $1,500 or so to do it with a competent lawyer and assuming your situation isn’t complicated, but the peace of mind is worth every penny.

Stan

[stansd]

I’d go see a fee only planner that doesn’t have all the hangups of a “broker” discussed above. You can probably do it once every 3-4 years. Initially it will cost you 2K or so.

http://www.napfa.org/

You can find them here, but hopefully some one on this board will give a personal recommendation (I handle my own stuff). On another note, preferably now, but certainly when you have kids, get a will (preferably a trust) together with all your wishes spelled out…will cost you $1,500 or so to do it with a competent lawyer and assuming your situation isn’t complicated, but the peace of mind is worth every penny.

Stan

[stansd]

I’d go see a fee only planner that doesn’t have all the hangups of a “broker” discussed above. You can probably do it once every 3-4 years. Initially it will cost you 2K or so.

http://www.napfa.org/

You can find them here, but hopefully some one on this board will give a personal recommendation (I handle my own stuff). On another note, preferably now, but certainly when you have kids, get a will (preferably a trust) together with all your wishes spelled out…will cost you $1,500 or so to do it with a competent lawyer and assuming your situation isn’t complicated, but the peace of mind is worth every penny.

Stan

[stansd]

On the wealth gap: I’m more and more convinced that what has increased this gap is simply the liquidity and leverage boom in recent years. You have to have money to make money, and so when the stock and real estate markets boom, it’s the wealthy that benefit.

Think of the inverse, though…as things unwind, you will see a narrowing of the wealth gap. Yes, this will hit the poor harder than the rich because losing $1 when you have only $10 means you have less to eat, while losing $300K when you have a million means you drive a 3 series instead of a 5 series.

The increase in the wealth gap hasn’t had a hugely negative impact on the poor-wages have been stagnant, not declining dramatically. Similarly, it’s correction won’t benefit them to a large degree. It’s the size of the pie along with how much of it you own that matters. Focusing only on what % of the pie you possess lands you in the land of the communist manifesto and populism.

Stan

[stansd]

On the wealth gap: I’m more and more convinced that what has increased this gap is simply the liquidity and leverage boom in recent years. You have to have money to make money, and so when the stock and real estate markets boom, it’s the wealthy that benefit.

Think of the inverse, though…as things unwind, you will see a narrowing of the wealth gap. Yes, this will hit the poor harder than the rich because losing $1 when you have only $10 means you have less to eat, while losing $300K when you have a million means you drive a 3 series instead of a 5 series.

The increase in the wealth gap hasn’t had a hugely negative impact on the poor-wages have been stagnant, not declining dramatically. Similarly, it’s correction won’t benefit them to a large degree. It’s the size of the pie along with how much of it you own that matters. Focusing only on what % of the pie you possess lands you in the land of the communist manifesto and populism.

Stan

[stansd]

On the wealth gap: I’m more and more convinced that what has increased this gap is simply the liquidity and leverage boom in recent years. You have to have money to make money, and so when the stock and real estate markets boom, it’s the wealthy that benefit.

Think of the inverse, though…as things unwind, you will see a narrowing of the wealth gap. Yes, this will hit the poor harder than the rich because losing $1 when you have only $10 means you have less to eat, while losing $300K when you have a million means you drive a 3 series instead of a 5 series.

The increase in the wealth gap hasn’t had a hugely negative impact on the poor-wages have been stagnant, not declining dramatically. Similarly, it’s correction won’t benefit them to a large degree. It’s the size of the pie along with how much of it you own that matters. Focusing only on what % of the pie you possess lands you in the land of the communist manifesto and populism.

Stan

[stansd]

I graduated top 10% of my class from arguably the best MBA program in the country. I decided not to pursue investment banking or consulting so that I could spend time with my family and watch my daughter grow up.

I’d like to be able to afford a house 10 miles East of the 5. Currently I cannot because I’m not willing to lever my personal balance sheet to ridiculous levels.

Stan

[stansd]

I graduated top 10% of my class from arguably the best MBA program in the country. I decided not to pursue investment banking or consulting so that I could spend time with my family and watch my daughter grow up.

I’d like to be able to afford a house 10 miles East of the 5. Currently I cannot because I’m not willing to lever my personal balance sheet to ridiculous levels.

Stan

[stansd]

I graduated top 10% of my class from arguably the best MBA program in the country. I decided not to pursue investment banking or consulting so that I could spend time with my family and watch my daughter grow up.

I’d like to be able to afford a house 10 miles East of the 5. Currently I cannot because I’m not willing to lever my personal balance sheet to ridiculous levels.

Stan

[stansd]

We’re off to see the Wizard, The Wonderful Wizard of Oz.
You’ll find he is a whiz of a Wiz! If ever a Wiz! there was.
If ever oh ever a Wiz! there was The Wizard of Oz is one becoz,
Becoz, becoz, becoz, becoz, becoz.
Becoz of the wonderful things he does.

I Think you’ve watched conspiracy theory one too many times.

Stan

[Author]

Posts