HardcoreRobot
Lifer
- Nov 7, 2000
- 16,403
- 3
- 81
to me, owning my house outright would be worth more than the extra % i might get from investing that money.
You guys both think shit will hit the fan again in the near term? Everyone else seems think the recession is over.
I'm not disagreeing with you, I'm just curious to hear why you think shit will hit the fan again.
I've pulled out 50% of my investments in this recent rally, I'm actually up 5% since the crash last fall. I'm probably going to pull out a little more next week and wait for a pull back before I start dumping money back in. We've come a long way in the past couple months, you would be insane to not start taking profits or pulling back right now.
I'd sell out off chase to pay off the house for sure.
I'd sell out off chase to pay off the house for sure.
What data are you looking at? We are still hugely levered and the economy is getting worse. Just because the pace it's getting worse is getting slower doesn't mean we've seen the bottom. Unemployment is getting worse, corporate earnings are deteriorating (short term stabilization through cost cutting) and top line is decreasing or flat.
Then you have the government deficit problem. More banks are failing. Housing prices continue to falling. Ginne Mae/FHA loans defaulting, FDIC insolvent. And all the Fed easing will come home to roost when the economy doesn't rebound.
We've solved nothing, just delaying the inevitable.
I think next 6 months you will see if the bears are right. They are predicting S&P 500 push to 1100-1200, and when Q3 earnings come out, the panic begins again. I personally think we will see the March low again, some are even predicting S&P 500 to go to 200.
This is going to be a different type of inflation. I think it will be more of an asset chasing inflation, so commodities and real assets prices will go up. Wages will remain stagnant, corporate earnings deteriorate because their costs go up but incomes stay the same. Well, at least that's my personal prediction.
another question to ask is what your plans are for the $1500 / mo+ of mortgage you currently pay. most advisor will tell you not to pay your house off unless you have a good plan for that. i'm sure it depends on the state, but inheritances are usually free from claim in a divorce. You'd probably have to talk to a lawyer to figure all of those nuances out.
IHateMyJob2004
Lifer
- Sep 29, 2004
- 18,656
- 68
- 91
Beroker are there to sell you products. If fees for anythign are over $50, find a new broker. I suggest Ameritrade.
im gonna go with "talk to a lawyer" and then "find a financial advisor" since the OP is paranoid about his wife but has all his money in one company and definitely needs to do something to cover his ass in a number of areas.
ebaycj
Diamond Member
- Mar 9, 2002
- 5,418
- 0
- 0
Though, you are still paying interest (throwing away money). The tax break allows you to throw away less money (don't have to pay taxes on money you threw away), but wouldn't it be better to just not be throwing away money in the first place?
(Obviously, I know that if your mortgage is at a low rate, and you can make a higher rate than that by investing, you shouldn't pay off your mortgage, financially speaking. Though, to some, having a paid off house would provide additional benefits to their mental health. )
You shouldn't diversify, just for the sake of diversifying.
Diversification is nothing but a protection against ignorance.
Bignate603
Lifer
- Sep 5, 2000
- 13,897
- 1
- 0
And staying all in one stock when he doesn't know about where its headed is pretty darn ignorant. Unless you've done your research and are willing to risk a big loss you should spread out the risk. Most investors aren't in it to become the next billionaire, they just want to have the money to live relatively comfortably throughout their retirement.
speg
Diamond Member
Since you said yourself you don't like this stuff, this is what I would recommend you consider:
Sell all your holdings in Chase.
Pay off your house.
Re-invest the remainder in an income producing investment. That could be anything, from real-estate, a diversified fund of high-dividend paying stocks, or even bonds.
I'm seeing Government bonds paying 4.5% - if you have 500k leftover, that would leave you with an extra 22k/year and no mortgage payment.
Sell all your holdings in Chase.
Pay off your house.
Re-invest the remainder in an income producing investment. That could be anything, from real-estate, a diversified fund of high-dividend paying stocks, or even bonds.
I'm seeing Government bonds paying 4.5% - if you have 500k leftover, that would leave you with an extra 22k/year and no mortgage payment.
I wonder if he took the money out back in August. Somehow I doubt it.
I couldn't sleep at night if I had my life savings, especially something as substantial as $750K at a relatively young age, all riding on a single stock, in this market. And JPM at that. Wow.
FWIW, diversify. If you can't find anything better to do with that money, then yes, pay off the house. That's infinitely better than letting *everything* ride on JPM.
I couldn't sleep at night if I had my life savings, especially something as substantial as $750K at a relatively young age, all riding on a single stock, in this market. And JPM at that. Wow.
FWIW, diversify. If you can't find anything better to do with that money, then yes, pay off the house. That's infinitely better than letting *everything* ride on JPM.
Mike Gayner
Diamond Member
- Jan 5, 2007
- 6,175
- 3
- 0
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