Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[ghak99]

If you were sitting on a chunk of KMI at $12.98 & $13.01 would you keep riding or get a piece of this new action?

[scho63]

I didn't update everyone but on November 1st I moved out of the office at the 4 1/2 month mark and into a HUGE 6,500 sq ft home only 12 years old with brand new hardwood floors, just painted, new rugs, very clean, and in a great area near Dulles Airport. I have a private room and bathroom, full kitchen use, full 65" TV, tons of basement storage, and my landlord is a government employee with top security clearance. Cost is $800 per month with 1/3 utilities.

Staying in the office on a temp was a great choice and put a bunch of money back in my bank account.

Now I'm settled in a beautiful home for at least the next year or two.

[eDave]

Originally Posted by scho63

I didn't update everyone but on November 1st I moved out of the office at the 4 1/2 month mark and into a HUGE 6,500 sq ft home only 12 years old with brand new hardwood floors, just painted, new rugs, very clean, and in a great area near Dulles Airport. I have a private room and bathroom, full kitchen use, full 65" TV, tons of basement storage, and my landlord is a government employee with top security clearance. Cost is $800 per month with 1/3 utilities.

Staying in the office on a temp was a great choice and put a bunch of money back in my bank account.

Now I'm settled in a beautiful home for at least the next year or two.

That's got to be quite fulfilling. Nicely done.

[scho63]

Originally Posted by eDave

That's got to be quite fulfilling. Nicely done.

It was shocking how easy it was. The fact I had a bathroom with shower and locker room directly across from our office was a huge advantage along with the makeup of the corporate tenants.

The only small downside was that anytime I was very tired and wanted to sleep late I couldn't because I had to pack up my air mattress during the week by 6am and in the shower by 6:15. That was the one shitty part.

The lack of pressure to pay rent for 4 1/2 months was great. I almost thought of buying a real cheap small RV and do it for a year but I knew it sounded good on paper but not in practice.

[Discuss Thrower]

We *really* need to get housing prices under control in this country.

[EPodolak]

The predicted market plunge and "buying opportunity" today never came to pass. Another example of market timing being a bad plan. Slow and steady (and passive) over the long haul wins the race.

[Demonpenz]

Benjermin graham

[Bugeater]

Originally Posted by Discuss Thrower

We *really* need to get housing prices under control in this country.

Don't you live in Joplin? You have no idea what high prices are...

[lewdog]

Originally Posted by Discuss Thrower

We *really* need to get housing prices under control in this country.

You live in a part of the country with the cheapest housing around.

Sounds like you need a new job.

[DaFace]

Pretty crazy that S&P (and other) futures were down nearly 5% last night around midnight, yet we ended up ~1% today. I'm definitely glad I don't try and do anything other than pump money into my mutual funds and leave them alone - that shit would drive me nuts.

[DaneMcCloud]

Originally Posted by Discuss Thrower

We *really* need to get housing prices under control in this country.

[hometeam]

I recently landed a (low) 6 figure job.

My first order of business is to get my high interest debt paid down.

THEN WHAT DO I DO?

[lewdog]

Originally Posted by hometeam

I recently landed a (low) 6 figure job.

My first order of business is to get my high interest debt paid down.

THEN WHAT DO I DO?

Start learning to live below your means.

Use that to start building an emergency fund (3-6 months living expenses).

Pay off debt completely.

Build equity and buy a house if you don't already have one.

Start building savings/investments for retirement and/or the future as you can through all of this. Even $100 per month is better than nothing.

[DaFace]

Originally Posted by hometeam

I recently landed a (low) 6 figure job.

My first order of business is to get my high interest debt paid down.

THEN WHAT DO I DO?

...

Originally Posted by DaFace

I'm certainly not a financial guru (hell, I'm only 34 myself). Others have given some pretty solid takes more generally, but if I go with the assumption that "spend less, save more" is a given, here's how I generally prioritize things:

1. Pay off credit cards.
2. Build up an emergency fund of six months worth of expenses. (There's a lot of debate about the exact amount here, so up it if you're conservative, lower it if you're risky and/or have a really stable job that you're not worried about disappearing.)
3. Put in as much as is necessary to get a company match in your 401k or IRA plans (if applicable).
4. Pay off anything else that has an interest rate above 5% or so. (This is debatable since you may make more than that in the stock market, but I'm fairly conservative and think you take the guaranteed "return" while you can.)
5. Start your own IRA (I think Roths make the most sense if you're young, but Trads are fine as long as you know the differences and benefits of each.) Max out your annual contributions if you can.
6. Pay off any thing you have left that's below 5% interest rate (except your mortgage assuming your rate is good).
7. Max out your contributions to your company 401k or IRA account (if applicable).
8. Pay off your mortgage.
9. Start a standard brokerage account and start investing for income (or possibly look into other types of investments).

There is very little in financial planning that is a "right" or "wrong" way of doing things, so others may shift their priorities in the above a bit. Nothing wrong with that.

Finally, in terms of investments, if you know NOTHING, you can always start with a target date fund. The fees are a little high, but they're managed and will generally keep you pointed in the right direction. A step above that is where I'm at: I'm lazy and go with a three-fund lazy portfolio for the most part. Be wary of "full-service" places - they're great for advice, but they're taking fees out of EVERYTHING, which can add up ENORMOUSLY over time. If you really start to have a feel for what you're doing, you can invest in individual stocks obviously, but 90% of people will just get themselves in trouble doing that IMO.

[hometeam]

I have been making 40-60 grand a year for about 12 years. I have no savings, no retirement (I started to build one at one point but cashed it in in an emergency)

About 20k in high interest debt, 30k in low interest debt, and owe about 78k on my house thats worth 85. (edit: recalculated, 22k in high interest, 17k in low interest with 12 of that at 0%)

Unfortunately at this new company I'm not vested for 6 years, but I will max. My 6 percent for the 3 they give.

I dunno really anything about any kind of IRA, no idea what a brokerage account is. I have kind of been living paycheck to paycheck and doing racecar shit :/

I am going to start researching investments as well, but I wont start investing until i get my 10k CC debt paid off, hopefully feb/march. My house is at 5.25 right now which is higher than I can get, but I wanted to finish the transition to the new job before I went in for a streamline refi at somewhere around 3.25.