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Started By
Message
re: Buy stocks or pay off student loans & car?
Posted on 1/20/15 at 10:51 am to TheHiddenFlask
Posted on 1/20/15 at 10:51 am to TheHiddenFlask
quote:
This guy is not the lowest common denominator, as he has shown the ability to save and an interest in investing.
Thank you. The obsession with being completely debt free is designed for people without higher level thinking skills. How would any entrepreneur ever start a business or leverage an existing business into expansion without debt?
If your credit card burns a hole in your pocket & bank account, then perhaps you need the debt free lifestyle. If, on the other hand, you actually possess the ability to ignore immediate gratification and understand banking & economics, feel free to take on debt to the degree you can manage it.
Life is not without risk. If you live a completely debt free existence, you may be missing out on important, life changing experiences (grad school, study abroad, a last minute trip to see a dying friend or relative). Don't get fixated on being debt free....fixate on living your best life and seeing money as a tool to create that life. Note that I said "best life" not "buying best stuff". Don't confuse the two.
Back to the OP: get rid of the student loan debt, posthaste. As someone said upthread, max out your 401K match, if not doing so already. Don't prepay that 0% loan...it's free money and the balance isn't huge. Max out a traditional IRA for self & spouse; the tax deduction for the IRAs will replace the deduction you would have received for the stu loan interest.
Keep building that emergency fund...then start looking at a diversified portfolio. Not just stocks!
0
Posted on 1/20/15 at 11:04 am to TheHiddenFlask
My rule is no more absurd than yours. I'd argue less so, since it can actually be executed, unlike your loan/leverage/invest plan. I never even said all debt is bad, unlike your generalizations.
I don't recall speaking in absolutes other than regarding my own choices, which have served me well. I'll be retired in my early 40's and laughing all the way to the bank. You need to lighten up.
I don't recall speaking in absolutes other than regarding my own choices, which have served me well. I'll be retired in my early 40's and laughing all the way to the bank. You need to lighten up.
This post was edited on 1/20/15 at 11:06 am
Posted on 1/20/15 at 1:00 pm to dragginass
quote:
I'll be retired in my early 40's and laughing all the way to the bank.
Good for you, if retiring is your life goal during your most productive years. Others in their 40s will be actively building new businesses, creating jobs, and continuing to innovate and take risks.
Posted on 1/20/15 at 1:03 pm to hungryone
Retiring is relative. I'll never stop working.
Posted on 1/20/15 at 1:21 pm to dragginass
Yes. It is. Yours is absurd because it's terrible math. Under no circumstances does it make any sense to any person who can manipulate mathematics at better than a third grade level.
"My system" is the sack of garbage straw man YOU threw out. Your intellectual acrobatics don't make you right, they just make you a jerk.
Congrats on your plan to retire in your early 40's. That's the MT equivalent to an OT bench press number. If you really plan on doing that, I can safely assume that you are lazy and will live poorly in your retirement (your poor cognitive skills eliminate you being a successful businessman), or you have family money (not impressive).
I'll lighten up when you stop giving well intentioned strangers bad advice under the guise of some faux intelligence.
"My system" is the sack of garbage straw man YOU threw out. Your intellectual acrobatics don't make you right, they just make you a jerk.
Congrats on your plan to retire in your early 40's. That's the MT equivalent to an OT bench press number. If you really plan on doing that, I can safely assume that you are lazy and will live poorly in your retirement (your poor cognitive skills eliminate you being a successful businessman), or you have family money (not impressive).
I'll lighten up when you stop giving well intentioned strangers bad advice under the guise of some faux intelligence.
Posted on 1/20/15 at 1:39 pm to TheHiddenFlask
Sorry, but being condescending doesn't make you smarter, it just makes you....condescending.
Where did I ever say I had a "system"? Now you're just making things up.
And you continually dance around my question regarding carrying debt on all assets, and remaining 100% invested. Your logic would suggest taking on a mortgage/loan on any significant equity in a home,or any other large asset, for the purposes of investment, so long as the interest rate+(plus cost of aquiring the loan) was less than the expected rate of return in the investment. I think thats stupid to suggest as a blanket doctrine to personal finance, but that's my opinion. There is certainly a place for debt. A car isn't one of them in my world.
You can disagree, remain 100% leveraged, and go on with your life. I simply offered the OP a perspective different than yours. I never told him what HE should do. Get over yourself.
Where did I ever say I had a "system"? Now you're just making things up.
And you continually dance around my question regarding carrying debt on all assets, and remaining 100% invested. Your logic would suggest taking on a mortgage/loan on any significant equity in a home,or any other large asset, for the purposes of investment, so long as the interest rate+(plus cost of aquiring the loan) was less than the expected rate of return in the investment. I think thats stupid to suggest as a blanket doctrine to personal finance, but that's my opinion. There is certainly a place for debt. A car isn't one of them in my world.
You can disagree, remain 100% leveraged, and go on with your life. I simply offered the OP a perspective different than yours. I never told him what HE should do. Get over yourself.
Posted on 1/20/15 at 2:02 pm to dragginass
quote:
Retiring is relative. I'll never stop working.
Da frick?
Posted on 1/20/15 at 2:07 pm to Teddy Ruxpin
quote:
quote:
Retiring is relative. I'll never stop working.
Da frick?
He'll be Shroedinger's retiree: simultaneously retired and still working. And maybe raise cats.
Posted on 1/20/15 at 2:15 pm to hungryone
You guys are a mess. Ever hear of charity work? Hobby business? Part time work that's fulfilling but doesn't pay squat?
Who want to retire and watch TV all day? That crap will kill you.
Who want to retire and watch TV all day? That crap will kill you.
Posted on 1/20/15 at 2:34 pm to dragginass
quote:
Ever hear of charity work? Hobby business? Part time work that's fulfilling but doesn't pay squat?
Yes, some of us do these things all day, every day, without retiring. "Doesn't pay squat" yet fulfilling is pretty much a career description for me. Hence my (limited) tolerance for debt...I could work differently/more, but it wouldn't make me happier. If that means I pay off a car in 3 years instead of two, I chalk it up to money well spent in service of a better-lived life.
Posted on 1/20/15 at 2:37 pm to dragginass
You, my friend, are being just as condescending as me. The difference is that you are projecting and putting words in my mouth and then attacking those very words. It's quite pitiful.
That was clearly not my advice, as I told him to pay off the student loans. My advice was to never pay off 0% debt. I'll borrow $20 trillion from anyone willing to lend me money at 0%. According to your advice, paying 0% debt is good. By equivalence, you must think that Lending money at 0% is a good idea. In that case, put your money where your mouth is and lend me some money at 0%. I'll keep the money in a savings account and you can have dominion over the account, so there will be zero risk to you. I'll just take he free interest payments.
I bet your financial advisor loves you.
That was clearly not my advice, as I told him to pay off the student loans. My advice was to never pay off 0% debt. I'll borrow $20 trillion from anyone willing to lend me money at 0%. According to your advice, paying 0% debt is good. By equivalence, you must think that Lending money at 0% is a good idea. In that case, put your money where your mouth is and lend me some money at 0%. I'll keep the money in a savings account and you can have dominion over the account, so there will be zero risk to you. I'll just take he free interest payments.
I bet your financial advisor loves you.
Posted on 1/20/15 at 2:40 pm to hungryone
quote:
Yes, some of us do these things all day, every day, without retiring.
Good for you, seriously. It doesn't make the attacks on my choices credible, however. People are making assumptions about me with information they simply don't have.
Posted on 1/20/15 at 2:43 pm to TheHiddenFlask
quote:
That was clearly not my advice
Go back and re-read my posts. I stated from the beginning, in a generalized way, that I disagree with the philosophy of many money board posters, regarding their propensity to leverage everything for investment purposes. You stepped in to argue with me. I had no choice but to assume your defense was that of the aforementioned doctrine. If it isnt, then good for you.....so stop arguing and relax.
Posted on 1/20/15 at 3:02 pm to dragginass
You also said you were in the "pay them off camp". I was also just replying to the most recent post.
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