- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Financial help
Posted on 2/19/20 at 12:32 pm to SeymourButts
Posted on 2/19/20 at 12:32 pm to SeymourButts
Every time I see these posts I’m always reading the same debates. One side of the board says no debt no matter what the other says finance it and invest. It’s like the same argument comes up on theses posts every couple days. People hashing out the same thing over and over.
I have historically been very debt averse but over time I have started changing my outlook on this and have decided going forward that if I have the cash to purchase say a vehicle I will keep that money and invest it and just finance the vehicle. I think compound growth in the market is a sound plan instead of dumping cash into purchases as long as I can finance at a reasonable rate. I would not consider 10% as a reasonable rate. I’d try to get that truck note under 5% and pay minimum payments on it. You also need to keep in mind your risk tolerance because this will also play a big factor. If you get uneasy seeing a drop in your investments short term then maybe playing the safe card and reducing debt is the answer for you. I personally have no problem riding out the ups and down of the market so I don’t sell my investments on a knee jerk reaction. I am comfortable financing something knowing i have the money in investments to payoff if I feel like I don’t want the debt.
I have historically been very debt averse but over time I have started changing my outlook on this and have decided going forward that if I have the cash to purchase say a vehicle I will keep that money and invest it and just finance the vehicle. I think compound growth in the market is a sound plan instead of dumping cash into purchases as long as I can finance at a reasonable rate. I would not consider 10% as a reasonable rate. I’d try to get that truck note under 5% and pay minimum payments on it. You also need to keep in mind your risk tolerance because this will also play a big factor. If you get uneasy seeing a drop in your investments short term then maybe playing the safe card and reducing debt is the answer for you. I personally have no problem riding out the ups and down of the market so I don’t sell my investments on a knee jerk reaction. I am comfortable financing something knowing i have the money in investments to payoff if I feel like I don’t want the debt.
This post was edited on 2/19/20 at 12:50 pm
1
Posted on 2/19/20 at 2:21 pm to saderade
quote:
Am I the only one that thinks this number is pretty low for new construction. And I assume this doesn’t include property taxes and insurance.
If it's a 1200 sq ft DR Horton starter? No.
Posted on 2/19/20 at 2:25 pm to tigersfan1989
quote:
Every time I see these posts I’m always reading the same debates. One side of the board says no debt no matter what the other says finance it and invest. It’s like the same argument comes up on theses posts every couple days. People hashing out the same thing over and over.
Low interest rates for borrowing money, for well-qualified borrowers, compared to investment returns for deploying said money, is the big reason for this.
Let LIBOR get back to 6% and let's see if anyone's arguments change.
Posted on 2/19/20 at 2:30 pm to SeymourButts
At 10% interest, you probably owe a LOT more than $43k on the truck. I would at minimum re-finance that loan, and if you can't get that interest rate closer to 3-4%, I'd sell it and take the hit now. Everything else looks fine to me.
It's not about being able to afford the monthly note. It's about what the actual long term cost is. You could easily afford a $1100 per month truck note, but if it was just 36 months at 3% interest, you're saving a ton of money in the long run.
It's not about being able to afford the monthly note. It's about what the actual long term cost is. You could easily afford a $1100 per month truck note, but if it was just 36 months at 3% interest, you're saving a ton of money in the long run.
Posted on 2/19/20 at 2:50 pm to SeymourButts
quote:
Should I pay off my student loan with the extra money to cut my bills down a little or should I pay down on my truck? Maybe refinance the truck? Or keep paying these monthly notes and build up more of an emergency fund? Thanks
Yes, pay off the student loan, since it's relatively modest and will reduce your monthly obligations.
But think, beyond that, about what you really want out of life: you seem to be operating under the assumption that new vehicle/new house equal successful life. Why? Who says so? Where, in your budget/life calculations have you allocated for self-improvement (through travel, skilled hobbies, classes, experiences), joy (see aforementioned travel & experiences), helping others (whether through church, charity, or directly to ppl you know), or other categories beyond transportation and housing? Those are things that give meaning to a life, not possessions.
You're falling into the trap of seeing the things you buy as defining your life: you refer to being 30. That is not some magic number at which you need to be settled and own expensive things.
I'd think long and hard about what you REALLY want in life: if you had $43,000 in your hand right now, what would you do with it? It's the equivalent of your truck. Surely you can think of more interesting ways to spend your money than an expensive truck?
Posted on 2/19/20 at 2:51 pm to SeymourButts
quote:
making around 150k annually. I’m putting in 15% into a 401k
quote:
And I am putting in a good bit into my 401k, not quite maxing but around 16k a year.
Can you reconcile these? At 15%, you're actually putting in $22,500, which is $3k over the limit. Reducing your contributions to 13% will give you and extra ~$200/month after taxes.
1. refi truck
2. Apply the extra $200 to the student loans to get those paid off in about 15 months (or throw more at it to reduce the time to pay-off)
3. After the student loans are gone, reassign that $305 to the truck (or more as you make more and are comfortable with it)
This is a relatively simple plan, but it also should have a minimal impact on your budget since you are simply reassigning money from one account to another.
Posted on 2/19/20 at 3:13 pm to saderade
The house total is 207k and the 1226 includes p&i, hoa fees, hazard insurance, mortgage insurance, and real estate taxes. That’s straight from the approval letter
This post was edited on 2/19/20 at 3:14 pm
Posted on 2/19/20 at 3:35 pm to GRTiger
quote:
Can you reconcile these? At 15%, you're actually putting in $22,500, which is $3k over the limit. Reducing your contributions to 13% will give you and extra ~$200/month after taxes
I’m getting paid weekly, and my portion each week that goes to my 401k and Roth comes out to be around $250 a week. Which comes out to 13k a year, that’s just the employee contribution. Should I go all Roth and the rest to 401k or up my contribution. Another percent won’t kill me, it’s like another 25 dollars a check I believe.
Posted on 2/19/20 at 3:53 pm to SeymourButts
When you say Roth you mean Roth 401k, not Roth IRA, right?
Regarding HSA, if you have HDHP then you qualify for HSA and that's another great thing to max out.
Regarding HSA, if you have HDHP then you qualify for HSA and that's another great thing to max out.
Posted on 2/19/20 at 3:56 pm to deeprig9
Yeah 12% to a 401k and 3% to a Roth 401k. Right now sitting around 9k combined in my 401k.
This post was edited on 2/19/20 at 3:58 pm
Page 4 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News