- 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
Investing $10,000
Posted on 7/3/16 at 7:46 am
Posted on 7/3/16 at 7:46 am
I need advice. I am refinancing my house and taking about 20k of equity out to consolidate debt. My note only goes up about $50 a month and It saves me about $650 a month in bills. I will have a extra 10k from the refinance and would like to invest it. What is the best way to make money on it? My hope is to also be able to save money every month now that I am freeing myself from $650 in bill payments every month. I am 32 and only have $3000 in savings. That is not good. I have $15,000 in retirement so far but that is not much either. I am divorced with no kids at the moment and single. I am trying to build for the future. Tired of living Pay Check to Pay check. I know I can do better. Do you think I need to see a financial advisor?
6
Posted on 7/3/16 at 7:51 am to GeauxTigers1983
On the surface it sounds like a terrible idea.
No way anyone can give you advice here without knowing the interest rates of an the debt involved.
No way anyone can give you advice here without knowing the interest rates of an the debt involved.
Posted on 7/3/16 at 8:09 am to castorinho
I am never in favor of turning short term debt into long term debt. You're saving $650/month but now you're paying that extra $50 for 30 years. Or you'll be paying the majority of that debt off and losing it as principal you could have walked away with if you sold your property prior to the term.
It absolutely doesn't make financial sense. Short, medium or long term. I say this having done almost nothing by cash out and/or debt consolidation Refis my first two years in the biz.
It's difficult to believe that you were unable to obtain a $10K loan for debt consolidation whether via signature loan or using personal property to secure it.
If I were you, I'd put that cash into an IRA or something where it goes to sleep. Or perhaps just put it back down on your principal so you can access it if and when you sale, or become more credit worthy from a score perspective by reducing your loan to value.
Just my opinion, brah.
It absolutely doesn't make financial sense. Short, medium or long term. I say this having done almost nothing by cash out and/or debt consolidation Refis my first two years in the biz.
It's difficult to believe that you were unable to obtain a $10K loan for debt consolidation whether via signature loan or using personal property to secure it.
If I were you, I'd put that cash into an IRA or something where it goes to sleep. Or perhaps just put it back down on your principal so you can access it if and when you sale, or become more credit worthy from a score perspective by reducing your loan to value.
Just my opinion, brah.
Posted on 7/3/16 at 9:36 am to GFunk
Believe me I tried to do a debt consolidation loan. My ratio was to high. I have 40k in equity on my home so it was my only option. I have had the house 2 years and will not be staying in it long term. In 3 to 5 years will sell it or turn it into income property. My mortgage is $650 a month but will go up to $703 after refinance. I could lease it out for $1200 easy. Just trying to save money every month and save for the future. My interest rate was 4.25 and now it will be 3.75
Posted on 7/3/16 at 10:06 am to GeauxTigers1983
people always make a stink about re-fi but if you have no plans to stay in the house longer than 5 years or so it's not a bad deal.
Posted on 7/3/16 at 1:08 pm to GeauxTigers1983
Did you try lending club? Some rates are high but much less than most credit cards.
Posted on 7/3/16 at 3:17 pm to Napoleon
Dude I sold 2/28 and 3/27 ARM Debt Consoldiation Refis the entirety of my first 24 months in the industry. I've heard-let me rephrase, I've used-every justification, rationalization and sales approach to convince folks that the conversion of short term unsecured debt to mortgage backed, real estate secured long term debt isn't a bad idea.
Been there done that. I will not ever recommend someone do it again. I'd go Brother Dave Ramsey on my shite before I went cash out refi to push a client or my own finances into a situation where I was equity stripping.
Because the honest truth is that 95%-if not higher-of the folks that went cash out refi for debt consolidation were back within 12 months or so looking to strip more equity to pay off additional debt that they went out and ran up immediately after paying the old debt off.
Again, just my opinion, but there are short term methods that are more palatable than the long term one he went with. Glad he saved and hope he is careful with his debt load moving forward. But the odds are against it and you can only use home equity as a bulkhead or backstop against poor spending habits for so long before it's no longer an option.
No shot intended at OP. At all. This is just my experience.
Been there done that. I will not ever recommend someone do it again. I'd go Brother Dave Ramsey on my shite before I went cash out refi to push a client or my own finances into a situation where I was equity stripping.
Because the honest truth is that 95%-if not higher-of the folks that went cash out refi for debt consolidation were back within 12 months or so looking to strip more equity to pay off additional debt that they went out and ran up immediately after paying the old debt off.
Again, just my opinion, but there are short term methods that are more palatable than the long term one he went with. Glad he saved and hope he is careful with his debt load moving forward. But the odds are against it and you can only use home equity as a bulkhead or backstop against poor spending habits for so long before it's no longer an option.
No shot intended at OP. At all. This is just my experience.
This post was edited on 7/3/16 at 3:19 pm
Posted on 7/3/16 at 3:26 pm to GeauxTigers1983
quote:
$10,000
I would say keep it as an emergency fund. Put it in an interest bearing account like a money market acct. If you have tax issues then ask your CPA first, and put it in your IRA if so.
It's not enough money to mess with for an investment plan or a CFP or financial advisor. You would be better served keeping it liquid in an emergency fund if/when you need it.
Posted on 7/3/16 at 4:07 pm to GeauxTigers1983
quote:
I am 32 and only have $3000 in savings.
I'd be concerned about this.
I use Boeing Employees Credit Union and they offer free Financial Advisor advice and portfolio management. Since the financial advisors are working in a commission free environment they have your best interests at hand. They're not interesting in churning.
Posted on 7/3/16 at 7:36 pm to GeauxTigers1983
quote:
$3000 in savings.
You don't need to be investing anything.
It's perfectly ok to just put your 10k in savings and have a little back up money.
Posted on 7/3/16 at 8:15 pm to BigD13
quote:
You don't need to be investing anything. It's perfectly ok to just put your 10k in savings and have a little back up money.
This. In your situation I think that you will find more value in the Peace of mind you get from having 15K of cash in reserves in case of emergency. Keep that money in savings or a money market and start investing everything over that amount.
This post was edited on 7/3/16 at 8:18 pm
Posted on 7/3/16 at 9:44 pm to GeauxTigers1983
Dumb. Sounds like you need to just concentrate on paying debt down. Forget non retirement investing for now.
Posted on 7/4/16 at 11:51 am to GeauxTigers1983
Thank you all for the advice. After doing some thinking and reading the responses I believe I will put it in savings and hold onto it for a rainy day. It will feel good to have some fall back money if something unexpected happens. I don't want to have to rely on a credit card to pay for unexpected expenses
Posted on 7/4/16 at 7:22 pm to GeauxTigers1983
Especially if you amiterize the APR on the credit cards you have, you'll see how much interest your giving way to each company. Personally, I'm against having credit cards and only have one AMEX and one Visa to keep establishing credit. I never go above setting a personal limit of $500 on each. To keep your savings in a high yield interest savings account will be more advantageous for you in the long run.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News