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re: What to do with $250K
Posted on 9/18/18 at 10:19 pm to NorthTiger
Posted on 9/18/18 at 10:19 pm to NorthTiger
Just curious-why are you asking people on a website who are not Financial professionals?
Have you had bad experiences w/the market? Financial professionals, etc?
Have you had bad experiences w/the market? Financial professionals, etc?
0
Posted on 9/18/18 at 11:01 pm to player711
quote:
You are very ignorant. Where do you invest? Before you judge a book by its cover-think before you speak..
He gives you his $250k. What’s the interest rate you give it back to him in this diversified debt fund your boys run?
Posted on 9/19/18 at 1:46 am to NorthTiger
People that are older with pensions piss me off! Must be government workers.
Posted on 9/19/18 at 7:27 am to OU812
quote:
People that are older with pensions piss me off! Must be government worke
So you’re pissed that police, firemen and school teachers are government workers and thus get a pension.
Posted on 9/19/18 at 7:44 am to NorthTiger
What about paying it off but opening a HELOC in case you need access to the equity? I have a feeling o few you actually retire and start running the expense numbers you will find some areas to trim. Good luck.
Posted on 9/19/18 at 10:03 pm to Meauxjeaux
It’s where I invest. I don’t manage this Fund. The fund pays 10%.
Posted on 9/19/18 at 11:16 pm to player711
(no message)
This post was edited on 9/20/18 at 10:23 am
Posted on 9/20/18 at 12:14 am to player711
quote:Maybe I’m confused about the investment, and their website isn’t clear on what it may be.
It’s where I invest. I don’t manage this Fund. The fund pays 10%.
But if it’s essentially serving as a lender, as a quick example, assuming monthly compounding interest, a loan with a 10% interest rate would result in an annual percentage yield of 5.50% on a 1 year loan, 5.12% for a 3 year loan, and 4.98% on a 5 year loan, with the return decreasing as the length increases. And that’s assuming it’s not paid off early or defaulted, and Garmax doesn’t take any of the return either, all of which would decrease the return.
In order to get 10% return, then the rates would have to be much higher than 10%, with low default rates, few extra principal payments, and no fees. The P2P lending groups like Prosper and Lending Club, have much higher overall rates, but the returns are more likely 5% to 7%.
And like those P2P groups, the returns are probably taxed as ordinary income, and in his case, some of it would be in either the 12% bracket or the 22% bracket, whereas long term capital gains would be 0% and 15% respectively for the same gains.
Posted on 9/20/18 at 4:18 am to foshizzle
quote:I'm normally a proponent of holding a lowinterest mortgage, and investing money which would otherwise be tied up in a house. Makes sense now, and certainly makes sense if/when inflation kicks in.
It's even a better feeling to have more net worth.
The OP's situation is a bit different though. He's 65 and risk averse. He'll sell his land and net about $215K. If he keeps the mortgage and invests the $215, he'd want to use a safe income-producing vehicle at let's say 5%-6% ROI?
After mortgage-interest tax-deduction, his home loan note would run an approx 3% cost against his ROI. So net return would be 2%-3% on the $215K, or ~$3.5K-$5.5K/yr after taxes.
If he pays off the home, he'll still have a $25K cash residual. i.e. 5yrs of guaranteed money equal to or exceeding probable investment returns. Considering a safe income-producing vehicle is still not risk-free, paying off the mortgage probably makes the most sense in this instance. If the fellow was 35yrs old, it wouldn't be such a good decision.
Posted on 9/20/18 at 6:03 am to player711
quote:
It’s where I invest. I don’t manage this Fund. The fund pays 10%.
Oh my apologies, I screwed up.
Ask for Mr Stanford.
Posted on 9/20/18 at 10:21 am to player711
quote:
The fund pays 10%.
are you getting 10% annually? or is that just the claim? i have dividend payers now between 8 and 10% whether REIT, BDC or ETF
risk other than default? they are secured? by RE? since you use them maybe you can share more info here?
Posted on 9/23/18 at 8:37 pm to player711
quote:
It’s where I invest.
see above
Posted on 9/23/18 at 10:46 pm to Fat Bastard
Yes it’s a net 10% Annualized Simple Interest. The fund makes a net 50-55% and that’s why they are able to pay 10%. They have a 5 year fund that pays 15%, but I just chose the 3 year fund at 10% per year.
It is an unsecured loan/investment, but it is diversified in Real Estate, Oil and Gas, Distressed Debt, and Business Loans. It has some similarities (with diversification) like a mutual fund.
It is rated as a low risk income/growth investment. I’m a creditor if this company.
There are platforms out there that are like this, but yes some can turn out to be not what you’ve expected -but there are alternatives outside of conventional wisdom that with enough due diligence are considered low risk.
That’s all I’m saying.
It is an unsecured loan/investment, but it is diversified in Real Estate, Oil and Gas, Distressed Debt, and Business Loans. It has some similarities (with diversification) like a mutual fund.
It is rated as a low risk income/growth investment. I’m a creditor if this company.
There are platforms out there that are like this, but yes some can turn out to be not what you’ve expected -but there are alternatives outside of conventional wisdom that with enough due diligence are considered low risk.
That’s all I’m saying.
Posted on 9/24/18 at 12:24 am to player711
quote:
Yes it’s a net 10% Annualized Simple Interest. The fund makes a net 50-55% and that’s why they are able to pay 10%. They have a 5 year fund that pays 15%, but I just chose the 3 year fund at 10% per year.
It is an unsecured loan/investment, but it is diversified in Real Estate, Oil and Gas, Distressed Debt, and Business Loans. It has some similarities (with diversification) like a mutual fund.
It is rated as a low risk income/growth investment. I’m a creditor if this company.
I don't want to offend you, but all of this sounds sketchy and ponzi-ish as frick. With all due respect.
Posted on 9/24/18 at 7:51 am to player711
quote:
Yes it’s a net 10% Annualized Simple Interest
Hard to imagine you get 10% with low risk. I could be wrong though.
Posted on 9/24/18 at 12:32 pm to Ace Midnight
quote:
I don't want to offend you, but all of this sounds sketchy and ponzi-ish as frick. With all due respect.
that is why i wanted him to elaborate more. i am not crazy about unsecured
sounds something like this
Posted on 9/24/18 at 6:46 pm to Fat Bastard
Posted on 9/24/18 at 7:08 pm to Fat Bastard
quote:
his house note would be fine IF, IF he had a nice stream of income that could easily pay for it and other bills.
You know how he could afford to continue to pay the mortgage? By not paying off the house with 190K in liquid savings.
Posted on 9/24/18 at 7:10 pm to lynxcat
quote:
10 year average is meaningless when we are at the tail end of the longest bull market in history. Averages are really misleading if you ignore all market factors. The OP is 65.
If we're at the tail end of the longest bull run then wouldn't it stand to reason that another good buying opportunity isn't THAT far off?
Posted on 9/24/18 at 8:32 pm to Meauxjeaux
quote:
The Stanford Financial Group was a privately held international group of financial services companies controlled by Allen Stanford, until it was seized by United States (U.S.) authorities in early 2009. Headquartered in the Galleria Tower II in Uptown Houston, Texas, it had 50 offices in several countries, mainly in the Americas, included the Stanford International Bank, and said it managed US$8.5 billion of assets for more than 30,000 clients in 136 countries on six continents.[1][2] On February 17, 2009, U.S. Federal agents placed the company into receivership due to charges of fraud.[3][4] Ten days later, the U.S. Securities and Exchange Commission amended its complaint to accuse Stanford of turning the company into a "massive Ponzi scheme".[5]
ya never know. that is the issue with those privately held companies.
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