StT investment advisors

[Th'Pusher]

Say I have $50 sitting in a savings account. Where would you put it outside of the stock market?

Home improvement?
Rental property?
Lottery tickets?

[Drachen]

I guess with that amount you could paint your baseboards and door trim

[Th'Pusher]

I guess with that amount you could paint your baseboards and door trim

I wasn't pretending it was a lot of money. Just wondering what fellow spurs talkers would do with 50k to invest outside of the stock market?..

[Drachen]

Say I have $50 sitting in a savings account. Where would you put it outside of the stock market?

Home improvement?
Rental property?
Lottery tickets?


I wasn't pretending it was a lot of money. Just wondering what fellow spurs talkers would do with 50k to invest outside of the stock market?..

[Th'Pusher]

Sorry 50k

[baseline bum]

You could buy 50 hours son...

http://i.huffpost.com/gen/14713/thumbs/s-ELIOT-KRISTEN-DOUBLE-large.jpg

http://cdn.inquisitr.com/wp-content/ashley-dupre.jpg

http://images.huffingtonpost.com/gen/14707/original.jpg

[Th'Pusher]

You could buy 50 hours son...

http://i.huffpost.com/gen/14713/thumbs/s-ELIOT-KRISTEN-DOUBLE-large.jpg

http://cdn.inquisitr.com/wp-content/ashley-dupre.jpg

http://images.huffingtonpost.com/gen/14707/original.jpg
Oh my. That doesn't seem like a practical investment.

[Wild Cobra]

You should keep several months of your living costs in a savings account, in case something happens to your revenue stream.

50 bux... Keep it in savings.

[coyotes_geek]

Say I have $50 sitting in a savings account. Where would you put it outside of the stock market?

Home improvement?
Rental property?
Lottery tickets?

Depends what your finances outside of that $50k look like. If you're carrying any non-mortgage debt or you don't have a rainy day fund set up for yourself I'd put the money there before doing anything else.

[DUNCANownsKOBE]

If you qualify this year and are sure you won't need the money at all, put as much as you can in a Roth IRA. God knows where tax rates will be when you retire and all income from the Roth IRA is tax exempt.

[Th'Pusher]

Depends what your finances outside of that $50k look like. If you're carrying any non-mortgage debt or you don't have a rainy day fund set up for yourself I'd put the money there before doing anything else.

No non mortgage debt with the exception of $7k at 1.9% for a car loan. It's over and above a rainy day fund.

[Th'Pusher]

If you qualify this year and are sure you won't need the money at all, put as much as you can in a Roth IRA. God knows where tax rates will be when you retire and all income from the Roth IRA is tax exempt.

Good to know. I was hoping for something a bit more liquid that that. I don't foresee needing the money in the near future, but would like to have access to it if needed.

[CosmicCowboy]

I'd put $20K down on two rental properties. At todays interest rates current rental income covers the mortgage, insurance, and taxes.

[Th'Pusher]

I'd put $20K down on two rental properties. At todays interest rates current rental income covers the mortgage, insurance, and taxes.

That's what I've have been contemplating. Just not sure I want the responsibility of being a landlord. Maybe a condo In Port A where they rent it out and take care of everything and just take a cut of the proceeds? That way I could pull it out of the rental pool and enjoy it myself when I wanted to.

[coyotes_geek]

No non mortgage debt with the exception of $7k at 1.9% for a car loan. It's over and above a rainy day fund.

My wife and I are fans of being mortgage free so any extra money we have we're using to pay that down. So in your situation I would pay off the car and throw the rest at the mortgage.

[Th'Pusher]

My wife and I are fans of being mortgage free so any extra money we have we're using to pay that down. So in your situation I would pay off the car and throw the rest at the mortgage.

That's no fun! Really though, thanks for the advice.

[CosmicCowboy]

My wife and I are fans of being mortgage free so any extra money we have we're using to pay that down. So in your situation I would pay off the car and throw the rest at the mortgage.

That's obviously the safe and conservative thing to do but with interest at historic lows I personally think leverage is the better way to go especially when mortgage interest is deductible. I'm leveraging everything I can on hard assets that will increase in value along with the inevitable inflation.

[coyotes_geek]

That's no fun! Really though, thanks for the advice.

Well it's no fun now, but the Mrs and I are banking on it being really fun to be mortgage free in our mid-40s. :)

[coyotes_geek]

That's obviously the safe and conservative thing to do but with interest at historic lows I personally think leverage is the better way to go especially when mortgage interest is deductible. I'm leveraging everything I can on hard assets that will increase in value along with the inevitable inflation.

Nothing wrong with that approach either. It's personal preference. Part of what's affecting our decision is that my wife, who has a good paying job now, is getting pretty close to topping out in her career. She doesn't see herself wanting to stick around once that happens, so getting us mortgage free makes it a lot easier for her to go do something she'll enjoy, even if it pays less.

[CosmicCowboy]

Nothing wrong with that approach either. It's personal preference. Part of what's affecting our decision is that my wife, who has a good paying job now, is getting pretty close to topping out in her career. She doesn't see herself wanting to stick around once that happens, so getting us mortgage free makes it a lot easier for her to go do something she'll enjoy, even if it pays less.

You are a nicer guy than I am. My wife used to not work. I would pay all the bills and give her 2K cash a month walking around money. When she started spending that AND charging another 2K a month on credit cards I cut her off and told her if she needed money to get her fat ass out and get a job.

[coyotes_geek]

You are a nicer guy than I am. My wife used to not work. I would pay all the bills and give her 2K cash a month walking around money. When she started spending that AND charging another 2K a month on credit cards I cut her off and told her if she needed money to get her fat ass out and get a job.

:lol

Thankfully I don't have to deal with that situation. My wife doesn't mind working, she just doesn't want to be stuck in a dead end job that doesn't interest her anymore.

[symple19]

You really gave her 2k a month "walking around" money?!?!?!

Jesus cucking christ, CC.

The above is reason #23876487326482734 that i'm not married. If the worst happens and I do attach the ol' ball n' chain, then it will be in the pre-nup that she must maintain full-time employment :lol

[TeyshaBlue]

Well it's no fun now, but the Mrs and I are banking on it being really fun to be mortgage free in our mid-40s. :)
I hate you.

[TeyshaBlue]

But, think of all the LTD's you could by with that mortgage money!

[RandomGuy]

Say I have $50 sitting in a savings account. Where would you put it outside of the stock market?

Home improvement?
Rental property?
Lottery tickets?

Depends on how young you are, and what your risk tolerance is.

If you are under 50, and have that much cash sitting around, you are wildly under-earning on that money.

Down payment on a duplex is probably best, outside the stock market. That said, you have to spend a huge amount of time at the beginning learning how to rent it profitably.

Live on one side and rent out the other.

In the stock market:

Coke stock, w/ automatic dividend reinvestment for part of it that isn't use on the duplex, again works best the younger you are.

[RandomGuy]

That's obviously the safe and conservative thing to do but with interest at historic lows I personally think leverage is the better way to go especially when mortgage interest is deductible. I'm leveraging everything I can on hard assets that will increase in value along with the inevitable inflation.

Bingo.

Paying down a mortgage doesn't make sense if you can take the $$ and earn more than you are paying in interest somewhere else.

[RandomGuy]

That's what I've have been contemplating. Just not sure I want the responsibility of being a landlord. Maybe a condo In Port A where they rent it out and take care of everything and just take a cut of the proceeds? That way I could pull it out of the rental pool and enjoy it myself when I wanted to.

Have good liability insurance, and all else will take care of itself eventually.

If you want, PM me if you live in San Antonio, buy me a good six pack or two, and I will give you a couple of hours worth of help in fleshing this out. Wife and I have a good deal of experience, and I get a lot of satisfaction out of helping others.

The hardest part is finding people to fix shit when it breaks, if you can't do it yourself. Heh, CC would probably make a good place to start for AC/heating.

Get a few episodes of "income property" show to see how to get a good build up that will rent for decent cash, and show you some of the potential pitfalls:
http://www.hgtv.com/income-property/show/index.html

Read a few books, get some standard lease forms etc.

Most important advice is to set aside a little bit of cash every month as a reserve for major repairs and other events.

[RandomGuy]

No non mortgage debt with the exception of $7k at 1.9% for a car loan. It's over and above a rainy day fund.

Ah.. that changes things, and CG made a good point.

You should have set aside about a year's worth of cash, possibly two, then go investing.

[GoodOdor]

I'm in a similar situation tbh.

Basically got 20k in cash sitting around, and I'm thinking of getting a mortgage and buying a condo.

My credit is 759, what kind of loan can I get?

[CosmicCowboy]

I'm in a similar situation tbh.

Basically got 20k in cash sitting around, and I'm thinking of getting a mortgage and buying a condo.

My credit is 759, what kind of loan can I get?

I just locked an FHA with 3.5% down @ 3.250%

If you go 20% down you can even beat that and won't have to get mortgage insurance or escrow taxes and insurance.

[GoodOdor]

First time buyer? I just locked an FHA with 3.5% down @ 3.250%

First time anything pretty much:lol

Do you have any good resources to read up for someone who basically knows nothing about buying a house?

Also, assuming I can save up some more, is it better to drop a bigger down payment or not?

[DUNCANownsKOBE]

Bigger down payment = lower interest rate from what I know.

[GoodOdor]

Bigger down payment = lower interest rate from what I know.

Makes sense:lol

[CosmicCowboy]

First time anything pretty much:lol

Do you have any good resources to read up for someone who basically knows nothing about buying a house?

Also, assuming I can save up some more, is it better to drop a bigger down payment or not?

My advice is to hire a realtor.

There is a lot (or should be a lot) of wheeling and dealing involved.

In my recent case I went in with a pre-approval letter from a mortgage company which really helps sellers know you are serious.

In my case asking price was 157K

I offered 150K with seller paying for the survey and paying another $2000 towards closing costs.

I expected a counter offer but didn't get one. Guess I could have been more aggressive but I was already well under appraised value and the house had only been on the market for ten days and it really is a nice unit in a great neighborhood.

Then I got a home inspection and since I now knew they were a motivated seller I hammered them for an additional (approximate) $4000 of repairs/service...even shit like having an A/C company clean and service the A/C and having the electrical panel replaced.

They accepted all my conditions

[RandomGuy]

I'm in a similar situation tbh.

Basically got 20k in cash sitting around, and I'm thinking of getting a mortgage and buying a condo.

My credit is 759, what kind of loan can I get?

1-2 years worth of cash is a good place to start. Tally up your normal expenses, and multiply by 30 to allow for two years of unemployment or similar problems and a little cushion for the inevitable hiccup.

AFTER you get that, then go investing.

That is the conservative way to go. I would point out the current job climate means fairly long stints in unemployment.

[GoodOdor]

1-2 years worth of cash is a good place to start. Tally up your normal expenses, and multiply by 30 to allow for two years of unemployment or similar problems and a little cushion for the inevitable hiccup.

AFTER you get that, then go investing.

That is the conservative way to go. I would point out the current job climate means fairly long stints in unemployment.

Good point, I'm trying to save up as much as I can now just in case that happens, but it seems
a waste letting the money sit without it doing much.....on the other hand, it's nice that it's there if I need it right away:lol

[Th'Pusher]

1-2 years worth of cash is a good place to start. Tally up your normal expenses, and multiply by 30 to allow for two years of unemployment or similar problems and a little cushion for the inevitable hiccup.

AFTER you get that, then go investing.

That is the conservative way to go. I would point out the current job climate means fairly long stints in unemployment.

1-2 years? I have like 6 months in my emergency fund. My wife works though so the chances of us both losing our job at the same time are slim. 30 months though. For me thats like $130k in cash? Mortgage and bills are ~4400 per/month...

[RandomGuy]

1-2 years? I have like 6 months in my emergency fund. My wife works though so the chances of us both losing our job at the same time are slim. 30 months though. For me thats like $130k in cash? Mortgage and bills are ~4400 per/month...

Unemployment is not the only thing that might keep you from working.

A catastrophic health event will blow through $130k in a month.

If you don't like keeping that amount of cash around, income-replacement insurance would also be good.

Most financial advisers say one year. I prefer two, with a few months extra to allow for something expensive to happen in that time. Just my preference. It is very conservative.

[RandomGuy]

Good point, I'm trying to save up as much as I can now just in case that happens, but it seems
a waste letting the money sit without it doing much.....on the other hand, it's nice that it's there if I need it right away:lol

One possibility:

Build up this money in 2 year CD's. Take $200 (for example) and buy a 2 year CD, every month. Let the interest build up, and then when the two years is up, roll over the interest into the next two year purchase, as well as continuing to add $200/month. Haven't gotten around to this myself yet, so not really sure the mechanics work well/easy, but it seems like a solid, automatic plan.

This would not be fully liquid, instant cash, but would provide solid income supplement, any time you want to simply stop rolling over.

[Th'Pusher]

Unemployment is not the only thing that might keep you from working.

A catastrophic health event will blow through $130k in a month.

If you don't like keeping that amount of cash around, income-replacement insurance would also be good.

Most financial advisers say one year. I prefer two, with a few months extra to allow for something expensive to happen in that time. Just my preference. It is very conservative.

Alright. Never mind everyone. Thanks for the advice, but it turns out I don't have 50k laying around anymore :lol

[RandomGuy]

Alright. Never mind everyone. Thanks for the advice, but it turns out I don't have 50k laying around anymore :lol

AFLAC!!!

Heh. Sorry to ruin the fun. Keep in mind my advice is simply VERY conservative in that one regard. If you have a bit more risk tolerance, by all means invest away, but at least you know a bit more about your risk environment to be able to make an informed decision.

[TeyshaBlue]

Alright. Never mind everyone. Thanks for the advice, but it turns out I don't have 50k laying around anymore :lol

Oh...you went ahead and rented the chick on the first page? :lol

[timvp]

My advice is to hire a realtor.

There is a lot (or should be a lot) of wheeling and dealing involved.

In my recent case I went in with a pre-approval letter from a mortgage company which really helps sellers know you are serious.

In my case asking price was 157K

I offered 150K with seller paying for the survey and paying another $2000 towards closing costs.

I expected a counter offer but didn't get one. Guess I could have been more aggressive but I was already well under appraised value and the house had only been on the market for ten days and it really is a nice unit in a great neighborhood.

Then I got a home inspection and since I now knew they were a motivated seller I hammered them for an additional (approximate) $4000 of repairs/service...even shit like having an A/C company clean and service the A/C and having the electrical panel replaced.

They accepted all my conditions

Damn, ~91% of full asking price within 10 days? CC with generosity goods :tu

[TeyshaBlue]

I would've bought SpursTalk with 50k.

[CosmicCowboy]

Damn, ~91% of full asking price within 10 days? CC with generosity goods :tu

Sounds bad LJ but I did my research on recent closings in the area...8 out of 10 went at full ask price and the others were only a little bit off...this is a damn nice area.

[Th'Pusher]

I would've bought SpursTalk with 50k.
I do need to replace my septic tank.

[TeyshaBlue]

I do need to replace my septic tank.

OOOooooooo...that's gonna leave a mark.

[CosmicCowboy]

I do need to replace my septic tank.

why?

[timvp]

Sounds bad LJ but I did my research on recent closings in the area...8 out of 10 went at full ask price and the others were only a little bit off...this is a damn nice area.

Fair enough. Can't really make a judgement without seeing the comps but it sounds like you did your research. Plus, you saved time on negotiations, which has value in its own right.

Though generally, even in the improving market, opening at anything north of 80% is unwise. Hell, for an investment property, I'd wait around until you can snag something at 60-70%.

[timvp]

I do need to replace my septic tank.

:lol Well played.

[CosmicCowboy]

Fair enough. Can't really make a judgement without seeing the comps but it sounds like you did your research. Plus, you saved time on negotiations, which has value in its own right.

Though generally, even in the improving market, opening at anything north of 80% is unwise. Hell, for an investment property, I'd wait around until you can snag something at 60-70%.

Actually, I think I'm OK...These people had a horrible realtor...we ended up having to go to the broker because the listing realtor wouldn't even return phone calls...and based on other sales in the area I think the realtor didn't do her homework and under priced it...I'm expecting appraisal to be at least 25K more than the offer.

[coyotes_geek]

But, think of all the LTD's you could by with that mortgage money!

:lol

We could by one of those POS' a month.

[Th'Pusher]

It's 37 years old

[Th'Pusher]

why?
It's 37 years old

[CosmicCowboy]

It's 37 years old

Is it cracked?

[Th'Pusher]

Is it cracked? No I'm not going to replace it till it's dead just making a joke really. It's likely on it's last leg though.

[CosmicCowboy]

Is it cracked?

Reason I'm asking is if it's not cracked you shouldn't need to replace the tank. Just get it pumped out. You might need to replace the laterals but the tank should be fine.

[Th'Pusher]

Reason I'm asking is if it's not cracked you shouldn't need to replace the tank. Just get it pumped out. You might need to replace the laterals but the tank should be fine.
Good to know. I know nothing about septic systems. We bought the house in 2010, had it pumped for the inspection, but the realtor said they had a 30 to 50 year life span so I felt I was living on borrowed time as the house was built in '75.

[elbamba]

Well it's no fun now, but the Mrs and I are banking on it being really fun to be mortgage free in our mid-40s. :)

I wish I had more friends and family that think like you.:toast