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  • #61
    I know early on in the year I thought it was going to be a repeat of of 08-09, when the stocks tumbled and hours were cut for many people and like many others our investments didn't have the option to recover because we had to cash them to live off them. I was surprised at how quick our investments recovered this time, but I'm sure it's not over - no where near over.

    I've heard that people can take loans from their 401k up to 100k, I think and not pay a penalty. You pay taxes I think as though it's income, but not the normal penalty on top of it. I was wondering what others thoughts are on taking a 401k loan to pay off a home during uncertain times like these. I figure in one way your taking your money without penalty and paying off another investment which is not going to suffer losses like those that can be had in the market. To me they're both investments, just wondering if others had looked at this option or done this option what their thoughts were.

    I know very little about investing. I never really change anything in my 401k. I like to play with penny stocks sometimes, I have better luck with those than I do scratchers so it's where I put my fun money when I have extra. It would probably be wiser to invest in established stocks but I like the gamble, or the idea one could take off.
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    Adopted Bronco - 2017/18 - Chris Harris Jr. # 25 :nono: to every player he covers
    Adopted Bronco - 2018/19 - Derek Wolfe
    Adopted Bronco - 2019/20 - Shelby Harris
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    • #62
      Originally posted by Sophia23 View Post
      I know early on in the year I thought it was going to be a repeat of of 08-09, when the stocks tumbled and hours were cut for many people and like many others our investments didn't have the option to recover because we had to cash them to live off them. I was surprised at how quick our investments recovered this time, but I'm sure it's not over - no where near over.

      I've heard that people can take loans from their 401k up to 100k, I think and not pay a penalty. You pay taxes I think as though it's income, but not the normal penalty on top of it. I was wondering what others thoughts are on taking a 401k loan to pay off a home during uncertain times like these. I figure in one way your taking your money without penalty and paying off another investment which is not going to suffer losses like those that can be had in the market. To me they're both investments, just wondering if others had looked at this option or done this option what their thoughts were.

      I know very little about investing. I never really change anything in my 401k. I like to play with penny stocks sometimes, I have better luck with those than I do scratchers so it's where I put my fun money when I have extra. It would probably be wiser to invest in established stocks but I like the gamble, or the idea one could take off.
      I don't think it's a good idea to pull anything from your retirement portfolio unless it's a major emergency.

      Making investing a 'gambling' experience can be a risky road. Some people can do it right, but most people lose.

      I recommend reading about low cost index funds. Building wealth won't happen overnight obviously - but over the long course. Think of it as a marathon verses a race. Index fund investing is better than investing in individual stocks because it keeps costs low, removes the need to constantly study earnings reports from companies, keeps things diversified, and almost certainly results in being "average", which is far preferable to losing your hard-earned money in a bad investment.

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      • #63
        Originally posted by Peerless View Post
        I don't think it's a good idea to pull anything from your retirement portfolio unless it's a major emergency.

        Making investing a 'gambling' experience can be a risky road. Some people can do it right, but most people lose.

        I recommend reading about low cost index funds. Building wealth won't happen overnight obviously - but over the long course. Think of it as a marathon verses a race. Index fund investing is better than investing in individual stocks because it keeps costs low, removes the need to constantly study earnings reports from companies, keeps things diversified, and almost certainly results in being "average", which is far preferable to losing your hard-earned money in a bad investment.

        I do understand your point about not pulling from a retirement fund unless it is an emergency. One of my biggest fears has always been what if the economy takes a dive and I lost my house. Everyday I see more and more homeless and think if I took a loan against the 401k and paid off the mortgage I will never lose the roof over my head. At the same time, I know when your in the last few years of your mortgage you are paying more principle than interest and wonder if it's worth it.

        I wouldn't say I gamble with my 401k. I spread it out pretty evenly across many funds. I do agree in terms of long term investing, funds are a better investment than an individual stocks. I do have a small separate account I've played with for about five years and have only had a couple times I lost money. I don't put all my eggs in one basket. I am by no means wealthy, but can't help but be happy each time I get a good return on something small. A good return for me is when I spend 50 or 75 and have a couple hundred not far down the road.
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        Adopted Bronco - 2017/18 - Chris Harris Jr. # 25 :nono: to every player he covers
        Adopted Bronco - 2018/19 - Derek Wolfe
        Adopted Bronco - 2019/20 - Shelby Harris
        Adopted Bronco - 2020/21 - Courtland Sutton

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        • #64
          As Brent says J, only if an emergency do you want to take from your retirement plan. The problem with retirement is that unless you want to go back to work, a person may only have income streams that barely fit their needs, and are typically not aligned with inflation (outside of their investments tied to the markets). You want to have enough, whatever that might be, and rest comfortable that retirement will not equate to having to earn more money.

          I do understand how a home, which is usually the biggest cost we may have, is a priority. But if you can foresee a reasonable timeline to paying it off, and within a decent budget, it may be wiser to avoid depleting of retirement funds.

          But as Brent has mentioned, some folks have done what you proposed and it worked out well.

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          • #65
            Originally posted by Sophia23 View Post
            I do understand your point about not pulling from a retirement fund unless it is an emergency. One of my biggest fears has always been what if the economy takes a dive and I lost my house. Everyday I see more and more homeless and think if I took a loan against the 401k and paid off the mortgage I will never lose the roof over my head. At the same time, I know when your in the last few years of your mortgage you are paying more principle than interest and wonder if it's worth it.

            I wouldn't say I gamble with my 401k. I spread it out pretty evenly across many funds. I do agree in terms of long term investing, funds are a better investment than an individual stocks. I do have a small separate account I've played with for about five years and have only had a couple times I lost money. I don't put all my eggs in one basket. I am by no means wealthy, but can't help but be happy each time I get a good return on something small. A good return for me is when I spend 50 or 75 and have a couple hundred not far down the road.
            I agree. With the current economy - you never know when you could lose your job, get furloughed, etc.

            Do you have any sort of emergency fund set up in place to help supplement a job loss? Usually a emergency fund should be expenses saved that could cover 3-6months of expenses (mortgagee, bills, food, etc) in case of a job loss, thus preventing you to pull from your hard earned retirement savings...

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            • #66
              Originally posted by Peerless View Post
              I agree. With the current economy - you never know when you could lose your job, get furloughed, etc.

              Do you have any sort of emergency fund set up in place to help supplement a job loss? Usually a emergency fund should be expenses saved that could cover 3-6months of expenses (mortgagee, bills, food, etc) in case of a job loss, thus preventing you to pull from your hard earned retirement savings...
              I got one of those. I call it the emergency no wife access fund. lmao.

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              • #67
                Originally posted by Peerless View Post
                I agree. With the current economy - you never know when you could lose your job, get furloughed, etc.

                Do you have any sort of emergency fund set up in place to help supplement a job loss? Usually a emergency fund should be expenses saved that could cover 3-6months of expenses (mortgagee, bills, food, etc) in case of a job loss, thus preventing you to pull from your hard earned retirement savings...
                It's called my fun money stock account. I've pulled from it quite a few times when I've had an unexpected expense, rather than going into debt. Aside from that though, we often save for a long time for something we want, because we don't want to go into debt over a something that's not a necessity. More often than not though, once we get close to what we are saving for is usually when we get hit with a major expense or emergency and the savings goes towards that. Then we think we are starting over again, but at the same time at least we had enough to cover ourselves. What would happen if we actually were able to spend that savings on what it was saved before the event happened that cost our savings, I don't know never seems to work out that way.
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                Adopted Bronco - 2017/18 - Chris Harris Jr. # 25 :nono: to every player he covers
                Adopted Bronco - 2018/19 - Derek Wolfe
                Adopted Bronco - 2019/20 - Shelby Harris
                Adopted Bronco - 2020/21 - Courtland Sutton

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                • #68
                  Originally posted by Spice 1 View Post
                  I got one of those. I call it the emergency no wife access fund. lmao.
                  Ha!

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                  • #69
                    Get on the gold and silver train before its too late!!!

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                    • #70
                      Originally posted by johntbronco View Post
                      Get on the gold and silver train before its too late!!!

                      I wouldn't smile around strangers if I had this goldmine!!!!

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                      • #71
                        I'm actually surprised last Friday ended green. Looks like a good start to Monday and August today.

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                        • #72
                          Originally posted by Peerless View Post
                          I'm actually surprised last Friday ended green. Looks like a good start to Monday and August today.
                          I see trends this year when there are lifts in the marketplace whenever stimulus packages are being discussed, and when other temporary good news is out there, which to me is a bit weak in terms of longer term recovery. BUT....if the market is not overreacting rather than building it into expectations, I am good to go!

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                          • #73
                            Originally posted by CanDB View Post
                            I see trends this year when there are lifts in the marketplace whenever stimulus packages are being discussed, and when other temporary good news is out there, which to me is a bit weak in terms of longer term recovery. BUT....if the market is not overreacting rather than building it into expectations, I am good to go!
                            Yeah I see those trends as well. Market up currently 1% today - which is great.

                            Still is weird of 'why' it is up. Doesn't make sense...

                            I mean look at single hot stock such as Disney, who reported a $5 billion quarterly loss yesterday. Today they are up 10!%

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                            • #74
                              Originally posted by johntbronco View Post
                              Get on the gold and silver train before its too late!!!

                              made 2k in silver the last 2 days, i meant to buy it early last month a never did it. kicking my self now.
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                              BCMB Div I - AB's Etsy Shop | BCMB FF Smackdown - Cold Feet

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                              • #75
                                Originally posted by Peerless View Post
                                Yeah I see those trends as well. Market up currently 1% today - which is great.

                                Still is weird of 'why' it is up. Doesn't make sense...

                                I mean look at single hot stock such as Disney, who reported a $5 billion quarterly loss yesterday. Today they are up 10!%
                                I love what is going on, but as we have discussed, I don't get it. If we look ahead 6 months, does the current market situation look accurate, as in, life will be rainbows and candy? Yes, I believe the covid sitation could improve significantly, but it may not. But what about world economics, trade issues, and the likelihood that a lot of businesses are close to bankruptcy? If you looked back in time, I've seen times that looked better and the markets were not responding. Could this be emotional more so than concrete?

                                And even so, when does debt factor in? Printing money is not a simple fix in terms of long term success. It's usually a temporary stimulus, to get you through tough times.

                                BUT....I hope this continues.

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