Budget Be Damned

[letsgetsailing3]

Originally Posted by Trimaran Ken

Markets (in the US) don't go down 60%, but high flying investments do.

FOMO (Fear Of Missing Out) and greed when you see others making giant returns on investment causes stupid people to ignore the risk and jump into things they don't fully understand. Some make large amounts of money, and some loose everything.

Years ago, a friend of mine was into some sort of oil drilling investment. I don't think he really understood all the ins and outs, all he knew was that he was making a lot more than the S&P. Then it all collapsed.

If you don't want to learn enough to be an investment expert, get several conservative mutual funds, and let your money grow slowly.

Ken
===

That's more due to lack of diversification than the market, then. You can lose a lot of money in stocks even when the market is good.

[valhalla360]

Originally Posted by Trimaran Ken

Markets (in the US) don't go down 60%, but high flying investments do.

That was my point. Kenomac gave us examples of extreme losses that don't line up with what the markets (stock or real-estate) did...so my comment about the "rest of the story".

Sure if you do really risky investments, you can lose far more than the market average.

Kind of like 15euro a day cruising on a large high end boat...it's only useful information when you hear....the rest of the story.

[sailorboy1]

wonder what the chances are for this to get off the investment battle and back to talking boating/cruising

if anyone here is reading this for investment advice, to either get or give, well .....

[Sailor 99]

Originally Posted by Kenomac

Back in 2006, we met a guy who claimed that he was “all set and retired with 8 rental properties down in Florida;” another customer I knew had over $1,000,000 in his retirement account that was invested in stocks... he’d just retired.

2008.... all eight of the first guy’s rental properties were being auctioned off by the bank along with his 9th which was his primary residence, and the newly retired guy who now had only $400k remaining in stock was looking for a job in a very down job market at age 62.... hopeless, for someone in engineering at the time. His wife’s horses were up for sale.

Well when your over leveraged this kind of stuff happens.



I knew a guy had a nice condo, said he had a million dollars investments. It was 50% margin and when the market tanked he lost everything and was living in his dad's basement.


My barber lost 600k through margins and puts and his condo in Florida.



I lost zero. Nada. Not one thin dime because we did not sell. We also only invest in blue chip dividend paying growth stocks. So we don't need to sell.



Anyone can buy weed stocks and make a killing next week and loose it all the week after. That's easy.


If your out cruising you want nice stable investments that require no monitoring and take care of themselves. You don't want to stop for fuel and find out that your ATM is broken.

[pt49]

Originally Posted by Dark Horse

Well when your over leveraged this kind of stuff happens.




If your out cruising you want nice stable investments that require no monitoring and take care of themselves. You don't want to stop for fuel and find out that your ATM is broken.

THE BEST STATEMENT IN THIS WHOLE DAMMED THREAD.

[sailorboy1]

I got all semi depressed back in May when Trump opened his mouth and the market dropped. That crushed me to the point my assets were at only 7.1% growth for the year (but it was only May). So I stuck it out for the long haul into June and hit a new high on the bounce and am now 13% up (and it's only June). If I lose half that increased amount and only end up being up 6.5% you know what that means??? It means it was a good year, especially as my planning assumes only a 3% yearly increase.

I spent some time last week drilling down into my investments more than I have in past. I found the "dogs" in my assets are the "cash" type accounts. Started to get itchy wanting to move those into something that "makes money" till I got back to wanting balance and a certain degree of "safe" money buffer.

Only eaten dinner out once the past 14 days now. I'm getting concerned this is going to start a market crash. So people out out and spend some money and help keep the engine fueled and running!

[valhalla360]

Originally Posted by sailorboy1

I got all semi depressed back in May when Trump opened his mouth and the market dropped. That crushed me to the point my assets were at only 7.1% growth for the year (but it was only May). So I stuck it out for the long haul into June and hit a new high on the bounce and am now 13% up (and it's only June). If I lose half that increased amount and only end up being up 6.5% you know what that means??? It means it was a good year, especially as my planning assumes only a 3% yearly increase.

I spent some time last week drilling down into my investments more than I have in past. I found the "dogs" in my assets are the "cash" type accounts. Started to get itchy wanting to move those into something that "makes money" till I got back to wanting balance and a certain degree of "safe" money buffer.

Only eaten dinner out once the past 14 days now. I'm getting concerned this is going to start a market crash. So people out out and spend some money and help keep the engine fueled and running!

Markets go up and down but in the long run more up than down.

Someone saying something may have a short term impact but as long as you don't panic and do something stupid, it won't have a lasting impact...unless you sell based on it.

Keeping some money out in cash equivalents is good as a hedge against a market drop. If you have 2-3 yrs of expenses outside the market, if there is a drop, that allows you to ride out the drop. If you are liquidating market assets during a downturn, it can magnify the losses.

[Breaking Waves]

US investments are one area where there is actually good data if you care to look . . .

[sailorboy1]

well those of us that bought their first home in the early 1980s on a "good deal" VA loan that had fixed mortgage interest rate of 12.5% certainly understand that chart

[chowdan]

Originally Posted by sailorboy1

well those of us that bought their first home in the early 1980s on a "good deal" VA loan that had fixed mortgage interest rate of 12.5% certainly understand that chart

Oof 12.5? That's a screaming deal. Lol

Curious to see how, with inflation and interest, how that stacks up to comparable homes of today? In Seattle I would imagine due to the housing boom, that would be a good deal, even with the low rates of today - mainly because of the sheer amount of money here.

I do believe we are due for a market correction. I believe people in the industry I work in are significantly over paid(base salary for mid to senior level positions being 200k-400k/year).

That being said as long as the money machine keeps printing money, we will consistently keep growing - and there has been no signs that I've seen that will happen

[sailorboy1]

Originally Posted by chowdan

I do believe we are due for a market correction. I believe people in the industry I work in are significantly over paid(base salary for mid to senior level positions being 200k-400k/year).

We had a correction just a year or so ago

I acturally think wages are stuck. I'm surprised they aren't growing given that the unemployment rate is so low. It's because wages are so low really overall given the economic and employment conditions that we aren't in explosive inflation. This is why the Fed keeps talking about rate increases because they are concerned that suddenly wages are going to increase and people are going to go out and spend and inflation will begin. Raising rates puts a damper on that (how a VA mortgage loan in the 80s was 12.5% interest)

That's the economic marco outlook from a fat man on a boat

[a64pilot]

What is the interest rate on your house your renting your Daughter?
Why didn’t you refinance that 12.5% loan, I wasn’t in the housing market then, but if memory serves in 1980 that was a pretty good deal.
Late 70’s we built a Mobile Home park, many people due to the costs were buying Mobile Homes as opposed to stick built, they just couldn’t afford nearly 20% loans.
https://finance.yahoo.com/blogs/just...152241574.html

[sailorboy1]

Originally Posted by a64pilot

What is the interest rate on your house your renting your Daughter?
Why didn’t you refinance that 12.5% loan, I wasn’t in the housing market then, but if memory serves in 1980 that was a pretty good deal.
Late 70’s we built a Mobile Home park, many people due to the costs were buying Mobile Homes as opposed to stick built, they just couldn’t afford nearly 20% loans.
https://finance.yahoo.com/blogs/just...152241574.html

The house my daughter is renting from me is 0% interest as I paid cash for it. I'm making 6% return on the rental and she is saving $400/mo in rent. The house itself is worth at least 30% more more than what I paid, but the deal was she gets to buy at what I paid when she is ready.

Was only in the 12.5% interest house 2.5 years. Was gone 300 days of each of those years so hard to chase a refinance. I remember coming home from sea after a week not knowing where we now lived. Sold it and got a "better" deal on the next house at 9-1/8% on a variable. That was such a big interest difference that the second house was 50% more cost that the first for hardly any $/mo. That interest rate hit 11% once and then dropped and dropped till it was like 2.5% 18 years later when I sold it.

[pt49]

I decided to buy Bitcoin Dec 15th @ $3,200... the best investment I have made in my life (apart from learning to analyze candlestick patterns).

[daletournier]

Originally Posted by pt49

I decided to buy Bitcoin Dec 15th @ $3,200... the best investment I have made in my life (apart from learning to analyze candlestick patterns).

I'm not a Bitcoin fan for a number of reasons, main reason is I feel it's nothing but speculation BUT I considering taking a punt approx 3 months back but didn't have the guts, bummer for me and absolutely great for you, don't get those sorts of often .

When do you sell, how do you decide that?