What Are You Doing Right Now
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Here is the simplest example... banks borrow money from the fed at 1%. They loan that money to customers at 2%.
Debt Rate: 1%
Opportunity Rate: 2%
Profit Delta: 1%The bank earns 1% on every penny of debt that it takes on. When opportunity exceeds debt rate, it's always beneficial. The bank literally earns 1% by taking on debt.
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So for the same idea... Take out a home equity loan at 3% and put in in Vanguard where my return will be say... 5 - 10 %?
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@dafyre said in What Are You Doing Right Now:
So for the same idea... Take out a home equity loan at 3% and put in in Vanguard where my return will be say... 5 - 10 %?
Exactly. Your profit is 2-3% while getting a tax benefit too!
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Free money!
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@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
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@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
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@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
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@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
I believe so. But you'd have to verify.
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@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
I believe so. But you'd have to verify.
Interesting. Are there any index funds (like Vangard, I think?) that will let you put cash in that you can withdraw at any time without penalty? [Note, I'm not talking about IRA or 401k type programs]
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@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
I believe so. But you'd have to verify.
Interesting. Are there any index funds (like Vangard, I think?) that will let you put cash in that you can withdraw at any time without penalty? [Note, I'm not talking about IRA or 401k type programs]
Vanguard definitely lets you cash out anytime. I think you can even write a check straight out of the account! It isn't instant like a savings account, takes like a day or two before the money comes out. But nearly instant.
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@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
I believe so. But you'd have to verify.
Interesting. Are there any index funds (like Vangard, I think?) that will let you put cash in that you can withdraw at any time without penalty? [Note, I'm not talking about IRA or 401k type programs]
Vanguard definitely lets you cash out anytime. I think you can even write a check straight out of the account! It isn't instant like a savings account, takes like a day or two before the money comes out. But nearly instant.
About two years ago, I started "investing" with LendingClub... I've seen a nice return on that (~9% over the two years)... I've had to raid the funds a time or two for emergencies, but it's a rather nice program. Once your balance reaches a certain limit, you can fire & forget... (it's only like $2,500... I'm not there yet, lol).
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@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
I believe so. But you'd have to verify.
Interesting. Are there any index funds (like Vangard, I think?) that will let you put cash in that you can withdraw at any time without penalty? [Note, I'm not talking about IRA or 401k type programs]
Vanguard definitely lets you cash out anytime. I think you can even write a check straight out of the account! It isn't instant like a savings account, takes like a day or two before the money comes out. But nearly instant.
About two years ago, I started "investing" with LendingClub... I've seen a nice return on that (~9% over the two years)... I've had to raid the funds a time or two for emergencies, but it's a rather nice program. Once your balance reaches a certain limit, you can fire & forget... (it's only like $2,500... I'm not there yet, lol).
Never looked at LendingClub. Didn't know that they did that.
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@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
I believe so. But you'd have to verify.
Interesting. Are there any index funds (like Vangard, I think?) that will let you put cash in that you can withdraw at any time without penalty? [Note, I'm not talking about IRA or 401k type programs]
Vanguard definitely lets you cash out anytime. I think you can even write a check straight out of the account! It isn't instant like a savings account, takes like a day or two before the money comes out. But nearly instant.
About two years ago, I started "investing" with LendingClub... I've seen a nice return on that (~9% over the two years)... I've had to raid the funds a time or two for emergencies, but it's a rather nice program. Once your balance reaches a certain limit, you can fire & forget... (it's only like $2,500... I'm not there yet, lol).
Never looked at LendingClub. Didn't know that they did that.
Yeah, it's pretty cool. It carries some risk of course... If folks don't pay their loan back, you don't get paid kinda thing... (In essence, it's crowd-funded loans).
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@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
If you make less than $116k as a single person and (I think) $183k as a couple you should be putting $5500 per year into a Roth IRA and using it as a container for mutual funds.
I do neither. No mutual funds, no retirement accounts
And by doing that is how I retired at 39.
Your earning potential far exceeded the mean income of a household though
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Bit of a headache, not feeling so productive.
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@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
If you make less than $116k as a single person and (I think) $183k as a couple you should be putting $5500 per year into a Roth IRA and using it as a container for mutual funds.
I do neither. No mutual funds, no retirement accounts
And by doing that is how I retired at 39.
Your earning potential far exceeded the mean income of a household though
But most people in my bracket can't retire at 39. Most of them lock up their investments and can't touch them till they are 65.
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@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
If you make less than $116k as a single person and (I think) $183k as a couple you should be putting $5500 per year into a Roth IRA and using it as a container for mutual funds.
I do neither. No mutual funds, no retirement accounts
And by doing that is how I retired at 39.
Also by making a whole lot more than $189K/yr (at least in the end).
Seriously though, because of your connections as well as your OJT, what did you invest in that gave you a great portfolio that allowed you to retire so young?
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Check out acorns. They round up any debit purchases you make and invest it for you into mutual funds. It's great. By the end of the year I can pay for my Christmas gifts with it.
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@Dashrender said in What Are You Doing Right Now:
Seriously though, because of your connections as well as your OJT, what did you invest in that gave you a great portfolio that allowed you to retire so young?
All of my investments went into Index Funds, real estate and direct business investments. None of the mutual funds, bonds and equities that most people do.
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@scottalanmiller said in What Are You Doing Right Now:
Bit of a headache, not feeling so productive.
Make sure to take the 50 cent aspirin.
