 What is this stock market term again? |
| It's the time of year. 4 times a year i think. when all the companies release their reports on how they did in the past season? thanks for answers.... |
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 What should i invest in?good time to buy shares? |
| at this moment in time? whats best wya to make money ... |
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 Is dollar cost averaging an approach that works well in a bear market? |
Is the any adjustment that one should make to this approach in a bear market?
Additional Details
My timeline is still 35 years, so my goals are relatively long term.... |
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 Will the price of gold continue to go up? |
| I was wondering if anyone could make an educated prediction on weather or not the price of gold will continue to go up? If so can someone please state why and please only respond with serious answers.... |
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 Why do people pay for stock pick information? |
If the stock "picks" are real or correct why would you tell anybody. The same goes for get rich quick scams - if it worked why don't THEY do it.
IBD 100 picks this week:
... |
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 I want to buy share within 5000 rupees. which type of shares should i buy??? |
i want to buy share within 5000 rupees. which type of shares should i buy???
which company now is good???... |
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 Where on the internet can I do practice trading? |
| Where can I do some practice trading (where I monitor real stocks but don't I don't put in any of my money yet)? I just "paper trade", but do it as if it is real online trading.... |
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 A million dollars or family witch would you chose? |
Additional Details
I would defenetly chose family!! No amount of money can buy ... |
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 Can somebody tell me what the point is to a stockbroker? |
Sure they make money for you during a bull market, but than they lose it all and more when the bear comes a calling
So what is the point to their existence?... |
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 Any advice on how to get into the online FOREX market,and or/other online trading markets? |
| I'm wanting to b able to control trades,with only a small amount of $ to begin with.Hopefully I can gain an understanding of trading online,my present day earning potential isn't that great,... |
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 How can i get low interest loans for a very profitable business ? |
Additional Details
from bank i have already tried they are expecting some colateral securities so i am expecting money depending on my business who is ready to pay money for me?... |
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 Fidelity, T Rowe Price or Vanguard for Roth IRA? |
| I am planning to open a Roth IRA before this year ends, I’m 25 year-old and plan to invest in one of those target date retirement, is that a good idea or should I make up my own portfolio consisted ... |
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ericargyle | I have $110000, am in the market for a $180000 house. How much should I put towards equity? Invest in market? |
I have $110,000 dollars in liquid funds. I'm in the market to buy a $180,000 house with my fiance. I would like to know how much I should put into home equity in the form of a down payment, and how much to keep out in CDs, Money Markets, stocks, etc. Bear in mind, besides this 110 liquid, I currently have $50,000 in mutual funds, and $3,000 in stocks. How do I get the best bang for my buck? |
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redwine
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Bravo, well done on the savings front. You need to answer how aggressive or conservative you are. I think you need to consider that your mortgage interest is one of the last deductions allowed by the government, so your true cost of debt is less than the rate that you pay, b/c the gov't gives you the deduction. If you think you can earn more than the after tax rate of interest on your mortgage, you should have a bigger mortgage and invest the most that you can in the markets. Of course, that killed a bunch of people, so put at least 20% down, make sure that the payment does not kill you on a month to month basis and continue investing. You know how to do that already, since you have almost $60k saved in the markets. tba |
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the d
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take it all out, pay cash for the house, worry about monthly payments never! |
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nickthaniel1
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20% down. Don't forget about closing costs. |
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Nick Z
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A debt is a debt regardless of how you choose to look at it. Investing borrowed money in the stock market is a risky thing to do. And that's what you will end doing, if you keep investing in the stock market by getting a larger mortgage for your house.
If the economy turns really bad. Then you may loose your regular income, your investments may decrease in value substantially. And you may have difficulty paying for your house.
It's worst case scenario. But it can happen. And if you are not prepared for it. Then you may end up loosing your house in a foreclosure.
I suggest that you cash in all of your investments and pay off your smaller mortgage as soon as you can. |
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Krystal F
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What about putting $90,000 toward the house (1/2 cost of the house), and use the remaining $20,000 to invest? You would have a small monthly mortgage payment, a tax deduction for many years, as well as peace of mind... |
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Feeling Mutual
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It depends on the loan interest rate and how good you are with your investments.
If you put $110,000 into investment, stocks, and other investments, and your monthly return is equal to or greater than the monthly loan payment, it is better to keep your investments. They will pay for the house, and it will be essentially FREE. Plus, the loan interest payments are 100% tax deductable.
If you put at least 20% down, you will have at least 20% equity in the home, and a lower interest rate, plus pay 20% less in interest over the life of the loan.
The best thing is somewhere in the middle.
Home prices and sales suck right now. So I imagine that any equity will grow at at least 10% per year. Even better, talk them down another 5% and get that much more equity. |
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Counselor Ken
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I would put $36,000 down on the house. That gives you 20% equity, and that should allow you to avoid having to pay PMI (mortgage insurance). If you're a savvy investor, you can make enough returns investing in stocks and bonds to make up for your higher house payment (but not if you put the money into CDs and money market accounts... those don't pay nearly enough interest.)
However, if you feel that stocks and bonds are too risky for you, or if you're not willing to spend the effort in researching and keeping up with your investments, then paying more principal on your house is a relatively safe investment.
Of course, you should keep enough in liquid funds to handle unexpected expenses. And believe me, when you own a home, unexpected expenses come often (fixing the roof, fixing the air conditioner, getting rid of pests, etc.) |
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May Derrek
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Hello,
I also had a similair problem as you have.
I had a good amount of money, and wanted it to grow.
So I looked around on the internet to find something that is:
1) giving me great returns towards a relatively small risk
2) Professional people who know what they where doing with my money.
I'm glad to say I finally found a moneymanager who is capable of giving me good returns and give me a great support.
On this blog you can follow up all the results that he is making:
http://my-robottrader.blogspot.com/
My money is working for me, in a little over two months I already have a ROI of 69%.
So you don't hear me complaining!
Annyway if you would like to get in touch with my moneymanager to have some more information feel free to contact me you can send an email to me at derrekmay at gmail.com.
Then I'll give you the email adress of my moneymanager
Hope this has helped you! |
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Ted
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Mortgages are going for about 6% and the long term return on the stock market is about 8%, so there is a 2% spead in your favor. Actually, the mortgage interest is deductable in the year paid and the gains on the stock are deferred until you sell the stock, and then you get a favorable long-term capital gains rate, so you are even better off than the 2%.
I would put down at least 20% plus paying closing costs. This avoids the need for Private Mortgage Insurance as well as putting yourself in a better customer class for a better rate.
Beyond that, as little as possible, if you can afford the payment. |
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MM
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Generally speaking, its financially better to have as little debt as possible when the alternative would not give better return.
Mortgage rates I believe are around 6.5% and CD rates are around 3.5%. So its better to minimize the debt (take out as small a loan as possible) rather than putting the cash in a CD.
Money market would give you an even smaller rate, so that's pointless.
Stocks are a crap shoot as you probably know. As for it being "8% long term returns", well if you average it out over the entire history, yeah. But history shows vast periods in the market where it took extremely long amounts of time for any positive return to occur. For example, it took the market 25 years from 1929 to 1954 where it had "negative returns."
We're in a bear market/recession right now, which means that it is very foolish to invest in the stock market at this time.
As for "mortgage interest" yes everyone knows its deductible, but the tax benefit is quite miniscule compared to how much you're shelling out every month to pay it. Apparently nobody sits down to do the calculations and compare how much better it is to take as small a loan as you can (or no loan at all, even better.)
Now the only time debt is good is when there's a high expectation of the value of the investment increasing beyond the amount of money you pay into the debt. But in this housing market, appreciation is probably impossible. Depreciation is probaby likely. So there's no point in leveraging your investment (ie. financing a large part of your purchase.)
Now based on what you've said, it doesn't sound like you have any savings, so you'd better put a little money aside in a money market account for "emergency" use. A lot of financial planners will tell you to put aside enough cash for 3 - 6 months living expenses. I would say that's probably good advice. If you have a real stable job, like in the Government or something, and you've got good disability and health insurance, then you could put aside less.
I don't know how much you're living expenses are, so let's just pick a number and say "$30,000." Put it into a money market or short term CD. Take the rest ($80K) and use it as the downpayment on your home. |
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