So in this economy, how are your holdings?

ZRH said:
You know why? Because ARM (adjustable rate) mortgages are RISKY. Regular mortgages, are FIXED, you pay the market price for them. The rate does change, but it's secure, if you can afford then, then you can afford it as long as you make money.

If you LOSE YOUR JOB. You file for BANKRUPTCY. Guess what. You get to keep your house. That's why it's called 'protection.' It is more expensive for a bank to repossess a house than it is for them to work it out in most cases.

The recent problem was caused by having A LOT of money sunk into high risk debtors. People with ARM mortgages who couldnt afford them once the rates go up. So then you have no choice but to foreclose and then it snowballs and banks start bleeding money and so on.

Bottom line. If you are greedy and get a Balloon or ARM mortgage you are setting yourself up for failure because interest rates do double. If they didnt, I couldnt get new computer parts by cashing bonds kek.
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bankruptcy takes your house here. i thought florida was the only state that let you keep your house.
 
and how do y'all best learn about all this stuff? did you take a class? pick up fortune magazine? how do you figure out what all this stuff means?
 
Thorn Bird said:
and how do y'all best learn about all this stuff? did you take a class? pick up fortune magazine? how do you figure out what all this stuff means?
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The way I learn is to browse the internet. I google a word or phrase then start hitting links. Read what there is and then see what else is there. It really is the best way (at least for me)
 
Coqui said:
Saying it's not hard doesn't mean it's easy. You still have to do research and the thing why a lot of people don't do it or do it badly is either lack of researching or greed.
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There are people that are paid a lot of money every year to try and beat the market. On average, can you guess how many do? That's right, about 50%.

No stock splits don't really make money, but they give you more stocks so if you sell said stock you get more money.
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If I have 100 shares of a $4 stock and it splits to $2, I still have $400 of stock. If the price of the stock goes up or down, its still the exact same percentage. Splits mean nothing.

Yes this is all in an IRA so it's all tax free (for now). So yes I know I'm not making money yet. I don't make money until I sell the stock. Just like I don't lose money until I sell the stock.
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Ahhh, good plan. Then general rule is to max: 401k, roth, traditional, and THEN get a taxable account.

And yes I know what the market will do. It's going to go up. It always goes up. The thing that's unknown is when is it going to go up, and how far it will go down before it goes up.
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Generally, the market trends up. The market does. However, individual stocks are MUCH more risky.

It isn't stupid to invest in a single stock and hold that stock for a long time. Lots of people do it and are sucessful in it. Now it's stupid to put all your money in that one stock yes.
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And lots of people do it and are unsuccesful. About 50%. And really, this is your future savings for your family. Is your family's future really worth the risk?

Again I'm not looking at short term gains. Out of the 4 individual stocks I'm investing in (I do still have more money in a market fund) I plan on holding 3 of them until I retire. The 4th, I'm holding until I feel they reach their actual value as I felt they were severely undervalued. The other three I'm keeping for the continued dividends. If I get splits with those stocks, that's more dividends.
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And what if they start to tank because something has replaced them? Or they've been badly managed? Or they have a huge recall? Or strikes? Or victims of terrorism? In those cases, and many others, you're in a world of shit...




And....
ZRH said:
You know why? Because ARM (adjustable rate) mortgages are RISKY. Regular mortgages, are FIXED, you pay the market price for them. The rate does change, but it's secure, if you can afford then, then you can afford it as long as you make money.
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ARMs are NOT risky. Not knowing ARMs is risky. There are many cases where ARMs work out better. You're paying less interest at the beginning (which is the most expensive part of the mortgage). Additionally, there are limits of how much it can go up or down at a time, and also limits over the length of the mortgage. If you're smart, they can be a good investment. If you're also lucky, they can be a real good investment.

edit: I <3 financial talk. Somewhat offtopic, but related to finanace. I just finished reading an aweseom thread on the pros and cons of a fiat currency at fatwallet finance.
http://www.fatwallet.com/forums/finance/918471/
If you're bored, its a good read.
 
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fly said:
And what if they start to tank because something has replaced them? Or they've been badly managed? Or they have a huge recall? Or strikes? Or victims of terrorism? In those cases, and many others, you're in a world of sh*t....
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Which goes back to only investing in what you know.

For example, one of my stocks:

Nothing will replace the items I've invested in for a long time. I'll have plenty of time to switch once viable options start to come out. Yes it sas a possibility for bad management, but signs will be in the news before the stock takes a hit for those that know what they're looking for. I also know they're a non-union shop so no possibility of strikes. Where the majority of the work is done, the chances of terrorism are slim to none.

Again, yes there are unforseen factors, and yes I know it's a gamble, but I'm confident in the choices I made.
 
fly said:
If I have 100 shares of a $4 stock and it splits to $2, I still have $400 of stock. If the price of the stock goes up or down, its still the exact same percentage. Splits mean nothing.
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With the way the market tends to react, that $2 quickly becomes $4.

There are companies that don't want their stock prices to get too high. Splits answer that. So in essence it is doubling your money if it's in a well managed company.
 
ChikkenNoodul said:
Fly, I think the point is - that ARM's are risky if you can't afford for your monthly payment to double. Which is what happened when people treated it like a fixed and budgeted around it accordingly.
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The problem is that people were talked into ARMs my mortgage brokers; convinced that increases in real estate value would pay for the ARm and when it was due, just refinance.
 
Coqui said:
Which goes back to only investing in what you know.

For example, one of my stocks:

Nothing will replace the items I've invested in for a long time. I'll have plenty of time to switch once viable options start to come out. Yes it sas a possibility for bad management, but signs will be in the news before the stock takes a hit for those that know what they're looking for. I also know they're a non-union shop so no possibility of strikes. Where the majority of the work is done, the chances of terrorism are slim to none.

Again, yes there are unforseen factors, and yes I know it's a gamble, but I'm confident in the choices I made.
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Remember Enron? I'm just saying...
Coqui said:
With the way the market tends to react, that $2 quickly becomes $4.

There are companies that don't want their stock prices to get too high. Splits answer that. So in essence it is doubling your money if it's in a well managed company.
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No, it isn't. It's doubling the stock for the same price. Splitting stock does NOT increase its value.

Can you find error in this article? http://www.investopedia.com/articles/01/072501.asp
 
ChikkenNoodul said:
Fly, I think the point is - that ARM's are risky if you can't afford for your monthly payment to double. Which is what happened when people treated it like a fixed and budgeted around it accordingly.
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100% agree. However, that either shady lending or dumb buyers, not the ARM itself.
 
inline4 said:
up about 30% with mah sprint stock (cost basis don't ask about my first purchase)
Visa stock is up about 8%
jblu is still down about 35% but moving on up.

All long term holds. My Vanguard 401k is down about 25% over the past 2 years
my brand new 401k with usaa is up about 15% but seeing as it's only been a few months, theres really nothing in there.

NOW ask me about my real estate investment in good o'l sunny florida, you want the ZILLOW estimate or the true market analysis i have done every month (through my management company)
Zillow shows a 20% decrease in value
Market analysis shows a decrease of about 40-50%

Thank god for being young... and stupid... and in dbzeags case full of the white stuff
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I just heard about zillow yesterday.
 
inline4 said:
up about 30% with mah sprint stock (cost basis don't ask about my first purchase)
Visa stock is up about 8%
jblu is still down about 35% but moving on up.

All long term holds. My Vanguard 401k is down about 25% over the past 2 years
my brand new 401k with usaa is up about 15% but seeing as it's only been a few months, theres really nothing in there.

NOW ask me about my real estate investment in good o'l sunny florida, you want the ZILLOW estimate or the true market analysis i have done every month (through my management company)
Zillow shows a 20% decrease in value
Market analysis shows a decrease of about 40-50%

Thank god for being young... and stupid... and in dbzeags case full of the white stuff
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I have no idea what this means :confused:

I would, however, like to pimp to you out to bolster my 401K if you don't mind :heart:
 
ZRH said:
You know why? Because ARM (adjustable rate) mortgages are RISKY. Regular mortgages, are FIXED, you pay the market price for them. The rate does change, but it's secure, if you can afford then, then you can afford it as long as you make money.

If you LOSE YOUR JOB. You file for BANKRUPTCY. Guess what. You get to keep your house. That's why it's called 'protection.' It is more expensive for a bank to repossess a house than it is for them to work it out in most cases.

The recent problem was caused by having A LOT of money sunk into high risk debtors. People with ARM mortgages who couldnt afford them once the rates go up. So then you have no choice but to foreclose and then it snowballs and banks start bleeding money and so on.

Bottom line. If you are greedy and get a Balloon or ARM mortgage you are setting yourself up for failure because interest rates do double. If they didnt, I couldnt get new computer parts by cashing bonds kek.
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I agree my friend.
 
Enemy said:
I cant believe you remember it all considering you have no real life experience with it.
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I do. Shockingly. Ohhhh snap.

Thorn Bird said:
bankruptcy takes your house here. i thought florida was the only state that let you keep your house.
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Chapter 7 varies by state (on exempt items) but it lets you keep important stuff. You need a lawyer to help do it well.

Chapter 13 is relief from creditors. You get to keep everything in exchange for having a portion of your income go directly to creditors.

There are books and stuff. Finance is easy, it's incredibly boring though. Most states also have free info etc.
 
I just found out that a print I have on my wall is worth about $40,000 lol. And another one about $8,000. Is that what my holdings mean, I'm not sure :(
 
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