Investing General Discussion
- Thread starter Furious
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Guest, did you like the last podcast notification?? Well here's the second one, and for the third podcast! Yep. This Thursday 8-8-24 at 7pm Central
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Kithani
Blackwing Lair Raider
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If only my paycheck didn’t come in these shitty inflated dollars
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Mist
Eeyore Enthusiast
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This is the investing thread not the paycheck thread.If only my paycheck didn’t come in these shitty inflated dollars
Regardless, you want to be putting your dollars into something that's not a losing position, like
Blazin
said. The dollar is almost always a losing position, sometimes losing faster than others.
The_Black_Log Foler
PalsCo CEO - Stock Pals | Pantheon Pals
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SPAXX at the leastThis is the investing thread not the paycheck thread.
Regardless, you want to be putting your dollars into something that's not a losing position, like
Flobee
Vyemm Raider
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Quick counterpoint to the "holding dollars is a losing position" point. If your debt/expenses are denominated in dollars you should probably hold a significant amount of dollars. How significant is arguable ( I prefer a year or more personally ), but being "all-in" on assets is risky.
I fully expect inflation to continue raging and I'm positioned for it, but hold quite a bit of cash for the above reason as well as to have powder for buying the downward rips that I would expect during a heavy inflation period, see Weimar gold value chart for example. My 2c I'd having a lot of cash and a lot of inflation sensitive assets (barbell strategy) is a safe/winning move right now
I fully expect inflation to continue raging and I'm positioned for it, but hold quite a bit of cash for the above reason as well as to have powder for buying the downward rips that I would expect during a heavy inflation period, see Weimar gold value chart for example. My 2c I'd having a lot of cash and a lot of inflation sensitive assets (barbell strategy) is a safe/winning move right now
tugofpeace
Trakanon Raider
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My problem is I'm cash heavy but don't own anything physical. Doesn't make sense to buy a home since I'm single (but I have enough cash for it) and also doesn't make sense for me to buy a car since I plan on living in a city. Only thing I can think of is to DCA into gold.
Sitting on probably $150k cash by year end and $200k or so by end of next year. Thought of buying myself a luxury car with 0 down at 2% apr because I had the odd idea that it would actually turn into an appreciating asset with dollar devaluation.
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Blazin
Creative Title
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There is a little known secret asset called the S&P 500 that gives fractional share ownership in many of the worlds largest corporations.
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ToeMissile
Pronouns: zie/zhem/zer
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You could at least throw most of that into a short term cd if you don’t have immediate plans for it. You’re basically throwing money in the fire at this point.
Sanrith Descartes
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Sanrith Descartes
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Treat the HSA like a bonus IRA that has the additional quality of withdrawals being tax-free for medical expenses. It also doesn't suffer from income-based contribution caps. If you can pay your medical bills out of current income, do so. I'd prioritize it above other forms of savings, unless your plan sucks and you can't invest in something approximating the S&P with a reasonable expense ratio.
FSAs are categorically inferior to HSAs. The "use it or lose it" variety should be illegal.
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Jysin
Ahn'Qiraj Raider
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At no point whatsoever is a car an appreciating "asset". Unless you are into some very specific 7 figure cars, there is little exception. Even if you have a pristine mint museum quality car, by the time you have subtracted all of the decades of money spent on insurance, maintenance, storage, etc .. the opportunity cost of that money, you are absolutely miles behind what you ever would have had simply DCA into an index fund.
There is very little exception out there outside of ultra rare exotics / low production oddities.
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tugofpeace
Trakanon Raider
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I should've been more detailed in my response. My cash is always sitting in a HYSA which yields about 4.5%. Not only that but I do DCA into VTI/VXUS every month so I have a position there.
The idea behind the car is that it's something I will need eventually. If I buy it now and carry the debt at a low interest rate, over time as the dollar devalues it will get easier and easier to pay off that loan. Not only that but the car has intrinsic value, while the dollar doesn't.
I would also point you to a year or two ago when used cars were selling for ridiculous prices. They actually did appreciate as far as I know.
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Not over new cars. Most cars depreciate 20% as soon as you get them off the lot. The only exceptions are collectibles of the type that you aren't going to be buying.
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TJT
Mr. Poopybutthole
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This. The order I always go by is this in terms of priority.
HSA->401k->IRA
I have plenty of cashflow to pay any costs I have from current income. So it just grows. I have a lot money just in HSA I continue to contribute to. Having maxed out contributions to it since 2013.
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TJT
Mr. Poopybutthole
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I will add that my wife uses a FSA for childcare because its essentially a free $1k off of taxable income that was going to be spent anyway. In these cases its good to have a FSA.
Most FSAs I've ever seen top out at fairly small amounts though.
Most FSAs I've ever seen top out at fairly small amounts though.
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If you want to take advantage of debt and the devaluation of the dollar via inflation, don't look at cars, look at real estate.
Income producing real estate to be specific. Look around on loopnet and see what's available. $150K would be a good down payment on an income producing property, and then you can use that cash flow to add to other positions while your debt gets inflated away. Though the timing on that for min/maxing might be tricky with current interest rates. I think banks are in the 6.5-7.5% rate range on loans right now.
PROTIP: I would avoid any kind of property where people live there though, such as housing rentals or apartments or what not, depending on your state's rules on evictions which can really bite you as a landlord. Look at mini-storages and industrial and commercial buildings.
Income producing real estate to be specific. Look around on loopnet and see what's available. $150K would be a good down payment on an income producing property, and then you can use that cash flow to add to other positions while your debt gets inflated away. Though the timing on that for min/maxing might be tricky with current interest rates. I think banks are in the 6.5-7.5% rate range on loans right now.
PROTIP: I would avoid any kind of property where people live there though, such as housing rentals or apartments or what not, depending on your state's rules on evictions which can really bite you as a landlord. Look at mini-storages and industrial and commercial buildings.
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Sanrith Descartes
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Storage lots are one of the best $$/square foot investments you can make. The one big downside is the total lack of scalability. Once you hit 100% occupancy you are at the ceiling. You need capital outlay to grow. Commercials are 100% > than residential rentals on so many levels.
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