Let's Talk Money
General personal finance discussion.
@nicktalksmoney via Let's Talk Money.
The Fed is widely expected to NOT implement another interest rate hike at their meeting next week for the first time this year, though many economists still expect at least 1 more interest rate hike this year.
Does this mean we've made it through the worst of the inflation?
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firebomb
10 months, 2 weeks agoYea i think we are on the other side of the hill altho inflation can always come back
@nicktalksmoney via Let's Talk Money.
If you had $100,000 in cash right now, what would you do with it?
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Macrokurd
10 months, 3 weeks ago1y tbills at 5.25%..what's not to like!
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LB
10 months, 3 weeks agoPay off my mortgage
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Optimus Prime
10 months, 3 weeks agoETF mimicking bonds buying !
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mayday911us
10 months, 3 weeks agoInvested not only getting the standard stuff but the alternative Investments
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LB
10 months, 3 weeks ago@mayday911us Like what kind of alt investments ?
Tagged Users: mayday911us. -
mayday911us
10 months, 3 weeks ago@laurentb well you have wine whiskey art ptp lending preferred stock
Tagged Users: laurentb.
@nicktalksmoney via Let's Talk Money.
According to the 4% rule, you can "retire" and not ever need to work again by having 25x the amount of your annual spending invested in the stock market.
Example: if you spend $40k/year, you need $1 million invested to comfortably live off the interest in near-perpetuity.
How much do YOU need invested to never worry about money again (though, in reality, the goalposts nearly always shift as soon as you get close to your original goal)?
@nicktalksmoney via Let's Talk Money.
As of yesterday, mortgage rates are now over 7%.
To see what this means for homebuyers, let's compare the payments made on a $500k mortgage based on 2021, 2022, & today's mortgage rates:
2021 (2.96%): $2,097
2022 (5.34%): $2,789
Today (7.01%): $3,330
With monthly payments going up that much, it comes as no surprise that the number of people who think it’s a good time to buy a home recently hit a 45-year low.
Homeowners who locked in the low rates of the last decade are hesitant to sell, and current renters are getting cold feet from comparing today's rates with those of a couple years ago.
This has put the housing market in a strange place: there's little inventory, so despite the decreased demand, there hasn't been a significant correction in prices.
If you're considering whether or not to buy a house, you need to consider 2 things:
1) Realize that a personal residence is often far more of a liability than it is an asset. Sure, you build some equity, but it's often offset by the interest payments, repairs, taxes, and all the other fun expenses that come with home ownership.
Buying a home is a lifestyle choice that allows you to customize your living situation as much as you want & build lasting roots in your community, but don't expect it to return much more than a savings account.
2) Would you rather buy when rates are high & there's less competition, or when rates eventually fall & everyone is back in the market?
Mortgages can be refinanced when interest rates drop to reduce your monthly payment, the only concerns are that we don't know exactly when that'll happen & how housing prices will fluctuate in the meantime.
Do you plan on buying a house in the next year?
@nicktalksmoney via Let's Talk Money.
3 Money moves to make if you just graduated college🎓
1. Save up 6 months' worth of expenses in a high-yield savings account.
This is your emergency fund & will ensure you'll never live paycheck-to-paycheck.
2. Open & max out a Roth IRA (or your country's equivalent).
This is a retirement account that allows the funds inside to grow tax-free, and you can withdraw them tax-free after age 59.5.
3. Decide whether it's a smart idea to pay off your student loans early.
Federal student loans 1) are currently still deferred (& up to $20k may be cancelled per borrower), & 2) typically have fairly low interest rates.
If you don't know when payments will resume, how much you'll actually end up owing (in the case of forgiveness), and their interest rates are fairly low - why pay them off earlier than you need to?
Alternatives to paying them off early are:
Conservative approach - set aside the money you'd use to make student loan payments into a high yield savings account until payments eventually start up again.
Aggressive approach - invest the money you'd use to make excess student loan payments into the stock market & bet that you can earn a higher return than the interest you're being charged on your student loans.
How many of these 3 money moves are you making right now?
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