OT: remember the car-refinance thing?

[defpearlpilot]

BTW, some personal history of mine. My dad and my grandfather died at 50 and 52, respectively. I'm not waiting to to die at 50. I'm taking control of my finances but more importantly my health. It's up to you to take better care of yourself all around.

A healthy lifestyle doesn't/can't always completely overide genetics. You read stories about the healthnuts running and dropping dead of a heart attack, etc.

In some ways it's a blessing to drop dead early, and not leave your family members the burden of forking out $8000 or whatever it is a month for a nursing home when you're drooling all over yourself...

Yep, understood. I'm not really sure what happened with my grandfather other than that he died of a stroke. My dad's death was totally preventable.. heavy smoker coupled with a bad diet. Although he looked pretty healthy if you looked at him. My dad's mother is still kicking at 80.

 

[Bob Savage]

A healthy lifestyle doesn't/can't always completely overide genetics. You read stories about the healthnuts running and dropping dead of a heart attack, etc.

No, it "doesn't always" but one thing is for sure, if you decide that you're going to die early anyway and live like a pig because of it you'll certainly help accelerate your expectations.

But let's set aside longevity and consider the quality of life that taking care of yourself generally allows. If I'm planning on taking a dirt nap at 50, I certainly want to feel good while I'm here.

 

[kannibul]

Given that I'll be 31 next month, I figure I have another 35-40 years....

I probably won't stop working, unless I have to. There's also one other small factoid...no male in my family has lived to retirement. Usually 57-60...

So, in some ways, what's it worth? I could take out loans against it. I could empty it out every once in a while and drop 25-50% of it down in taxes...or I could just not bother and invest it in more liquidable assets.

Fuck me! Unbelievable strategy! I'll be completely revamping my portfolio allocations immediately!

Thanks!

Steve

It's realistic, FOR ME. I wouldn't recommend it to others.

In all seriousness, it's not realistic for you or anybody.

Steve

OK, whatever. Family history should never have any bearing...

Family history has EVERYTHING to do with it. Do you have any kids? Will you in the future? Will they go to college? Do you have siblings that have kids? What happens if they die and you are named as their guardian? Do you have parents that may need help? How about long term disability? I hope you dont think social security, medicare/medicade will help. Do you plan on retiring? What are your future goals? Would you like to go on that vacation to la-la land, but never thought you could afford it (start planning now). What happens if you wife gets a disability? What happens if you get laid off. What happend if you and your wife die? Who is going to pay for your funeral? Sure a lot of this may be chance...but all of this is family history.

Please dont get me wrong... I am trying to help you, not beat you down. While I think it is great that you are keeping your finances in line, you need to look deeper, not just on the surface.

Well, your answers are, in order:

No, probably not, see previous answer, no, see previous questions, no, no, not likely, right now pay off debts and save up a large pile of money, not really - only vacations I've ever done is to visit family, insurance, unemployment, life insurance, life insurance...

 

[kannibul]

Family bits...

Mom has already had 2 minor strokes, now diabetic. She's 59.
Her mother died of cancer at 55
Her father died of leukemia around 60
Her grandma and grandfather, mother's side, I have no idea.
Her father was adopted, and wouldn't tell her anything about it.

Dad has been in fairly OK health. Pancreas issues and so on. Has two stints in his heart. He's 60 in November
Brother died at 58 of brain cancer
Brother, 61, retired from GM last year (option), had corotid artery work done two years ago, docs said it should have killed him - more than 90% blockage...
His mother, still alive @ 86, multiple heart attacks, heart disease. Starting to slip mentally though.
His father, died just before I was born, lung cancer
Several other family members (uncles, cousins), cancer/heart disease
His grandma, mothers side, lived to 92. Don't know of any real reason, just age I guess.


Above that, don't know.

 

[kannibul]

Hey Jeff, more power to ya. It's your life and your business. If you can pay your bills and put food on the table, you deserve to buy toys IMO.

I would keep this stuff to yourself from now on. Otherwise, you'll have to keep hearing from guys that seem to know more than you about your situation.

Chris

I guess I post this shit looking for a bit of a pat on the back, some reenforcement that I'm doing the right thing, but hell, I should know better. Of course everyone doesn't have the whole picture, and sometimes I don't spell it out well enough and end up arguing with someone who doesn't have those details, which changes the whole picture.

The "fun money" point, for example...

There are things I should be doing...and I am thankful that there are people here willing to provide guidance....

 

[defpearlpilot]

Hey Jeff, more power to ya. It's your life and your business. If you can pay your bills and put food on the table, you deserve to buy toys IMO.

I would keep this stuff to yourself from now on. Otherwise, you'll have to keep hearing from guys that seem to know more than you about your situation.

Chris

I guess I post this shit looking for a bit of a pat on the back, some reenforcement that I'm doing the right thing, but hell, I should know better. Of course everyone doesn't have the whole picture, and sometimes I don't spell it out well enough and end up arguing with someone who doesn't have those details, which changes the whole picture.

I think that if everyone did have the whole picture and they still disagreed with you, you still wouldn't accept it. You painted a pretty good picture of what the situation was and still don't want to listen. But that's your prerogative.

 

[tweed]

Hey Jeff, more power to ya. It's your life and your business. If you can pay your bills and put food on the table, you deserve to buy toys IMO.

I would keep this stuff to yourself from now on. Otherwise, you'll have to keep hearing from guys that seem to know more than you about your situation.

Chris

I guess I post this shit looking for a bit of a pat on the back, some reenforcement that I'm doing the right thing, but hell, I should know better. Of course everyone doesn't have the whole picture, and sometimes I don't spell it out well enough and end up arguing with someone who doesn't have those details, which changes the whole picture.

The "fun money" point, for example...

There are things I should be doing...and I am thankful that there are people here willing to provide guidance....

Holy crap man. It's the hey look at me, no no no you're wrong, woe is me cycle you have going on, that's hard to understand. You put this thread out there with this "hey look what I did" kind of tone to it, but with a "what do you guys think about it" overtone. Then proceed to basically tell people they are wrong even though they are offering suggestions to help you out. Then wrap it up with the my entire family line is ill, dead or going to drop dead soon, so i'm dropping off the earth early as well "woe is me" thing.


I just don't see what you were hoping to come from this thread with that type of information.

 

[kannibul]

Hey Jeff, more power to ya. It's your life and your business. If you can pay your bills and put food on the table, you deserve to buy toys IMO.

I would keep this stuff to yourself from now on. Otherwise, you'll have to keep hearing from guys that seem to know more than you about your situation.

Chris

I guess I post this shit looking for a bit of a pat on the back, some reenforcement that I'm doing the right thing, but hell, I should know better. Of course everyone doesn't have the whole picture, and sometimes I don't spell it out well enough and end up arguing with someone who doesn't have those details, which changes the whole picture.

The "fun money" point, for example...

There are things I should be doing...and I am thankful that there are people here willing to provide guidance....

Holy crap man. It's the hey look at me, no no no you're wrong, woe is me cycle you have going on, that's hard to understand. You put this thread out there with this "hey look what I did" kind of tone to it, but with a "what do you guys think about it" overtone. Then proceed to basically tell people they are wrong even though they are offering suggestions to help you out. Then wrap it up with the my entire family line is ill, dead or going to drop dead soon, so i'm dropping off the earth early as well "woe is me" thing.


I just don't see what you were hoping to come from this thread with that type of information.

Way to jump to a conclusion that is at least mostly wrong.

I surely don't have a "woe-is-me" thing...

 

[Anonymous]

Given that I'll be 31 next month, I figure I have another 35-40 years....

I probably won't stop working, unless I have to. There's also one other small factoid...no male in my family has lived to retirement. Usually 57-60...

So, in some ways, what's it worth? I could take out loans against it. I could empty it out every once in a while and drop 25-50% of it down in taxes...or I could just not bother and invest it in more liquidable assets.

Fuck me! Unbelievable strategy! I'll be completely revamping my portfolio allocations immediately!

Thanks!

Steve

It's realistic, FOR ME. I wouldn't recommend it to others.

In all seriousness, it's not realistic for you or anybody.

Steve

OK, whatever. Family history should never have any bearing...

On whether you should invest money in a company matched 401K that grows tax free. Ummm.... No. Are you fucking kidding me? Seriously dude - you've got some twisted logic going here. If you die in the next ten years it makes sense to give up FREE money?

Steve

 

[Anonymous]

Family bits...

Mom has already had 2 minor strokes, now diabetic. She's 59.
Her mother died of cancer at 55
Her father died of leukemia around 60
Her grandma and grandfather, mother's side, I have no idea.
Her father was adopted, and wouldn't tell her anything about it.

Dad has been in fairly OK health. Pancreas issues and so on. Has two stints in his heart. He's 60 in November
Brother died at 58 of brain cancer
Brother, 61, retired from GM last year (option), had corotid artery work done two years ago, docs said it should have killed him - more than 90% blockage...
His mother, still alive @ 86, multiple heart attacks, heart disease. Starting to slip mentally though.
His father, died just before I was born, lung cancer
Several other family members (uncles, cousins), cancer/heart disease
His grandma, mothers side, lived to 92. Don't know of any real reason, just age I guess.


Above that, don't know.

What the hell does any of this have to do with refusing to take free money?

Steve

 

[Anonymous]

Otherwise, you'll have to keep hearing from guys that seem to know more than you about your situation.

I don't need to know any thing more about the guy's situation to know that he is making flat stupid financial decisions. Nothing lame about pointing them out - maybe he'll get a clue. Frankly, I could give a shit less what the guy does with his money, however, if he's gonna cluttter up my favorite gear board beaming over dumb decisions, I'll pipe up every time.

What is lame is encouraging him to continue down the path he's taken if you ask me...

Steve

 

[Anonymous]

and save up a large pile of money

A really good way to do this is investing in a company matching 401K where they give you free money just 'cause you work there! It totally ROCKS!

Steve

 

[Anonymous]

I guess I post this shit looking for a bit of a pat on the back, some reenforcement that I'm doing the right thing, but hell, I should know better.

I bet when you start making some smart financial moves you'll receive the positive feedback you desire.

Steve

 

[Anonymous]

I surely don't have a "woe-is-me" thing...

I agree - I don't think you have that going, but you sure have a fatalistic sense of your own mortality. I don't see why you would make decisions based on the idea that your gonna die at 57 or some shit. What if you live a long, healthy life? Is your wife supposed to die when you do or is she allowed to live on?

Steve

 

[kannibul]

Given that I'll be 31 next month, I figure I have another 35-40 years....

I probably won't stop working, unless I have to. There's also one other small factoid...no male in my family has lived to retirement. Usually 57-60...

So, in some ways, what's it worth? I could take out loans against it. I could empty it out every once in a while and drop 25-50% of it down in taxes...or I could just not bother and invest it in more liquidable assets.

Fuck me! Unbelievable strategy! I'll be completely revamping my portfolio allocations immediately!

Thanks!

Steve

It's realistic, FOR ME. I wouldn't recommend it to others.

In all seriousness, it's not realistic for you or anybody.

Steve

OK, whatever. Family history should never have any bearing...

On whether you should invest money in a company matched 401K that grows tax free. Ummm.... No. Are you fucking kidding me? Seriously dude - you've got some twisted logic going here. If you die in the next ten years it makes sense to give up FREE money?

Steve

OK, explain how it's free money, where if I need to use that money, I get hit with something like 25% in taxes, except in very special circumstances...none of which are easily accessible (CD's are...)

If I'm paying in 6%, and they're paying in 8%, that's still less than whatever gets taken out if I want to use that money. Then add to that the risk involved with it being uninsured, and seeing the stock market tank like it has...

That's my issue with it....that, and my Dad got a substantial settlement for a work related injury (6-figure) (a real injury he's still having to deal with, at that), he put it in stocks, and the .COM bust happened. Lost 95% of it...

That being said, I know the match my company does is at an unheard of level, and it would be stupid to not take advantage of it at some level, but considering the risks, I'm skeptical on it - maybe I'm just not savvy enough to see what others see in it...If anything it'd be for her, but, I'd rather pay off our debts NOW, and then have less to worry about NOW. Then I can think about later.

 

[mysticaxe]

OK, explain how it's free money, where if I need to use that money, I get hit with something like 25% in taxes, except in very special circumstances...none of which are easily accessible (CD's are...)

If I'm paying in 6%, and they're paying in 8%, that's still less than whatever gets taken out if I want to use that money. Then add to that the risk involved with it being uninsured, and seeing the stock market tank like it has...

That's my issue with it....that, and my Dad got a substantial settlement for a work related injury (6-figure) (a real injury he's still having to deal with, at that), he put it in stocks, and the .COM bust happened. Lost 95% of it...

That being said, I know the match my company does is at an unheard of level, and it would be stupid to not take advantage of it at some level, but considering the risks, I'm skeptical on it - maybe I'm just not savvy enough to see what others see in it...If anything it'd be for her, but, I'd rather pay off our debts NOW, and then have less to worry about NOW. Then I can think about later.

Well, if you drop 6% from your paycheck, that's all pre-tax. You really will only see a 4% decrease (or thereabouts) in your paycheck. Trust me, you won't miss it. You probably spend more on random crap. The company's match puts you ahead before you start. If you don't trust the stock market, put it into a money market or bond fund and collect minimal interest. As far as the FDIC stuff goes - if your company uses a large investment firm, the government will NEVER let that company go under (if recent history is any indication).

Based on the 1 sentence you provided for your dad, the issue he had was that he didn't diversify his investments. Buy across different sectors or find an index fund - won't go up as much as the most aggressive portfolios, but won't get as beat up as the flavor-du-jour.

30 years from now, todays prices will not look like a poor investment if you do a good job of picking across sectors.

 

[kannibul]

OK, explain how it's free money, where if I need to use that money, I get hit with something like 25% in taxes, except in very special circumstances...none of which are easily accessible (CD's are...)

If I'm paying in 6%, and they're paying in 8%, that's still less than whatever gets taken out if I want to use that money. Then add to that the risk involved with it being uninsured, and seeing the stock market tank like it has...

That's my issue with it....that, and my Dad got a substantial settlement for a work related injury (6-figure) (a real injury he's still having to deal with, at that), he put it in stocks, and the .COM bust happened. Lost 95% of it...

That being said, I know the match my company does is at an unheard of level, and it would be stupid to not take advantage of it at some level, but considering the risks, I'm skeptical on it - maybe I'm just not savvy enough to see what others see in it...If anything it'd be for her, but, I'd rather pay off our debts NOW, and then have less to worry about NOW. Then I can think about later.

Well, if you drop 6% from your paycheck, that's all pre-tax. You really will only see a 4% decrease (or thereabouts) in your paycheck. Trust me, you won't miss it. You probably spend more on random crap. The company's match puts you ahead before you start. If you don't trust the stock market, put it into a money market or bond fund and collect minimal interest. As far as the FDIC stuff goes - if your company uses a large investment firm, the government will NEVER let that company go under (if recent history is any indication).

Based on the 1 sentence you provided for your dad, the issue he had was that he didn't diversify his investments. Buy across different sectors or find an index fund - won't go up as much as the most aggressive portfolios, but won't get as beat up as the flavor-du-jour.

30 years from now, todays prices will not look like a poor investment if you do a good job of picking across sectors.

It's something I'll have to think about, but thank you for your advice/info.

 

[kannibul]

Otherwise, you'll have to keep hearing from guys that seem to know more than you about your situation.

I don't need to know any thing more about the guy's situation to know that he is making flat stupid financial decisions. Nothing lame about pointing them out - maybe he'll get a clue. Frankly, I could give a shit less what the guy does with his money, however, if he's gonna cluttter up my favorite gear board beaming over dumb decisions, I'll pipe up every time.

What is lame is encouraging him to continue down the path he's taken if you ask me...

Steve

Ok, so aggressively paying off debt is a bad financial decision?

 

[mysticaxe]

Otherwise, you'll have to keep hearing from guys that seem to know more than you about your situation.

I don't need to know any thing more about the guy's situation to know that he is making flat stupid financial decisions. Nothing lame about pointing them out - maybe he'll get a clue. Frankly, I could give a shit less what the guy does with his money, however, if he's gonna cluttter up my favorite gear board beaming over dumb decisions, I'll pipe up every time.

What is lame is encouraging him to continue down the path he's taken if you ask me...

Steve

Ok, so paying off debt is a bad financial decision?

It depends on what the relative interest is. If your debt is in the low single digits, then the 401k is definately more return on your current dollar. In any case, your 401k sounds like its up 50% from day 1.

Paying off debt is a good decision, but not at the expense of free money in the future.

 

[AmpliFIRE]

BTW, some personal history of mine. My dad and my grandfather died at 50 and 52, respectively. I'm not waiting to to die at 50. I'm taking control of my finances but more importantly my health. It's up to you to take better care of yourself all around.

+1

FTW