He lives in Langley so he has to drive to do anything fun anyhow.
How much do you know about financial independence?
fixed that for ya.
ironicly my play it safe 25 year ammortization 10% down self imposed mortgage rule was my worst financial mistake yet.
should have borrowed to the hilt and bought in west van but then again hindsight is 20/20.
yeah, i mean Pedro was bound to be right and housing prices in greater vancouver were going to crash eventually.
what's that? oh, housing prices are expected to climb again next year and the rates are staying low? really, i had no idea. alrighty then, never mind.
re playing it safe, but at least your current mortgage will get paid off faster though and even faster yet if you're hopefully upping your payments or making lump sum payments. you can do this as long as you're not blowing all that extra cash on toys like new vehicles, snow mobiles, dirt bikes etc.
what's that? oh wait, nevermind…
;)
We don't know what our limits are, so to start something with the idea of being limited actually ends up limiting us.
Ellen Langer
curious why that is.. I'm figuring that the amount of gas $$$ to drive ski/bike/moto on the north shore and sea to sky adds up to alot and coulda been applied to the mortgage every month?
just curious because as I look to buy a rural property this scenario crosses my mind quite a bit..
not sure I follow ya trail worker on the gas $$$ equation.
I bought in 2003 house hasnt quite doubled in value. if I leveraged the tits out it back then and say bought a 800k Dollar house it would have more than doubled in value.
anyway there are endless threads like that in life, I dont sweat it. I still wouldnt leverage heavily on mortgages. downside is to high, I dont need the stress besides I have 13 years left on my mortgage
re playing it safe, but at least your current mortgage will get paid off faster though and even faster yet if you're hopefully upping your payments or making lump sum payments.
But why pay extra into a 3% mortgage when you can put money into investments that are paying 7% and more?
When one person suffers from a delusion, it is called insanity.
When many people suffer from a delusion, it is called religion.
But why pay extra into a 3% mortgage when you can put money into investments that are paying 7% and more?
there's rationale for both sides of that argument. why don't you tell us yours? i'm sure that money into a 7% investment would be better than a new $80K vehicle or moving into a bigger home on the north shore that wasn't entirely necessary right?
and besides being cheeky in my comment to Rat, in his case it could be advantageous if he wants to sell and make that leap back to the city or north shore.
We don't know what our limits are, so to start something with the idea of being limited actually ends up limiting us.
Ellen Langer
Nope as much I don't love Langley its good for kids and my wife has a good job 10 minutes from home. My next move will likely be when my kids finish high school.
here is an interesting Financial question that really impacts how you do the math on alot of forward compounding income
what is the true rate of inflation?
what, no-one's answered yet?
i don't know the exact number but it's higher than what the govt tells us it is. close ot double? i'm to lazy to search for it at the moment.
We don't know what our limits are, so to start something with the idea of being limited actually ends up limiting us.
Ellen Langer
well lets assume CPI has averaged 2% but my guess is true inflation is likley closer to 3 - 3.3. there are some that say its as high as 4 or 5% but I would think thats alarmist. Even CPI is manipulated through things like Hedonic adjustments
its makes a huge difference to investment models since you really have to measure any outcome in today's dollar.
there's rationale for both sides of that argument. why don't you tell us yours? i'm sure that money into a 7% investment would be better than a new $80K vehicle or moving into a bigger home on the north shore that wasn't entirely necessary right?
In addition to a new house in NV and a new car, I have pumped $60k+ into savings/investments, per year, for at least the last 5 years. I'm getting minimum 10% gains annualized average on those investments. In 3-4 years I'll have enough in investments to maintain a constant income stream capable of paying all bills, including the mortgage and car payments.
It's all been accounted for in the long term plan.
When one person suffers from a delusion, it is called insanity.
When many people suffer from a delusion, it is called religion.
In addition to a new house in NV and a new car, I have pumped $60k+ into savings/investments, per year, for at least the last 5 years. I'm getting minimum 10% gains annualized average on those investments. In 3-4 years I'll have enough in investments to maintain a constant income stream capable of paying all bills, including the mortgage and car payments.
It's all been accounted for in the long term plan.
that's pretty fucking awesome Ken and i am particularly impressed with the 10% gains. i'm assuming that $60K is between you and the wife, not just you? i'd definitely be interested in getting a look/idea of the breakdown of your investment portfolio.
will you continue to work part-time in 3-4yrs just so you have something to do and don't become an alcaholic? ;)
We don't know what our limits are, so to start something with the idea of being limited actually ends up limiting us.
Ellen Langer
The one tough thing about budgeting,saving and investing is at what cost does it come to the present way of living?I'll assume that since this is a mtb website we are all somewhat enjoying are selves at the moment, but I see more than a few people that are saving for some magical day down the road that never comes. I see these guys killing them selves to save for early retirement only to have an accident or get the big c.
I'm certainly not saying spend it all today but it sure seems to be the toughest part of the equation…..how much to save or spend
A lot of things that I enjoy are things that are better at a younger age. I'm not saying I won't be able to enjoy them at 60 or 70….just saying that Moto, mtb, trials, skiing are pretty damn awesome right now. If I have to work a few extra years later to enjoy myself more now…..well so be it.
I am lucky that I only work 5 months out of the year and also have the option of living almost anywhere in North America so it's somewhat like being retired. While I do hope to retire by the time I'm 55, I could go half time after that and only work 2.5 months out of the year to make ends meet if things go a little south. I think if I worked Monday to Friday it might be a little more important to retire early.
that's pretty fucking awesome Ken and i am particularly impressed with the 10% gains. i'm assuming that $60K is between you and the wife, not just you? i'd definitely be interested in getting a look/idea of the breakdown of your investment portfolio.
No, that's just my own savings. Wife does her own tracking separately.
About half of my investment is in my own company. As an employee owned private company, only employees can be shareholders, so I can't offer it as an investment tip for others. Historically, it's shown annual asset appreciation of 15% +/- in addition to annual profit share in the area of 25%. I didn't include the profit share in the above gains, as I'm just tracking asset growth.
Another 15% or so is in company pension, portable to my own accounts when I leave the company. I sit on the pension committee, so I know that our pension fund's annualized rate of return over 5 years has been 9.7%.
Remaining 35ish % is in personal investing accounts, self-directed. About 50/50 split between high dividend payers (6% and higher) and equities that I think are poised to grow quickly. The latter is my "high risk" portfolio. The dividend portion just stays steady and pumps money into the accounts every month. The high risk is up and down - up over 26% last year, break-even this year.
will you continue to work part-time in 3-4yrs just so you have something to do and don't become an alcaholic? ;)
2015 is going to be stupid busy for me. Three major construction start-ups, including the new drinking water treatment plant for City of Nanaimo, a large sewage pump station in Victoria and the largest water booster pump station in BC. If I survive that without flinging myself off of a bridge, then 2016 I'm going to go for reduced hours -[HTML_REMOVED] four day weeks. I'll do that for a couple more years, then probably retire and work on a contract basis, maximum 50% (about 1000 hours) a year. I have a lot of skiing, biking, hiking, snowshoeing, travel and just plain relaxation to catch up with!
Alcoholism is still an attractive option, tho.
When one person suffers from a delusion, it is called insanity.
When many people suffer from a delusion, it is called religion.
About half of my investment is in my own company.
10% annually over the last 5 years is a no brainer (had I known about this or this at the time) - US market has been on a tear.
But doesn't having half your money in only one company scare the pants off you? Maybe I'm in the wrong company, but things are guaranteed to not be guaranteed.
The one tough thing about budgeting,saving and investing is at what cost does it come to the present way of living?I'll assume that since this is a mtb website we are all somewhat enjoying are selves at the moment, but I see more than a few people that are saving for some magical day down the road that never comes. I see these guys killing them selves to save for early retirement only to have an accident or get the big c.
I am cutting back on life by not getting a trials bike on top of my dirtbike. And I've avoided sleds because I don't need two trailers. I occasionally walk up a hill with my skis. Tough life, I know.
If I get the big C, at least I'll have some funds that won't put me onto the street if I can't work. If I get hit by a bus, I'll know my loved ones don't loose the house.
and on the flipside - does anyone have experience with the Home Depot consumer credit card?
0% for 6 months as long as you pay minimums monthly, and pay it off in full by 6 months - no problem.
Are there any hidden fees?
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