a question
article
by I’ve mentioned it before, but I have a fairly clear investment plan:
- Maintain an emergency fund to cover six months’ expenses.
- Contribute enough to my 401k to maximize the company match.
- Max out Roth IRAs for my wife and me.
- Max out 401k.
- Pursue other investment opportunities.
My question here is about the last step. What investments are you pursuing (or would you like to pursue) assuming the things in steps 1-4 are covered? Some options I’ve considered include CDs, extra home payments, and peer lending.
Similarly tagged OmniNerd content:
- Projections Using LendingClub's LendingMatch Slider, by Brandon 10 months ago
- Government Bailout Plan Will Fail, by VnutZ about 1 year ago
- A Question of Morality, by NomadSoul over 1 year ago
- No More Interest-Free Loans to the Feds, by Brandon about 2 years ago
Print Friendly
Write an Article
depends on the whether or not we approach anarchy by VnutZ :: NR10 :: Show
Should the economy actually slide into a depression … crime pays. The beauty is that the inevitable budget shortfalls with municipal governments will result in a shortage of both quantity and quality emergency services and police. Furthermore, they’ll be distracted by all the other criminal activity from desperate people. All you need to do is gauge your activity to ensure you’re lower priority and you should be able to get away with quite a bit. Your expenses drop to nothing more than bullets and gas when you’re a successful thief.
All your investment plans are for nothing if such a state were ever reached. I’m just tossing this “extreme” case out there for the sake of discussion.
Extra Home Payments by Travis :: NR4 :: Show
I recently had a conversation with a co-worker on this very subject. There is an argument that making extra home payments is a waste, unless it is the home you will die in.
Generally speaking homes have been appreciating, even in past recessions, by 10% annually (rough figure). This appreciation is building equity faster than most average Americans can buy making any significant extra mortgage payments. The extra payments into your home ties up your many into a “static” bank sort of speak which do not become available very quickly, either through sale or taking a loan on your self.
So the argument is to pay the minimum mortgage and let the market build your equity, freeing up your cash for investments the produce better or quicker returns such as CD’s, start-ups companies, personal stock etc…
Depressions and recessions have been breading grounds for many successful business, Kellogg, State Farm, Proctor & Gamble. What ever time we are in, business requires money so it is essential in my opinion to make sure that you do not tie up your money but make smart investments.