As of today, I am DEBT FREE!
#43
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As Brain alluded to, that is a gross oversimplification at best. You could theoretically have $100k equity in a house with no mortgage that you ended up paying over $250k for. On one hand, you've got $100k equity. On the other hand, you lost $150k.
I recommend people only buy a house if they believe they will live there for a long time - which would entail a strong sense of job security and roots in that community. The biggest problem with houses today (and I expect in the near to intermediate future) is lack of liquidity. It takes away a lot of mobility for young people (i.e. changing jobs, moving to new locations, etc).
If you are disciplined, rewards based credit cards are great. Like you said, you've got additional protections built in plus "free money" via the rewards (our main one is a cash-back Visa). We recently picked up a new car for the Mrs. and called to up the credit limit so we could put a big chunk through the card.
I recommend people only buy a house if they believe they will live there for a long time - which would entail a strong sense of job security and roots in that community. The biggest problem with houses today (and I expect in the near to intermediate future) is lack of liquidity. It takes away a lot of mobility for young people (i.e. changing jobs, moving to new locations, etc).
I do use the plastic, but I pay it off each month. Cards can offer additional protections against using cash plus you get points. Any purchases made on revolving credit are paid off that month, then the points are accumulated and eventually redeemed. There is no extra cost to me, and we get something cool out of it over time.
#46
I take money out of my paycheck every two weeks for my Roth (and my wife's as well). It is automatically withdrawn and transferred to Etrade. Every three months I purchase stock with it (manually). We currently max out both Roths and my 401K. I don't really worry too much about the market dropping because that means I am buying new shares at a cheaper price.
#47
2 Props,3 Dildos,& 1 Cat
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I take money out of my paycheck every two weeks for my Roth (and my wife's as well). It is automatically withdrawn and transferred to Etrade. Every three months I purchase stock with it (manually). We currently max out both Roths and my 401K. I don't really worry too much about the market dropping because that means I am buying new shares at a cheaper price.
smileyface.
#50
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Assuming he is putting in a fixed dollar amount per purchase period, he is buying fewer shares at the higher prices while buying more shares at the lower prices (in addition to actually adding money).
Why does he have a $2k yearly limit for Roth contributions?
Why does he have a $2k yearly limit for Roth contributions?
#52
Boost Czar
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cause thats the way Roth IRAs work. it's either 2K or 5K a year limit, and if you make over a certain amount a year you cannot do them.
I dont think you can, or when you report it, the gov't wont like what you did when they audit you.
roths aren't taxed, you load them up with pretaxed dollars, then when you withdraw after 40 years of exponential growth, you do not have to pay taxes on them. thats the reason they are so bomb and why you should contribute as much as possible to them.
roths aren't taxed, you load them up with pretaxed dollars, then when you withdraw after 40 years of exponential growth, you do not have to pay taxes on them. thats the reason they are so bomb and why you should contribute as much as possible to them.
#56
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$2k is an old contribution limit, which you may be thinking of.
You may have multiple traditional IRAs and Roths at any given time, however, your annual contributions are capped in aggregate. Said another way, if you were eligible to contribute $5k for the year, it would be a total of $5k among all of them. Deductible traditional IRAs have lower income eligibility phase-outs.
#58
I don't mess with brokers any more. Years ago I had one and stopped in to buy a stock with my wife. He talked me out of buying $4K of Compaq stock (worth about $400,000 just a few years later). I figure if they actually knew anything (other than some legal and accounting stuff) they would be living on a beach somewhere.
#59
I don't mess with brokers any more. Years ago I had one and stopped in to buy a stock with my wife. He talked me out of buying $4K of Compaq stock (worth about $400,000 just a few years later). I figure if they actually knew anything (other than some legal and accounting stuff) they would be living on a beach somewhere.