Economy stonks v9, bubble yum

[MMAisGod]

Just a quick question on what would you do.

I'm in the process of doing another refi on my mortgage. Monthly payments will drop nicely. Anyways I have extra cash I could drop down towards principal. My wife and I already invest a lot in the market. Both max out TSP (401k equivalent), max out Roth IRA, contribute to our kids 529 plans and have a taxable brokerage account that we invest in. I would say we invest $60k+/year in the market. We also have a large emergency fund and zero debt.

If you had an extra $900/month to drop down would you:

1) Put that extra $900/month towards the mortgage principal in which the home would be paid off in 15.5 months and pay about $190k less in interest.
2) Put down about half $450/month towards principal in which the home would be paid off in about 20.5 months and pay about $125k less in interest. Then put $450/month in my taxable brokerage and just keep it simple and invest in something like VSTAX or VFIAX for the next 15-20 years.
3) Just pay the mortgage as is and not put more towards principal for the next 15-20 years and then reassess. Put $900/month in my taxable brokerage and just keep it simple and invest in something like VSTAX or VFIAX for the next 15-20 years.

On paper #3 seems like the logical choice since in that timeframe I will likely make much more money, but at the same time something about paying off your mortgage earlier gives a piece of mind and I already invest heavy in the market.

So what would you do ?

Patience is key. If you have no rush, and prefer option #3, which both seem to be the case, buy in at a much more opportune time. It's inevitable that another dip comes, so if you want to go that route don't jump in at the all time high-ish range.

 

[rob mafia]

I have a fairly large index short and still made gobs of money playing solos. Which prolly means we dump soon when everyone is drunk at the party,

i've been selling calls on my shares at strikes under their current SP. i'm still playing tight, which might still be costing me a bit of gains, but whatever. vix keeps giving me reason to.

 

[brackis1]

If I had VXX instead of index shorts it would have been one of my top 5 best trading days of all time lol.

 

[BIKES!]

Not sure what to think of SDC. Could be a game changer in the field.

 

[brackis1]

lol in the next round of "why do you not like free money?" I had a chance to get Baker Hughes after hrs only up 1.5% on their CEO buying a dickload of shares. Now up 4% and I got like 100 shares filled -_-

 

[Final Say]

@brackis1
@44nutman
@MMAisGod
@reveler
@HockeyBjj
@kahiljabroni
@BIKES!
@Tycho Brah
@G-19
@milkmandanl
@Revolver
@asdffdsa
@Gas121
@Final Say
@Last Samurai

Had a ROUGH DAY lol I’ve been stressed with a move and other shit and just blew it today. Nothing I haven’t dealt with before though I’ll be back

 

[44nutman]

Not sure what to think of SDC. Could be a game changer in the field.

I cant remember was it you or @rob mafia that has been in and out of SDC a bunch? Just looked they were up 27% today, including after hours.

 

[rob mafia]

Not sure what to think of SDC. Could be a game changer in the field.

I cant remember was it you or @rob mafia that has been in and out of SDC a bunch? Just looked they were up 27% today, including after hours.

yeah, i made moves with them a few times. i actually sold them like yesterday/monday, for like $8.15, after the theta seemed to dry up (my cost was only 7ish, and i had some premiums from a set of puts and a couple weeks of calls, so no biggie. but still, awful timing).

i kinda like them as a company and disrupter, but they're going to be risky since dentists/orthodontists/some govts hate them.

 

[brackis1]

I prolly fuck it up, but I might be an autistic demigod for successfully winning on SQQQ on 2 straight days after having not played it in like, ever.

 

[AznTrojan]

Just a quick question on what would you do.

I'm in the process of doing another refi on my mortgage. Monthly payments will drop nicely. Anyways I have extra cash I could drop down towards principal. My wife and I already invest a lot in the market. Both max out TSP (401k equivalent), max out Roth IRA, contribute to our kids 529 plans and have a taxable brokerage account that we invest in. I would say we invest $60k+/year in the market. We also have a large emergency fund and zero debt.

If you had an extra $900/month to drop down would you:

1) Put that extra $900/month towards the mortgage principal in which the home would be paid off in 15.5 months and pay about $190k less in interest.
2) Put down about half $450/month towards principal in which the home would be paid off in about 20.5 months and pay about $125k less in interest. Then put $450/month in my taxable brokerage and just keep it simple and invest in something like VSTAX or VFIAX for the next 15-20 years.
3) Just pay the mortgage as is and not put more towards principal for the next 15-20 years and then reassess. Put $900/month in my taxable brokerage and just keep it simple and invest in something like VSTAX or VFIAX for the next 15-20 years.

On paper #3 seems like the logical choice since in that timeframe I will likely make much more money, but at the same time something about paying off your mortgage earlier gives a piece of mind and I already invest heavy in the market.

So what would you do ?

refi to a shorter term.. i just went to a 15 year

 

[boingyman]

refi to a shorter term.. i just went to a 15 year

Nah. With rates so low I rather have thet flexibility of a 30 year, especially since we may rent it out and buy again. With the change in monthly payments I can easily rent it out for minimum $900 more then my PITI, possibly up to $1200 more per month. The refi I'm doing right now is 2.5% 30 year with lender credit. I'm trying to get even more lender credit so it covers A+B+C+E on a loan estimate.

 

[brackis1]

lol CNBC must get paid so much to not shut the fuck up about DraftKings
incessant coverage.

 

[rob mafia]

i swear... in the last week or so, every time i sell a put... it just immediately gets bored through. my timing's suddenly terribad.

 

[Gas121]

Starting to feel abit nervous about the market. The bull run has been strong but is this the start of the bear..

Hesitant at the moment.

 

[BIKES!]

Just a quick question on what would you do.

I'm in the process of doing another refi on my mortgage. Monthly payments will drop nicely. Anyways I have extra cash I could drop down towards principal. My wife and I already invest a lot in the market. Both max out TSP (401k equivalent), max out Roth IRA, contribute to our kids 529 plans and have a taxable brokerage account that we invest in. I would say we invest $60k+/year in the market. We also have a large emergency fund and zero debt.

If you had an extra $900/month to drop down would you:

1) Put that extra $900/month towards the mortgage principal in which the home would be paid off in 15.5 months and pay about $190k less in interest.
2) Put down about half $450/month towards principal in which the home would be paid off in about 20.5 months and pay about $125k less in interest. Then put $450/month in my taxable brokerage and just keep it simple and invest in something like VSTAX or VFIAX for the next 15-20 years.
3) Just pay the mortgage as is and not put more towards principal for the next 15-20 years and then reassess. Put $900/month in my taxable brokerage and just keep it simple and invest in something like VSTAX or VFIAX for the next 15-20 years.

On paper #3 seems like the logical choice since in that timeframe I will likely make much more money, but at the same time something about paying off your mortgage earlier gives a piece of mind and I already invest heavy in the market.

So what would you do ?

How can an extra $900/month for 15.5 months save $190K? Remember, the interest savings is really only 60%-70% of the annual interest expense (assuming you fall under SALT). You get to write off at your effective tax rates.

I'm assuming your loan is a jumbo based on the projected $190K savings. My position on paying additional principal depends purely on your job and economic security. There is the present value of the $900/month surplus and the interest savings isn't noticeable until later in the loan; a lot can change in the 5 - 8 years before meaningful reductions appear. Additionally, your monthly payment doesn't go down (unless you refi again) so if any catastrophic events occur, you have less cash.

If you compare the present value of money and are good investor, it may make sense to invest and pay principal as you see fit. Not hugely adverse if you drop an extra $5,400 principal payment 6 month later vs spacing out $900 each of the first 6 months.

Also, I would consider the market and historical appreciation in the area. While many would say paying off a loan as fast as possible is wisest, having liquidity outside your home and working for you could be a better path.

 

[rob mafia]

Starting to feel abit nervous about the market. The bull run has been strong but is this the start of the bear..

Hesitant at the moment.

maybe. on the other hand, we had like 28 green days out of the last 30. we were more than due for a red day.

 

[brackis1]

Just wishing I'd shorted some of these obvious tech shitbag earnings but oh well.
Short seller dance party in this bitch. Killed it with Carvana and TSLS. And was long Spirit Aero (not Spirit airines).

I shorted DKNG when they were up 2% today somehow off a shitty cnbc interview. Closed it for 2% but lol now it's sown a total of 6% down -4%

Dave Portnoy could legitimately lose 1 mil today and I love it hahahahah. Less than 24 hrs after being peddled on Fox Biz by that scam artist fat black dude host as being a stonks expert.

 

[BIKES!]

The airlines are bouncing all over the place. Opened big, down decently back up. Wtf

 

[brackis1]

lol I had a nice Beyond Meat Position but after hrs yesterday for like 2% gain betting that "growth would crash" across board. Was up 9% at one point today -_-

 

[rob mafia]

i may have gone overboard on selling fcel puts.