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Financial strategy

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rppearso
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Financial strategy  Reply with quote  

So to start, I just went through a divorce and will have all debts and the divorce paid off this month.

I am moving into a new appartment the end of the month as well and its slightly more expensive but closer to work, friends and family and is nicer.

My truck is very high milage and is starting to have issues but still runs ok. Now that all my debts and liabilities are over I will be able to save money quickly.

My goals are to start doing inventing in a large garage but I would need to buy a place with a large garage and real estate prices are outragious in my area. I have also thought about starting a managed account at TDA just so I can start getting some gains on my money.

My concern is that I dont want to wait till my truck is totally run out and become a motivated buyer at the car dealership because I know they are vultures and you have to play hard ball to get a smokin deal so I have been thinking about getting a new truck while my truck is still sellable for around 5k (for someone who has the time and energy to work on it without paying mechanic fees).

So independand of the transportation issue, I was thinking about just keeping money in TDA and waiting out the real estate market to shift down, I have always found myself on the wrong side of the supply and demand curve so I want to do things smart this time. I owned a condo in the past in a similar area and took a loss due to a divorce when it sold.
Post Tue Jan 07, 2014 1:34 am
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oldguy
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Remember back in Sept 2010? We talked about SPY and SSO - the SPY went from 120 to 180, SSO went from 35 to 100. IMO you'll do better by incrementally investing (monthly) in SP500 than by gambling with a managed account.

Eg, $1000/m placed in the unmangaged 11%/yr SP500 Index = $2,650,000 in 30 years. That should buy most any kind of garage, pickup, airplane, whatever.
(the factor is e^(rt) )


quote:
My truck is very high milage and is starting to have issues but still runs ok. Now that all my debts and liabilities are over I will be able to save money quickly.


What do you mean by "high mileage"? If it's still worth $5000 it can't be too old? This the one financial area where so many people fail - notice that most millionaires drive older vehicles, there is reason for that.
Post Tue Jan 07, 2014 2:54 am
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coaster
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Re: Financial strategy  Reply with quote  

quote:
Originally posted by rppearso
I was thinking about just keeping money in TDA and waiting out the real estate market to shift down, I have always found myself on the wrong side of the supply and demand curve so I want to do things smart this time.

My concern is that hoping to wait until everything is in your favor you'll be waiting forever. You can't time the future; you can't tell if things are going to get more or less favorable than they are at the present moment. I think the best time to do anything is when it's something you need / want to do and you have the resources to do it ( money, time, health, whatever ). When you wait to be on the "right side of the curve" you can never see where the curve is going from here. You can see where it's been, but it's never exactly the same curve and it never turns in exactly the same place, and any little inflexion point you might think is a major change in the curve just turns out to be a little bump or a little dip. Then if you did something thinking the curve had turned in your favor, it turned out that it didn't, and you find yourself on the wrong side again. So, just forget the curve and go ahead and do what needs to be done.

~Tim~
Post Tue Jan 07, 2014 5:43 am
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Wino
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To add to what coaster said, I have recently read an article that said that QE was going to crash the market "this year," with up to 90% losses before the end of the year.

The article was written in January of 2013, talking about 2013. The stock market grew by about 26% in the US during that time. Had you waited to be on the "right side of the curve," because of such articles, you'd be out 25% of your gains.

By the way, the same guy is saying the same thing this year.
Post Tue Jan 07, 2014 6:18 am
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oldguy
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quote:
My concern is that hoping to wait until everything is in your favor you'll be waiting forever. You can't time the future;


True - When I was accumulating rental houses I bought 5 houses in an 8 yr period. Every time I waoted "for prices to come back down" or for mortgage rates "to get lower" I missed out, ended up paying 10% more for the same (or identical) house 2 yrs later. I quickly learned to buy when the deal looked good (based on the past) and when I had the money.
Post Tue Jan 07, 2014 2:54 pm
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coaster
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quote:
Originally posted by Wino
By the way, the same guy is saying the same thing this year.

The way those doomsters work is they keep saying some variation of the same thing year after year until they're finally (mostly or partly) right, then they can bank the profits from newsletters sales and advisory fees for the next 20 years.

Google "Elaine Garzarelli" as an example of the above.

~Tim~
Post Tue Jan 07, 2014 5:11 pm
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rppearso
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My truck is an 02 with 140k miles on it, I had to pour some leak sealer into the cooling system so its fine now but I can likely save myself 5-8k by being a hard liner a hole at the dealer ship when negotiating if I dont NEED a truck right now. Maybe the angle I need to play is searching out a new mechanic that is not going to take me to the cleaners everytime I need something done. I used to have a really good guy but he retired so I have been going to regular shops the last year or so and its aweful, they charge hyper inflated bill rates (like $80/hr), I realize that might be "going rate" but if your going to keep an old truck going its not cost effective to pay that much otherwise there comes a point its more economical to buy a new one.
Post Wed Jan 08, 2014 10:07 pm
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oldguy
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quote:
they charge hyper inflated bill rates (like $80/hr), I realize that might be "going rate" but if your going to keep an old truck going its not cost effective to pay that much otherwise there comes a point its more economical to buy a new one.


Yeah, we keep ours for about 200,000 miles, we trade when the annual repairs start to cost what the depreciation on a new one would cost (~$4000/yr). But that 'point' almost never happensmost go 200,000. Our current one has 153,000, had one repair so far, will probably go well past 200,000.

Vehicle selection is a big part of it, you learn what brands to avoid, what gear trains to avoid, etc. And the region you live in plays a part - in AZ the humidity is low and no road salt, so the bodies & exhaust last forever. In the North, in a metro area, the opposite is true. What fails on your truck?
Post Thu Jan 09, 2014 1:07 am
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jamiesmoneyadvice
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Invest in Real Estate Another Way  Reply with quote  

Interest rates are going up and real estate and bonds will get crushed. Why not learn about investing in tax liens and tax deeds depending on the state you live in? I'm making ok returns with no risk doing that. You might even end up with a property!
Post Wed May 28, 2014 1:40 am
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JamesMartin
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I think, you should learn about real estate and invest in a good side of real estate. Try to make a financial management plan and work according to it.
Post Mon Aug 18, 2014 3:31 pm
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prioritytaxgroup
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Potential investors in your business will want to see the progression of your business broken down into logical achievable steps that take your company to the end goal, and the cash requirement for each step. These steps, the cash required at each step along with your financial plan, form the backbone of your financing strategy. If you’re thinking of raising capital from outside investors, this workbook provides a framework for developing a financing strategy for your business.
Post Wed Aug 20, 2014 5:36 am
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