Talking about my personal finances getting out of hand?

[Armarookie43]

That's Not always true.
Sometimes your stocks can "automatically" go to Zero even if you just hold onto it.

ie:
If you held onto stocks from companies that just happens to have terrible management (wasn't like that originally, But in the end..) and they tank the company with multiple bad decisions (or pure deception) and run the company into the ground/bankruptcy/oblivion.
The value of the stocks previously can go to nil near instantly...

Some examples:
Motorola
American Airlines
Enron
Lehmann Brothers
Circuit City

I don't do single stocks. Just index funds and ETFS. Passively managed

 

[Tex Koder]

If you own that many shares, you have enough money

well, I must have miss the invite to That kind of Club...

I don't do single stocks. Just index funds and ETFS. Passively managed

The keyword here is Managed by whom and for how much!
ie: what sort of fees?

So, yeah it's "passively managed" by YOU
BUT someBody is watching those funds & making trades ,and They aren't doing it for free...
Usually there are management fees, marketing fees, commissions etc (or whatever word/term they want to use) that's rolled up into some sort of 'expense ratios' (so yeah they don't call it a fee directly, so technically they can say -there are "no feeS" to your face and not be lying...)
But don't be Fooled!

You need to look a little deeper and find out how much percentage they are adding on top of those funds that you are investing in... Some of them are quite expensive.

 

[Armarookie43]

well, I must have miss the invite to That kind of Club...




The keyword here is Managed by whom and for how much!
ie: what sort of fees?

So, yeah it's "passively managed" by YOU
BUT someBody is watching those funds & making trades ,and They aren't doing it for free...
Usually there are management fees, marketing fees, commissions etc (or whatever word/term they want to use) that's rolled up into some sort of 'expense ratios' (so yeah they don't call it a fee directly, so technically they can say -there are "no feeS" to your face and not be lying...)
But don't be Fooled!

You need to look a little deeper and find out how much percentage they are adding on top of those funds that you are investing in... Some of them are quite expensive.

They are passively managed, so the fees are very low. They are from Fidelity. And yes I keep an eye on things. I've done a bit of homework. I don't like the actively managed mutual funds that have like a 1% or more fee. That's way too much.

 

[Bustedaw11]

well, I must have miss the invite to That kind of Club...




The keyword here is Managed by whom and for how much!
ie: what sort of fees?

So, yeah it's "passively managed" by YOU
BUT someBody is watching those funds & making trades ,and They aren't doing it for free...
Usually there are management fees, marketing fees, commissions etc (or whatever word/term they want to use) that's rolled up into some sort of 'expense ratios' (so yeah they don't call it a fee directly, so technically they can say -there are "no feeS" to your face and not be lying...)
But don't be Fooled!

You need to look a little deeper and find out how much percentage they are adding on top of those funds that you are investing in... Some of them are quite expensive.

I need an "Investments for dummies" book. That a thing?

 

[lee82gx]

I need an "Investments for dummies" book. That a thing?

I highly recommend “A random walk on Wall Street” by Burton Malkiel. It’s a decades old philosophy that is still relevant in the age of Amazon, tech stocks and Crypto.

Stumbled on this thread by accident. To say the least money is just the tip of the iceberg. My spouse is seriously pissed with my obsession with wrenching when not driving and driving when not wrenching. TBF its consumed my day and nights. I have money (to a certain limit), I don’t have time, space and energy.

What about you guys?

 

[Tex Koder]

I highly recommend “A random walk on Wall Street” by Burton Malkiel. It’s a decades old philosophy that is still relevant in the age of Amazon, tech stocks and Crypto.

Stumbled on this thread by accident. To say the least money is just the tip of the iceberg. My spouse is seriously pissed with my obsession with wrenching when not driving and driving when not wrenching. TBF its consumed my day and nights. I have money (to a certain limit), I don’t have time, space and energy.

What about you guys?

It's a circus Balancing act...

 

[Warby]

I've never spent more on this hobby then I am currently. I kind of knew I would when buying the limitless.

I think I'll cut back soon, tighten the belt, set a budget.

Yer right, who am I kidding

 

[razorrc]

Quickest way to hate your hobby is to make it your job.

 

[MisterEMM]

Quickest way to hate your hobby is to make it your job.

Not hate, first it's great to work what you like. But then you have no more time anymore for your hobby because it's the job...

 

[Armarookie43]

Quickest way to hate your hobby is to make it your job.

I still love it, but I do ir way less because of financial reasons, plus my 7yr old son just likes it for like 10 minutes. I used to take some rigs even to work so that I could fix them during lunch time, or play with them during lunch at the parking lot. Then I would be tired because I was standing out there, after standing from working. Someone at work was telling me "dude you are addicted". And he was right.,

I need an "Investments for dummies" book. That a thing?

You can watch my Playlist about financial advice. Then do your own research. That's why what I have been doing. The videos are a great start. Very interesting stuff.

https://youtube.com/playlist?list=PLuS60BAFIliJqimCHAKFTdq8RHclzXZod&si=J8Wzjidr4j4usk_P

I've never spent more on this hobby then I am currently. I kind of knew I would when buying the limitless.

I think I'll cut back soon, tighten the belt, set a budget.

Yer right, who am I kidding

It's all good. I just went way overboard.
Speaking of way overboard, at work, some guy bought a $400k home (too much for his wife and his salary), then he bought a a brand new $70k truck, then a huge TV, then..... all that at once. And he got an ARM mortgage, which supposedly doubled. Now he is on his way to losing everything. Another coworker has a $3k per month house payment, so he has to be working 12 hours 6 days a week so that he can keep his house (house poor). Another coworker that just retired for medical reasons is going to struggle with his $400k mortgage too (payment' is almost $3k per month). My mortgage is $1200 per month (25% of my base salary) and I got $100k to go at 3.5% interest. So I'm not house poor. Being house poor is avoidable. And I still don't understand why would someone get into an ARM (adjustable rate mortgage).

 

[Tex Koder]

...
It's all good. I just went way overboard.
Speaking of way overboard, at work, some guy bought a $400k home (too much for his wife and his salary), then he bought a a brand new $70k truck, then a huge TV, then..... all that at once. And he got an ARM mortgage, which supposedly doubled. Now he is on his way to losing everything. Another coworker has a $3k per month house payment, so he has to be working 12 hours 6 days a week so that he can keep his house (house poor). Another coworker that just retired for medical reasons is going to struggle with his $400k mortgage too (payment' is almost $3k per month). My mortgage is $1200 per month (25% of my base salary) and I got $100k to go at 3.5% interest. So I'm not house poor. Being house poor is avoidable. And I still don't understand why would someone get into an ARM (adjustable rate mortgage).

Dear lord...
He tripped up Real BAD...
Was he asleep and missed what happened back in 2008??

 

[gotnitro]

Dear lord...
He tripped up Real BAD...
Was he asleep and missed what happened back in 2008??

Man, I'll tell you what! Glad I got in my crib when I did. Glad I sold when I did too! Know the market!

In 2012 my home sold to the first person who walked through. They offered 10k higher than asking to close ASAP.

However, there are some that know but have no choice.

 

[Armarookie43]

Dear lord...
He tripped up Real BAD...
Was he asleep and missed what happened back in 2008??

I don't know. But back then in around 2007 I was living with my mom in California after getting married, so that we could get our stuff together (which I was not ). I asked some lady that my mom "trusts" as a real estate agent, who is a multiple property owner how much would a home cost. She's like, oh we can get you into a $500k one bedroom condo no problem. I was like what? No thanks. True that I have been dumb with some of my finances. But not when it comes to real estate. That same lady is the one that suggested my mom to use her house as a piggy bank to pay off credit card debts twice (mounting to like $50k each time). Once she sold her house, she only had $150k of equity left in her $500k home. Another thing you should NEVER do. Turn unsecured debt into secured debt. Oh yeah. I wouldn't listen to anything that lady says, despite her having multiple properties still to this day. She gives some BAD ADVICE. Banks are also to blame in the mortage mess, but they don't care, because they know that they will get bailed out with tax payer money (they are guilty by helping people getting into a mortgage that people can't afford). Why would ANY bank let someone get into a mortgage payment that is WAY MORE than 25% of an individual's take home pay? Or a couple? Back in 2012, I could probably have qualified for a much bigger home than my modest 1556sq ft home here in San Antonio TX, but I was like, nah (my wife was very smart about that too). But that much bigger home would have put me in margins that I was not comfortable with, so I didn't even ask. What my wife and I asked the builder where we bought was : "what is the smallest home you build"? And we only did a couple of upgrades. It took me at least a year of research before I even thought about getting into a mortgage. But it was time well spent. Now I'm doing the same with investing, taxes, the kids financial stuff, etc. I write almost everything down that I do. My OCD has turned into trying to smooth my edges as much as I can. Will I even be 100%? Nope, none of us ever will.
Damn, I sure go into rants here, but they are productive. At least I think they are

 

[Armarookie43]

Man, I'll tell you what! Glad I got in my crib when I did. Glad I sold when I did too! Know the market!

In 2012 my home sold to the first person who walked through. They offered 10k higher than asking to close ASAP.

However, there are some that know but have no choice.

The current housing market is insane right now. My house was valued at around $170k in 2012 for a new construction. Now in 2023, a few blocks away from me (similar new home and sq footage) is $345k plus . That is not sustainable.

 

[Tex Koder]

As a single guy, I scrounged together enough scratch to buy an old house (built in 1980s) in the old part of Dallas back in 2003 -1,770sqft with decent front yard and a big backyard.. for $50k.
Put in another $30k into it fixing up every other major thing it needed to be fixed or replaced.. thru the years ,Slowly.

Eventually sold it for a bit more..

 

[Armarookie43]

Dear lord...
He tripped up Real BAD...
Was he asleep and missed what happened back in 2008??

The crazy part about that particular person is that he's not even a young guy. He's in his 50s. I think his wife too. I honestly think that he didn't even know how the ARM works. It's the big gest purchase most of us will ever make, so you really have to do your homework.

As a single guy, I scrounged together enough scratch to buy an old house (built in 1980s) in the old part of Dallas back in 2003 -1,770sqft with decent front yard and a big backyard.. for $50k.
Put in another $30k into it fixing up every other major thing it needed to be fixed or replaced.. thru the years ,Slowly.

Eventually sold it for a bit more..

You are smart .

 

[Tex Koder]

The crazy part about that particular person is that he's not even a young guy. He's in his 50s. I think his wife too. I honestly think that he didn't even know how the ARM works. It's the big gest purchase most of us will ever make, so you really have to do your homework.

You are smart .

Oh no...!

He just dug himself a Huge DEEP and fell right in ,withOut a rope...

 

[Armarookie43]

Oh no...!

He just dug himself a Huge DEEP and fell right in ,withOut a rope...

It's very easy to do and very hard to get our of that mess unfortunately. I didn't mention his situation, or the other situations, to beat on these people. I only mentioned it so that we can all learn from it. Obviously I don't have no high horse to talk bad about other people's financial problems. Heck, I don't think anyone should get on a high horse for any reason since we all have defects.

 

[Tex Koder]

It's very easy to do and very hard to get our of that mess unfortunately. I didn't mention his situation, or the other situations, to beat on these people. I only mentioned it so that we can all learn from it. Obviously I don't have no high horse to talk bad about other people's financial problems. Heck, I don't think anyone should get on a high horse for any reason since we all have defects.

Yeehaw!!
Let's ride!

I judge others ALL the time... from









My high horse.

 

[lee82gx]

It's a circus Balancing act...

Haha...

When I started this hobby in early 2000's I was a student on allowance. I recall the LHS shopkeeper telling me to take it easy on spending, we were just starting out and he was looking out for me, always teaching me tips on how to spend less, sourcing used kits for me and my buddy. He once said look at these "adult" guys. After you graduate and find work you'll be able to afford ANYTHING you want. Screw stock race, you're going straight to Mod class. I was a little offended when he taught us to start with 27T turn motors. How dare he to tell us to drive slowly.

Well how to the turntables....prophetic to say the least....ANYWAY.......

I can afford a lot now but truly I have no time and energy. This juggling act will collapse at any moment. Family, wife, God should always come first. Who knows how this circus will end