Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[lewdog]

Originally Posted by scho63

Lewdog-this is what I'm aiming for retirement in 3-5 years.

http://www.realtor.com/realestateand...2-92088#photo6

Here is the property I had when the dotcom bubble crashed. I had a 1997 sq ft property under contract for build with Pinnacle Builders along with a full gunite pool with rocks from California Pools and Spas. I gave the property back to the builder and he gave me back my $25,000.

The new contract people built a much large house

http://www.realtor.com/realestateand...2_M10215-66837

I love the idea of a nicely finished townhouse when you are older and kid free. That's definitely more tastefully done than that second house you posted. I forget, have you lived here before?

[scho63]

Originally Posted by lewdog

I forget, have you lived here before?

From 1996 until 2001 I spent an enormous amount of time in Scottsdale and was contracted to buy that new house in 1998 in Pinnacle Canyon at the Troon North Golf Course. Put up $25,000 had mortgage approval, had pool designed, had house moved on pie shaped lot to maximize one side and then 20 days before construction began the market crashed. Then our company's funding dried up and the rest was history. The market in Scottsdale was so strong that the builder refunded 100% of my deposit and resold the place for an extra 40K.

I know the Scottsdale real estate market as good as anyone. Look at it every day for last 17 years.

My house there went from $284,000 to $715,000 in 3 1/2 years AFTER I turned it back.

Bad timing for sure.

[wutamess]

WTF? I missed this story. You doing this out of your office that someone owns or you own? Does anyone there know about it or say anything?

[DaFace]

Originally Posted by wutamess

WTF? I missed this story. You doing this out of your office that someone owns or you own? Does anyone there know about it or say anything?

...

Originally Posted by scho63

I'm now living rent free, utility and cable free, property tax free, renter insurance free and I've cut back on going out to an expensive late lunch or dinner 5-6 nights a week until at least December. I've moved into my office. At 120-130K income for the year the money should accumulate rapidly.

I have complete bedroom setup, clean clothes, shower and locker room, full kitchen with convention oven microwave, full refrigerator, dishwasher, normal microwave, free tea, free coffee, snacks,safe and quiet environment.

I have a car payment, which I want to pay off the $14,600 in November, a few other small bills and a Fed Tax bill from 2010 of around $7,000. My 401K has grown faster in 2 years than any other of my savings attempts in 30 years. I'm moving it up from 10-15% and can utilize some catch up provisions.

I'm single and decided to set aside 6 months of serious sacrifice to jump start my retirment goal of living in Scottsdale.

Originally Posted by scho63

The main boss and only he knows I am here as I got his approval first. I had been thinking about this for 3-4 months before my townhome lease expired and I launched the plan so it was effortless. I told him I would be staying here for the next 4-5 months or UNTIL someone found out and complained. Told him it was solely to save money. As of this moment, no one knows but I think the Hispanic cleaning lady probably has a good idea because I am always here on the computer until they leave.

I spent $54,500 on rent and utilities for the last two years and also lent the ex-girlfriend $11,000 of which she gave me back a paltry $1,000 total. That's $64,000 AFTER TAX dollars I spent which is around $90,000 GROSS INCOME. When I look back at the fiasco of renting a place too big and too expensive because of her and all the money I pissed away, I wanted to do something very radical in the opposite direction.

I just rented a storage unit in a super clean and safe well known building where I moved all my belongings that costs $75 a month. Keypad entry and I have 3 hanging wardrobe boxes that I have my clothes hung on to rotate what I wear. I have several days of clothes along with clean towels in my trunk. Our building has a complete shower and locker room where I store all my shampoo, soap, razor, toothbrush, etc in a locker with a lock on it. Only two out of ten are being utilized.

I rented a PO box for 6 months for all my mail and all shipments like Amazon are sent to my office.

I have an twin raised air mattress 22" off the floor that blows up with the electric pump in 3-4 minutes and deflates in 1 with the quick release. I blow it up around 9pm after the cleaning people have left and deflate every morning during the week by 6am.

The office I sleep in has a lock on the door so I can prevent someone if they ever showed up from coming in.

The bathroom-shower is directly across from our office and I can go any time at night with no one seeing me.

I have shower pants and a Tshirt I use with flip flops when I change into my sleeping gear. Sleep in my undies.

This commercial building has only two floors and has little to no early workers. It is has two large offices next to us which have been vacant for a while so occupancy is light.

The A/C is on all week and only shuts off on Saturday around 1pm. I have a small Honeywell electric fan that works perfect that I set up to blow on me when I sleep. On Sundays I have to plug in a small lamp in the shower room as the main lights and A/C are off only on that day.

I have a large box with two pillow, two comforters, a cotton blanket, a sheet and the airmattress all fit in that I store on a shelf with my name as PERSONAL. I also have a small little lamp on the desk and I use the flashlight feature on my phone when needed.

I put all my dirty clothes in a hefty garbage bag in my trunk and drop off at a Hispanic run laundry that does wash and fold for $1.25 a pound. It's 10 minutes away and I drop off my laundry once every 8-10 days in the morning and by evening all my clothes are washed to my instructions and folded perfectly, better than I can do! Costs me around $45 a month for laundry service. Very cheap.

There are only 11 other people that work in the office with me and they sometimes telecommute.

I have a full kitchen with coffee, tea, snacks, juice, soda, full fridge, freezer, convection oven, and large table.

So far I've been here 5 1/2 weeks and it has flown by. My bank account is growing again and I should be in great shape at the end of the year.

This is a big trend out in Silicon Valley and certainly not for everyone but it is working out perfect so far for me. Took some planning for sure.

Now you know.....

[lewdog]

Wanna know how many here use their Roth also as an emergency savings vehicle like this article suggests since contributions can be withdrawn tax/penalty free? I see this posted a lot lately and it makes sense for many I would think after you have a savings account emergency fund but still wanna have an option to stay relatively liquid without parking in a savings account and getting nothing. Any of you do this? What kind of funds do you use?

https://blog.mint.com/saving/does-us...d-idea-052012/

[Nightfyre]

Originally Posted by lewdog

Wanna know how many here use their Roth also as an emergency savings vehicle like this article suggests since contributions can be withdrawn tax/penalty free? I see this posted a lot lately and it makes sense for many I would think after you have a savings account emergency fund but still wanna have an option to stay relatively liquid without parking in a savings account and getting nothing. Any of you do this? What kind of funds do you use?

https://blog.mint.com/saving/does-us...d-idea-052012/

I don't believe you can withdraw contributions penalty free, as any withdrawal from a Roth is a distribution. So if not a qualified distribution, it would be subject to the 10% penalty, though not taxes unless you got through all your contributions.

https://www.irs.gov/publications/p59...link1000231061

[lewdog]

Originally Posted by Nightfyre

I don't believe you can withdraw contributions penalty free, as any withdrawal from a Roth is a distribution. So if not a qualified distribution, it would be subject to the 10% penalty, though not taxes unless you got through all your contributions.

https://www.irs.gov/publications/p59...link1000231061

You can withdraw your contributions tax free (since you paid taxes on that money already) at any time after 5 years from your initial contribution. You get taxed a penalty if you withdrawn your gains, however.

Copied from your link:

A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements.

It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and

[Nightfyre]

Originally Posted by lewdog

You can withdraw your contributions tax free (since you paid taxes on that money already) at any time after 5 years from your initial contribution.

But not penalty free.

I stand corrected. Contributions over five years are penalty and tax free.

[lewdog]

Originally Posted by Nightfyre

But not penalty free.

I stand corrected. Contributions over five years are penalty and tax free.

Read the link I posted. I see no one making mention of any penalty on contributions, which is why people are doing this.

[lewdog]

Originally Posted by Nightfyre

But not penalty free.

I stand corrected. Contributions over five years are penalty and tax free.

LOL. Ok. I wasn't sure but that's what I am reading.

Some people are parking some extra money, in something like a short term bond fund or money market in hopes of gaining a bit of tax free money but also something low risk with fairly immediate access to cash in an emergency. People are claiming this is in addition to a taxable emergency fund such as a savings account which generates little interest but is also taxed. Build this small emergency fund in your Roth to something like an extra $10k over the duration of a few years and then start putting your entire yearly contribution into a Roth back to all retirement funds. Gives you a little bit of extra liquidity without being taxed if you had to touch it later, with the hope that you don't have to.

I guess that's the point?

[DaFace]

Originally Posted by lewdog

Wanna know how many here use their Roth also as an emergency savings vehicle like this article suggests since contributions can be withdrawn tax/penalty free? I see this posted a lot lately and it makes sense for many I would think after you have a savings account emergency fund but still wanna have an option to stay relatively liquid without parking in a savings account and getting nothing. Any of you do this? What kind of funds do you use?

https://blog.mint.com/saving/does-us...d-idea-052012/

Eh, kind of. I still keep a healthy emergency fund in savings, but when I have considered if I should go even higher, the fact that a Roth is sitting there if things got REALLY bad has kept me from doing it.

[Nightfyre]

Originally Posted by lewdog

LOL. Ok. I wasn't sure but that's what I am reading.

Some people are parking some extra money, in something like a short term bond fund or money market in hopes of gaining a bit of tax free money but also something low risk with fairly immediate access to cash in an emergency. People are claiming this is in addition to a taxable emergency fund such as a savings account which generates little interest but is also taxed. Build this small emergency fund in your Roth to something like an extra $10k over the duration of a few years and then start putting your entire yearly contribution into a Roth back to all retirement funds. Gives you a little bit of extra liquidity without being taxed if you had to touch it later, with the hope that you don't have to.

I guess that's the point?

You can invest it in the stock market as well. That said, I would rather keep my Roth contributions protected and earning moar tax free gains, so maintaining some healthy savings balance seems prudent.

[lewdog]

Originally Posted by DaFace

Eh, kind of. I still keep a healthy emergency fund in savings, but when I have considered if I should go even higher, the fact that a Roth is sitting there if things got REALLY bad has kept me from doing it.

I am where you are at mentally. We have a good chunk sitting in savings for emergencies, 6 months roughly. I keep thinking it should be higher but we also don't max our Roth's yet. I am wondering if I should take an extra $2k at the end of the year and max out our Roth's into a low risk fund like they are suggesting for a bit added emergency funds?

[lewdog]

Originally Posted by Nightfyre

You can invest it in the stock market as well. That said, I would rather keep my Roth contributions protected and earning moar tax free gains, so maintaining some healthy savings balance seems prudent.

Yea, having access to stocks is a different animal for what I am talking about. As you are aware, you'd hate for an emergency to happen and you have to sell stocks when they are sitting low.

Did you spell moar like that trying to troll me?

[Discuss Thrower]

I invested roughly $300 in blackjack and roulette this weekend. Get at me.