Yeah, that does seem to be an issue. I had assumed that it was because I often get gas at Safeway, but I've definitely not been getting 4% on that. Conoco seems to come through OK.

Finally pulling the trigger on a refinance for the mortgage. Locked in a 3.625% rate today and couldn't pass it up. Should save us about $150 a month on our mortgage. Just have to complete the paperwork and appraisal. We still plan to pay our current mortgage rate, as it's plenty comfortable for us. This should allow us to pay off our mortgage sooner.

Nice

I was pretty jacked! Our current rate is 4.625% that we got in Feb of 2014. Reason it was higher is that my wife's credit score was about 730 at the time, and they use the person with the lowest credit score for approval. This time mine was 805 and her's was 790, so he said our super high credit score would get us a great rate.

We use our cards for everything and pay them off monthly. Our cards suck for rewards but have high limits and are our oldest credit. I should upgrade for better rewards but I don't want to mess with lowering our length of credit.

Anyways, we've built up close to $300 this year in rewards for Christmas.

Hey guys. I've got a friend who is new to the 401K thing, though he has around $25K so far. He is same age as me, 50. His company matches up to 4%. He is contributing 10%.

What would be the the best 401K portfolio for a guy like that? He'll assume more risk as he'd like to maximize over the next 15 years. Don't know his salary, but in the 28% bracket.

I recommended small/midcap fund but would like to hear other's thoughts. And those went to shit today. Down 2.75%.

Thank you Gentlemen,
eDavid

Is definitely put some in large caps but I'd hit the small caps and maybe international funds. Hopefully te 401k will let him split it up but he definitely needs more than 1 fund.

He should allocate to index funds to mimic the global market economy which is about 45% US equities and 55% international. If he wants a home town bias he can flip those and do 55% US. Then diversify over small, medium, large cap.

I use the Amazon Card (at Amazon for 3% and Walgreens for 2%) and the Costco card (pretty much everywhere else but the grocery store for the reasons mentioned above--plus 3% on travel).

I also have an American Express Blue Cash Preferred. It comes with a $95 annual fee, but offers 6% cash back at grocery stores for up to $6,000. Even if you subtract the $95 fee from your potential reward (.06 * 600 = 360) you would end up with $265 in rewards if you spend $500 a month at grocery stores. If you spend less than $500 per month at grocery stores, you might be better off with the America Express Blue Cash (Not Preferred) because it has no annual fee, but only offers 3% cash back at grocery stores. We spend plenty at grocery stores, and so the Preferred Card nets us over 4% in a year on a good deal of our groceries.

I hope he realizes he is making 40% on his money without it doing anything

I would select 5 sectors for someone our age, I'm 53.

1. S&P and large cap 25%
2. Total return 20%
3. International Fund 15%
4. High Growth 20%
5. High Yield 20%

If rates start to rise move money out of high yield.

My portfolio allocation is attached from today's Paychex login

I hope he has other investments besides his 401k. If he only has 25k put away at age 50, he's way behind. Other than that comment, there has already been great advice given. I'm a big believer in index funds.

I hope so too. If he doesn't, he needs to be maxing it out every year from here on out and probably have some side investments too.

I also have switched most of my 401k over to index funds. If I want to tilt my portfolio to a certain sector, I do that in my Roth IRA.

An IRA is another thing to mention. If he's doing 10%, he may be much better off only matching his 401k. Depends on his 401k but it's frequently true. If 25k is really what he has total then he should do everything he can to get as much in as possible.

He might want to look into places to retire in South/central America. Panama, Costa Rica maybe

Are you saying an IRA is a better option in the long run? That's advise I'll take too.

This is one of my team members that I like, am coaching professionally and I would really like to help him get on track. He knows he won't retire to a life of leisure.

He's just had a life that didn't allow for much investing. Thank you all for your advise.

For most people: hit 401k match, max IRA, max 401k if possible. It depends on the 401k plan but for most people they have more and cheaper options in an IRA of their choice. Schwab, Vanguard, and Fidelity are all fairly popular.

Thanks dude. I always thought that was the school of thought for younger investors and not recommended when getting into it late.

What kind of adjustments are you guys contemplating depending on who wins the election?

What will you do if Trump wins?

What will you do if Hillary wins?

(please don't turn this into a DC thing)

On a side note, interest rates have to go up too. Not in Oct. during an election, but definitely by EOY.

Maybe I'm naive, but I don't pay attention to politics as it relates to my investments. If prices go down, I buy more. Otherwise I have my normal strategies.

That makes to total sense. I'm should have clarified it as 401K investments. I don't care who wins really, but I'd like to navigate it correctly. Might just pull it back for a bit and access the sitch.

Everybody keeps saying that about the interest rates but I don't see it.

It's a popular position that interest rates HAVE to go up. What boggles my mind is interest rates really fell at 9/11. Which was 15 ****ing years ago. They didn't achieve their epic low for a few years but they've been almost nothin for 15 years.

There isn't inflation. I fail to believe that there will be material changes in the interest rates. I'm probably wrong, but I don't see any reason for them to take off that hasn't existed in the last 15 years.

The committed to two adjustments per year. One so far this year and the case to increase in Oct was gaining traction after last meeting.

They won't follow through.

They don't want to be the goat if (really, when) the stock market takes a dive after the election.

Historically (1900 - 2008), the market has gone up 15% when the incumbent party wins. -4.5% if the incumbent party loses. Overall average is up 7.5 regardless after an election.

Democrat President/Republican Congress has meant an over 21% increase.

Don't change your investments based on who wins. It's largely uncorrelated when calculated for a president's full term. Political parties don't really effect the market. We've had great and bad times with both parties at the helm.

No, but I feel confident that a Trump election would make volatility spike and stay spiked for a while.

Fine with me. Are you retiring soon?

I'd like a stock sale. But I think volatility will be high regardless of who wins this election given both candidates.

non shocker? rates didn't move.

I think the market is way overdue for a correction and these lower than low rates are like a loaded spring.

The paperwork for a simple mortgage refinance has been insane. Should be closing fairly soon though. The loan company waived our appraisal, as they determined we already have enough equity in the house to refinance without someone having to look at the property and determine it's value. So that's a bonus.

What was the factor behind the refinance if you don't mind me asking?

Rates have been so low for so long not sure how you reduce payments anymore or were you looking to take out equity to do something else with the money? :hmmm:

When we bought the house 3 years ago, we only got approved for a 4.625% rate, I think because of my wife's lowish credit score of 720. I also didn't do any shopping around, so that probably didn't help. I checked into refinancing last month with rates being at record lows and they ran a credit report and with our credit now, 790 and 805, they said they could knock a full 1% off our interest rate. We plan to stay in this house long term, so it's just a play to pay less interest over the life of the loan. Our mortgage payment is very comfortable for us, so we will continue paying what we pay now, maybe even a little more, to pay off the house sooner and with the refinance, save on interest over the life of the loan.

When I did mine a few years ago I picked up a shorter term and was able to reduce the rate significantly enough.

I have two new books. How to Crush it...and Built to Last.

Anyone have any good recommendations on where to put money you are taking out of Savings? My local PNC is closing, so I am taking all my savings out, and I am going to take it somewhere. I should have done it a while ago, because the interest rate is a joke. I guess I kind of worried putting it somewhere else where I don't have quick access to it.

^I have a cash reserve at my house that is instantly available, so if it took a couple days to access my funds, it wouldn't be the end of the world.

There are a number of "high interest" savings accounts out there online. They're still pretty crummy in terms of interest rates (generally 0.5%-1.0%), but it's better than what you'll get at a brick and mortar bank. I'm using Discover Savings right now (1.0%), and I've used Capital One 360 previously (0.75%). Both are really easy to start and use. Transfers between that and your checking account usually take 2-3 days or so.

I don't know anything abuot Discover Savings. I've been with Capital One for many years now (probably 15 or so) for most of my "loose" cash, and it's been pretty great overall. Much better interest rates on a regular account than you can even get on CDs at most other banks.

1. Take it all out of the bank

2. Combine it with the other cash you have socked away

3. Put it all under your mattress

4. PM me your address and wait for me to stop by and explain the best way to invest it. :D

I've used Capital One previously, never used Discover. Ally Bank I think gives 1% on savings and they reimburse up to $12 in ATM fees/month.
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I guess it would be good if you take the savings and pay the principal off each month. That would be the best of both worlds. Sounds like a good move depending on how much all the refinance fees were.

I use Ally. It's been fine with 1% APY. Basically matching inflation give our recent rates. I've considered their CDs for my safety net. I think you only lose 2 months interest if you break them but it's been a while since I read up.

edit: it does take a couple days for transfers to another account. I know some ppl who used it for both check/sav then it's very quick.

Synchrony Bank is a spin-off from GE and has a high yield saving account that is yielding 1.05%. There are no check book privileges, but you can link bank or investment accounts and move money in 2 to 3 days.

I have the Fidelity Visa card but not currently using it. Instead, I've been using Capital One Spark. Both offer 2% cash back on everything with no limits. Advantage Fidelity: no annual fee ($59 for Capital One Spark). Advantage Capital One Spark: no foreign transaction fees (1% for Fidelity). My best advise would be to get out of any airline miles cards you have. First, you can hardly find mileage flights that are available at the 25000 RT level and then you have to pay additional airport fees, etc. I'd rather have $500 cash to spend where I want than to accumulate 25000 miles that I can't use.

Quite honestly, Roth assets are the last place you should tap for funds. These are precious assets that will grow tax free for life. No tax on dividends, interest and market appreciation, depending on your investment of choice. It is hard to accumulate funds in Roth accounts unless you do an IRA conversion (which I did) and pay the ordinary income tax at the time of conversion. While that was painful, I now have a 30% gain that will never be taxed. For those thinking about estate planning, Roth assets can be given to your kids and they can take distributions over their lifetime. The other major benefit of Roth vs. Traditional IRA's is that there are no required minimum distributions at age 70.5. So they can continue to grow tax free for a very long time. Don't take assets out of your Roth if you can possible help it.

Doing fairly well with options on OIH and USO the past couple days.

This is what I do as well. See, Broncos fans are smart too.

I play the options markets a LOT.

Do you buy:
-At the money?
-Far out of the money for leverage?
-Mostly calls?
-Mostly puts?
-Near term expiration?
-Long term expiration?
-Whatever you feel is a good value?
-Enhanced strategies like covered calls or naked puts or straddles?
-Equity options or index options?
-Mostly big caps?
-High price for big moves?

I don't want to get to detailed. I will however reveal my moves the last few days. Calls for both OIH and USO. Put for SPY this morning.

How much in fees per trade?

ten bucks

Had options for 8 days but felt the time was right to sell. Did that yesterday afternoon. Had a good run them. Probably going to kick myself in the pants later today so I may not even look.

Next Saturday will be 4 months already living in the office.

-I've saved over $15,000 in a combo of my 401K and personal account. Pushing for a minimum of $30,000 before I start looking for new digs. The next few paychecks will be large as my sales and commissions due have been great

-Paying off and paying back items that I couldn't prior

-I've watched 61 movies FOR FREE in the last 4 weeks, list below.
WWW.123MOVIES.TO (YOU DO NOT HAVE TO DOWNLOAD ANYTHING OR SIGN UP)

-I've started losing weight again and back at the gym

-I've spent more time on CP and rarely use Facebook anymore after unfriending 320 people. No need to have a so called "friend" on Facebook because one time 35 years ago we were in a class together. All those people are no longer a friend as they never really were-just acquaintances

-I'm probably going to be taking off work for 3-4 weeks in January and travel to somewhere like the Cayman Islands and stay in an AirBNB because it is very slow in our business for the entire month

-Haven't been with any escorts in a long time, so I really have changed! :D

Overall this is one of the best decisions and sacrifices I've made.

Movies Watched

1. 3:10 to Yuma
2. A Bronx Tale
3. A Fistful of Dollars
4. A League of Their Own
5. American Gangster
6. And Justice for All
7. Animal House
8. Back to School
9. Black Mass
10. Brewster’s Millions
11. Car Wash
12. Catch Me If You Can
13. Cheers-Season 1
14. Clay Pigeons
15. Cool Hand Luke
16. Daddy’s Home
17. Demetri Martin: Live (At the Time)
18. Donnie Brasco
19. Down and Out in Beverly Hills
20. Dutch
21. Easy Money
22. Fast Times at Ridgemont High
23. Fletch
24. Freeway
25. Full Metal Jacket
26. Funny Farm
27. Glengarry Glen Ross
28. Goodfellas
29. Groundhog Day
30. Guarding Tess
31. Harlem Nights
32. Hudsucker Proxy
33. Jim Jeffries: Freedumb
34. King of New York
35. Leon: The Professional
36. Let it Ride
37. Lock, Stock and Two Smoking Barrels
38. Lucky Number
39. Midnight Run
40. Office Space
41. Once Upon a Time in America
42. Papillon
43. Reservoir Dogs
44. Revolver
45. Saturday Night Fever
46. Sausage Party
47. Snatch
48. Spartacus
49. Stand By Me
50. Stripes
51. Swingers
52. The Cable Guy
53. The Illusionist
54. The Jerk
55. The Secret of My Success
56. The Super
57. Trapped in Paradise
58. Unforgiven
59. Welcome to the Doll House
60. White Nights
61. Young Frankenstein

Not a big fan of the amount of warez activity you've been partaking in, but great job making the best out of a shite situation and saving money... and for watching Midnight Run.

Not making excuses but I'm just going to an open website with thousands of movies. Not hiding behind a TOR browser, a secret identity, downloading and sharing.

The next movie I'm watching tonight before the debate is "Dave" starring Kevin Kline and Sigourney Weaver and Frank Langella. Perfect topic.

Ironically, my father dated Frank Langella's sister Rose Marie back in Newark in the 50's

Under Armour drops 15% today under reports it plans to slow growth. I've wanted to purchase UA stock for years but it's always been over-valued. It might be time...........

YIKES

How much are they slowing growth?

I worded that poorly.

It doesn't plan to meet expected profit margins due to slowed sales in 2016 and continued use of funds for expansion of the company. Looks bad short term to investors but looks good long term to me.

Meh. Go through and listen to the audio questions. If it sounds like it is a total surprise, I'd be weary of putting a lot of dollars in there. Most of the CEOs are good at spinning it, but I'd always listen to the audio of Cabela's when I was there.

If you were sitting on a chunk of KMI at $12.98 & $13.01 would you keep riding or get a piece of this new action?

I didn't update everyone but on November 1st I moved out of the office at the 4 1/2 month mark and into a HUGE 6,500 sq ft home only 12 years old with brand new hardwood floors, just painted, new rugs, very clean, and in a great area near Dulles Airport. I have a private room and bathroom, full kitchen use, full 65" TV, tons of basement storage, and my landlord is a government employee with top security clearance. Cost is $800 per month with 1/3 utilities.

Staying in the office on a temp was a great choice and put a bunch of money back in my bank account.

Now I'm settled in a beautiful home for at least the next year or two.

That's got to be quite fulfilling. Nicely done.

It was shocking how easy it was. The fact I had a bathroom with shower and locker room directly across from our office was a huge advantage along with the makeup of the corporate tenants.

The only small downside was that anytime I was very tired and wanted to sleep late I couldn't because I had to pack up my air mattress during the week by 6am and in the shower by 6:15. That was the one shitty part.

The lack of pressure to pay rent for 4 1/2 months was great. I almost thought of buying a real cheap small RV and do it for a year but I knew it sounded good on paper but not in practice.

We *really* need to get housing prices under control in this country.

The predicted market plunge and "buying opportunity" today never came to pass. Another example of market timing being a bad plan. Slow and steady (and passive) over the long haul wins the race.

Benjermin graham

Don't you live in Joplin? You have no idea what high prices are...

You live in a part of the country with the cheapest housing around.

Sounds like you need a new job.

Pretty crazy that S&P (and other) futures were down nearly 5% last night around midnight, yet we ended up ~1% today. I'm definitely glad I don't try and do anything other than pump money into my mutual funds and leave them alone - that shit would drive me nuts.

LMAO

I recently landed a (low) 6 figure job.

My first order of business is to get my high interest debt paid down.

THEN WHAT DO I DO?


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Start learning to live below your means.

Use that to start building an emergency fund (3-6 months living expenses).

Pay off debt completely.

Build equity and buy a house if you don't already have one.

Start building savings/investments for retirement and/or the future as you can through all of this. Even $100 per month is better than nothing.

...

I have been making 40-60 grand a year for about 12 years. I have no savings, no retirement (I started to build one at one point but cashed it in in an emergency)

About 20k in high interest debt, 30k in low interest debt, and owe about 78k on my house thats worth 85. (edit: recalculated, 22k in high interest, 17k in low interest with 12 of that at 0%)

Unfortunately at this new company I'm not vested for 6 years, but I will max. My 6 percent for the 3 they give.

I dunno really anything about any kind of IRA, no idea what a brokerage account is. I have kind of been living paycheck to paycheck and doing racecar shit :/

I am going to start researching investments as well, but I wont start investing until i get my 10k CC debt paid off, hopefully feb/march. My house is at 5.25 right now which is higher than I can get, but I wanted to finish the transition to the new job before I went in for a streamline refi at somewhere around 3.25.

I have A+ credit as well. Have been thinking about looking into some debt transfer options and turning some of that high interest debt into low interest debt, but dont know if thats worth any fees etc.

Dont think im not dreamin!

Gonna be cool and get my shit handled first.

It might help to simplify your choices to help you think through it. There are generally three things you can focus on:

1. Emergency fund
2. Debt reduction (2.5 refinancing, consolidation, etc.)
3. Investments (3.5 401ks, IRAs, brokerage accounts)

There's very little point in getting into #3 beyond doing enough for your company match until you've got #1 and #2 taken care of.

I'd probably split your first priority between building up a little emergency fund of a few grand and paying down the high-interest stuff. Once you get enough in an emergency fund that you can handle most normal emergencies (breaking an arm, car breaks down, etc.), focus exclusively on the high-interest debt until it's gone. (Obviously if you can find ways to get the interest rates down, great, but that's just a matter of doing the research and the math to see if it's worth it.) After that, build up your emergency fund to where it really should be.

THEN you can start thinking about how to prioritize the low-interest loans vs. investments.

Oh, and you should definitely look into a refi once you're stable enough in the new gig (assuming you plan to stay in the house for at least a few years).