BF2S Forums Investment advice

Dilbert_X wrote:

Ilocano wrote:

Dilbert_X wrote:

Its a lot better than 3%

It'll have to beat my 10% minimum ESPP and 401K matching to even consider them than just putting money away.

You only effectively get that 10% in the first year when you put it in.
What is the actual return on the plan?

Yeah, only on initial purchase.  But I could always sell it right after issue.  100% vested.  There was a time when purchase price was lowest in a 6 month period minus 10%.  Profit was usually 25%-50% before the stock market mess we have now.  I'd just turn around and sell the shares.  Not even worth it to hold to take capital gains.

cl4u53w1t2 wrote:

my assumption was that he had enough money not to rely on mortage

If he's worried about having enough to buy a car it can't be a great deal of money.

JohnG@lt wrote:

cl4u53w1t2 wrote:

my assumption was that he had enough money not to rely on mortage

If he's worried about having enough to buy a car it can't be a great deal of money.

It's enough for the down-payment on a decent sized house, it's not enough to buy one outright. Well, maybe it would be in a council estate in Scotland or something...

EDIT: I'm looking into the short term CD's.

Last edited by ghettoperson (2010-09-01 05:07:54)

Certificates of Deposit

Some of it will be being spent on various trips as well, it's not all going to be boring Vegas for Halloween, New York for New Years (see what I did there?) and probably going to Ottawa to visit some friends in February.

Bertster7 wrote:

Dilbert_X wrote:

Ilocano wrote:

It'll have to beat my 10% minimum ESPP and 401K matching to even consider them than just putting money away.

You only effectively get that 10% in the first year when you put it in.
What is the actual return on the plan?

I'm confused.

I'm in an ESPP, with minimum 15% return. Why do you say only in the 1st year you get those returns? I don't, I get them year in, year out.

I think we may be using the initials to signify different things. In my case this stands for Employee Stock Purchase Programme, where I get to receive 10% of my salary as stock at a 15% discount from market values and get to buy at the lowest price the stock has been at over each 6 month buy in period.

Dilbert is referring to the fact you won't keep getting that 10% or 15% every year for that same set of shares you had bought when you initially got that percentage discount.

I'm putting a couple of tens-of-thousand here:

http://www.mhrealestateandinvestments.n … nvestment/

I'll be getting 8% returns which won't be so bad until the inflation his later next year.

Harmor wrote:

I'm putting a couple of tens-of-thousand here:

http://www.mhrealestateandinvestments.n … nvestment/

I'll be getting 8% returns which won't be so bad until the inflation his later next year.

More likely -100% returns but whatever, it's your money.

Harmor wrote:

Inflation...we're going to get it at least 5-6% by 2012.  All this deficit spending is going to catch up to us as other countries come out of the global recession and we'll have to raise interest rates to continue to fund our running deficits.

Ok. When interest rates rise, you put your money in a bank account or invest in bonds.

Dilbert_X wrote:

"The economics of the deal work out in such a fashion that we can pay you the investor cash dividends of at least 8% each year on your principal investment plus you get appreciation potential.

It’s a closed investment for 2 years but after that you can sell your stake at current market value and walk away with some very nice gains."
Aha, aha aha aha.

Exactly. It's a ponzi scheme.

Real Estate agents are always trustworthy, I'd do it.

JohnG@lt wrote:

Harmor wrote:

Inflation...we're going to get it at least 5-6% by 2012.  All this deficit spending is going to catch up to us as other countries come out of the global recession and we'll have to raise interest rates to continue to fund our running deficits.

Ok. When interest rates rise, you put your money in a bank account or invest in bonds.

Neither...you put your money in tangible assets that appreciate like real estate, businesses, and commodities.  If the `Blue Ribbon Deficit Committee` that Obama has announcing their plans after the November election actually pass it where the interest deduction on homes is removed (done during the lame duck period), rental properties will be even a better investment than they are now.

One note though on rentals, you have to be firm on your renters - they'll roll right over you if you try to give them any slack.  Besides the laws for eviction are on the renter's side - they basically get 2 months free rent before you can get the police to remove them.  I would pay the extra 10% to have a rental agency run a rental - its worth the hassle.

Last edited by Harmor (2010-09-01 21:59:07)

Harmor wrote:

One note though on rentals, you have to be firm on your renters - they'll roll right over you if you try to give them any slack.  Besides the laws for eviction are on the renter's side - they basically get 2 months free rent before you can get the police to remove them.  I would pay the extra 10% to have a rental agency run a rental - its worth the hassle.

if they're renters they're most likely irresponsible liberals so of course they're gonna try and roll right over you.