How many of us owe money on our boats?

[BigN8]

Did a decent down payment and invested the rest ($47,000)....mostly in Apple which at $115/share has my account value at $64,687.49 as of this afternoon.

I too have ridin the AAPL train! I bought a large chunk after the split, and I happily send off my $300 boat payment each month! Same with TWTR and FB! Sad part is I don't have an account with either

 

[Shuck Water]

I too have ridin the AAPL train! I bought a large chunk after the split, and I happily send off my $300 boat payment each month! Same with TWTR and FB! Sad part is I don't have an account with either

Exactly. As long as the monthly payment is reasonable, why wouldn't you invest the rest of the cash?

 

[txav8r]

you guys have bigger balls than me...but your younger too! I don't think I could tie up that kind of money in a single security. Not much diversity in that.

 

[Shuck Water]

you guys have bigger balls than me...but your younger too! I do't think I could tie up that kind of money in a single security. Not much diversity in that.

Sad part is that diversity isn't as safe as it once was....

 

[txav8r]

Sad part is that diversity isn't as safe as it once was....

I think your right. I have no business investing on my own. And many don't. Good for you that you have the knowhow and confidence to do it. I have a good firm, but at almost 59, my game plan is much different than those of you that are still climbing. I have to have mine in very different vehicles in 6 years.

 

[BigN8]

My basic strategy is...... If my kids like it or use it then buy it!

 

[Ronnie]

I don't think Apple is going anywhere but I've been reluctant to invest in Twitter or Facebook, they look a lot more like Myspace all the time too me. On a semi-related note: One of my previous manager's turned down two job offers from Tesla before they went public, lots of stock options but low salary (he would have had to take a significant cut on both offers). I'd bet he regrets not taking the job everyday. Being in Silicon Valley I know a 39 year old that was one of LinkedIns first employees, after they went public and her options vested she retired with 7 to 8 digits (to the left of the decimal point) in the bank, enough to buy a $1M "fixer upper" in Sunnyvale just to knock it down (except one wall) and remodel it to her liking.

 

[lddv1224]

I purchased a used 2013 Ar-192 in Sept 2014 and paid cash. I figured I saved around 7500 purchasing it used.

 

[BigN8]

I don't think Apple is going anywhere but I've been reluctant to invest in Twitter or Facebook, they look a lot more like Myspace all the time too me. On a semi-related note: One of my previous manager's turned down two job offers from Tesla before they went public, lots of stock options but low salary (he would have had to take a significant cut on both offers). I'd bet he regrets not taking the job everyday. Being in Silicon Valley I know a 39 year old that was one of LinkedIns first employees, after they went public and her options vested she retired with 7 to 8 digits (to the left of the decimal point) in the bank, enough to buy a $1M "fixer upper" in Sunnyvale just to knock it down (except one wall) and remodel it to her liking.

No way I would buy FB or TWTR now. I got in when both were in the $30's

 

[woodard1983]

Sad part is that diversity isn't as safe as it once was....

If it's done correctly it is the safest way to invest. the problem is that most people don't really diversify their investments. buying "different" stocks or mutual funds isn't diversification. You have to invest across multiple asset classes as well as making sure that you have a solid fixed income investment as well to achieve true diversification

 

[BoaterGuy]

If it's done correctly it is the safest way to invest. the problem is that most people don't really diversify their investments. buying "different" stocks or mutual funds isn't diversification. You have to invest across multiple asset classes as well as making sure that you have a solid fixed income investment as well to achieve true diversification

Ha! Every single asset class is in bubble phase due to money printing. There is no safe place to park your money anymore. Remember when bonds used to move inversely with the indexes?

(Edit - I completely agree with your above statement, I was laughing because of my bias against what used to be a reasonably fair market)

Bond market = bubble, stock market = bubble, real estate still in a bubble (watch what happens when interest rates rise).

The only way to diversify is with inverse investments and options to hedge your risk. Even then you're asking to get taken to the cleaners by the institutional and HFT traders. They will flood the bid/sell stacks to move stuff in one direction or the other if you have stop's in place.

I am mostly in cash and some physical metals. From what I know about the system, I would rather wait until the correction to put my money back in.

 

[woodard1983]

those are some interesting opinions, there are of course scenarios in each sector where the stocks and funds are over priced, but what you said is a pretty broad statement, which is something that was obviously provided to you through some sort of media....the only thing that I will somewhat agree with is that a large portion of stocks are over valued, but that has less to do with money printing and more to do with investor emotion.....

the thing that you are going to find trouble with is that if you dont' participate in the market due to being scared of a correction you will never be able to participate in the up swings. if your place and comfort level has you sitting it cash, then so be it, but you obviously aren't going to make money doing that and you will also lose out on participating in the increases until said correction comes. i'm assuming you are referring to the same correction that people have been predicting for the last 2 years now? If so, how much potential money was lost as you were wit....one thing that has been proven time again and that's if you participate in the market you have a much better chance than those who put money in and out trying to participate in up swings while avoiding down swings


and at that i'm going to stop my getting sidetracked and off topic on the thread...it's what I do for a living so sometimes I get a little overzealous when the topic comes up....sorry for pulling the thread off topic

 

[sstegh]

@woodard1983, are you a financial planner? If you are I need to talk to one.

 

[BoaterGuy]

those are some interesting opinions, there are of course scenarios in each sector where the stocks and funds are over priced, but what you said is a pretty broad statement, which is something that was obviously provided to you through some sort of media....the only thing that I will somewhat agree with is that a large portion of stocks are over valued, but that has less to do with money printing and more to do with investor emotion.....

the thing that you are going to find trouble with is that if you dont' participate in the market due to being scared of a correction you will never be able to participate in the up swings. if your place and comfort level has you sitting it cash, then so be it, but you obviously aren't going to make money doing that and you will also lose out on participating in the increases until said correction comes. i'm assuming you are referring to the same correction that people have been predicting for the last 2 years now? If so, how much potential money was lost as you were wit....one thing that has been proven time again and that's if you participate in the market you have a much better chance than those who put money in and out trying to participate in up swings while avoiding down swings


and at that i'm going to stop my getting sidetracked and off topic on the thread...it's what I do for a living so sometimes I get a little overzealous when the topic comes up....sorry for pulling the thread off topic

I understand where you come from, and as stated I have most out but not all out. My 401K runs a weighted .77 beta. So lower side of the risk equation. I will respectfully disagree with the valuation as I frequent the FRED website and various other economic activity measurements. Artificially low interest rates and increased bank reserves distort the price of risk and give leverage to member banks to move markets. The LIBOR was called out as manipulated and the CB's admittedly manipulate the paper value of gold. (It's in their publications) Its funny that they tout the perception that gold is worthless, yet still hold it as reserves while China and Russia are no longer accepting energy and good payments in USD, or are immediately converting those payments to physical gold.

Until the Fed unwinds its balance sheet (M1, M2), and the money multiplier comes up without destroying the dollar while increasing the velocity of money, I remain cautious. I could go on and on and about total public debt to GDP levels, real unemployment rates, manipulated CPI data, etc...

I dont watch mainstream news, but I do read BIS and IMF articles...

We are playing a dangerous game all over the world with the race to devalue currencies to keep exports up, with a lot of incentives for foreign powers to remove the petro dollar. Its all very frightening, I dont put timelines on important things like this, but its very apparent that the shit is going to hit the fan in my lifetime.

Reserve currencies have a lifespan, and we are at the end of ours.

I'll yield back and let this thread get back on topic...

 

[woodard1983]

@sstegh I am in the field, unfortunately w/my current position I'm not able to provide any advice...I do work with planners in the STL area and can probably recommend a few people that I would use if I was located there....just send me a pm if interested and I can get you some contact info

 

[txav8r]

You guys are so far over my head...I hope my guys are as knowledgable and cautious!

 

[Suchawittygal]

Wow..this turned into a very interesting discussion. Food for thought.
Yeah, I'm a sucker...I financed my boat, but paying double payments and will hopefully pay it off early. (Dave Ramsey would probably try to slap sense into my head if we ever met..LOL)..be that as it may, I love my boat

 

[Britboater]

I paid in full with a sale of a classic car and my boat in the UK, but since I wouldn't be able to get credit in the US, I had no choice.

Both children grown up and self sufficient, well, bank of mom and dad never really closes.
No debt other than mortgage, but we have a fantastic deal with our bank. It's called an offset mortgage, where our mortgage debt is set against our savings and our business account. In the summer months when our business account is high we actually pay no interest on our mortgage and the whole payment goes against the debt, so far we've reduced our original 18 year plan by 5 years.

 

[xoomer]

Speaking of Dave Ramsey, I'm a big fan of his basic financial program. I'm retired now but one of the happiest days of my life was when I got totally out of debt about ten years ago. Every dollar I postponed spending for immediate gratification when I was younger now provides me much greater satisfaction knowing I don't have to send off any monthly payments and I can live without worrying about finances.

It's sad to see these 65+ year old people here in Florida working as Walmart greeters or Lowes sales people because they spent every dime they earned when they were younger. Old age sneaks up on you fast so be careful.

 

[Ronnie]

Paying off my boat early may not have been the smartest financial decision but getting rid of the monthly payment even though it was small sure did and still does feel good. If I could pay off my mortgage (my only debt currently) today I'd feel like a rich tomorrow and forever afterwards.

Years ago I left AT&T for a healthcare company and the promise of free lifetime benefits for my wife and I. When I asked my now former coworkers what they were going to do for benefits when they retire some said they would never retire/basically work until they die. I laughed, they didn't.