1. The KillerFrogs

OT: How Do You Invest Your Money?

Discussion in 'Scott & Wes Frog Fan Forum' started by tcumaniac, Feb 7, 2020.

  1. #121 Virginia Frog, Feb 9, 2020
    Last edited: Feb 9, 2020
    Your system is a winner.

    Competition matters when buying a NEW vehicle.

    The only things that I'd do differently in a similar car buy is:

    1) Have a competing but similar brand/model in the mix. If you want a Honda, also add the comparable Toyota as an option. In this case where your target is a Hyundal maybe let them know you are Kia shopping too.
    This gives you additional leverage over the sellers as to whether you'll "walk" if the deal isn't the best (or if they think they are going to mess with you at the 11th hour of the negotiation.) It's also a good fake-out - the Hyundai sellers don't know that the Kia option is a red herring. If they're gonna play you, you might was well play them a bit.

    2) End of the month/Quarter. Dealerships will often have "situations" where they have a real need to move X # of cars by a certain date. You won't know this in advance but some of the dealers will show you their cards so you'll say "yes" to them.

    3) Geography - DFW is a large region and it for you it worked out great. I will fan out my offers up to 125 miles. Some dealers will not play if you are far away - they'll claim that you won't be a "repair" customer and it's not in their interest to sell to a "one-timer." In the mid-Atlantic I have found that there are price laws in Maryland (vs. DC, PA, WV and DE) that make their dealers more competitive by $1 to 1.5 grand, I once bought a Honda car in 1986 in Blacksburg VA (260 mi away.) In those days getting a Honda was a premium purchase (tremendous demand) and they bent over backwards to get my sale.

    My experience is that this can be a pretty pleasant experience. None of all that angst typically associated with new car purchases. I've found that most dealers RESPECT real professional, smart buyers and they are cool with and happy to sell to you - even if they are taking it on the nose to get your money!
     
  2. I have also heard that you are penalized if you have a 529 if you apply for Grants under FASFA. You should use your 529 for the second two years of college, but not mention them (using money from elsewhere) if you intend to apply for Grants their Freshman and Sophmore year? Anybody know if this is true. It effects how much i put in, if true.
     
  3. Debt is perhaps the most valuable financial instrument.
     
    BAM Frog and talor like this.
  4. ironic that #7 contradicts #3. You’re certainly not an energy guy if you’re advising people to throw money at those stocks right now.
     
  5. Over the long-term, throwing your extra mortgage money at a mutual fund will significantly outpace the return from interest savings on the mortgage
     
  6. Somewhat true, especially at today's rates. And this is coming from someone who has had every type of negative amortization mortgage and car loan out there. :)
    And you won't ever have the absolute nicest house or car out there.
    But, it's kind of like beating UT, for some reason it just feels so damn good.
     
  7. My performance says otherwise.
     
  8. Class of 2007
    • 401k up to company match amount
    • Max out Roth IRA
    • Employee stock purchase plan if offered (generally can lock in 15% return)
    • Real estate that is not your own personal residence
    • Bitcoin
    • Northwestern mutual permanent life insurance
     
  9. Ford Expedition Max so I can haul the whole crew and all their gear to the Fort for gamedays and for our hunting and fishing trips. I have loved it.
     
  10. But you haven't realized your energy investment performance if you are buying now.... I think that was the point. You think energy will rebound and ticketfrog doesn't, the result is yet to be determined.
     
  11. I sent most of my money to a guy in Nigeria to pay a fee to get funds released from a government oil revenue account. When that occurs he will send me $10 million. Still waiting, but when that happens, man I will be rolling in it.
     
    tcudoc, matmoo123, kodiak and 9 others like this.
  12. Fair point on my recent purchases. I made specific investments in O&G in 2019 that have been sold for profit.
     
  13. Lots of bragging in here
     
    BABYFACE likes this.
  14. The market has been kind over the last decade. It’s been easy to win. That said I bought NBIX back at $9. I sold it at $16 thinking I was doing great. That was in 1-2 months. It’s now over $100, so in retrospect, I’m an idiot.
     
  15. #135 BABYFACE, Feb 10, 2020
    Last edited: Feb 15, 2020 at 12:59 AM
    My advice is old school and simple. Avoid or minimize debt. It’s amazing how much extra money you have in your pocket to invest if you choose to.

    Taking on debt to use towards investment is a game I choose not play no matter if the numbers look in your favor. Things can always change. Paid off car is a thing of beauty. Owning your home outright is fantastic.

    Had a relative take out a loan on their home they owned free and clear. Why, because the loan rate was low and returns in the market were much higher on investments. I told him was a mistake because things change. Well they did over a decade ago. Housing bubble burst and the market tanked in a deep recession. Hated to be right.

    I am just common sense guy that doesn’t believe handling one’s personal finances like a day trader.
     
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  16. It’s not what you make.....it’s what you keep.
     
    YA, tcumaniac, BABYFACE and 1 other person like this.
  17. Do you support single mom's or dance yourself?
     
  18. I mix my strategies in non 401k accounts in between growth and dividend growth investing. I like to be in equities pretty much exclusively with a small allocation to bonds. I believe that the dividend growth aristocrats, champions, etc give a level of downside protection and growing income stream. Especially when I have it set to DRIP on a lot of those.

    Better to buy when undervalued which is easier said than done. I utilize fastgraphs.com for some pretty easy to understand/quick analytics as I don't have all day to do it myself.

    I also have a funny money account where I dabble in frequent trading following people on Twitter and a couple of websites. It's basically been zero sum for me but fun when you win.
     
  19. Buy high, sell low.

    Then write it off.

    #woke
     
    hiphopfroggy likes this.
  20. Pay yourself first.
     
    kodiak, BAM Frog, Eight and 1 other person like this.

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