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i bet if you took a survey on these boards and people first off new how to figure and 2nd off told the truth i bet we would both be surprised at the poor results folks get overall....... alot who frequented the financial boards are now saying their risk and pain tolerance was a lot less when the tires hit the road then they ever thought and they ended up doing the wrong thing.
I'd like to pay cash for our dream home in the La Crescenta area but prices are still hovering in the 800-1.2k range there, even in this downturn. What is it about the Glendale/LaCrescenta/LaCanada area that keeps prices so &*^% high on these otherwise ordinary-looking 3+2's????? And why are people still crazy enough to pay these kinds of prices???
If you read Dr. Housing bubble's blogs, he predicts these areas are next to fall in pricing. Pasadena is now at 1996 pricing in some areas. Never thought we could pick up a 1,300 sq.ft bungalow for $146,000. If we wait until 2015 we may very well be able to move back to CA. LOL
Come on, MadMan (your choice of moniker!), it could be two out of two depending upon circumstances, eh? All this talk about buy versus rent is conditional upon the, ahhhhhhh, conditions.
When considering a mortgage versus buying outright, the conditions were right for me to buy outright. Renting might make sense under different conditions.
If location location location are the three rules in real estate, than conditions conditions conditions could be the three rules for the financing decision.
My own scenario works for us and our frame of mind. No mortgage, investments not needing to be touched and a revenue flow that allows for continued savings(bucket one) and investments buckets two and three. Not for everyone but it gives us a sense of now and tomorrow that we like.
the-publics-new-fear-of-finance: Personal Finance News from Yahoo! Finance
As this article points out, the system that almost crashed us into a depression is the same, nothing has been fixed. There are token measures being taken but more along the lines of window dressing. I have mostly pulled out of investments and gotten rid of mortgages and other debt. I don't need to grow my money, just preserve it.
it wont preserve very well unless its growing by inflation plus whatever percentage you want to pull out a year. good luck trying to do that in a bank
Maybe they don't need to pull any of it out? Lots of folks don't. They have pensions and SS and don't really need to tap their investments other than for health cost overage possibly. The amount of risk they need or want to take is up them. Some will opt for higher levels others won't.
Well he still has to preserve it according to what he said he wanted to do., a bank or money market usually is a guaranteed loss after taxes and inflation especially long term after that nice juicy cd you have may be up. so im trying to see whats his plan for preserving his spending power is .
Last edited by mathjak107; 12-10-2009 at 01:53 PM..
Well he still has to preserve it according to what he said he wanted to do., a bank or money market usually is a guaranteed loss after taxes and inflation especially long term after that nice juicy cd you have may be up. so im trying to see whats his plan for preserving his spending power is .
I hear what you are saying but I am also saying that having a pension and SS can give you a different perspective on investments. Preservation in current dollars might be more important to some vs the risk of trying to grow beyond inflation. If the pension and SS has a COLA that helps to balance out worrying about a decreased lifestyle. You are living off of investments so that helps guide your mind set. Others see their investments as being needed for health care overage etc etc or perhaps just having it for piece of mind. If you have a pension and are eligible for SS retiring before 62 gives you time for a test run on how well you can live off of your pension. If you can then SS becomes gravy and investments are gravy in the cupboard for whenever. Mad Man can speak for himself but with a federal pension he may be more risk tolerance knowing he has a secure floor under him.
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And why are people still crazy enough to pay these kinds of prices???
The Public's New Fear of Finance
