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I guess the invest in index funds craze wasn't around then?
There wasn't a heck of a lot of information. Like most people, I was pretty busy between the long hours at my career job and blowing off steam on weekends. Midweek, I was pretty much at work or sleeping. That's what you did if you wanted the raises & promotions. I probably went a decade where I was the one who armed the alarm system when I walked out the door to drive home. My father was upper middle class but he was afraid of the stock market so I didn't have a good role model growing up.
I'm fine but I'd be early retired by now if I'd made some better decisions.
I guess the invest in index funds craze wasn't around then?
They existed, but were not nearly as popular as they are today. There was still a lot of skepticism about whether index funds would actually beat most actively managed funds. Most people are clueless about investing even today. They were even more clueless back then.
All of us can sit here and armchair quarterback investment decisions from years ago, given what we know now.
When I graduated in 2010 at 24, I was an economics major, but had no idea of the breadth and depth of local labor market trouble at the time. I felt great to get that $30,000 job when most of my friends were working for less. Being from Appalachia, I was accustomed to a crappy lifestyle.
I could easily sit here and nitpick decisions I made at 24, but I made the best decisions I knew how to make given what I knew at the time and what I could reasonably do given my situation.
I only really need fire insurance, but $100 is too high. I fully accept the idea that this place will get a few pipes taken out of the walls at some point and broken doors and windows. my hope is that the area will get better, and then I can pour a ton into renovations and either sell or have a rental management company take over.
Are you in a rent to own agreement on the condo? seller financed? what type of agreement do you have on this "purchase"?
Being as this is a condo, you need to worry about liability. What if your friend leaves the sink running and the flood waters ruin the neighbors stuff? Or does some substandard "fix" or upgrade that causes damage to other units...Hello liability insurance....oh wait, you don't have it, so be prepared to get sued for potentally thousands or more dollars in damages, especially since it doesn't sound like you have a formal lease signed and unlikley your "tenant" has a renters policy. Seems like $100 or so that you were quoted would be a worthwhile investment to cover your $40k investment, as well as potential liability. Also, try the excuse that if something serious were to happen to your "tenant" while he is playing mr fix it and suffers some serious injury that you "trust" that he wouldn't sue you.
Seems like short money to me for lots of what if's. At what point does it become worth it to you to insure the place? After it's worth more? how many upgrades you put in? Or are you willing to let it ride once it is paid off? Does the condo association require insurance? Lots of questions that need to be looked into.
Imagine something bad happening and all the savings you have could vanish pretty quick. I would recommend insuring the place ASAP.
Are you in a rent to own agreement on the condo? seller financed? what type of agreement do you have on this "purchase"?
Being as this is a condo, you need to worry about liability. What if your friend leaves the sink running and the flood waters ruin the neighbors stuff? Or does some substandard "fix" or upgrade that causes damage to other units...Hello liability insurance....oh wait, you don't have it, so be prepared to get sued for potentally thousands or more dollars in damages, especially since it doesn't sound like you have a formal lease signed and unlikley your "tenant" has a renters policy. Seems like $100 or so that you were quoted would be a worthwhile investment to cover your $40k investment, as well as potential liability. Also, try the excuse that if something serious were to happen to your "tenant" while he is playing mr fix it and suffers some serious injury that you "trust" that he wouldn't sue you.
Seems like short money to me for lots of what if's. At what point does it become worth it to you to insure the place? After it's worth more? how many upgrades you put in? Or are you willing to let it ride once it is paid off? Does the condo association require insurance? Lots of questions that need to be looked into.
Imagine something bad happening and all the savings you have could vanish pretty quick. I would recommend insuring the place ASAP.
seller financed. Though, I may take a loan from my parents, pay him off, and then pay my parents like $500/month until the 22k is paid off. the title and deed is already in my name.
pretty much after the area becomes decent (ie there isn't some adults getting high off heroin down the street), I'll look into real insurance. I just can't justify paying like $500/month on some insurance when they know and I know this place is going to get broken into and I rather fix it myself than file an insurance claim (insurance does not know that I won't bother them for anything small like that). I got him to sign a sheet that says I'm not liable for anything that happens to him in that condo, but I'll see if I can get it more official. I rather it sit empty than actually have to pay for insurance and stuff.
seller financed. Though, I may take a loan from my parents, pay him off, and then pay my parents like $500/month until the 22k is paid off. the title and deed is already in my name.
pretty much after the area becomes decent (ie there isn't some adults getting high off heroin down the street), I'll look into real insurance. I got him to sign a sheet that says I'm not liable for anything that happens to him in that condo, but I'll see if I can get it more official.
Why is "no one getting high on the street" the determining factor of getting insurance? To me, that would have been the factor before BUYING the place.
At 24 I was an intern making about $10/hr in local government working about 35 hours per week and living with my then fiancee in a $600 per month 600 square foot apartment in a mid-sized midwestern college town. This was in 2001-2002. I had a car I'd paid about $2,000 for in cash so no payments. I didn't have a lot of expenses so not a lot of stress. No debt whatsoever, but also basically no savings. Life wasn't too bad, really, despite minimal income. I still had lots of fun and plenty of free time.
At 24, I was working on Wall St, fixed income research. Ironically, I wasn’t much of an investor, but I’d save all bonus money. Probably was close to my first 100k by then - 1986. Maybe it was a good thing I wasn’t yet an investor, as the1987 meltdown might have permanently scarred me.
pretty much after the area becomes decent (ie there isn't some adults getting high off heroin down the street), I'll look into real insurance. I just can't justify paying like $500/month on some insurance when they know and I know this place is going to get broken into and I rather fix it myself than file an insurance claim (insurance does not know that I won't bother them for anything small like that). I got him to sign a sheet that says I'm not liable for anything that happens to him in that condo, but I'll see if I can get it more official. I rather it sit empty than actually have to pay for insurance and stuff.
You may want to get another quote on insurance, at least a dwelling fire policy if you indeed are "renting" it out. $500 a month seems awfully expensive, and in a prior post you said around $100, that's a huge swing.
You can always look into a high deductible to cut down on premiums, that way you are paying less knowing that you aren't going to nickle and dime the insurance co.
What is the set up of the "condo complex"? is this a large housing development? a converted multi family? is there a master policy, HOA? If this is a bigger place, just know that repairs/upgrades taken on by the HOA can sometimes fall to the individual occupant's for coverage. Something that your insurance policy may have shielded you from potential exposures that are out of your hands.
You're doing great. At 24 I was just out of grad school, and while I landed a really good job it did not offer a 401k. Not sure if my net worth was positive or negative at the time. I had a small student loan, and a small amount in savings.
I spent most of my time working, which was a good thing as it helped me solidify my career. Didn't have much money to invest anyway, at the time. A few years later I started learning about investing.
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