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Why bail out irresponsible homeowners? I'm in a group that's really getting screwed here.
Graduated college in 2005. Didnt buy a home I cant afford. Have been renting since then. No credit cards. Just paying off my student loan.
Not about 'irresponsible homeowners', those have just 'walked away' by now anyway. It would target responsible homeowners or wanna-be homeowners, who could use the money to help the economy and banks by buying up some of the bank owned properties on the cheap, and maybe a car. The stimulus money would not have to come from taxpayers, it would come from IRA accounts. Mutual fund companies might not like it - too bad.
Please clarify because that last sentence I quoted is a bit confusing. Are you saying you made 40% in 2007 or that you bought them in 2007 and have made 40% since then? I did very well myself in 2007. 2008 up to now, not so much!
Wouldn't the next year be a good time to invest if you had the money to do so?
No, that was only for 2007. 2008 was a wreck but that was obviously an out of the ordinary year. Most of the time, a good fund will see a modest return.
Right now is an excellent time to invest if you have the means to do so.
Not about 'irresponsible homeowners', those have just 'walked away' by now anyway. It would target responsible homeowners or wanna-be homeowners, who could use the money to help the economy and banks by buying up some of the bank owned properties on the cheap, and maybe a car. The stimulus money would not have to come from taxpayers, it would come from IRA accounts. Mutual fund companies might not like it - too bad.
So, you are suggesting everyone drain their retirement to spend money now. That's fine and all but what happens in 30, 40, 50 years when people dont have enough money to retire and Social Security is gone?
Also, people have suffered losses of anywhere from 20% to 80%. You dont sell securities when you have suffered those kind of losses unless it is a dire emergency. That is poor decision making.
Buying a house isnt a bad idea, it is just as good of an investment as any. However, spending your retirement on a car is a poor idea. A car is a depreciating asset.
Not about 'irresponsible homeowners', those have just 'walked away' by now anyway. It would target responsible homeowners or wanna-be homeowners, who could use the money to help the economy and banks by buying up some of the bank owned properties on the cheap, and maybe a car. The stimulus money would not have to come from taxpayers, it would come from IRA accounts. Mutual fund companies might not like it - too bad.
I am seeing houses that were sold for $200k+ a few years ago, going for $70k now. If the 10% penalty was removed, I would probably buy one, rent it out, and wait for it to double. It would easily beat the return on stocks, because there is a solid return, along with eventual appreaciation.
We all hope real estate will appreciate, but we also hope 401k investments will appreciate at the same rate. So which is the better investment, - Who Knows.
Does anyone realize the S & P & Dow hit a high in March of 2000. I think the 24th the S&P (which track closely with mutual funds and 401ks) hit an all time high of 1542 and went steadily down hill until 9/11/01 after which it went sharply down to 900 or so and slowly climbed back to 1300 in oct 07 when it started back down again until the bank and brokerage house failures when it dipped sharply to a modern low of 825 and today ended up at 868.60 and although it may take a few years and expecting history to repeat itself will climb back to the 1542 of March 2000.
The 825 or 868 is the best thing that could happen for the young people (under 45) in 401ks. Your buying low. To take it out now regardless if the 10% were forgiven is not wise - your selling low. Lesave it there. For most it will make up a large part of your retirement.
We all hope real estate will appreciate, but we also hope 401k investments will appreciate at the same rate. So which is the better investment, - Who Knows.
Does anyone realize the S & P & Dow hit a high in March of 2000. I think the 24th the S&P (which track closely with mutual funds and 401ks) hit an all time high of 1542 and went steadily down hill until 9/11/01 after which it went sharply down to 900 or so and slowly climbed back to 1300 in oct 07 when it started back down again until the bank and brokerage house failures when it dipped sharply to a modern low of 825 and today ended up at 868.60 and although it may take a few years and expecting history to repeat itself will climb back to the 1542 of March 2000.
The 825 or 868 is the best thing that could happen for the young people (under 45) in 401ks. Your buying low. To take it out now regardless if the 10% were forgiven is not wise - your selling low. Lesave it there. For most it will make up a large part of your retirement.
My logic is this - if you can withdraw $70k with no penalty, and buy a house that you can rent for $700/mo, you are getting a 12% return, while waiting for your asset to double, which it eventually will. There is no way in hell that you can find that sort of return in the stock market.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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I dunno if I like that or not. Maybe just for this year only it might be OK to draw out no more than a certain percentage.
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