Payoff house or invest in more stocks? #finance

Microsoft ?!?!?!?!
Mar 8 18 Comments

401k maxed

1. Which are you guys doing for early retirement?

2. How to maximize tax deductions?

170k, 10yoe

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TOP 18 Comments
  • This comment was deleted by original commenter.

    • Microsoft ?!?!?!?!
      OP
      So buy stocks. Got it
      Mar 8
    • Facebook public2
      Wake up indeed and don't listen to people who think you can time a market lol
      Mar 8
    • Facebook public2
      If we are talking investing no one is talking 1 to 2 years from now. You are only a fool if you think you can time a market and that bull markets end becasue of "time." You can only invest at every peak and still earn tremendous returns. Invest often and always. You're welcome.
      Mar 8
    • Facebook public2
      Le sigh. Ok "dude." I offered you advice as a someone who has been investing for more than three decades. Just my .02. Good luck with your "common sense" market timing. Hope you achieve the buffet exception as well!
      Mar 8
    • New broh
      There was a guy here who started advising to sell everything at the end of last year posting frightening charts day after day, and told us he indeed sold everything since 2016. Lol. Guess he’s not around anymore these days. I’m up 30%+ from 2016, so even if there’s a crash and you’re able to pick stocks at a 30% discount, you’ll barely break even with me.

      Not even counting that several economists are saying that there might not be a big crash, and we’ll just see stocks growing much slowly over the next decade, until the earnings rise enough to bring the P/E lower again. Valuation are a function of earnings and stock prices, so either can move while the other stays constant and you get the same effect.

      But certainly I respect your opinion, I just totally disagree with it.

      By doing what I’ve done, which is investing my savings each and every single month regardless of the market status, I’ve grown my net worth to 1.6M and I’m just 31, with super sweet IRR thanks for the SP.

      My rule is to never ever sell an income producing asset (as long as it’s not dumb as investing in a single stock, clearly it must be diversified). Ever. I’m in this for decades, not the next 3 years.
      Mar 8
    • New jezaaaa
      Out of curiosity, are you familiar with the bogleheads forum? Look it up. It’s a forum of incredibly experienced and seasoned investors, that’s where I learned the buy and hold. All of them are much older than me, and they always advise to put everything in the market, and just have a small portion of bonds that you slowly increase as you age. Still, people in their 50s on that forum don’t have more than 30-40% in bonds, rest is in stocks.

      They’ve all been through 2008, and quite often they link the threads from back then were they were saying “don’t panic, keep buying and keep investing, don’t sell”.

      I might be young and that’s your argument towards me. I’m curious, what do you say about them? Age is not a factor in that case, really the majority is 40-50+.

      Keep in mind that forum is not reddit quality, most people are very established professionals such as engineers, physicians and business owners. Sometimes they’ve given me tax advice that would have costed thousands in real life.

      Also, some of the stuff you suggest makes little sense to me. Sell everything and then reinvest some?! Why would I want to pay capital gains now if I’m going to even just partially reinvest it immediately?

      And I know a crash will happen eventually, but I’m not worried: my assertion is not that a crash won’t happen, is that a crash will happen but I don’t know when, and so I prefer to keep investing every month my paycheck regardless of what the market does, because by the time I’ll need the money to retire it will have grown a lot anyway, or the entire American economy will have collapsed and I’m doomed either way.

      public2 can you come to my defense? Lol
      Mar 8
    • Snapchat BigCoin
      So what I don’t get is that... what constitutes as a long bear? Does 1987 count? Because it was a flash panic, not unlike what just happened in December. And the markets dropped maybe only 20% and then kept running up until end of 1999. So if you ask different people, they will say the longest bull run was actually 1982-1999 (because people discarded 1987 flash crash).

      So did we already hit a bear market in December, and thus this notion of “timer” resets? (I’m not talking about economy/recession. Just purely care about stock market/bear).
      Mar 9
  • Microsoft bigredhat
    Roth IRA. Spousal IRA. HSA.
    Mar 81
    • Square SQQQQ
      He doesn’t qualify for a Roth IRA at 170
      Mar 8
  • Oracle now@google
    Both
    Mar 80
  • Credit Karma kqqo46
    Why not do both? Pay off some principal and DCA into ETF. Diversify and don't try to time the market.
    Mar 80
  • Amazon Xode
    I have planned to pay part of the principle to reduce my installments
    Mar 80
  • There's lots of articles on this. IIRC if you're young and you think the market growth will out pace the interest then buy stocks.
    Mar 82
    • Microsoft ?!?!?!?!
      OP
      Looking to see what people on blind are doing
      Mar 8
    • Well how much are you paying in mortgage interest per year?
      Mar 8
  • eBay / IT
    manorama

    eBayIT

    BIO
    Coder
    manoramamore
    @jezzaaa what kind of tax advise nuggets have been useful from bogglehead ?
    Mar 130
  • Google GwBe85
    Here's my prioritization:

    max out 401k > pay off the house > invest in *more* stocks
    Mar 90
  • Facebook public2
    Your 401k isn't likely maxed (most people think the max is 18k) but regardless if time horizon is more than 10 years stock, else house.
    Mar 80

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