Home Equity Loans

[DOGS THAT BARK]

Can't get search to work this evening but was wondering what the person in thread who said "anyone who does not take full equity out of his house and invest it,is a fool--is saying now
and wonder what investment he lost his all his equity and probably house in:s1:

 

[Eddie Haskell]

I wouldn't necessarily call him a fool Wayne. Considering that housing values have dropped over the last several years, those who sold there homes a couple of years ago are looking pretty good now. If you took the value out of it then, depends on what you did with the dough.

Ed

 

[DOGS THAT BARK]

I wasn't calling him a fool Edward--he called those that didn't take out their equity in their homes and invest it-fools.
Can't get advanced search feature to work--

It was quite an interesting thread--wish I could locate it.

Personally--can't see any loans being advantageous other than a few unique circumstances.

Can't see any reason in general for AR's over fixed unless one plans on owning property short term--

While those that did the subprime AR's in effort to get payment they could afford or for speculation has been a curse--the 96% of those that were previously living within or beneath their means were able to reduce their fixed rates from those 15 years ago by a couple points and came out like bandits.

 

[MadJack]

DTB, for some reason search feature doesn't work if you start your search with the word "home". try other keywords. that was driving me nuts.

 

[kneifl]

Can't get search to work this evening but was wondering what the person in thread who said "anyone who does not take full equity out of his house and invest it,is a fool--is saying now
and wonder what investment he lost his all his equity and probably house in:s1:

Not if you follow the market daily and watch it closely. I've made a fortune this year with IYR, DOG, and SKF funds alone. Also, made quite a bit on shorts. People who let their stocks sit are just asking for trouble in the short term, stocks are meant to be traded.

Also, I'm not a big fan of 401K's, I have one at work only because I have to and it makes sense with the match (although it doesn't make much sense in this market). Also, if you quit your job and have to rollover a 401K into a trad IRA or want to invest in a roth ira, you should go with a fund like the CGM Focus Fund (CGMFX) which has a smart money manager who often shorts stocks as well (Up 70% + this year). If you want to be more conservative and defensive the vice fund is also a good play (avg 20% returns annually last 3-4 yrs.)

kneifl

 

[Mr. Poon]

Also, I'm not a big fan of 401K's, I have one at work only because I have to and it makes sense with the match (although it doesn't make much sense in this market).

Enlighten me, why do you "have to" do a 401k at your work?

Also when doesn't it make sense when there is a match? If a Company provides a match, it makes sense to make some form of investment, even if nominal, via the 401k. They are providing you with an added return basically.

One last point that is a common misconception, you don't need to move your money out of a 401k plan when you quit/terminate a job. If it is above certain levels, you can simply leave it in there and use it as another investment vehicle. It is recommended you closely monitor it to ensure it is garnering the return you expect/desire out of that portion of your investments.

 

[kneifl]

Enlighten me, why do you "have to" do a 401k at your work?

You don't. Sorry if my post made it sound like you do.

Also when doesn't it make sense when there is a match? If a Company provides a match, it makes sense to make some form of investment, even if nominal, via the 401k. They are providing you with an added return basically.

Exactly, I think it makes sense with a match. If that match and the tax benefits weren't there I would opt for other types of investments.

One last point that is a common misconception, you don't need to move your money out of a 401k plan when you quit/terminate a job. If it is above certain levels, you can simply leave it in there and use it as another investment vehicle. It is recommended you closely monitor it to ensure it is garnering the return you expect/desire out of that portion of your investments.

You don't need to move it out but it is clearly stupid to leave it in the company's 401k plan because of the types of funds companies offer with their plans. I bet you didn't know that companies make money having employees invest in their 401k plans, it's not just the brokerage that makes money. It's better to roll it over to a Traditional IRA that is self directed. The Traditional IRA enables you to pick your own fund and you'll most likely get a better return if you do your homework on the fund.

kneifl

 

[Mr. Poon]

You don't need to move it out but it is clearly stupid to leave it in the company's 401k plan because of the types of funds companies offer with their plans. I bet you didn't know that companies make money having employees invest in their 401k plans, it's not just the brokerage that makes money. It's better to roll it over to a Traditional IRA that is self directed. The Traditional IRA enables you to pick your own fund and you'll most likely get a better return if you do your homework on the fund.

kneifl

Not all companies make money off of the 401k plans. And you aren't necessarily stupid for leaving it. It shouldn't be done as your main investment vehicle (obviously you aren't increasing it w/ any more withholdings). However, there are certain 401k plans that make very desirable returns. If you are active enough to monitor how those funds are doing that your 401k $ is invested in, then there is nothing wrong in leaving it in a 401k of an old company as a simple alternative investment to your other investments.

Also, in your earlier post you stated taking advantage of the company match didn't make sense in this market, what did you mean by that? Maybe I'm missing something...

 

[freelancc]

that was driving me nuts.

and so is that freakin' bug....:142slap:

 

[kneifl]

Not all companies make money off of the 401k plans. And you aren't necessarily stupid for leaving it. It shouldn't be done as your main investment vehicle (obviously you aren't increasing it w/ any more withholdings). However, there are certain 401k plans that make very desirable returns. If you are active enough to monitor how those funds are doing that your 401k $ is invested in, then there is nothing wrong in leaving it in a 401k of an old company as a simple alternative investment to your other investments.

You're right.

Also, in your earlier post you stated taking advantage of the company match didn't make sense in this market, what did you mean by that? Maybe I'm missing something...

I meant in my prior post that the company match was an awful good reason to contribute to your 401k plan. I was just saying that they (401k's) didn't make sense right now given the market environment (Even though it always makes sense to have one and contribute to it enough so your employer will match you). However, if I were to quit a job, I would always roll it over to a self-directed traditional IRA.

kneifl