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Post by freedomhunter on Apr 19, 2021 17:34:13 GMT -5
What makes you so sure that the costs are ever going to "cool off"? I'd say there is a fair chance that todays prices may look like a bargain a year or two from now. Regarding the labor shortage, anybody worth a hoot is already employed at a good job. You either have to pay them enough to lure them over to your place of employment, or you have to hire green employees and train them knowing that a large percentage of those will wash out. It's really never been a better time to be skilled trades of some type. All the work you want, and you can pretty much demand top wages and benefits. The price of lumber may not, which will indirectly effect the housing market. Houses are currently inflated because of interest rates, more people are buying than are selling, once people start selling, prices will come down. $1 a foot 2x4, $35 osb. You couldn't build a decent sized pole barn for less than $60k, right now. Think a 16 foot long 2x12 (treated) set you back almost 80 bucks. Interest rates are still good and some are plodding on, but most of my builders have flat out quit.
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Post by treetop on Apr 19, 2021 19:40:17 GMT -5
In my own opinion, I believe this dichotomy stems from, of course I could be wrong. Millennials who believe they are entitled to it first and then with the pandemic on the heels of them coming out of college joining the working class they are getting all this money from the government. If I had the mindset of a millennial then my answer would be "Why do I need to work?, The government is giving away all this money and I don't have to pay it back, where is my incentive?" I hate to say it fellas but just be prepared to work longer than you originally envisioned yourself to work. Since there is definitely a labor shortage coming up behind us in the ranks and more and more people just don't think they need to work since they are getting everything handed to them. I'm a millenial and I totally agree with your statement. That being said, I work a very good job that pays me well and has great benefits. And on top of that, I just officially started a side business (I've been doing side construction jobs for years but never official) and have more work than I can keep up with. I'm going to have to hire someone to work with me before too long. The excuses of my peers has created an incredible opportunity for me that is paying me hand over fist. The problem is that money is losing value rapidly. Have to invest in something other than the american dollar. Real Estate, Gold, Silver, Crypto... all very good investments at this point and will be for the foreseeable future. Things are getting interesting. Edit: Also, another way to protect yourself against inflation (only if you are certain that higher-than-usual inflation is going to happen) is to take out a loan on your house that is stretched out as far as possible into the future. You can fix your monthly payments now based on the value of today's dollar. However, in 10, 15, 20 years when the dollar isn't worth near what it is today, your payment on your house is exactly the same dollar amount as when the dollar was worth way more. Historically, this is an undeniable trend and an effective way to combat inflation. I disagree with your last statement taking out a loan will not make you wealthy not having one increases your odds remarkably What happens if you get hurt sick lose a job one thing for sure 100 percent of the things that got repossessed last year had a loan against them And how much money have you paid the bank even at today’s rates 3 percent or close on a 300K loan that’s 9 to 10 Thousand in interest Historically Gold Silver has produced somewhere in the 3 to 4 percent ROI honestly not all that great IMO You can get on average 6 percent on stocks again these are 30 year runs not last week or last year Congrats on your your new career if you continue a few you REALLY need to look in to Liability insurance COI from every sub if you hire any if they are not carrying insurance they become your liability Workmen’s comp if your going to employ someone At least a LLC they are not that hard to get don’t let someone tell you DBA will work it won’t in a lawsuit Find a Accountant you trust and can work with maybe not now but if you start growing They have made tax laws you have never heard of neither has HR Block Again congrats and best of luck
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Post by sculver7 on Apr 20, 2021 7:13:05 GMT -5
I'm a millenial and I totally agree with your statement. That being said, I work a very good job that pays me well and has great benefits. And on top of that, I just officially started a side business (I've been doing side construction jobs for years but never official) and have more work than I can keep up with. I'm going to have to hire someone to work with me before too long. The excuses of my peers has created an incredible opportunity for me that is paying me hand over fist. The problem is that money is losing value rapidly. Have to invest in something other than the american dollar. Real Estate, Gold, Silver, Crypto... all very good investments at this point and will be for the foreseeable future. Things are getting interesting. Edit: Also, another way to protect yourself against inflation (only if you are certain that higher-than-usual inflation is going to happen) is to take out a loan on your house that is stretched out as far as possible into the future. You can fix your monthly payments now based on the value of today's dollar. However, in 10, 15, 20 years when the dollar isn't worth near what it is today, your payment on your house is exactly the same dollar amount as when the dollar was worth way more. Historically, this is an undeniable trend and an effective way to combat inflation. I disagree with your last statement taking out a loan will not make you wealthy not having one increases your odds remarkably What happens if you get hurt sick lose a job one thing for sure 100 percent of the things that got repossessed last year had a loan against them And how much money have you paid the bank even at today’s rates 3 percent or close on a 300K loan that’s 9 to 10 Thousand in interest Historically Gold Silver has produced somewhere in the 3 to 4 percent ROI honestly not all that great IMO You can get on average 6 percent on stocks again these are 30 year runs not last week or last year Congrats on your your new career if you continue a few you REALLY need to look in to Liability insurance COI from every sub if you hire any if they are not carrying insurance they become your liability Workmen’s comp if your going to employ someone At least a LLC they are not that hard to get don’t let someone tell you DBA will work it won’t in a lawsuit Find a Accountant you trust and can work with maybe not now but if you start growing They have made tax laws you have never heard of neither has HR Block Again congrats and best of luck Obviously having no debt is the best. However, I am 29 years old. I have no debt except for my house, which will be paid off in 15 years total due to extra payments every month. Very few people these days, especially my age, are in a position to buy a house without some sort of loan. I guess I was more talking about if you are buying a house and have to take out a loan or if you still owe a considerable amount on your home. That being said, I also keep a very large amount of cash on hand (3 years worth of mortgage payments) in the situation where I were to get hurt. I was thinking about refinancing my home loan with these low interest rates, but after running the numbers, it makes more sense for me to continue to pay the extra money I am now rather than starting another loan over. However, someone who is newly into a mortgage or who can't pay extra on a mortgage, refinancing is a very viable tool in saving you money over time. And IF (that's a big if) inflation gets crazy (which it already is) extending your loan out as far as you can will save you money. I know there are a ton of unknowns, but that being said, each day of our entire life is a huge unknown. Have to weigh risk against reward and for each person, the level of risk they are willing to take is different than the next person. As for gold and silver, I am talking in extreme inflation situations. I really think that we are going to see inflation in this country at rates that we have not seen ever before. 25% of all the debt our country has ever taken on happened last year. That is a recipe for disaster when it comes to our dollar being worth nothing. As for stocks, up until early January, I was up 198% over the past year. I did this by day trading/swing trading and watching stocks every day. Yes, if you are going to just put money into stocks and let them sit for 20-30-40 years, historically, the ROI is very marginal, however, if you take an active role in trading, there is huge money to be made. Also, crypto-based currency has already shown that it has teeth and it is only going to become more and more valuable as faith in the dollar falls. As for my business, I have liability insurance already and it is an LLC. Since I am the only employee of the business right now, I don't have to get into all the federal regulations with workman's comp and everything else. i know that will change if I grow in this venture and have to hire more people. My aunt has been a CPA for 40 years, has always done our personal taxes, and all my tax-related questions for the business immediately go to her. Thank you for the kind words on this venture!
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Post by treetop on Apr 20, 2021 11:07:10 GMT -5
I disagree with your last statement taking out a loan will not make you wealthy not having one increases your odds remarkably What happens if you get hurt sick lose a job one thing for sure 100 percent of the things that got repossessed last year had a loan against them And how much money have you paid the bank even at today’s rates 3 percent or close on a 300K loan that’s 9 to 10 Thousand in interest Historically Gold Silver has produced somewhere in the 3 to 4 percent ROI honestly not all that great IMO You can get on average 6 percent on stocks again these are 30 year runs not last week or last year Congrats on your your new career if you continue a few you REALLY need to look in to Liability insurance COI from every sub if you hire any if they are not carrying insurance they become your liability Workmen’s comp if your going to employ someone At least a LLC they are not that hard to get don’t let someone tell you DBA will work it won’t in a lawsuit Find a Accountant you trust and can work with maybe not now but if you start growing They have made tax laws you have never heard of neither has HR Block Again congrats and best of luck Obviously having no debt is the best. However, I am 29 years old. I have no debt except for my house, which will be paid off in 15 years total due to extra payments every month. Very few people these days, especially my age, are in a position to buy a house without some sort of loan. I guess I was more talking about if you are buying a house and have to take out a loan or if you still owe a considerable amount on your home. That being said, I also keep a very large amount of cash on hand (3 years worth of mortgage payments) in the situation where I were to get hurt. I was thinking about refinancing my home loan with these low interest rates, but after running the numbers, it makes more sense for me to continue to pay the extra money I am now rather than starting another loan over. However, someone who is newly into a mortgage or who can't pay extra on a mortgage, refinancing is a very viable tool in saving you money over time. And IF (that's a big if) inflation gets crazy (which it already is) extending your loan out as far as you can will save you money. I know there are a ton of unknowns, but that being said, each day of our entire life is a huge unknown. Have to weigh risk against reward and for each person, the level of risk they are willing to take is different than the next person. As for gold and silver, I am talking in extreme inflation situations. I really think that we are going to see inflation in this country at rates that we have not seen ever before. 25% of all the debt our country has ever taken on happened last year. That is a recipe for disaster when it comes to our dollar being worth nothing. As for stocks, up until early January, I was up 198% over the past year. I did this by day trading/swing trading and watching stocks every day. Yes, if you are going to just put money into stocks and let them sit for 20-30-40 years, historically, the ROI is very marginal, however, if you take an active role in trading, there is huge money to be made. Also, crypto-based currency has already shown that it has teeth and it is only going to become more and more valuable as faith in the dollar falls. As for my business, I have liability insurance already and it is an LLC. Since I am the only employee of the business right now, I don't have to get into all the federal regulations with workman's comp and everything else. i know that will change if I grow in this venture and have to hire more people. My aunt has been a CPA for 40 years, has always done our personal taxes, and all my tax-related questions for the business immediately go to her. Thank you for the kind words on this venture! Keep it up your headed down the right track at least IMO you may never get rich but I’d bet money you’re going make a good living and have a comfortable retirement at a early age Your to young but back in 79 80 when I got out of high school interest rates were 14 to 19 percent on a home your right I’d bet my last dollar it’s coming again
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Post by bartiks on Apr 22, 2021 11:25:53 GMT -5
And that Gentlemen is why I have transitioned from the traditional 401K my employer provides to a roth 401K. Tax rates will continue to climb so the way I see it is I only want to have to pay taxes on the amount of growth on my roth versus the whole 401K. Speaking of I think I may up my withholdings and put more of it in there. Heck come to think of it I haven't checked it in a while. Thanks for the reminder
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Post by Mack Apiary Bees on Apr 22, 2021 12:25:34 GMT -5
Where I work they contribute 5% of traditional 401K, but for 5 years I added 15% of Roth 401k. Last year when I turned 59.5 years old I changed it back to 5% traditional and removed $25000 of traditional to pay off debt and on January 1, 2021 I took out another $2500 of traditional to pay off debt. I using the 15% increase in pay to help pay off house. I will repeat next year (2022) and finish paying off most of the house and use up the traditional 401k savings. I will be close to debt free and be able to retire in 2023. This is my 3 year plan to retire. I have 704 working days. Yes, I'm ready now if I could.
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Post by sculver7 on Apr 22, 2021 15:22:12 GMT -5
And that Gentlemen is why I have transitioned from the traditional 401K my employer provides to a roth 401K. Tax rates will continue to climb so the way I see it is I only want to have to pay taxes on the amount of growth on my roth versus the whole 401K. Speaking of I think I may up my withholdings and put more of it in there. Heck come to think of it I haven't checked it in a while. Thanks for the reminder Same. Pay the taxes now, so when you get to take it out, they don't take gobs away from you.
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