The 2015 Market Crash

[Northwestcoug]

I will probably regret this, but I don't think that is what he said at all. And what sort of victory are you trying to win here? Did somebody pee in your cheerios this morning? All I got out of MOl's orig post (which I have not reviewed) was a rather brusque comment that if PAC lost $$ at his age due to having a lot in equities that he got what he deserved. Which is true, if not very friendly, but also not at all what you just described. And then Moli said his old man pulled out of the market for his mission presidency, making clear that he did so without regard to investment principles, and then said (2x) that pops lucked out by being able to buy when the market was low after leaving it high and missing the crash. No timing, just luck.

I certainly agree with the principles that you have been promoting, as it pretty much describes the plan I am following, but I really dont see what it is you are so strenuously objecting to with Moli here. Can't we all just get along?

You forgot about the part when Moli totally dissed JL's retirement account when he compared it to his Dad's.

[creekster]

You forgot about the part when Moli totally dissed JL's retirement account when he compared it to his Dad's.

totally.

[Jeff Lebowski]

The 2015 Market Crash

You forgot about the part when Moli totally dissed JL's retirement account when he compared it to his Dad's.

Yes! That was super mean.

Seriously, I am happy for Moli's dad. And it seems that Moli can throw caution to the wind when it comes to his retirement planning. If everything goes south, he can always inherit money from his old man!

[Applejack]

I think there is a compliment for BYU71 in there!

I read it as a qualified statement of acceptability. Kind of like "any two bit hustler knows to do Monte Carlo simulations in order to assess risk. Even byu71 probably does this, right?"

[creekster]

I read it as a qualified statement of acceptability. Kind of like "any two bit hustler knows to do Monte Carlo simulations in order to assess risk. Even byu71 probably does this, right?"

Overcome the natural utah man; think half full, man, half full!

[Jeff Lebowski]

Dang it you guys. Stop trying to turn my dear friend BYU71 against me!


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[byu71]

Dang it you guys. Stop trying to turn my dear friend BYU71 against me!


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Yea, go wreck someone else's long time friendship. Ours is solid.

[Green Monstah]

For a late-30s professional guy with a decent chunk of student debt (aggressively repaying), how much cash is an appropriate amount to have in savings?

Between my employer's contributions and my 401k match, I get 22% of my annual salary and bonus deposited in retirement accounts, so I don't feel a ton of pressure there. I have about six months of salary in savings, and I keep grappling with the idea that I should use a big chunk to knock out some student loans that have 6.55 and 7.65 interest rates.

If you are me, do you pay down the debt and keep only emergency cash (3 months), or do I stick with 6 months? (Keep in mind: I've paid down around 90k in student loans the last three years, so I am making large, chunk payments; I just work in a volatile industry where I can go from superstar to unemployed with a ten dollar decrease in the price of crude).

[Jeff Lebowski]

For a late-30s professional guy with a decent chunk of student debt (aggressively repaying), how much cash is an appropriate amount to have in savings?

Between my employer's contributions and my 401k match, I get 22% of my annual salary and bonus deposited in retirement accounts, so I don't feel a ton of pressure there. I have about six months of salary in savings, and I keep grappling with the idea that I should use a big chunk to knock out some student loans that have 6.55 and 7.65 interest rates.

If you are me, do you pay down the debt and keep only emergency cash (3 months), or do I stick with 6 months? (Keep in mind: I've paid down around 90k in student loans the last three years, so I am making large, chunk payments; I just work in a volatile industry where I can go from superstar to unemployed with a ten dollar decrease in the price of crude).

Tough call. Six months would be a lot more comfortable, but would be nice to eliminate that interest more rapidly.

Do you have home equity? You could take out a line of credit and keep that ready in case of job loss. That would potentially justify reducing your stash of cash to a 3-month supply.

[Paperback Writer]

Tough call. Six months would be a lot more comfortable, but would be nice to eliminate that interest more rapidly.

Do you have home equity? You could take out a line of credit and keep that ready in case of job loss. That would potentially justify reducing your stash of cash to a 3-month supply.

Or perhaps use the home equity/line of credit to pay down student loans. As most know, mortgage interest is tax deductible. I faced a similar decision on how much to contribute to college 529 plans for my kids, how much to save for retirement, and how much to keep in savings in the event of job loss. Decided to refinance the mortgage and use the home equity to pay for kids college which reduced my taxes. One catch for using home equity/line of credit as a fallback in the event of job loss is that it is going to be difficult to get a loan if one is not employed.
Edit: Didn't read the Dude's post closely in that he advises taking out a line of credit now rather than wait. I think that's good advice and would use those funds to pay down student debt and write it off on your taxes and keep personal savings at a 6-month supply. I think line of credits are tax deductible but am not certain since I'm using a regular mortgage/home equity to pay for college costs.

[Jeff Lebowski]

Or perhaps use the home equity/line of credit to pay down student loans. As most know, mortgage interest is tax deductible. I faced a similar decision on how much to contribute to college 529 plans for my kids, how much to save for retirement, and how much to keep in savings in the event of job loss. Decided to refinance the mortgage and use the home equity to pay for kids college which reduced my taxes. One catch for using home equity/line of credit as a fallback in the event of job loss is that it is going to be difficult to get a loan if one is not employed.

Which is why you open the line right now, while currently employed. With my bank (credit union), I opened the line and then it just sat there ready for use whenever I needed it. Just transfer money between accounts using the web interface. Easy peasy.

[New Mexican Disaster]

For a late-30s professional guy with a decent chunk of student debt (aggressively repaying), how much cash is an appropriate amount to have in savings?

Between my employer's contributions and my 401k match, I get 22% of my annual salary and bonus deposited in retirement accounts, so I don't feel a ton of pressure there. I have about six months of salary in savings, and I keep grappling with the idea that I should use a big chunk to knock out some student loans that have 6.55 and 7.65 interest rates.

If you are me, do you pay down the debt and keep only emergency cash (3 months), or do I stick with 6 months? (Keep in mind: I've paid down around 90k in student loans the last three years, so I am making large, chunk payments; I just work in a volatile industry where I can go from superstar to unemployed with a ten dollar decrease in the price of crude).

Stick with the 6 months and pay off the debt in the next few years. You can always get a deferment if you lose your job, but you would have trouble making bills if you get a HELOC and lost your job.

[myboynoah]

That stat blows me away too. Take the match and then pull your money out in a few years with a penalty. You are still money ahead! Why would you pass up free money? I don't get it.

You can eat that marshmallow on the table in front of you right now, or if you wait five minutes, you'll get two marshmallows.

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Boom bitches!

[beefytee]

The market of the beast:

https://www.bloomberg.com/news/artic...p-markets-wrap

Today, I'm glad I sold yesterday. We'll see if I still am in the coming weeks and months.

[Jeff Lebowski]

The market of the beast:

https://www.bloomberg.com/news/artic...p-markets-wrap

Today, I'm glad I sold yesterday. We'll see if I still am in the coming weeks and months.

You are a market timer? Good luck with that.