(10-09-2015 11:19 AM)HeartOfDixie Wrote: I guess I was just not following on how exactly the whole process worked.
I got nervous when you said that this is debt itemized into $25 'shares.'
Let me ask you this, how many $25 debentures do you hold at any given time?
Right now I have between 50-100 shares.
Usually adding two a month and having one drop off being fully paid back. You can, if you decide, invest more than 25$ in a loan. Once or twice I've invested 50 or 100$ in a particular loan (the amount is in 25$ increments).
Breaking it up into shares is a way for the investor to spread their risk around. If you put in 250$ you can invest in 10$ loans. If 5% of those loans default (1 loan) you will still make money on the rest.
(10-09-2015 11:23 AM)HeartOfDixie Wrote: If anything, it does sound like a fun little hobby.
But, like South said, 5-10% on $650 per year.
No hiccups and the rule of 7 says you have $1300 in 7 years. That is a hobby, not an investment.
Granted, it sounds like a fun hobby.
I'm generally not interested in rates of return.
It's where it is because I am paying down debt. I've had to change health insurance twice this year and my wife is ill so I have in effect had to spend 7-10K in medical coverage on top of my insurance payments. Throw in a 20K roof repair and I'm a bit strapped.
Once we are through paying back I will be putting 50 or so of my own money in every month.
For me "hobby" might be right but I do know some folks who have 10-30K in there. And my rate of return right now means I am doing better than a lot of 401K plans.
650 was the start, and you have to start somewhere. I max out my 401K, buy metals for my kids, and do this.
(10-09-2015 11:23 AM)HeartOfDixie Wrote: If anything, it does sound like a fun little hobby.
But, like South said, 5-10% on $650 per year.
No hiccups and the rule of 7 says you have $1300 in 7 years. That is a hobby, not an investment.
Granted, it sounds like a fun hobby.
I'm generally not interested in rates of return.
It's where it is because I am paying down debt. I've had to change health insurance twice this year and my wife is ill so I have in effect had to spend 7-10K in medical coverage on top of my insurance payments. Throw in a 20K roof repair and I'm a bit strapped.
Once we are through paying back I will be putting 50 or so of my own money in every month.
For me "hobby" might be right but I do know some folks who have 10-30K in there. And my rate of return right now means I am doing better than a lot of 401K plans.
650 was the start, and you have to start somewhere. I max out my 401K, buy metals for my kids, and do this.
Well I do that when not paying back debt.
I'm not putting you down.
There is nothing wrong with what you are doing. There is never anything wrong when you grow on other people's money.
I am just saying I don't think I would call it an investment per se.
If it is helping you out and the returns are doing what you want them to then that is fantastic. That's a whole hell of a lot better than a lot of investments I've made.
(10-09-2015 11:32 AM)Bull_In_Exile Wrote: I'm interested in what HOD or South would do with the money in my account? Seriously, I'm open to suggestions.
If you were doing what I am doing you would be throwing in on oil and gas acreage and distressed assets from Texas to Alabama right now.
(10-09-2015 11:32 AM)Bull_In_Exile Wrote: I'm interested in what HOD or South would do with the money in my account? Seriously, I'm open to suggestions.
BIE,
I'm not putting you down and you are a smart guy that is squared away.
But since you asked, first thing is get out of debt ! Period!
If you want to entertain yourself with this venture fine. However, I'd take your "ROI" and pay off the roof and medical not reinvest it in this scheme. Use it to your benefit and pay yourself first!
Also, I'd negotiate the medical bills. If you owe them 7k you should be able to offer them 2500 bucks in one lump sum and they will take it and account will be paid.
(10-09-2015 11:32 AM)Bull_In_Exile Wrote: I'm interested in what HOD or South would do with the money in my account? Seriously, I'm open to suggestions.
BIE,
I'm not putting you down and you are a smart guy that is squared away.
But since you asked, first thing is get out of debt ! Period!
If you want to entertain yourself with this venture fine. However, I'd take your "ROI" and pay off the roof and medical not reinvest it in this scheme. Use it to your benefit and pay yourself first!
Problem is the money in there is not liquid, it's tied up and I get maybe 50 a month back out of it.
Also the roof repair debt is being paid back on 0% interest, should be paid off by this summer at which point I can begin investing again. I think the only thing I am paying back with interest at the moment is my mortgage.
(10-09-2015 11:51 AM)South Carolina Duke Wrote: Also, I'd negotiate the medical bills. If you owe them 7k you should be able to offer them 2500 bucks in one lump sum and they will take it and account will be paid.
Problem is the 7K is distributed out to a lot of people. Some to the hospital, some to clinic doctors, etc... I did get the largest holder to drop some and go 0 interest on paying back the rest over time.
(10-09-2015 09:35 AM)Fitbud Wrote: It clearly says "Saving Account".
Personally, I think it's deliberately misleading to give certain people fake outrage.
Actually, it says, "savings accounts", which could be interpreted as any type of savings account seeing as they probably didn't want to get into a long list of various savings instruments. Then again, you could be correct.
No it doesn't. Look at the graph. It says "How much money do you have in your savings account."
Dude, read the article. It says "accounts" in the article.
(10-09-2015 09:35 AM)Fitbud Wrote: It clearly says "Saving Account".
Personally, I think it's deliberately misleading to give certain people fake outrage.
Actually, it says, "savings accounts", which could be interpreted as any type of savings account seeing as they probably didn't want to get into a long list of various savings instruments. Then again, you could be correct.
No it doesn't. Look at the graph. It says "How much money do you have in your savings account."
Dude, read the article. It says "accounts" in the article.
I wasn't talking about the article. I was talking about the graph.
(10-09-2015 09:35 AM)Fitbud Wrote: It clearly says "Saving Account".
Personally, I think it's deliberately misleading to give certain people fake outrage.
Actually, it says, "savings accounts", which could be interpreted as any type of savings account seeing as they probably didn't want to get into a long list of various savings instruments. Then again, you could be correct.
No it doesn't. Look at the graph. It says "How much money do you have in your savings account."
Dude, read the article. It says "accounts" in the article.
I wasn't talking about the article. I was talking about the graph.
(10-09-2015 09:36 AM)VA49er Wrote: Actually, it says, "savings accounts", which could be interpreted as any type of savings account seeing as they probably didn't want to get into a long list of various savings instruments. Then again, you could be correct.
No it doesn't. Look at the graph. It says "How much money do you have in your savings account."
Dude, read the article. It says "accounts" in the article.
I wasn't talking about the article. I was talking about the graph.
