The Truth: What Obama and McCain won’t tell you about your money

October 07th, 2008

After watching the debate tonight, I figured I'd translate what both candidates were saying. Sorry I'm not as politically correct as them, but I hope this is informative. Things will get a lot harder before they get better. All the predictions about the recovery taking until "at least the end of the year" are horseshit. In truth, nobody knows, but ...

You have $100 extra per month. Should you pay off your mortgage early or invest?

September 11th, 2008

Two answers: Photo from luxerta 1. Invest (Consumer Reports) 2. Run the numbers (Get Rich Slowly) The key thing here is to actually do an analysis, as opposed to throwing around hand-wavy arguments like "Renting is throwing your money down the toilet" and "Leverage always makes you money." If you make a financial decision that will cost you hundreds of ...

My friend was about to buy a million-dollar house with no research

January 07th, 2008

Note: I've created a new category called "Real estate" (see the other categories on the right side of the blog). One of my friends is 28 and she's looking to buy a house in San Francisco pretty soon. Now, as you know, I'm not a big fan of real estate for investment reasons, but because I'm not an expert, I've ...

Homeowners are taking the risky route and I am confused

December 13th, 2006

Does anyone else find this weird? ...a one-year ARM, at 5.8 percent on average, now costs only a third of a percentage point less than a 30-year fixed-rate mortgage, at 6.2 percent. And ARM holders still face the risk of paying a higher interest rate down the road. But while there's a new refi boom in swing, not ...

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Meet the 24-year old with $2.2 million in debt

November 01st, 2006

Regular readers know that I'm not especially enthusiastic about investing in real estate (see here and here for examples of why), so this post won't come as a big surprise. But it's not just about why I think stocks are better. Many of you have been hearing about the blog http://www.iamfacingforeclosure.com, written by a 24-year-old guy named ...

I love leverage

September 19th, 2006

I really do. Yesterday I was listening to the radio and NPR was running its pledge drive to raise money. I love NPR, but I have to admit that I was about to change the station because, well, that's what's easy. But then they mentioned that some company was doubling every pledge made that hour. Bam! That's all it took, ...