For years I have lived below my means and saved. The interest I'm getting on my cash is nice, but it seems I'm unable to buy anything.
Went to check out an apartment to buy this morning, and by this evening, the place is already under contract (it wasn't even that nice)! Other listings I've seen go in days or maybe two weeks at most.
Same with buying a car. My Lexus dealer won't go a hair below MSRP. Apparently, I should be grateful there's no markup to sticker price. Like WTF?!
I make decent income or so I thought. Starting to believe that I made sacrifices for nothing. Also I'm anxious my restlessness is gonna make me an emotional (read: irrational) buyer.
After shooting the shit with some colleagues, there seems to be a split opinion: one side thinks this is the new reality while the other believes this is the "calm before the storm".
Personally, I don't believe 08' will happen again as investors, banks, regulators, etc. are smarter than before. As one example, with commercial office distress, banks will "extend and pretend" and regulators will not only be on board, but encouraging as much. Jobs market is still red hot and feels like there is a lot of liquidity in the economy.
Obviously no one knows for sure, but what do you guys think? Is the economy on solid footing or thin ice?
Man living in France must suck
Lol, naw I'm US, not sure how to get rid of France tag.
How much are you saving vs investing? If you’re invested in the market well diversified between stocks and bonds in broad market indices it shouldn’t matter no? You’ll benefit from returns in the market due to higher company profits so you’re able to absorb the cost of inflation in your portfolio.
just make sure to max out your 401k (preferably Roth 401k if you have the option), IRA, and HSA, then you’ll be fine. Also make sure you have an emergency fund saved up beforehand.
Good point. After paying down debt, building an emergency fund and saving for a down payment, started DCAing about 2 years ago. Admittedly should've started investing sooner, but better late than never.
Don't participate in 401k and HSA because I'm trying to save up enough money to invest in a business, but even then, valuations have been too high.
Are you all in on SPY/VOO? What about TQQQ? Other recommendations?
You're not participating in your 401k or HSA because you want to invest that money in a business?
The risk-adjusted returns on a 401k or HSA are insane, because of the matching and tax benefits. Good luck finding an investment that can match that.
I don't understand... if you're sitting on a pile of cash and not investing it, why would you come on a finance-oriented site and complain about your crappy financial planning? And if you have it invested, it's probably making better returns now than it did 2 years ago.
We've have 18 months of inflation. Gain a little perspective.
Because I'm bitching about erosion of value, not crappy investment returns.
18+ months of historic inflation is no big deal? Get off your high horse.
He's not saying it's no big deal, he's saying your a bit thick in the head for not putting that money into something that will track better with this historic inflation we all know is happening vs just sitting in cash. Saving money doesn't just mean sticking it in a mattress and hoping it all works out, it also means planning for things like inflation.
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