General Economic chit chat/updates.

[Tar]

I'm not a fan of debt, prefer to live my life debt free. Saying this though, the money that I don't have tied up in my primary residence has grown disproportionately over the years. The counter-argument of home debt is what we're seeing now. Anyone who has to refi at or near 5% should be making moves to eliminate that debt ASAP.

Canadians have a culture of taking low interest 5 yr loans that amortize over 25 yrs, it helps to reduce debts and has traditionally beat the 30 yr loan. In today's world affair, anyone who locked in a 30 yr at 3 or whatever % interest is well served, no need to pay that bitch down anytime soon. The answer to this age-old question comes down to individual circumstances IMHO

[max225]

I'm not a fan of debt, prefer to live my life debt free. Saying this though, the money that I don't have tied up in my primary residence has grown disproportionately over the years. The counter-argument of home debt is what we're seeing now. Anyone who has to refi at or near 5% should be making moves to eliminate that debt ASAP.

Canadians have a culture of taking low interest 5 yr loans that amortize over 25 yrs, it helps to reduce debts and has traditionally beat the 30 yr loan. In today's world affair, anyone who locked in a 30 yr at 3 or whatever % interest is well served, no need to pay that bitch down anytime soon. The answer to this age-old question comes down to individual circumstances IMHO

Y’all are at 5%? We’re at 7…

[Tar]

I'm not a fan of debt, prefer to live my life debt free. Saying this though, the money that I don't have tied up in my primary residence has grown disproportionately over the years. The counter-argument of home debt is what we're seeing now. Anyone who has to refi at or near 5% should be making moves to eliminate that debt ASAP.

Canadians have a culture of taking low interest 5 yr loans that amortize over 25 yrs, it helps to reduce debts and has traditionally beat the 30 yr loan. In today's world affair, anyone who locked in a 30 yr at 3 or whatever % interest is well served, no need to pay that bitch down anytime soon. The answer to this age-old question comes down to individual circumstances IMHO

Y’all are at 5%? We’re at 7…

Yeah I can lock in around 4.xx for a 5 yr term. My primary residence still has 18 months at 2.49%, but the investment prop is riding a variable rate up to 5.15% currently. I'm sure if I tried to secure a 30 yr it would be higher, not sure how much higher TBH. The economy is going to puke soon, so I'm just going to ride the trend downwards....... Hopefully

[MrH42]

Unfortunately, it's going to take a long time to unwind the mess ZIRP created. It's going to be years and years of pain.

[D Griff]

So here's a question/observation for the class:

I partake in our company employee stock purchase program. It goes in six months intervals. I put in the max, 15% of my check, and then at the end of six months, they buy me that dollar amount in stock at the lower price of the first or last day of that six months with a 15% discount on top. This ends during an open selling period for employees every time, so my thinking is, put in the 15% and worst case scenario I get an extra 15% on top of the pay, best case it's more than that. Sell it at the end of each six month period.

I did rather well this time around bought at $6.60/stock and sold at $9.30, total was about 1,600 shares.

What I've been doing is setting it to sell at a certain amount once I get it at the end of each six month period. So I got the stock this time a couple of weeks ago and it was at $8.75 but had hovered in the mid nines mostly for a bit, so I set it up to auto sell once it hit $9.30, which I chose rather arbitrarily.

Is there any good way to gauge this number per share I should hope for? If it hadn't hit $9.30, I would've probably just ended up selling it on 6/16 for whatever when the open trading window ended. That said it went up as high as $9.75 today, so if I should've tried for more. I just don't want to wind up stuck with this stock for six months...

[max225]

Your trading window is only open once every 6 months ? That doesn’t sound right. Usually it opens day after earnings and closes after 1-2 months into the quarter for most cucks

[D Griff]

Your trading window is only open once every 6 months ? That doesn’t sound right. Usually it opens day after earnings and closes after 1-2 months into the quarter for most cucks

No I think you're right actually. So I guess it's open for a month or two quarterly? Even still, I don't really want to hold stock of the company at all... and I both work at this place, I feel like that is too heavily invested as it is. I honestly don't envision this company outperforming the market or anything, seems like it's gotten more poorly run as we've grown and some of the acquisitions are duds.

I guess my question is, am I for thinking this? Is there any strategy in holding the stocks a bit longer at times to try to capitalize or just continue pumping and dumping and taking the immediate 15+% profit? Pump and dump has netted me $5-6K extra income over the past year, which is honestly decent, 2X my last raise

[MrH42]

No, immediately sell and put into robo-investing. There's zero reason to open yourself up to additional risk by being so heavily invested in a single company. But it's even worse than that. Not only would you be heavily invested in a single company, but it's the same company that gives you a paycheck! If they were to take a dive, and you also lose your job, you're mega screwed. It's tons of additional risk for not upside.

Just need to weigh the return. Previous job has an employee stock purchase program, but I think it was only a 10% discount, and there was a holding period after execution. When you take into account the taxes associated with the transaction, and opportunity cost of tying up that cash, I wasn't outperforming just putting it in the market in general and stopped doing it. Really depends on what your terms are and how the math works out.

[D Griff]

No, immediately sell and put into robo-investing. There's zero reason to open yourself up to additional risk by being so heavily invested in a single company. But it's even worse than that. Not only would you be heavily invested in a single company, but it's the same company that gives you a paycheck! If they were to take a dive, and you also lose your job, you're mega screwed. It's tons of additional risk for not upside.

Just need to weigh the return. Previous job has an employee stock purchase program, but I think it was only a 10% discount, and there was a holding period after execution. When you take into account the taxes associated with the transaction, and opportunity cost of tying up that cash, I wasn't outperforming just putting it in the market in general and stopped doing it. Really depends on what your terms are and how the math works out.

Yep I definitely agree with the bolded. We get a 15% discount on top of getting it at the lower cost of the beginning or end of the period and can sell immediately. So I've been in it for two six month periods, one I got just the 15% discount (worst case), this one 30% so it seems worth it. It is also aligned to a trading window so I can immediately sell.

I am just cashing out though and not investing the money as we're already saving a lot in other areas, so this is just trying to get an extra $5-10K/year in income basically.

[MrH42]

No, immediately sell and put into robo-investing. There's zero reason to open yourself up to additional risk by being so heavily invested in a single company. But it's even worse than that. Not only would you be heavily invested in a single company, but it's the same company that gives you a paycheck! If they were to take a dive, and you also lose your job, you're mega screwed. It's tons of additional risk for not upside.

Just need to weigh the return. Previous job has an employee stock purchase program, but I think it was only a 10% discount, and there was a holding period after execution. When you take into account the taxes associated with the transaction, and opportunity cost of tying up that cash, I wasn't outperforming just putting it in the market in general and stopped doing it. Really depends on what your terms are and how the math works out.

Yep I definitely agree with the bolded. We get a 15% discount on top of getting it at the lower cost of the beginning or end of the period and can sell immediately. So I've been in it for two six month periods, one I got just the 15% discount (worst case), this one 30% so it seems worth it. It is also aligned to a trading window so I can immediately sell.

I am just cashing out though and not investing the money as we're already saving a lot in other areas, so this is just trying to get an extra $5-10K/year in income basically.

Yeah, makes sense. I would just do what you're doing: max it out and sell immediately. If you're saving for other things, here's what I'd do with the cash:

- If it's short term (likely needed in <1 year), money market account is at 4.55% right now and I can have it transferred in a couple of days max
- If it's more medium term (needed 1-3 years), bond market portfolio is at 5.66%
- Long term investments (3+ years), it just goes into my taxable investment account.

[max225]

No, immediately sell and put into robo-investing. There's zero reason to open yourself up to additional risk by being so heavily invested in a single company. But it's even worse than that. Not only would you be heavily invested in a single company, but it's the same company that gives you a paycheck! If they were to take a dive, and you also lose your job, you're mega screwed. It's tons of additional risk for not upside.

Just need to weigh the return. Previous job has an employee stock purchase program, but I think it was only a 10% discount, and there was a holding period after execution. When you take into account the taxes associated with the transaction, and opportunity cost of tying up that cash, I wasn't outperforming just putting it in the market in general and stopped doing it. Really depends on what your terms are and how the math works out.

Yep I definitely agree with the bolded. We get a 15% discount on top of getting it at the lower cost of the beginning or end of the period and can sell immediately. So I've been in it for two six month periods, one I got just the 15% discount (worst case), this one 30% so it seems worth it. It is also aligned to a trading window so I can immediately sell.

I am just cashing out though and not investing the money as we're already saving a lot in other areas, so this is just trying to get an extra $5-10K/year in income basically.

The only issue you're opening yourself up to here is short term capital gains vs long term. But you'd have to wait out another year... making the total almost 2 years between purchase and sale.

[golftdibrad1]

"Stocks turn lower, Treasury yields jump as Fed leaves rates unchanged, signals more hikes in pipeline"

roughrough

[golftdibrad1]

https://finance.yahoo.com/news/25-mcdon ... 12675.html

OMG i wonder if this could have been predicted somehow

[max225]

https://finance.yahoo.com/news/25-mcdon ... 12675.html

OMG i wonder if this could have been predicted somehow

Those $1000 stay home stay safe checks and PPP bailouts will be studied for generations

[Desertbreh]

I'm just glad I'm too old to consider eating that shit in the first place.

[D Griff]

I am down with Chipotle. I really don't go to places like Cava, Chipotle, etc. on my own dime but eat them on the road often. I have noticed the price creep, if you get a drink or side, you're definitely coming in a 20 bucks, which is definitely quite the price creep. Amazingly, Taco Bell still offers $5 boxes.

[J-Ho-Fo-Show69]

I am down with Chipotle. I really don't go to places like Cava, Chipotle, etc. on my own dime but eat them on the road often. I have noticed the price creep, if you get a drink or side, you're definitely coming in a 20 bucks, which is definitely quite the price creep. Amazingly, Taco Bell still offers $5 boxes.

Shows you how cheap the food always was at TB! Grade E dog food is like $.01/pound

[D Griff]

I am down with Chipotle. I really don't go to places like Cava, Chipotle, etc. on my own dime but eat them on the road often. I have noticed the price creep, if you get a drink or side, you're definitely coming in a 20 bucks, which is definitely quite the price creep. Amazingly, Taco Bell still offers $5 boxes.

Shows you how cheap the food always was at TB! Grade E dog food is like $.01/pound

I don't eat the beef which really isn't great, but the tortillas, beans, lettuce, tomato, cheese, chicken, etc. are all about the same as anywhere else. I'd certainly rate it above Macdoe.

[SAWCE]

Been grabbing chipotle here and there.. my order right now to fit my macros is a salad with double chicken and pico de gallo Last time I got it the chick was cool and was like “that’s it? No toppings? I’m not going to charge you for a full salad.” Rang me up for two sides of chicken and I was out the door for like $6.. so now that I know I can order sides of their meat, I may do that in a pinch if I ever don’t have food prepped or out and about with me to keep it cheap.