Mortgage/Credit Score

What is a DTI?

 

Nailed it.

I mean, we understand accumulating stuff and being setup for retirement is important. Like i said, we put a good bit in retirement every month. Then we have enough in savings that we could go about 18 months with neither of us working and be fine...and that is without selling any of the toys. That doesnt count what is in my Robinhood account. If i unassed all of that, it could get us another 18-24 months.

So we are prepared for an emergency, and working towards retirement. But i just want to not have to pay anyone anything, outside of cell phone and utilities.

We are finally at a point where we don't need my paycheck. We can easily live off her paycheck. So ive been using mine to boost savings and stocks, and pay the house off. While also trying to buy all the guns and ammo.

That is nice, but i would love to be in a position to where one of her paychecks could last us 6 months or some shit. I would like to get paid, and instead of thinking about paying bills, i can think about "Oh im about to fuck some shit up!".

Once we get to that point, we will either start saving more to plan on a super early retirement. Or, i might become a Consultant and just work 6-8 weeks a year simply to keep insurance, and to "stay in the game". But at least we will have more options.

I am not discrediting any of the advice people have given. It is sound advice. And i also admit that the shit i do isnt the most financially sound. But as you said, different things make different people happy.

 

Debt to income ratio.

Example: you make $10,000/month. Credit card and other debt payments total $1500/month. Your DTI is 15%.

I think anything below 30% is considered acceptable.

 

Ah ok. You had me curious so I figured up all the monthly bills, and included cell phone, water, internet, insurance, gas, gym memberships, etc. and it came up to a little under 8%. I have no idea what average or typical is. But if under 30% is acceptable, then we are ok.

I didn't count stuff like what I put into Robinhood, because I figure it just means stuff you have to pay, not stuff you do by choice.

 

I could have read it wrong, but that is taking the "shit hits the fan" scenario a little deeper than I usually take it. When I think "if shit hits the fan", I think like if the oilfield takes huge another downturn, or I end up hospitalized and can't work for a year, shit like that. In those situations, the lack of a mortgage would be very helpful.

Of course, anything can happen. I am fully prepared for us to end up in an "I Am Legend" scenario because the Covid vaccines turned everyone into zombies.

 

dti doesnt affect credit scores. FICO doesnt know your income.

 

Know that nice 15 minute drive to TRI and leisurely stroll through the terminal to get to the gate? Ain’t happening to get to ATL no matter where you live there.

 

@Canadian Bacon Greenville is fuller than full. They even recently moved the DMV to make more room for all those people switching their registrations for their rust buckets they are bringing down here

@Gorilla George for the peace of
mind, I’d pay off the house . IMHO the little “cost” (cheap mortgage/ higher investment rates) is something I’d just pay and forget. Not having a mortgage is a big mental step for me soon.

on car rates, on our last purchase I thought I had the ticket with 2.6% from my bank, until Mercedes offered 1.99 and they’d take the first 2 payments up to $1500 per month. Of course I switched to the shortest loan to max out their “gift” . All in all this makes it a free loan with $ on top for me . (Still considering a car is a liability but I would still have had to use my $ on it)

score at 840 dipped ~10 after credit inquiries

 

Yeah, that’s true.

You can’t beat leaving home at 3pm for a 4pm flight, and still having to sit at the gate for a while.

 

I think I’ll do that. I’ll talk to the bank first and see what they say, then see what Audi is offering.

The salesman said Audi runs different promotions/deals every month. But I’m pretty sure it goes by when I take delivery, not when it’s ordered.

 

It's not just inquiries that dropped your score 10 pts after purchasing....Your AAoA (average age of accounts) goes down, loan to balance amount is usually high when making a big purchase, age of newest acct as well....All contributing factors to losing 10 pts. The inquiry amounted to losing a point or 2....possibly 3.

 

I think this statement is something that everyone in this thread can get behind. The distinction I have is I don't look at debt in a vacuum and instead look at net debt - since I've got zero net debt (I could sell a bunch of equities and pay off my cars and house this week if needed), I'm more than happy to play "the debt game" and borrow money at 2% while "loaning" it (via investments) at something closer to 10%.

But to each their own - as someone mentioned, it's "personal" finance.

 

I reckon I should find a good financial planner type person.

My taxes are done by a dude in Louisiana that I’ve always used because he is really in tune with all the foreign shit.

Then like I said, we have a good bit going into a retirement account (it’s like a 401K, but it’s in Copenhagen).

Aside from that, I just do whatever. I’ll put some in savings, just to be safe. And I’ll play with stocks on Robinhood, but that’s just it...playing.

Then if I can’t think of anything to do with it or that I want to buy, I’ll make a big “principal only payment” to the house, so at least I feel it is productive.

I wouldn’t have a problem giving some dude a few grand a month for him to invest, move around, etc and see how much he can make for me. BUT...I don’t know how to find such a dude. How do I know if he is any good? How do I know he won’t fuck me over?

I’m sure the money I fuck around with could be put to better use, but I don’t know of anyone I would trust to do it, and don’t know how to find such a person.

How do I know he won’t send me a statement one day showing half of it is gone, and then he will just be like “Eh, sometimes it bees like that”?

 

This is exactly it! Credit score is not an indicator of your net. As I said above there are times I’ll take a hit on my score to reduce my overall net. I just don’t like any debt hanging over my head. I get lenders want that history etc and it makes sense but there are a lot of folks who screw their net by trying to focus too much on their score. Everyone’s situation is different and I get that but you always have to look at the big picture. Before my accountant sees any potential scenario I run them multiple ways first with some basic assumptions. He takes over and does all the details as far as maximizing what I want to do, or think I want to do for tax purposes, when to make this or that transaction, etc. Knowing the tax laws, being ready for when it’s time to pull the trigger (often way overlooked and leaves a lot of people out in the cold), and just being regimented with the whole thing. I give myself an allowance for play money, more of a game I play wi try money that I don’t account for and just assume blown. It’s where my dirtbikes, tools I don’t really need, etc come out of. Hard to talk yourself into something being a need when it’s just a want. I need a new boat as sub 80mph bass boats aren’t 80mph + bass boats. It’s a need to get to your fishing spot fast as my time is valuable and no I don’t fish tournaments If there was a decent supply I’d have dropped 70k plus already on a boat but the backlog in ordering one is crazy and there aren’t any used ones that caught my eye yet that weren’t more than a new one. Supply and demand has saved me from myself

 

You have way too much money to not have a good financial person. You need an independent advisor I.e. not one from say, Fidelity who just wants you to buy fidelity funds. My neighbor owns an E Jones franchise and it’s just stupid the advise he gives people. Yes it’s probably a lot better than they’d do on their own but they’d do much better with an independent person. His no mortgage, tricked out Jeep gladiator and new s5 convertible didn’t come from him giving the people advise on funds better than what he has access to sell. He even gets incentives on certain funds. It’s a joke really and even though he’s wave his fees I’ve never been impressed with their funds overall so with exception of a rather small amount of bonds I got through him (as I like to keep some backup quick money) that’s all I have. Plus I don’t want my neighbor knowing my financial situation. I prefer people thinking I’m white trash living in a nice hood and house with a lot of toys. I’m sure people think it’s all financed which is quite funny. I remember when we got our Audi was talking to dude down the street and he said “that must be a hefty payment”. Just said “but it’s nice to just have to make one”. Still to this day don’t think he got it.

 

Thanks Sean, I saved it in my phone. I would much rather use someone that you guys trust, rather than just walking into some random office around the house.

 

No doubt!

 

Does Bart "know a guy" in DFW? I can do this stuff on my own, and I do it quite well, but I can't do it half-ass. It is all consuming and I am not going to do that to my wife or myself again.

I wonder what complications there are in interstate management.