Wishful thinking by a bunch of people who already said J.Powell would pause interest rate hikes 100bps ago. If regional bank failures isn't enough to stop hikes, I think you can take him at his word that he's not going to lower rates again for at least a few years.

Buckle up, this ride isn't going to end any time soon.

Yea just dump it. Market conditions aren't likely to shift back to 2021 levels again, not without low interest rates and continued high inflation. If anything, it's more likely to be worth less in 1.5 years.

But.. as others have said, don't time the market. If you don't want to be a landlord, dump the asset and reallocate the cash to investments you do want to be involved in (or passive).

If you're not interested in being a long-term landlord, then just sell it.

I take it you lived in it for at least 2 years before you started renting it out?

https://www.realized1031.com/blog/what-is-the-2-out-of-5-year-rule#:~:text=The%202%2Dout%2Dof%2Dfive%2Dyear%20rule%20states,the%20date%20of%20the%20sale.

Assume you have $50k vested, ask yourself this question:

If you had $50k in savings right now, would you buy $50k worth of company stock?

You have a job that requires you to travel up to 300-mile round-trips where they expect you to use your own vehicle and only pay $55k for someone with presumably a college education?

If they're not providing a company car + gas, or reimbursing mileage, you need to find another job ASAP. The IRS government reimbursement rate for business use of a personal vehicle is $.655/mile. If I conservatively assume you are doing 100-mile round trips daily, that's something like 2,000 miles a work-month or $1,310 after-tax that you're being shorted if you're not being reimbursed. If that's the case, no wonder you're falling behind.

First step is to stem the bleeding. You going out and buying a new car requiring a $600 payment says that you're not doing that. Lifestyle needs to drop, quite drastically, before you're able to make significant principle repayments.

Other than that, you could try to call up the creditors and ask them to reduce your interest rates. Then make minimum payments on all but the highest interest rate, which you throw every spare dollar you can at. Also, get rid of the car and buy a junker (or take the bus), and call the negative equity lost your stupid-tax.

Heh, I'm down about $70k in crypto myself, but I didn't realize it.

That said, I bought mine super early in the most recent bull run (early 2020)... so I'd still pay a capital gain on the sale. Just kicking myself for not selling last December, like everyone else.

Not really. Estimated tax payments are so you can avoid a big penalty by owing a bunch of taxes when you file.

That's clearly not a problem for you lol. Congratulations!!??!??

You'll write off the loss on any income, and carry the rest over into next year. You'll get to write off future gains against the loss carryover, or up to .. I think it's $3k of income taxes?

buy low and hold. look at any long term sp500 chart. whens the best time to buy? in the middle of a recession.

Put options is your best bet then, but like I said before, you're unlikely to beat the market. It's a casino, and the house tends to win.

When "lifestyle" is used in a personal finance context, it's not referring to your social life.

It refers to what it costs to maintain your life: your rent/mortgage, your car payments, what insurance you have, what you spend on bills, groceries/households, daily costs like parking or gas, dependents like kids, etc. etc. etc.

Puts is a short position.

And yea, you should only buy puts on what you can afford. You will almost certainly lose money on puts/calls starting out, and you will probably fail to ever beat a market index fund if you do it long enough. It's a casino. Treat it like blackjack.

If you're full-time employed, your very first step is finding a way to make your lifestyle fit your (presumably above-minimum wage) salary.

That means making a budget, step 1.

Nothing meaningful, not as a W2 salaries employee. The federal government doesn't give you a tax break in saving principle for investments; be it rentals, stocks, etc., unless it's in the form of retirement, which you said you're not interested in.

You'll have options for tax savings later when you become a landlord though.

Yup. The problem, particularly with the morons here, they buy as many options as they can afford, because you don't actually need to be able to afford to execute the options.

In my above example, let's say you only had $20 total to spend. If the price goes down to $3, you still need to buy the $300 worth of Baconators in order to sell them at $400. Nope! The transaction goes through immediately.

The problem is someone will put their life savings of $100k into Baconator puts.

Oversimplified: Imagine the price of Wendy's Baconator (tm) fluctuated based on demand.

Calls

You go into Wendy's on Monday and say: "I'll be back on Friday and I'll buy 100 baconators at $5 per baconator, regardless of the price. Here's $20 now for the priviledge." If you come back Friday and the Baconators are going for $6/per, you go ahead and buy your 100 Baconators at $500 bucks, then turn around and sell them to the other customers in line for $600 total, for a profit of $80 (remember the $20 you already paid for the privilege, you don't ever get that back).

Puts

You go into Wendy's on Monday and say, "I'll be back on Friday to buy 100 baconators at whatever price they are then, and promise to sell them back to you at $4/baconator. Here's 20 bucks." If you come back Friday and the Baconators have gone to $3/per, you go ahead and buy up your 100 baconators for $300, then turn around and sell them for $400, for a profit of $80 again.

In either case: if the baconators goes the opposite of where you want it, you can simply choose not to go through with it and just lose your $20.

Yea, because you're wrong. You're anecdote isn't the law, which is what OP asked.

Okay, you should go ahead and write the authors and let them know to correct their article.

https://www.nerdwallet.com/article/mortgages/how-to-cancel-private-mortgage-insurance

Time in market beats timing the market. Therefore, the earlier you invest, the better.

However, you shouldn't be adding to investments without a funded emergency fund where you feel comfotable. The only exception might be when you approach the end of the year and haven't maxxed out your contributions yet.

Since that's not the case for you, I'd get your efund to where your comfortable first. You got plenty of time (12 months).

Never bet against delicious

Those headlines were written by idiots. Oil is a global commodity. Price goes up because Russia can't sell, and maybe alternative energy is used in places where it's now economically competitive. Some people just pay.

Think of it this way: Supposed all you ate was McDonalds and the cost of burger went up. Big Macs go from $3 to $4. Would you

A: Start ordering McChickens instead.

B: Just pay the extra dollar for the Big Macs

C: Starve

This is from nerdwallet:

> Here’s a caveat: To cancel based on current value, you must have owned the home for at least two years and have 75% LTV. If you've owned the home for at least five years, you can cancel at 80% LTV.

I believe it's 78%. Keep in mind, that's off the original purchase price. Home equity due to appreciation I don't think is part of the legal requirement.