villiagepeople
New member
say you hit your goal as to how much down you want for the house you want to buy... and you are ready to buy... where do you put that money?
where do you put your down payment?
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my brother lives in the bay area and was an engineer with sprint... got laid off in 2008 or 09 (i forget), and has been trading options ever since... he makes enough to replace whatever salary he was making at the time when he got laid off... asked me after about a year of doing it, if i wanted to give him some of my dp so that he can get me better returns... i said no... although he's still doing well (hasn't "worked" a day in his life since, other than being mr. mom)... i do not regret being riskier.
you are absolutely right... i'll call him and ask him (i do actively trade in my roth)... and he'll tell me what he thinks... i'll call him back and tell him he was wrong... (which means i messed up too).. and then he tells me but with his options that hasn't expired yet and the vix popping he sold this and did that.. blah, blah, blah.. in the end he did ok... and i am like.. wtf? now i gotta hold my stupid stock and wait for it to come back... and he's hedge himself and he's cut his losses? grrr...
i don't think it's a matter of being risk-averse.. if you need the money "on-demand"... you shouldn't put it in anything that may lose principle...
as far as gold.. i've held gld in my roth (on and off since 2006)... completely out as of today... i've held physical gold since 04... still have that, but from what i hear, gold can come down as fast as any speculative stock.
Also, I'm more of a risk taker because I had a large loss carryforward that I had been working off (my tech bubble losses) so all my gains have been tax free. Once I fully clear out all the loss carryforward and the profits will be taxed at ordinary income, then I'll slow it down.
you are not "too conservative" that's the smart thing to do... same with me... after selling my home in the summer of 06.. i signed a lease for 6 months (honestly didn't know if home prices were going up or going down... just sold cause of new jobs both the wife and i got, and with her being pregnant didn't want her to do the long commute, in any case, dumb luck)... i put my money in cds... and in 09... thinking i was going to buy "anytime"... i put the money in savings as the cds matured.
usctrojancpa
Well-known member
Trade options with it as I'm doing.villagepeople said:
villiagepeople
New member
USCTrojanCPA said:
my brother lives in the bay area and was an engineer with sprint... got laid off in 2008 or 09 (i forget), and has been trading options ever since... he makes enough to replace whatever salary he was making at the time when he got laid off... asked me after about a year of doing it, if i wanted to give him some of my dp so that he can get me better returns... i said no... although he's still doing well (hasn't "worked" a day in his life since, other than being mr. mom)... i do not regret being riskier.
usctrojancpa
Well-known member
It's definitely not for the faint of heart, but if you are smart, quick, and hedge yourself properly you can make decent money trading options. I wouldn't recommend it to most people because you need to have a strong stomach for the big swings. I've traded options for years but really got heavy into it back in 2009. It has enabled me to double my downpayment fund.villagepeople said:
irvinehomeowner
Well-known member
If you're risk-averse... it seems like 'bank' would be the safest bet.
Anything that's liquid and non-volatile.
Or if you're awgee... gold.
Anything that's liquid and non-volatile.
Or if you're awgee... gold.
villiagepeople
New member
USCTrojanCPA said:
you are absolutely right... i'll call him and ask him (i do actively trade in my roth)... and he'll tell me what he thinks... i'll call him back and tell him he was wrong... (which means i messed up too).. and then he tells me but with his options that hasn't expired yet and the vix popping he sold this and did that.. blah, blah, blah.. in the end he did ok... and i am like.. wtf? now i gotta hold my stupid stock and wait for it to come back... and he's hedge himself and he's cut his losses? grrr...
We have parked the majority our money in MM accounts at various banks for the last 2 years. Before that, the money was in CDs. I have other funds in stocks and other investments but much smaller amounts than my DP + savings fund. I am too conservative to risk the bulk of my money.
villiagepeople
New member
irvinehomeowner said:
i don't think it's a matter of being risk-averse.. if you need the money "on-demand"... you shouldn't put it in anything that may lose principle...
as far as gold.. i've held gld in my roth (on and off since 2006)... completely out as of today... i've held physical gold since 04... still have that, but from what i hear, gold can come down as fast as any speculative stock.
usctrojancpa
Well-known member
When you trade options, including selling options, you get a margin account. If you don't over leverage yourself, you can take money out as you need it without having to close your option positions. The key to trading options is that you want to leave some dry powder just in case.villagepeople said:
Also, I'm more of a risk taker because I had a large loss carryforward that I had been working off (my tech bubble losses) so all my gains have been tax free. Once I fully clear out all the loss carryforward and the profits will be taxed at ordinary income, then I'll slow it down.
villiagepeople
New member
rkp said:
you are not "too conservative" that's the smart thing to do... same with me... after selling my home in the summer of 06.. i signed a lease for 6 months (honestly didn't know if home prices were going up or going down... just sold cause of new jobs both the wife and i got, and with her being pregnant didn't want her to do the long commute, in any case, dumb luck)... i put my money in cds... and in 09... thinking i was going to buy "anytime"... i put the money in savings as the cds matured.