The loan is locked in at a low rate at what is likely the start of a prolonged period of rising inflation. That tailwind reduces the risk because that inflation will appear in the stocks share price over time and the house the note is on. Despite what you mentioned about wishing to have went all in at the start, the cash kept undeployed could act as a safety net for times that the dividends dip. If I recall correctly this debt is secured against your primary residence. Given a repeat of 2008 I imagine you would be offered various plans to defer payments on the loan. Personally, in this day and age, this seems like a pretty good move. I look forward to see how things play out.

@Challenged1

2 жыл бұрын

I think you nailed it on the head.

Undervalued video of the year right here. Tks for sharing the mechanics. All tsla here. Hold to zero, maybe sell in 10/20 yrs. We paid off the car with the first insane run they had.

How has the current financial roller coaster ride impacted your mortgage payments?

@Challenged1

2 жыл бұрын

None of my picks have altered their dividend, so no change on my end.

The key to your success so far, I believe, is getting that historically low mortgage rate. In more normal times, you would not be able to find dividend yields above a mortgage rate, without taking on highly risky stocks. Still, as you mentioned, the market can change and you could see this positive yield go under water. As a sound investment strategy, this is not generally recommended unless you have other sufficient assets as a backup to absorb negative cash flows. And it definitely would not be appropriate for anyone nearing or at retirement, as they wouldn't have enough time to recover possible losses. I would look at it as a gamble, which sometimes pays off, but over the long run, does not.

@Challenged1

2 жыл бұрын

We shall see

Are you also accounting for the tax impact? You pay taxes on the dividends, but you get to deduct the mortgage interest. How does that balance out?

@Challenged1

2 жыл бұрын

It differs year by year by which tax bracket I am in. Plus, qualified dividends are taxed differently than interest and unqualified dividends.

how long have you been using groundfloor?

@Challenged1

2 жыл бұрын

Somewhere between 2.5 and 3 years

Do you have certain criteria for your stock picks?

@Challenged1

2 жыл бұрын

My dad picks them for me. He's retired and has more time than I, so I head his advice.

@chrisE815

2 жыл бұрын

Tsla

Sounds a bit risky. I'll have to talk to my accountant about this.

@Challenged1

2 жыл бұрын

It's funny you mention that, as it is my accountant dad that picks the stocks for me. He has more knowledge and time than I do within the stock market.

😎👍👌🖖✌🤓

Zero concept of what you did here. Beyond frustrated.

@Challenged1

2 жыл бұрын

This is part 12 of a series. Watch the first 11 videos

@dialac1

2 жыл бұрын

Why are you frustrated? It’s not complicated. You can just ask questions

You need to be ultra careful investing in those high divi stocks. I see CIM and ARCC and EPR in your list. Those are considered high risk and the dividends can stop or decrease at any time. If you want to learn how to use Savings Bonds that are way safe and learn how to trade stocks for free, check out: kzread.info/dash/bejne/gn6BmcSuZ5fMaLA.html