Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2024 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

@PatrickFitzgerald-cx6io

27 күн бұрын

Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder

@NicholasHarmon-ow3jl

27 күн бұрын

i wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.

@foden700

27 күн бұрын

Impressive can you share more info?

@NicholasHarmon-ow3jl

27 күн бұрын

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

@foden700

27 күн бұрын

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

We bought a foreclosure a decade ago and renovated as much as we could afford to at the time. We’ve done additional improvements over the years with cash (I.e., deck, roof, tiling the gross foyer floor lol) . We have some more little things plus two larger things(larger in price) and we just are plugging along- saving the money and doing the jobs when we can. I can’t stand that everything isn’t done at this point but I won’t borrow to finish it all at once. Being in debt steals from you, truly it does. Speaking from past experience.

We recently had a major plumbing issues in our home costing tens of thousands, my MIL called me to recommend a HELOC, I told her we had an emergency fund and it’s gonna be okay. She told me it’s better not to use our cash savings just in case. Like no ma’am this is the just in case.

I took out a HELOC to pay off credit card debt because the interest rate was much lower and the interest was tax-deductible. But I didn't change my spending so I ended up racking up credit card debt. By the time I sold my house after 20 years, I broke even but had no equity. If I had been more responsible, I could have had a paid-for home worth $250,000 instead of starting over with nothing at age 55.

@mattlaeff724

Ай бұрын

Ugh

@kathylewis6611

Ай бұрын

Unfortunately that is a very real problem for many people. Statistically more homes with HELOC loans are being foreclosed on as well.

The HELOC allows people to live a life that’s a complete facade. In this world of social media, it’s all about appearances. Tragic we can’t all live our authentic self.

I live like I'm broke

@ArtLenLa

Ай бұрын

Therefore, you probably won’t become that way.

@tduck828

Ай бұрын

Same so nobody asks me for money.

@elainel7924

Ай бұрын

Same!!

@Lashes888studio

Ай бұрын

Same 😂😂

@janelleg597

Ай бұрын

That's pretty sad

My house is paid for and I'd love to get it remodeled but I don't want anything bad enough to get a HELOC - I hope I never feel desperate enough to get one either. I have no desire to pull equity out of my house and make myself beholden to a bank again.

The problem is, people that had a $300K valued home 5 years ago suddenly had a $500k valued home 2 years ago. They then took a HELOC out and bought a second home in Florida to Airbnb. Now those homes are dropping in value, and the HELOC went from 4% to 9%, and they can't rent it out anymore for what they were asking.

To do a renovation only if it’s broken… don’t fix it if it’s not broken… we did our back deck paid cash, however the builder had an option to finance the deck… it was not 0 interest… so we negotiated the price being that we paid in full and in cash… the builder was really receptive to work the price and did a grear job.

What scary is many HELOCs also offer credit cards tied to the loan.

We had to do a HELOC. We had lots of water issues and crawlspace issue that had to be fixed. We didn't have the money to fix it. The issues had to be fixed. Due to these issues, our floors were sagging, the baseboards separated from the floors, the countertops were away from the walls, cracks in multiple walls.....to fix all the issues, we ended up with a sump pump, dehumidifier, encapsulation of crawlspace, 24 jacks, vapor barrier, perimeter drain....project started in Dec and still ongoing. All this is due to the builder taking shortcuts. Next is grading the yard to fix the water issues, to keep the water away from the crawlspace. If we did not fix it, the floor was going to collapse along with other issues. It was EXPENSIVE. The only way to fix it was to do a HELOC. Sometimes people have to go into debt in order to save their home. I hate debt but in our case we did not have an option. Moving was not an option either.

@tduck828

Ай бұрын

Yep. That was definitely a emergency situation.

@sarahhannah9647

Ай бұрын

Emergencies are definitely not the same as someone remodeling for fun because they are board with how something looks.

@siouxsinner

Ай бұрын

that's why they stress an ER fund.

@kaylacrittenden7760

Ай бұрын

@siouxsinner you can't do that when you are in a crisis mode with a house! And having to pay monthly on those repairs. When you have debt you have no savings. Emergency fund isn't possible anyways when dealing with expensive repairs.

@azteca6695

Ай бұрын

And a $1000 would not cover it!!!!!

So much respect for Rachel ❤

I think there are responsible ways of using HELOCs, especially for things that improve the home value overall that are not just aesthetic. We had to take out a HELOC to do a total-house rewire. If we had saved to do it in chunks, we would have ended up paying 5x the amount for something that we viewed as a safety issue. We planned and are executing paying off the entire balance in under 12 months.

@user-yb5bg8im5g

Ай бұрын

agreed. like credit cards, EVERY THING HAS ITS PLACE. i just get grumpy when poppa dave or sister mom rachel shakes their head and looks down their judgey noses. we know we are not the target audience, but the shaming doesn't come across as very christian. probably just me... and that's ok.

Rachel is so pretty and smart. She's naturally beautiful ❤️

The sad part of saving cash for something you need, (new roof) or want is releasing that cash...there today gone tomorrow, literally. Poof all gone, not a good feeling.

i keep hearing bout HELOC's but also keep forgetting to google it 😅 so thanks for that lil explanation 🙈

The interest rates can make a HELOC better than some alternatives- agreed that it is more ideal to save up for things though. One important note is that after the 2017 tax law if the loan is spent on anything other than improving your home, the interest is no longer tax deductible.

We did a HELOC several years ago....just a horrible decision

We are actually considering a heloc. Only to add on to our current home. We've been house hunting but can't find anything that's worth trading our 2.9% rate! A home addition would greatly improve our home value and give us a little more room. We'll be debt free besides our house payment. I realize that buying a house would be about the same as getting a heloc. But we love where we live.

What if you paid cash and own the home outright?

Is there something similar for someone living in a van down by the river? Would that be a VELOC or VDBTRELOC? Asking for a friend. 😊

@Bees-knees99

Ай бұрын

My brother literally lives in a van down by the river. Pretty sure there’s no loan for that!

Can you handle free/tough advice - Only purchase/buy things that can be bought with cash (exceptions - home mortgage and car loan (max three years, with minimal interest)).

@kristinsewell8769

29 күн бұрын

I remember listening to Bruce Williams back in the 90’s while in college. He said this exact same thing. “If you can’t pay off a car in 3 years, you can’t afford it.”

Smart young lady

I've been hearing about velocity banking, is that like a heloc?

Your app is not available in Canada..

I’ll be honest may go in debt for minor things here and there but I don’t ever plan on going in debt for a HELOC. Not on my home that I bought in 2020 with a 2.8 interest.

Thought you were gonna say subscription creep.

I try to live like I'm broke. Groceries payment sucks. Also I don't get software subscriptions. I like the Microsoft perpetual licenses. Stopped after 2022. Can still find them on the website though

Regarding CHM, no sport related injuries are covered. 😢

@JSICycles

Ай бұрын

They have an example of coverage on their website

Got a HELOC, changed my carpet floor to wood (after my toddler painted the said carpet yellow with his hands and feet all throughout the house (long story)), paid it back in some years and finished it off with our emergency fund when the rate went too high to be reasonable. It is a lot about self-discipline.

I bought a 12 unit apartment building using a HELOC on my paid off home. I was 59, didn’t have enough saved 4 retirement. 5 years later, I sold it for 1.5 million, double what I bought it for. Wish now that I wouldn’t have sold it.

@ginalowe9103

Ай бұрын

Oh I forgot the HELOC to mention was for the downpayment.

5:29 I know someone who stretched to buy and is trying to be responsible. He has a few renovations he wants to do but phase 1 was completed three years ago and still saving for phase 2. Phase 1 is starting to get dated already. 😂

@Klaudyacampos

Ай бұрын

Is that someone you Steven 😂😂

@stevenporter863

Ай бұрын

@@Klaudyacampos No.

lol, HELOC is the devils tool 🤣🤣 I’m hearing alot about 2nd mtgs now in lieu of this….look out! 😳

Once you missed your heloc payment, the bank will take your home

🎉

A home equity loan destroyed me, stay away.

@user-yb5bg8im5g

Ай бұрын

depends what you use it for.

HELOCS are as bad as payday loans. Don’t treat your house as a bank, and YOU will actually own it instead of some faceless corporate leeches.

@Cardinal15

Ай бұрын

Yup! you’re getting a payday loan with your house.

I appreciate your content Rachel. We got an 80k heloc on our Florida no mortgage home and bought a fixer upper in New York. Now I own two homes and have a net worth of about 600k if I were to cash out everything. The payment, interest only is about 290.00 a month for the first 5 years.

Sell the dang home and make your money. Then, regroup and possibly rent for a bit.

@Maryanne-xo5ip

Ай бұрын

I was so tempted to do that in '21. so thankful it didn't work out bc my mortgage payment rn is $763. My old apt that I wanted to move back to is over $1700. In theory it sounds like a good idea but life comes at you fast & you might get stuck in an apt longer than you'd like, imo

@mattlaeff724

Ай бұрын

@@Maryanne-xo5ip - Wonderful news! Geez, that is a low mortgage -

The only thing more valuable than a home to own outright for most of us is an education. Unless you can create a billion dollar company or series or portfolio of companies. That’s the 2024 version of phrases like - “I want to be out of debt” or - “I want to be a millionaire” or - “I want to own a house someday”. No. Now it’s a billion dollar or at least multi million dollar income generation business. Everybody wants the empire. Question is, what are you willing to give up to manufacture that level of value with your life? What levels of comfort zone are you willing to risk or sacrifice to get it? Right?

@brightpage1020

Ай бұрын

And how patient are we willing to be? Like the old Marshmallow test with kids. Take one now. You can eat it now and if you save it until the grown up gets back in the room in a few minutes, they’ll bring you another so you can eat both! Imagine if you added “and if you wait to eat them 10 minutes instead of 5, you can have 4. 20 minutes will earn you 8 marshmallows… “ Illustrating the idea of compound interest. How long would kids be able to make it and what would be the breaking point of diminishing returns concept for not giving in to temptation?

I regret it

You have some amazing advice and then you advocate foregoing real health insurance for Christian Health Ministries? It has so many limitations and is so risky.

@elenap-ot4gh

Ай бұрын

how is it risky? just curious

@lizzieveaner4620

Ай бұрын

@@elenap-ot4gh if you have a medical situation that isn't covered (which is a lot) you are then uninsured for that event. For example if you get pregnant and aren't married then you are on the hook for all prenatal care and the delivery. If you're diabetic it won't cover your insulin. With medical debt being the top cause of bankruptcy in this country it shocks me that Ramsey would advocate for this.

Investing in active funds when you could save money on index funds.

@tcgtpl

Ай бұрын

Nah, the Ramsey Team needs those sweet Smartvestor Pro kickbacks. Ain’t no way they’re going to advocate for something that goes against their bottom line.

That sounds about as bad as taking a loan out with your retirement funds. 😅

@user-yb5bg8im5g

Ай бұрын

mine is a 4% and is a bridge to selling my house as opposed to foreclosure. everything is a tool, nothing to extremes...

We got a 1.99% heloc and paid off our house with it before the interest rate went up.

@dawnkoplitz1825

Ай бұрын

You can do this???

I was recently diagnosed with a potentially lethal medical condition. I was going to pay for my medical treatments using a HELOC but I have decided to die instead. I would rather die than take out debt.

@Nicolllld

Ай бұрын

Wow you’re so strong 🥹

@LAnnMcK

Ай бұрын

I would not be making hasty decisions after a diagnosis like that, especially if you have family that depends on you. Pray about the situation. GOD recently healed me of cancer, HE is able to do more than we ask or think (literally). Praying that HE intervenes on your situation.

The background music is so annoying

@zo_471

Ай бұрын

💯

First

She is so out of touch. There’s no way that she had saved for five years for a pool while making millions.

Let me get this straight… so Ramsey’s basically saying the ONLY option in life is to work until you’re 65 and to throw a percentage of your salary into retirement accounts until you get there?

@azteca6695

Ай бұрын

Yep.....