Viewing a single comment thread. View all comments

[deleted] OP t1_jdt1s67 wrote

Reply to comment by Coolyajets in Preparing to buy our first home by [deleted]

[deleted]

−180

asatrocker t1_jdt5i44 wrote

Is your investment account earning more than the interest rate on your debt? If not, you should liquidate and pay off your debt. You’re losing money otherwise

144

[deleted] OP t1_jdt5mdo wrote

[deleted]

−102

Eatsnocheese t1_jdt6bn5 wrote

Wait. I want to make sure I understand. Your investment account is earning more than 26%?

89

[deleted] OP t1_jdt7xtr wrote

[deleted]

−121

Coolyajets t1_jdt8xnc wrote

Wtf are you invested in? Nothing gains like that unless it is ridiculously risky. If it's risky, you do not want to invest money that you will need in a year in it.

96

Quiet-Road-1057 t1_jdtcype wrote

There’s literally no possible way. The best performing fund last year went up 6% and the top performing fund on a 3 year average went up 16% on average.

Liquidate your investments, pay your credit card debt.

86

Skeptical-_- t1_jdu9mkb wrote

That’s easily possible if they bought a few specific stocks. Not that’s necessarily a good idea but very possible it happened.

6

Quiet-Road-1057 t1_jdv4ujr wrote

You’re absolutely right, but in this event OP is 1) not investing, he’s gambling and 2) he’s on a massive stroke of good luck that OP should not be expecting to continue.

2

marvinvp t1_jdtl8k9 wrote

I'll just add to the chorus: you should sell all your investments and pay off your CC debt. Don't fool yourself thinking that you can sustain 26% post-tax returns, not even Wall Street pros can claim that. Maybe you were able to double your money over the past 3 years with some risky bets, but you likely won't keep it up. It's like going to a casino and betting on black, winning, and then thinking that you should just keep doing it.

36

idkAboutYouMan t1_jdt86cg wrote

No way any investment is averaging 26% post tax gains. Use you’re investment account to pay off your debt.

60

[deleted] OP t1_jdta8nu wrote

[deleted]

−97

idkAboutYouMan t1_jdtb25w wrote

So you’re basically gambling half your savings while holding serious debt? You could lose it all in one day. Pay off your debt dude. You will lose eventually

144

KinlawFanAccount t1_jdtaut3 wrote

Options are gambling. You will lose your money and be out of your “house” money. By all means if you think your 25%+ returns are sustainable, continue down this path. But that’s not realistic. You’d be better off selling those and paying off the CC debt. If 25% gains were realistic, everyone would be doing what you’re doing.

58

[deleted] OP t1_jdtbp6b wrote

[deleted]

−43

SainTheGoo t1_jdtc6t4 wrote

Thinking like that is how you get into debt like you have. You're getting good advice and it's frustrating that you're ignoring it. What you are doing is not working, that's why you're coming to the internet for help.

92

[deleted] OP t1_jdtd2gc wrote

[deleted]

−32

thowawayhorn t1_jdtdwvf wrote

Yeah, and we’re telling you it’s a dumb idea and that you should pay off your high interest rate debt with your current savings. It’s not investment advice. You’re straight up ignoring good advice and only want to hear what you want to hear.

94

djstudyhard t1_jdtz8fn wrote

If you’re so confident in your skills in investing then use all that money, pay off your debt, then reinvest in a few months again. If it was so easy and you are so wise that should be no problem for you. You’ll be a billionaire in 5 years tops. If that seems like a tough pill to swallow then you’ve got your answer (time to liquidate while you’re ahead).

27

[deleted] OP t1_jdu0744 wrote

[deleted]

−8

djstudyhard t1_jdu855l wrote

We aren’t mad. This is just not that uncommon of a situation. Someone is in a not great financial situation and found a streak of good luck and thinks they are on the path to success because their last few moves were good. Hoping for the best for your investment and I hope that it turns out the best for you!

7

_BreakingGood_ t1_jdu89s8 wrote

Just take a bit of time to think about why literally everybody is saying it's a worse idea to hold your investment than pay off your debt.

Just spend some time thinking why everybody is telling you that.

5

[deleted] OP t1_jdu8raa wrote

[deleted]

0

elysiansmiles t1_jdup7op wrote

Wait so you have literally no emergency fund aside from money in a risky investment? That’s even worse. Take that money out. Put a reasonable amount in a real emergency fund. Then use the rest to pay down your credit card debt.

1

_BreakingGood_ t1_jdv76lh wrote

That just makes it even worse. To have your entire emergency fund sitting in some investment.

1

KinlawFanAccount t1_jdtbwnk wrote

Got it. I would still recommend selling anyways, Credit Card debt is basically as bad as it gets, interest rate wise.

17