Maybe in the context of like day trading or something I agree. But for sure an individual can find profitable trades consistently. You just have to turn over enough rocks. Plus analysts are wrong all the time.

Also when you are dealing with large amounts of capital as an institution there are rules you need to follow and a lot of trades you wouldn't even bother to look at. They can't just go buy and sell a bunch of stuff willy nilly like an individual investor can. They have considerations like balancing their portfolio and limits on how large a certain position can be and things like that.

And there are also pockets of industry if you're familiar enough with that you can have an edge.

For example if you were familiar with the supply demand of optics and what the main driver was you could have profited pretty well trading AAOI and LITE. Particularly if you could see the worldwide shortage running into the spike in demand coming in summer of 2017.

Currently trying to figure out a fair % interest to charge my stepchildren on family loans for getting them into the housing market. One will likely get a $100K loan from us within the next week, another probably similar within the next few months, the third who knows (but we'll eventually have to offer him the same deal).

On the one hand, we're mainly looking to help them out. So was thinking of just charging more or less what a GIC (I believe CDs for you guys down there) would go for, say in the 1% ballpark.

On the other hand, doing that would obviously be a poor financial move for us compared to where we currently have our money parked. Just doing the math on what like ~$300K over ten years parked at 5% is kinda gross. But it isn't as if that's the whole portfolio, so no biggee. Just the cost of being a parent I suppose?

Anyone have any personal experience with this?

GfirstworldproblemsG

So you're giving them loans so they can make a down payment?

Whatever the case, 1% sounds lol ridiculous.

Attempting to straddle the line of helping-you-out while not putting-ourselves-in-the-poorhouse. Not looking to make money, but not looking to lose loads (versus what we could have it in). Just curious as to what other parents here have done.

Have our annual meeting with our financial advisor next week, so I'm sure he'll help shine a bit of a light.

Gwillingtoselloneofourkids,allreasonableofferscons ideredG

Are these lolololol CAN$ or real ones?

Overtly sexual and Spyu are both right.

There are some edges left open because scale takes them off the table for big institutions. Supposedly real estate investing is similar, large players are too big to spend time on the small edges that are big enough to be worth it for a bro.

There are also edges left open by information asymmetry (some people have better knowledge on some stuff). But, as a random small time guy you basically shouldn't believe you have info assymetry edge unless you are an expert in the topic and already passed the dunning kruger valley of despair and on the slope of enlightenment. Vast majority of people (even so called experts) are not even past peak of mount stupid (Google the graph).

All in loonies and toonies in jars under my bed.

GmakingitrainhurtslikehellG

The general public thinks that when they’re right about stocks it was because of their sick research but really they just luckboxed into riding the coattails of the puppet masters at the right time.

GG - I had planned on helpin my kid by doing some kind of match of her down payment. That way she has saved on her own and has skin in the game. Fortunately for me I do not think that will be necessary.

Yeah, the one who is first up will be putting down a huge chunk herself, likely just as much as we'll be loaning her.

Was yours planned as just being a gift that did not require ever being paid back? Or eventually paid back, with some interest?

GcluelessloansharkingnoobG

$150-200k down payment on a house? Kid needs to find a cheaper house. Matching sounds great. 1% sounds stupid. Giving/loaning $100k also doesn't seem great.

I am a total sucker when it comes to my kid. I just can not help it. I was planning on it being a gift. I have enuff $ and just want to have my kid be happy and stress free. Buying a home and making that commitment is stressful enough and I figured if I can ease that in any way I will. That being said she is based out of NYC and will be there for at least one more year as she has a new new gig with HBO that starts next week. She has zero intention of purchasing there and is happy renting.

Just went under contract for my dream home. $240k, 1500sf single family home built in the 1910s but is zoned commercial. It has two front doors but is not a duplex. I asked the current tenant what he didn't like about the house and he said the gunshots (to which I chuckled).

Anyone interested in an above ground swimming pool? I'll throw in some free pre-owned tires since the pool is currently not in a state that will allow it to retain water.

Yup, totally understand Squiddy, good for you.

The first one up for us has plans (somewhat dependent of how other life things work out for her) of simply renting this out as an investment and have the renters more or less pay her mortgage. So just looking to help get her into a market that is impossible to get into without some help, while not setting back our own retirement plans any discernable amount.

GcluelessingeneralnoobG

gg,,, we're keeping a ledger for our two boys. Started a few years ago when oldest went back to get a second undergrad degree and needed support. Both get a spreadsheet monthly that shows what they have "borrowed" from us (at 0% interest rate). When we die, our estate gets divvied up evenly with the ledger balance in play. If you can swing it.... this is the way to go imo.

That said, if you need the income (or money "back" later in life).... then minimum interest allowed-by-law would again be my choice. (Arm's length transaction required).

I do like the skwid idea about matching funds...... tho may not be practical.

She's not going to live there? She's just going to rent it out. Seems like a good deal for her to get a 1% loan for a down payment on an investment property. Then when she moves away you can handle any issues that arrive since you have skin in the game. Love her plan but she should have figured out a way to get you on the hook to buy her $100k in dogecoin.

One of my favorite side country spots was the sight of another fatality over the weekend. Its called squaretop. Its off the 9990 lift. Because of this vail has closed the exit gates which is a major bummer. One of the few places in USA 1# that you can speed fly at a resort is out of the exit gates and if they do not reopen it obv that will be forever gone and was really looking foreword to flying with SPC from out there as her skills are almost ready for that.


Had a nice mini pow day today

I can understand your confusion. You see many of us have family members we like/like us and we want to help them out. You probably aren't familiar with this kind of relationship.

Yeah, I think this is more-or-less what our plan is, except with a nominal interest; we've done similar interest free loans to them before, but nothing remotely this big. Just trying to figure out a "fair" nominal interest, and currently leaning towards pretty small. I don't think we have the same laws regarding minimum interest / maximum loans up here, but I'm sure our financial guy will clarify.

Good point of including this in the estate payout. Wife and I certainly don't plan on dying during this payback period, but will be going in to get our official will done soon (and will have to remember to make this part of things).

GcluelesslifenoobG

By pure coincidence, I'm currently attempting to hack Ancestory.com to have myself listed as one of your long lost nephews.

GUncleSkip!G

It’ll be basically impossible for my kids to be able to buy a home anywhere near us in Sydney by the time they reach that age unless they become mega successful financially. Crazy how expensive property is here and it’s only getting more so - our house has more than doubled in value the past 7 years and was already really expensive

The last time the survey was done 12 months ago the median house price is more than 11x median income and its way worse by the beaches - prices rose in our area 20+% last year

Really sucks for them and potentially us.

Yeah, it just really is impossible for this generation here to get into the market by themselves as we were able to in our day. As I say, my youngest is planning on going halfers into a house with another family unit, which obviously isn't ideal and rife with potential problems, but traditional methods are pretty much impossible.

Ggoodlucktothem,imoG

I keep telling my nieces and nephews they will be out of luck when I am 83 and decide to marry some 30yo chippie for "companionship".

So my endgame should now be to groom this potential chippie and take my managerial cut?

GnowregrettingdroppingoutoftheMarilynMansonSchoolO fGroomingG

Pretty sure we will have a place in NZ at some point in the next 8-10 years. May just do LT rental though. It has gotten quite expensive there as well though probably not to the extent of Sydney. My wife's father was a Kiwi and had a "shack" in the mountains that the 3 kids sold and split up the proceeds when he passed some time ago. Should have kept that puppy.