I wanna invest in da market

[Beachboy]

Re: I wanna invest in da market

Beachboy, investing money you will need for the short term is a bad idea. The stock market is a good way to invest your money if you have a long investment horizon. If you're gonna need your money in 2-3 years, that is not long term.

Let's say you can save $500 per month for a house. At the end of a year you'll have $6,000. If you "invest" it in the stock market agressively in growth stocks, you could hit home runs and get a 25-30% return if you invest in big blue chips. Not going to double your money but not going to lose it all either. Your $6,000 may have an upside of $7,800. Let's say there is an equally good chance that you lose 25-30% and your $6,000 goes to $4,200. How would you and your wife feel if you lost that money?

I'd advise my own brother or buddies to figure out how much they need and work to save that much. Put the money in a short term money market or something that only yields 2-3% but is 100% guaranteed safe.

At the end of 3 years saving $500 a month, you'd have $18,000. Enough to help with closing costs and with the right mortgage broker, you'd probably get financing. You could probably get 100% financing now but you're probably better off waiting till next winter to buy. The summers are always the peaks for real estate and the winter season is the slowest. Who wants to move around the holidays?

Best of luck bud. And if you insist on investing, I can give you lots of advice. I was Series 7, 63 and 65 licenced with the NASD. (fancy way of saying I was a financial sales guy - I failed at that because I thought I wanted to be an analyst guy. Now I know I would've been much happier as a sales guy. The grass is always greener for me :-)

808shooter, mahalo for the advice! I'm always open for a good clear vision for a sound finacial future.

As a beachboy, not much was put into my future except,...."hey ,where we gonna drink tonight"! But after years of waking up with only change in my pocket, and no longer alone my goals have changed a lot!

I just returned from the Big Island Monday. I spent a few days looking around at homes. While there my Real Estate Agent/Broker ,whatever she is got the necessary info to see if I qualify. Hell, my FICA score was 758 on the average! I was told I could even get 100% finacing if so decided to go that route. So that is where I stand today! I have an appt. this morning out in Aiea with a company that does home loans. They will tell me what Mortgage options I have, or can get.
I was told by my Real Estate Agent in Hilo that we(wife & I) would probably have to get jobs on the Big Island first to qualify for a loan to purchase there. For me that would be real risky. Who's gonna hire someone over 50 years of age? Besides, I make more money as a Beachboy! I told her that I'd commute during high seasons. Stay from Monday to Friday on Oahu, and fly back for weekends to new home on Big Island. But I was told this might be a problem??? What I told them would be the problem is I me walking away from the best paying 'gig' ,for a possible minimum wage job there just to become a home owner?!?!? Forcing me to take a minimum job in Hilo would mean the possibility that I could lose the mortgage on my new house! Why can't they understand that?