All Forum Posts by: Loc R.

Karen M.

One of the big questions that is out there is 'what do you do with the person who NEEDS healthcare but can't afford it?'

Now, what if that person NEEDS healthcare, can afford it, but choose NOT to buy it? To expand on that, what if that person doesn't have enough assets to cover their bill? What are you going to do? Garnish their wages?

I personally believe the only socialist programs that need to exist are the police and fire departments, the military, infrastructure departments (building code, roads, highways, etc.), and public assistance only for the TRULY sick and disabled.

I also believe that people have 4 responsibilities to themselves and their dependents: (1) roof over their head, (2) food on their table, (3) clothes on their back, and (4) healthcare coverage.

The problem with this country's health care system is that all the Big Corporations lose too much money with a healthy country.

1. We are addicted to 4000+ lb. cars. From an engineering standpoint, it is absolutely ridiculous that people (think single women) who weight 110 lbs. need an 8000 lb. SUV to do the same thing (get from point A to point B) that the footmobile or a 50 lb bike allows one to do.

Almost all automakers had no problems selling these profit machines, along with NO intention of a fuel efficient alternative.

This addiction if further fueled by the oil companies who are basically the "Wal-Mart" of energy; if they get 50M drivers to buy "acceptable" gas at $3/gallon, then they make a small (relative) profit on a high volume of consumption.

Couple that with the groundwork the automakers laid many years ago by essentially killing anything that resembled a halfway decent public transportation system, and here we are today.

2. There is a pill (cure) for everything. Someone said it a LONG time ago, that "an ounce of prevention is worth more than a pound of cure" - yet as a society we have yet to embrace it.

I won't dive too deeply into the fact that Big Pharm and the gov't would rather have you take a pill (with its 20 side effects) for pain instead of something like cannabis, and that's why it's still illegal.

3. Then, of course, is "American cuisine" - fast food. There is a lot of money there as well, and the results speak for themselves. Ketchup being classified a serving of vegetable? C'mon. The profit margins made from taking leftover animal meat and cardboard and calling them hamburgers, or by flavoring french fries with meat (and ungodly amounts of salt) is too much for any corporation to turn down.

There is another old saying "Good Diet - Medicine Not Necessary, Bad Diet - No Medicine Can Help".

2 Branches of our Corporate Ownership (Pharm and Food) squashed that one.

If your IRA makes the entire down payment, then your IRA has to take on the entire loan. The loan is typically a "non-recourse" loan and is only secured by the asset (i.e., no personal guarantee). Hence, the terms are a bit "harsher."

You can partner up with your IRA, and it's termed "undivided interest." Example: I buy a note with 50% IRA money and 50% cash, the buyers would be noted as "Loc R.'s IRA, 50% Undivided Interest" and "Loc R., 50% Undivided Interest."

Joseph,

As others have stated, self-direct your IRA and your investment options open up. I personally try to place my best deals inside of my Roth IRA. I also try to max out my personal contribution of my Roth IRA as quickly as possible (every January) so that I can put that money to work - I spend the rest of year trying to figure out how to minimize my AGI so that my wife and I still qualify for the Roth IRA.

Worry about the things you can control, and don't worry about the things you can't. It sounds like you have plans for cash reserves, so it's unlikely you're going to find yourself in a financial bind, which is the worst kind to be in.

You'll be fine.

My brother-in-law did this for a while until he started partnering with me on buying promissory notes.

Looking back, he now laughs at the notion. For the same return, he has a lot less risk in buying notes that are collateralized by real property.

In P2P lending, the default rate is about 7.5%, which is a number I would not be happy with.

No private lender in their right mind is going to lend for 30 years.

HMLs are typically 6-month loans that are I/O, with extensions available (at a price).

@Jeff S.: I just turned 35...

My plan of attack is to snowball my cashflows into a stockpile of cash.

@Kenny: Glad to hear that you were able to get the fully amortizing loan. Keep in the back of your mind a discounted pay-off, especially since you're paying 7% on that money.

@Nathan: I'm working on the assumption that Social Security isn't going to be solvent by the time I'm eligible!

To save myself some money, I send my accountant the interest amounts paid, vs. having her calculate it for me (at $150 per hour!).