What is the Worst Financial Decision/Mistake You Have Made?
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Re: What is the Worst Financial Decision/Mistake You Have Made?
Biggest financial mistake was probably also our best life decision: Moving from Texas to Washington four years ago.
All-in-all the move probably set us back $100,000 in terms of moving costs, selling a home in a LCOL area and buying a much more expensive one in a HCOL area and so forth. We bought a much larger home in WA than we really needed and are now paying 2x the monthly bill compared to what we were paying for an equivalent house back in TX. And set back our future retirement date by at least a year.
But in the end, we did boost salaries and quality of life by getting out of central TX. And we are super glad for the large house in 2000 with the Pandemic because we have the room to spread out, do work from home, distance learning, and not be in each other's hair. And since we are trapped here, might as well be living in a nice pleasant neighborhood with views, green spaces, trails, and a lot of amenities, even at a cost.
And our kids who are a bit more eclectic are thriving here more than I think they would have in more conservative Central TX.
All-in-all the move probably set us back $100,000 in terms of moving costs, selling a home in a LCOL area and buying a much more expensive one in a HCOL area and so forth. We bought a much larger home in WA than we really needed and are now paying 2x the monthly bill compared to what we were paying for an equivalent house back in TX. And set back our future retirement date by at least a year.
But in the end, we did boost salaries and quality of life by getting out of central TX. And we are super glad for the large house in 2000 with the Pandemic because we have the room to spread out, do work from home, distance learning, and not be in each other's hair. And since we are trapped here, might as well be living in a nice pleasant neighborhood with views, green spaces, trails, and a lot of amenities, even at a cost.
And our kids who are a bit more eclectic are thriving here more than I think they would have in more conservative Central TX.
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Re: What is the Worst Financial Decision/Mistake You Have Made?
These mistakes won't seem very grand by comparison, but they are nonetheless things that have cost me in some way:
(1) Almost certainly paying too much for our condo because we fell in love with it. I would estimate we may have overpaid by a minimum of $25K and possibly more when renovation costs are included. Not a huge regret because it is still affordable and we love it for it's unique view and terrace. But definitely not an efficient use of money.
(2) Thinking that "maxing out a 401k" meant contributing to the employer match until I was about 28. I could have had more tax advantaged money - probably about $100K more in total. And I bet I would have netted more also because the money would have been in jail and I'm sure I spent more because it was in the regular bank account.
(3) Having shoddy work done by a contractor because I didn't educate myself enough on how the process should work to spot the corners they cut. This cost me $7K when I had to completely re-do an already once renovated shower because of leaks into a lower unit.
(1) Almost certainly paying too much for our condo because we fell in love with it. I would estimate we may have overpaid by a minimum of $25K and possibly more when renovation costs are included. Not a huge regret because it is still affordable and we love it for it's unique view and terrace. But definitely not an efficient use of money.
(2) Thinking that "maxing out a 401k" meant contributing to the employer match until I was about 28. I could have had more tax advantaged money - probably about $100K more in total. And I bet I would have netted more also because the money would have been in jail and I'm sure I spent more because it was in the regular bank account.
(3) Having shoddy work done by a contractor because I didn't educate myself enough on how the process should work to spot the corners they cut. This cost me $7K when I had to completely re-do an already once renovated shower because of leaks into a lower unit.
Re: What is the Worst Financial Decision/Mistake You Have Made?
Whole. Life. Insurance.
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Re: What is the Worst Financial Decision/Mistake You Have Made?
Illinois.helloeveryone wrote: ↑Fri Dec 18, 2020 9:38 pmFlorida??JDCarpenter wrote: ↑Fri Dec 18, 2020 12:28 pmDW's annual malpractice premium went from less than 50k to 125k in three years (no claims). Gross revenue didn't go up and she had no room for more patients.JiggsJazzCar wrote: ↑Fri Dec 18, 2020 12:17 pmWas it anything you could have planned or was it all pretty much out of your hands?JDCarpenter wrote: ↑Fri Dec 18, 2020 12:13 pm Bought and improved our dream forever home in a beautiful location in the best neighborhood on the outskirts of a depressed zipcode.
Loved the house and neighborhood, but unexpectedly "forced" to move states 12 years after buying it. Lost more than a year's after-tax income.
No real way to predict it, which is why the choice to practice in that jurisdiction isn't considered our worst financial mistake. (The insurance tail payment was almost as much as the loss on the house, and unfortunately, those weren't previously sunk costs.)
Our personal blog (no ads) of why we saved/invested: https://www.lisajtravels.com/
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Re: What is the Worst Financial Decision/Mistake You Have Made?
It is not limited to one sex or the other. Technically, my 15 years of half-time academic work were a terrible financial decision. But, DW and I do not regret that choice. YMMV.pennywise wrote: ↑Sat Dec 19, 2020 7:02 am Mine was a decision-to transition to PT status for several years between when my children were born and when the youngest started preschool. Though I was able to maintain my vesting rights during those years (first person in our university to be formally PT w/benefits), when I retired I realized how much damage those 'lost' years did to my pension. Husband was employed at same place, we had same total years of service and similar salary levels. Only difference was he was FT all the way while I had 4-5 PT years in the middle. So due to the formula our employer used, my pension is 40% lower than his and will be for the remainder of my life.
...
And this is why I chime in with others when the recurrent 'should my wife quit and be SAH' discussions roll around. There's no easy answer but it's something that usually has pretty severe and permanent repercussions for a woman financially. Those should be part of the consideration and shouldn't be glossed over.
Our personal blog (no ads) of why we saved/invested: https://www.lisajtravels.com/
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Re: What is the Worst Financial Decision/Mistake You Have Made?
Exactly. By far the worst financial decision for me individually was giving up a fairly high level GS-14 Federal job in Alaska to move to Texas for my wife's medical residency and career. I ended up teaching HS science in TX for a huge cut in salary and got absolutely hammered by the Social Security WEP for those 10 years so ended up cashing out my meagre TX pension and rolling it into an IRA when we moved back to the Northwest recently. I sacrificed hundreds and hundreds of thousands of dollars of salary, pension and TSP savings by doing that. But then I married a doctor and got 3 daughters in exchange so it all worked out. I regret none of it.JDCarpenter wrote: ↑Mon Dec 21, 2020 10:52 pmIt is not limited to one sex or the other. Technically, my 15 years of half-time academic work were a terrible financial decision. But, DW and I do not regret that choice. YMMV.pennywise wrote: ↑Sat Dec 19, 2020 7:02 am Mine was a decision-to transition to PT status for several years between when my children were born and when the youngest started preschool. Though I was able to maintain my vesting rights during those years (first person in our university to be formally PT w/benefits), when I retired I realized how much damage those 'lost' years did to my pension. Husband was employed at same place, we had same total years of service and similar salary levels. Only difference was he was FT all the way while I had 4-5 PT years in the middle. So due to the formula our employer used, my pension is 40% lower than his and will be for the remainder of my life.
...
And this is why I chime in with others when the recurrent 'should my wife quit and be SAH' discussions roll around. There's no easy answer but it's something that usually has pretty severe and permanent repercussions for a woman financially. Those should be part of the consideration and shouldn't be glossed over.
Re: What is the Worst Financial Decision/Mistake You Have Made?
A bad financial decision doesn't depend on it's outcome.
Best example is lump sum vs. DCA. It doesn't matter if DCA would have been better in hindsight, it would be the worse decision to do it.
Putting all your life savings close to retirement into a call option and trippling your money is a terrible financial decision, despite the positive outcome.
Best example is lump sum vs. DCA. It doesn't matter if DCA would have been better in hindsight, it would be the worse decision to do it.
Putting all your life savings close to retirement into a call option and trippling your money is a terrible financial decision, despite the positive outcome.
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Re: What is the Worst Financial Decision/Mistake You Have Made?
2007: opened Roth IRA
2008: value of Roth IRA reduced by 50%
2009-2011: no contribution (THIS IS THE MISTAKE)
2012+: back on track
2008: value of Roth IRA reduced by 50%
2009-2011: no contribution (THIS IS THE MISTAKE)
2012+: back on track
Re: What is the Worst Financial Decision/Mistake You Have Made?
People can change over the years of a long marriage. Sometimes it's small things, other times large. There are a lot of posts about career changes and mid-career job losses even in this forum. A former high earning spouse can suddenly become unemployed or make less money in a totally different career. They could have an affair or get addicted to drugs. People get degrees they never use. They get bored of hobbies and fine new ones. Life happens. You can't know the future when you marry someone, you make the best decision with the information you have at the time.Starfish wrote: ↑Sat Dec 19, 2020 1:44 am I see the divorce stories and couldn't help thinking: how is the divorce the mistake? Isn't the marriage? Financially speaking, marrying somebody with 0 or much lower income is the major mistake. Ideally partners should be as equal as possible in marriage, financially, intellectually, same page with goals, preferably hobbies too.
That's the lesson here.
"...the man who adapts himself to his slender means and makes himself wealthy on a little sum, is the truly rich man..." ~Seneca
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Re: What is the Worst Financial Decision/Mistake You Have Made?
hah!
Our personal blog (no ads) of why we saved/invested: https://www.lisajtravels.com/
Re: What is the Worst Financial Decision/Mistake You Have Made?
This one is easy for me to answer ... shorting tesla via puts ...
Would I rather relax and make money or make money and relax ?
Re: What is the Worst Financial Decision/Mistake You Have Made?
1. Not pulling trigger on buying a home in LA in 2011
2. Not contributing the max to 401k for 6 years after working because of fear and lack of knowledge of market and investing and how tax advantaged accounts work
3. Not contributing to Roth IRA for 7 years after working, for same reasons above
4. Putting all savings in savings account, no investing, until above
5. Not utilizing a HDHP/HSA whenever it was available (I am relatively young and had no health issues until now)
6. Purchasing a new car when got first job
7. Purchased a luxury car and replace first car when it was running great
8. Purchased a Rolex and Omega watch, which I rarely even wear now
If I could do it all over again I would of contributed the max to 401k, IRA, HSA as soon as started working (was living at home so could of afforded it), kept driving my 15 year old car after work and bought a used car to replace it when it died, and saved the rest of money and bought the home in 2011.
I can't add stuff like not buying Amazon, Netflix, Tesla, etc since based on my conservative nature, I would not have put most of my savings into a couple stocks.
2. Not contributing the max to 401k for 6 years after working because of fear and lack of knowledge of market and investing and how tax advantaged accounts work
3. Not contributing to Roth IRA for 7 years after working, for same reasons above
4. Putting all savings in savings account, no investing, until above
5. Not utilizing a HDHP/HSA whenever it was available (I am relatively young and had no health issues until now)
6. Purchasing a new car when got first job
7. Purchased a luxury car and replace first car when it was running great
8. Purchased a Rolex and Omega watch, which I rarely even wear now
If I could do it all over again I would of contributed the max to 401k, IRA, HSA as soon as started working (was living at home so could of afforded it), kept driving my 15 year old car after work and bought a used car to replace it when it died, and saved the rest of money and bought the home in 2011.
I can't add stuff like not buying Amazon, Netflix, Tesla, etc since based on my conservative nature, I would not have put most of my savings into a couple stocks.
Re: What is the Worst Financial Decision/Mistake You Have Made?
As I tell my teenage son, make sure you marry someone who's family has lots and lots of money (having him learn from my mistake) . Then as I think about it, I say well then again, the person may be extremely high maintenance/high expectations which will create problems, and maybe that could be a huge mistake . But ultimately, both spouse/I are same page on the recommendation for the kid: Find someone who is also career oriented like you should be (we presume/hope at least) because if a marriage does or doesn't work out (and who really knows?) financially things go best in life if both parents each have good careers/incomes.Elsebet wrote: ↑Tue Dec 22, 2020 7:32 amPeople can change over the years of a long marriage. Sometimes it's small things, other times large. There are a lot of posts about career changes and mid-career job losses even in this forum. A former high earning spouse can suddenly become unemployed or make less money in a totally different career. They could have an affair or get addicted to drugs. People get degrees they never use. They get bored of hobbies and fine new ones. Life happens. You can't know the future when you marry someone, you make the best decision with the information you have at the time.Starfish wrote: ↑Sat Dec 19, 2020 1:44 am I see the divorce stories and couldn't help thinking: how is the divorce the mistake? Isn't the marriage? Financially speaking, marrying somebody with 0 or much lower income is the major mistake. Ideally partners should be as equal as possible in marriage, financially, intellectually, same page with goals, preferably hobbies too.
That's the lesson here.
Re: What is the Worst Financial Decision/Mistake You Have Made?
Best:
Starting my own business 10 years into my career
Starting an IRA when I was 18 and barely knew what it was, and converting it to a Roth when it became law
Worst:
Not networking well enough early in my career
Starting a business mid career with a sibling, which I originally envisioned as a side hustle - terrible results that started with the best of intentions
Buying too much house - it's "affordable" now but the amount you pay in interest in the first few years is jaw dropping. Then there's the upkeep.
Not putting savings into the market over the 2000s lost decade, because we missed the 2012 take-off
Starting my own business 10 years into my career
Starting an IRA when I was 18 and barely knew what it was, and converting it to a Roth when it became law
Worst:
Not networking well enough early in my career
Starting a business mid career with a sibling, which I originally envisioned as a side hustle - terrible results that started with the best of intentions
Buying too much house - it's "affordable" now but the amount you pay in interest in the first few years is jaw dropping. Then there's the upkeep.
Not putting savings into the market over the 2000s lost decade, because we missed the 2012 take-off
Re: What is the Worst Financial Decision/Mistake You Have Made?
Mako52 wrote: ↑Wed Dec 23, 2020 8:43 am Best:
Starting my own business 10 years into my career
Starting an IRA when I was 18 and barely knew what it was, and converting it to a Roth when it became law
Worst:
Not networking well enough early in my career
Starting a business mid career with a family member, which I originally envisioned as a side hustle - bad results that started with the best of intentions
Buying too much house - it's "affordable" now but the amount you pay in interest in the first few years is jaw dropping. Then there's the upkeep.
Not putting savings into the market over the 2000s lost decade, because we missed the 2012 take-off
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Re: What is the Worst Financial Decision/Mistake You Have Made?
In my 20's, I inherited a small portfolio of old school stock from my grandparents (S, IBM, MS, PCG, etc.). Low 5 figure value. I let a family friend who was a broker manage it for me, and I let the portfolio flounder around for a number of years.
Thankfully, I discovered Bogle, Kobliner, Tobias, etc. before I was ever tempted to put any new money into the account. My failing was to wait years until I finally liquidated the stock (and my actively managed brokerage account) and re-invested something much more sensible.
Thankfully, I discovered Bogle, Kobliner, Tobias, etc. before I was ever tempted to put any new money into the account. My failing was to wait years until I finally liquidated the stock (and my actively managed brokerage account) and re-invested something much more sensible.
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Re: What is the Worst Financial Decision/Mistake You Have Made?
1) Cashing out all my 401k to buy a car when I changed job at age 30.
2) Selling AAPL and AMZN too soon.
3) Not finding out about Bogleheads Forum until age 60.
Still, no complaints.
TravelforFun
2) Selling AAPL and AMZN too soon.
3) Not finding out about Bogleheads Forum until age 60.
Still, no complaints.
TravelforFun
Re: What is the Worst Financial Decision/Mistake You Have Made?
Very good points, both that it's not limited to one gender AND that it is a decision that might not be the smartest one financially, but for which you may also never have a moment's regret.JDCarpenter wrote: ↑Mon Dec 21, 2020 10:52 pmIt is not limited to one sex or the other. Technically, my 15 years of half-time academic work were a terrible financial decision. But, DW and I do not regret that choice. YMMV.
My only lasting regret is that I wasn't aware at the time exactly what the long term repercussions would be. Had I known, it might not have changed my decision, but I would have made a major life decision knowing more clearly what I was giving up.
Re: What is the Worst Financial Decision/Mistake You Have Made?
Cartographer wrote: ↑Sat Dec 19, 2020 10:58 am Whether a decision was right or wrong should be evaluated relative to the available data at the time, not in hindsight. From that perspective, not investing in a particular company or other asset that happened to since skyrocket is not a mistake, as it made complete sense to not invest at the time.
I strongly agree with both of these points. Wishing you had bought $AAPL earlier or sold $AMZN later is just retroactive market timing, on top of the "original sin" of buying the stock in the first place. I sold $TSLA (bought it as a fun "gamble" a few years back) over the summer for what I thought was a very nice 333% gain in order to help buy my first apartment. If I'd held on a few more months, I'd be looking at a 1224% gain today instead. Do I consider that a mistake? Not really; I had no way of knowing that people would continue to be totally irrational about this stock, and owning an apartment reduced my COL by quite a bit and was in my long-term financial plan.tibbitts wrote: ↑Mon Dec 21, 2020 6:37 pm I don't agree with many of the replies in this thread. Since this is Bogleheads, buying individual equities should be considered a behavioral mistake, no matter the outcome. It's not a mistake to engage in the correct behavior and have it not prove optimal. Mistakes are errors where there was a somewhat obviously correct path that wasn't taken.
That said, I also think people are being too hard on themselves. To everyone who laments all the time and money they wasted before they discovered Bogleheads - give yourselves a break! You didn't know any better back then, and now you do. It's only a mistake if you know better and do it anyway, or could easily educate yourself and choose not to.
The biggest mistake I've made was not educating myself about the tax implications of freelancing. After a year of doing jobs that paid under the table, I finally landed a legit client, and just assumed they'd withhold taxes for me (I also didn't read my paystubs carefully... or at all). I didn't even know estimated tax payments were a thing until I got hit with an $11,000 tax bill at the end of the year, which took me several years to pay off.
Re: What is the Worst Financial Decision/Mistake You Have Made?
I think it was early 2009 (around the time of the market bottom) when the manager at the retail store I worked at handed out envelopes with the company's 401k plan. I never opened it. Oops...
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Re: What is the Worst Financial Decision/Mistake You Have Made?
love that one, lol.
Also, I live near a few marinas and I see tons of boats that easily cost 100s of thousands of dollars that stay wrapped up all year long in a dry dock field. I can only imagine what the ongoing costs to store, insure and perform any maintenance costs on those are. It's hard for me to imagine a bigger waste of money than a boat only being used occasionally.
Re: What is the Worst Financial Decision/Mistake You Have Made?
Sometimes I wonder if the use of boats is inversely proportional to the cost of the boat. We have owned a sailboat since 1986, but were lucky enough to have a school schedule that allowed 2 1/2 months every summer to go cruising. (13 years Bahamas and the rest of the time in the PNW) Owning a boat is certainly an expensive proposition, but having gotten to use ours as much as we have keeps it off the list of "worst financial decisions'. LOLStocks4LongRun wrote: ↑Sun Jan 03, 2021 1:34 pmlove that one, lol.
Also, I live near a few marinas and I see tons of boats that easily cost 100s of thousands of dollars that stay wrapped up all year long in a dry dock field. I can only imagine what the ongoing costs to store, insure and perform any maintenance costs on those are. It's hard for me to imagine a bigger waste of money than a boat only being used occasionally.
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Re: What is the Worst Financial Decision/Mistake You Have Made?
Sure. I had a boat for a long time. Not 100s of thousands of dollars, but I thought I got my $$$ worth. It isn't much different than many other things. Vacation homes...how much time do you spend there? Or big homes. Do you need 8k square feet instead of 4k? You could try to argue homes go up in value. But then you have $90k car vs. 40k car......$400 dinner vs. $100 dinner.....$2k suit vs. $600 suit....Stocks4LongRun wrote: ↑Sun Jan 03, 2021 1:34 pmlove that one, lol.
Also, I live near a few marinas and I see tons of boats that easily cost 100s of thousands of dollars that stay wrapped up all year long in a dry dock field. I can only imagine what the ongoing costs to store, insure and perform any maintenance costs on those are. It's hard for me to imagine a bigger waste of money than a boat only being used occasionally.
Frankly, the bottom line is when you reach a certain amount of wealth it is typically spent on things that aren't necessary/practical.
Re: What is the Worst Financial Decision/Mistake You Have Made?
- didnt know to ask for options when joining tech firm. other people asked and made millions.
- next job asked for options, once they vested i could have exercised and paid 5 cents a share. instead, when company was bought, my options gain was taxed as ordinary income as opposed to long term cap gain.
- next role i co-founded a startup. agreed with co-founders to sell for 7 times ebidta. should have sold following year, our revenue was up 30%
thank you op for helping me dredge up these deeply repressed memories.
ps: we also bought a house w a pool!
- next job asked for options, once they vested i could have exercised and paid 5 cents a share. instead, when company was bought, my options gain was taxed as ordinary income as opposed to long term cap gain.
- next role i co-founded a startup. agreed with co-founders to sell for 7 times ebidta. should have sold following year, our revenue was up 30%
thank you op for helping me dredge up these deeply repressed memories.
ps: we also bought a house w a pool!
Re: What is the Worst Financial Decision/Mistake You Have Made?
1. Not renewing permanent resident visa in NZ.
2. Selling dream home in CA when I moved....in 1994, right after entire house/pool/deck was rebuilt by insurance after Northridge quake.
2. Selling dream home in CA when I moved....in 1994, right after entire house/pool/deck was rebuilt by insurance after Northridge quake.
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Re: What is the Worst Financial Decision/Mistake You Have Made?
Would be good to see a comparison, but I don't think the collected rents invested would add up to 3.6 millionGodot wrote: ↑Sat Dec 19, 2020 11:39 amYes, but you've had forty years of rent from that house, and I'm sure some of that rent made its way into your investment accounts, or paid your expenses so that other monies could be invested.Abe wrote: ↑Fri Dec 18, 2020 3:19 pm I wish I had invested in the Vanguard S&P 500 Index Fund back in 1976. I bought a house to rent out in 1978 and paid $32,000 for it. That house is probably worth around a $100k now plus I've collected rents all through the years. If I had invested that $32k in the S&P 500 Index fund and reinvested dividends, I would have roughly $3.7 million now instead of a $100k house.
Re: What is the Worst Financial Decision/Mistake You Have Made?
My illustrious career:gips wrote: ↑Sun Jan 03, 2021 10:38 pm - didnt know to ask for options when joining tech firm. other people asked and made millions.
- next job asked for options, once they vested i could have exercised and paid 5 cents a share. instead, when company was bought, my options gain was taxed as ordinary income as opposed to long term cap gain.
- next role i co-founded a startup. agreed with co-founders to sell for 7 times ebidta. should have sold following year, our revenue was up 30%
thank you op for helping me dredge up these deeply repressed memories.
ps: we also bought a house w a pool!
1. Company A; IPO at 60, 1000 options over 5 years at 70, 80,...,110.
Company was bought 15 years later—-at 18. Never made it back to IPO
2. Company B: pretty much the same deal during the tech bubble. Last I checked: $8:share
3. Company C: growing leaps and bounds, from 20 to 30 to 40, options at 50, 55, 60, 65.
Company was found to be cooking the books and stock never made it over $28.
So , I quit...and of course did not exercise options and gave them up when I left. Know where this is going?
Yup, FAANG discovered the company and it now trades at $73.
Now
Re: What is the Worst Financial Decision/Mistake You Have Made?
I recall telling my broker/relative NO do not buy Worldcom and instead get all your clients out of it. I closed my account with him, and his other clients did of course lose.
My mistake/regret was opening an account with a relative. While I quickly fixed the financial error, hard to fix the non financial impact.
Re: What is the Worst Financial Decision/Mistake You Have Made?
My worst financial mistake is not preparing a comprehensive plan to tackle student loan debt upon completing school. It's safe to say not everyone lands a dream job upon graduation. Despite the grades earned, the network developed, or the promises made, sometimes the market just isn't there after graduation.
What I should've done was take the time to really understand the risks and consequences associated with student loans: specifically, the physical, mental, and financial toll it can cause without a financial plan in place (or even with one in place). I'm sure that, if future students took the time to really look and learn, they could easily find someone who can actualize the risks through sharing what it's really like to live with such a burden.
What I should've done was take the time to really understand the risks and consequences associated with student loans: specifically, the physical, mental, and financial toll it can cause without a financial plan in place (or even with one in place). I'm sure that, if future students took the time to really look and learn, they could easily find someone who can actualize the risks through sharing what it's really like to live with such a burden.
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Re: What is the Worst Financial Decision/Mistake You Have Made?
According to PV, $8K invested in APPL in 1995 would be worth $3.5M today.random_walker_77 wrote: ↑Fri Dec 18, 2020 1:57 pmFrom https://investor.apple.com/faq/default.aspx:Godot wrote: ↑Fri Dec 18, 2020 12:51 pmA lot more than 10k.JiggsJazzCar wrote: ↑Fri Dec 18, 2020 12:41 pmNot to make you feel sick or anything.... but how much would that be worth today?
"Apple’s stock has split five times since the company went public. The stock split on a 4-for-1 basis on August 28, 2020, a 7-for-1 basis on June 9, 2014, and split on a 2-for-1 basis on February 28, 2005, June 21, 2000, and June 16, 1987."
So 4 x 7 x 2 x2 = 112x
So 1000 shares x 10 = $10K
112,000 shares x $126 = $14.11M
So that's a difference of $14.1M, if held without selling any. Ouch indeed.
https://www.portfoliovisualizer.com/bac ... ion1_1=100
"Simplicity is the ultimate sophistication" - Leonardo Da Vinci
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Re: What is the Worst Financial Decision/Mistake You Have Made?
I agree with that, but still stand by my calculations, but not necessarily the inputs. According to historical stock price data, Apple's yearly low (split-adjusted) in 1995 was $0.2846 per share. Today's price is $130.sixtyforty wrote: ↑Mon Jan 04, 2021 9:24 amAccording to PV, $8K invested in APPL in 1995 would be worth $3.5M today.random_walker_77 wrote: ↑Fri Dec 18, 2020 1:57 pmFrom https://investor.apple.com/faq/default.aspx:Godot wrote: ↑Fri Dec 18, 2020 12:51 pmA lot more than 10k.JiggsJazzCar wrote: ↑Fri Dec 18, 2020 12:41 pmNot to make you feel sick or anything.... but how much would that be worth today?
"Apple’s stock has split five times since the company went public. The stock split on a 4-for-1 basis on August 28, 2020, a 7-for-1 basis on June 9, 2014, and split on a 2-for-1 basis on February 28, 2005, June 21, 2000, and June 16, 1987."
So 4 x 7 x 2 x2 = 112x
So 1000 shares x 10 = $10K
112,000 shares x $126 = $14.11M
So that's a difference of $14.1M, if held without selling any. Ouch indeed.
https://www.portfoliovisualizer.com/bac ... ion1_1=100
Using your example of $8K, that'd be (8000 / 0.2846=) 28109 shares, which at today's $130 share price is $3.6M. That's assuming no dividend reinvestment. Using the average price of .362 gives 3M which matches PV when not using dividend reinvestment. Either way, it's the right ballpark.
But above, they stated they bought 1000 shares. After all those splits, that turns into 112,000 shares, which is a lot more than the 28K shares they'd get if they bought in 1995. But did they misremember?
That same historical data shows a low of $0.1155 (again, split-adjusted) in 1997, when the company was close to bankruptcy. PV shows that buying $8K in July 1997 would yield 9.6M, but it doesn't look like the stock price was ever below $10. So perhaps one of the figures was misremembered and Godot can take some solace that it probably wasn't quite as bad as 14M. Maybe even as low as $4M
- JiggsJazzCar
- Posts: 77
- Joined: Fri Jan 17, 2020 9:35 am
- Location: USA - The Ozarks
Re: What is the Worst Financial Decision/Mistake You Have Made?
Anyone make any particularly bad decisions this year?
I was mostly free from stupid financial decision this year. lol
I was mostly free from stupid financial decision this year. lol
- AnnetteLouisan
- Posts: 7261
- Joined: Sat Sep 18, 2021 10:16 pm
- Location: New York, NY
Re: What is the Worst Financial Decision/Mistake You Have Made?
Turning down a relo to Brussels years ago because it was TOO CLOUDY THERE.
Choosing Fido over Schwab because “I don’t like the looks of that guy (Charles Schwab).” Fido is fine though.
Waiting for the right moment to adjust my AA (still waiting).
Turning down an effective 3.54 percent on EE bonds because I can’t stand the risk/stress of having to wait 20 years for interest to be credited.
Not periodically checking my employment market value. Not being on LinkedIn to avoid the hassles.
Not canceling my landline yet or even putting service on hold even though I no longer use it.
Not using cash back cards.
Rebuffing two potential job offers inadvertently. Although to be fair I probably would not have taken them anyway.
Choosing Fido over Schwab because “I don’t like the looks of that guy (Charles Schwab).” Fido is fine though.
Waiting for the right moment to adjust my AA (still waiting).
Turning down an effective 3.54 percent on EE bonds because I can’t stand the risk/stress of having to wait 20 years for interest to be credited.
Not periodically checking my employment market value. Not being on LinkedIn to avoid the hassles.
Not canceling my landline yet or even putting service on hold even though I no longer use it.
Not using cash back cards.
Rebuffing two potential job offers inadvertently. Although to be fair I probably would not have taken them anyway.
Last edited by AnnetteLouisan on Tue Dec 21, 2021 10:43 am, edited 1 time in total.
Re: What is the Worst Financial Decision/Mistake You Have Made?
Nope. No real screwups for me this year. Thank goodness.JiggsJazzCar wrote: ↑Tue Dec 21, 2021 9:40 am Anyone make any particularly bad decisions this year?
I was mostly free from stupid financial decision this year. lol
Re: What is the Worst Financial Decision/Mistake You Have Made?
For me it was leaving my IRA in investment firm xxx for 15 years despite high annual fees and disappointing results.
All we want are the facts...
Re: What is the Worst Financial Decision/Mistake You Have Made?
I took the "invest in what you know" intelligence multiple choice test:
a) I can outsmart people in area X
b) Nobody knows anything
I failed it the first time, so I had to take it again after I'd worn away a bit of my smarts
Re: What is the Worst Financial Decision/Mistake You Have Made?
I have friends who each ended up with one of the extreme outcomes, completely driven by random timing of events (same employer, too). I put concentration-of-risk-with-employer in the same bucket as leverage...you will end up somewhere faster than normal, but where is not controllable.investingdad wrote: ↑Sat Dec 19, 2020 7:00 am Not paying the taxes with cash on my wife's RSUs and doing net shares instead.
After a decade of employment, her original RSUs went from 40 to 400.
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- Posts: 309
- Joined: Thu Feb 06, 2020 10:57 am
Re: What is the Worst Financial Decision/Mistake You Have Made?
Being sold (buying) a variable annuity in 2009. Lost minimum 200k against a reasonable boglehead portfolio, which I have now. Relative sold it to me….criminal
Re: What is the Worst Financial Decision/Mistake You Have Made?
I did 3 years in one major, and was reluctant to switch to another major I found to be much easier (for me at least). What a struggle at the time...turns out harder majors have no correlation with better pay. Lesson cost me 3 years more in school and not working at what was better at. sighyoungpleb wrote: ↑Mon Dec 21, 2020 8:43 pm Probably my costliest mistake was going to college for 7 years instead of just 4. I did end up with some good degrees and a good job, but those missed years of full time work (nearly 4) really stack up. I should have put more thought in high school into what I wanted to major in.
Then early in my career came Bitcoin mania, and I lost a few thousand dollars in that. Tough lesson, but good to get it out of the way early. I’d like to have that money back now!
Last edited by KRP on Wed Dec 22, 2021 12:10 am, edited 1 time in total.
Re: What is the Worst Financial Decision/Mistake You Have Made?
Trusting the wrong people...more than once.
Re: What is the Worst Financial Decision/Mistake You Have Made?
Letting my "best friend" convince me he was an expert in rare coins. He guaranteed me a specific rate of return. It was a time of high inflation, and things like gold and collectible coins were soaring. After a couple of years or so, I wanted to cash out in order to apply the money towards the purchase of a house. By then the coin market had crashed. I generously asked for only my principle back. I was in my 20's - young and stupid. Lesson learned.
- AnnetteLouisan
- Posts: 7261
- Joined: Sat Sep 18, 2021 10:16 pm
- Location: New York, NY
Re: What is the Worst Financial Decision/Mistake You Have Made?
Lending money to friends.
- MortgageOnBlack
- Posts: 641
- Joined: Sun Feb 05, 2012 7:50 pm
Re: What is the Worst Financial Decision/Mistake You Have Made?
letting a friend drive my rental car back from Vegas
Re: What is the Worst Financial Decision/Mistake You Have Made?
As a young single adult in the 1980's I joined up for a 4-year hitch in the US Army. I proudly served and will never regret enlisting. However, I pissed away every cent I earned during that time, including a hefty enlistment bonus. I spent it as fast as I earned it. I spent most freely and foolishly on motorcycles, stereo gear, and photography equipment.
Serving in the military provided amazing experiences and "personal growth opportunities". It shaped my subsequent life in many positive ways. It also allowed me to fully fund my post-Army college years via the Veteran's Educational Assistance Program (the GI Bill of the '80's).
After my time in the Army, I vowed to never squander money extravagently ever again. The lesson was well-learned.
Serving in the military provided amazing experiences and "personal growth opportunities". It shaped my subsequent life in many positive ways. It also allowed me to fully fund my post-Army college years via the Veteran's Educational Assistance Program (the GI Bill of the '80's).
After my time in the Army, I vowed to never squander money extravagently ever again. The lesson was well-learned.
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- Posts: 3948
- Joined: Fri Dec 20, 2019 2:49 am
- Location: Upstate NY
Re: What is the Worst Financial Decision/Mistake You Have Made?
Willie Nelson wrote a song about his:
Well I got to get drunk and I sure do dread it
Because I know just what I'm going to do
I'll start to spend my money calling everybody honey
And I'll wind up singing the blues
I'll spend my whole paycheck on some old wreck
And brother I can name you a few
Well I got to get drunk and I sure do dread it
Because I know just what I'm going to do
Well I got to get drunk and I sure do dread it
Because I know just what I'm going to do
I'll start to spend my money calling everybody honey
And I'll wind up singing the blues
I'll spend my whole paycheck on some old wreck
And brother I can name you a few
Well I got to get drunk and I sure do dread it
Because I know just what I'm going to do
Re: What is the Worst Financial Decision/Mistake You Have Made?
Definitely the case with science. Struggle through organic chemistry, quantum mechanics, thermodynamic, to be offered $15 an hour temp no benefits.
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- Posts: 3948
- Joined: Fri Dec 20, 2019 2:49 am
- Location: Upstate NY
Re: What is the Worst Financial Decision/Mistake You Have Made?
In 2020 I opened two 150K one year CDs with Marcus with money I was planning to buy a house with in a few years. A house came avail early and I had to access the money early. I paid early termination penalties to the tune of a couple thousand dollars. The closing costs on the house were less than $500. Of course one should fully understand the terms and conditions of what they are signing up for. I didn’t know they could take part of the principle and yes it’s common practice. If this is the worst decision I have made as of late I am lucky.
- AnnetteLouisan
- Posts: 7261
- Joined: Sat Sep 18, 2021 10:16 pm
- Location: New York, NY
Re: What is the Worst Financial Decision/Mistake You Have Made?
“Interesting” financial advice I’ve heard from family:
On 401k statements and investment options:
“Dear, just take all those papers and put them on a shelf somewhere and think about it some other time.”
On investing in the market:
“I’d say ….. if someone is trying to sell you something, they’ve probably already taken most of the value out of it.”
On inflation (a few years back):
“Everyone’s complaining about the price of gas these days… it’s not a problem…. I just take another $20 out of my wallet!”
On 401k statements and investment options:
“Dear, just take all those papers and put them on a shelf somewhere and think about it some other time.”
On investing in the market:
“I’d say ….. if someone is trying to sell you something, they’ve probably already taken most of the value out of it.”
On inflation (a few years back):
“Everyone’s complaining about the price of gas these days… it’s not a problem…. I just take another $20 out of my wallet!”
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- Posts: 2
- Joined: Tue Dec 14, 2021 11:49 am
Re: What is the Worst Financial Decision/Mistake You Have Made?
Buying $15,000 worth of baseball card boxes/packs in a 12 month span.
Hasn’t killed me financially, but it’s an annoyance.
Hasn’t killed me financially, but it’s an annoyance.
Re: What is the Worst Financial Decision/Mistake You Have Made?
Six years ago...bought a "German Shepherd" for $1,000 with my then girlfriend, now wife when I was "in love" and not thinking clearly.
It has cost me countless amounts of money...this dog has had two ACL surgeries, it's on monthly medicine for bladder control, it has chewed up my sprinkler system wiring, chewed up the deck posts in the back yard, chewed up the A/C vent wiring, dug countless holes, sheds like crazy. It's the gift that keeps on giving.
Oh, and it turned out to be some type of mixed breed that I could have gotten for free.
DUMBEST thing I have ever done and I'm reminded of it daily
It has cost me countless amounts of money...this dog has had two ACL surgeries, it's on monthly medicine for bladder control, it has chewed up my sprinkler system wiring, chewed up the deck posts in the back yard, chewed up the A/C vent wiring, dug countless holes, sheds like crazy. It's the gift that keeps on giving.
Oh, and it turned out to be some type of mixed breed that I could have gotten for free.
DUMBEST thing I have ever done and I'm reminded of it daily