Comments on: Friday Gathering: My Daughter’s Birthday Edition

By: Four Pillars

Four Pillars — Sat, 05 Dec 2009 23:52:22 +0000

Thanks for the mention.

Yes, I certainly made a small profit with my leveraged account but it could have just as easily been a significant loss. It wasn’t worth the hassle in the end which is why I stopped it.

By: Stew

Stew — Sat, 05 Dec 2009 23:38:05 +0000

Courtney, they are not percentages. For instance, a maxed out credit card reduces a 680 credit score 10 points or a little over 1%. The same offence reduces a 780 credit score a minimum of 25 points or a little over 3%.

By: Courtney

Courtney — Sat, 05 Dec 2009 22:22:44 +0000

“Did you know that you lose more points if your initial score is higher?”

That’s generally how percentages work…5% of 750 is more than 5% of 580.

By: Stew

Stew — Fri, 04 Dec 2009 22:02:56 +0000

Thanks for stopping by, Patrick.

Des, that is an incredible story, if I tried something like that, I would get burned so bad …

By: Patrick

Patrick — Fri, 04 Dec 2009 21:44:18 +0000

Thanks for mentioning the guest post at my site. I enojoyed reading it and was happy to publish it. :)

By the way, I have an iPod Touch, and it is an amazing tool. I love it! :)

By: Des

Des — Fri, 04 Dec 2009 18:46:34 +0000

Regarding the Four Pillars post – Yeah, I did something like this earlier this year. I was able to take advantage of the first $7,500 tax credit for first home purchase, which must be paid back over 15 years to the government. It was effectively a zero-interest loan. I put it into a few stocks and some double and triple ETFs and made about $6k (before taxes) in a few months. Then, I pulled out the original $7,500 and used it to pay down my student loans. I built the remaining $6k profit up to $8,500, then pulled out the $6k and left $2,500. The $6k is in an account at SmartyPig earning 2%. The $2,500 is in a few long-term stock bets. The reason I didn’t keep playing is that in March when I got my tax return I knew it was a golden market opportunity – that I was almost SURE to make some money. Now, I don’t feel the opportunity is as great, and thus isn’t worth the risk to me. That, and it took a LOT of time researching and actively trading. The day of reckoning (April 15th) is coming soon when I will need to pay for my active trading transgressions.